No.9nffi7
Movnslr Pnornnry Secunrry lxrunnsrs
PART
IV
Rmrs lt'lo OsucltrroNs or Panrrns
Obligatiow of debtors
Cap. L4:35
er.rn
Tlmo-Panw Om_rcons
and. secured creditors
in relation to collateral
2 |' ( I ) A debCIr or secured creditor in possession of the collateral must exercise
reasonable caf,e to pr€s€rve the asset.
(2) Upon termination of a smurity interest in the collateral-
(a)
the secured creditor in possession of such collateral must return it to the
debor; and
(b) the secured cteditor not in possession
amendmentscancellation notice
as
of such collateral must regist€r an
providedin paragraph 20 of theFint
Schedule.
Rights of dcbtors and secured creditors in relation
n
collateral atd secured
obligations
22.
(l)
A secured creditor in possession of ttre collateral has the
right-
(a) to be reimbursed and add to the secured obligation any rcasonable expenses
he or she incurs for the preservation of the asset, including the cost
insurance, payment of taxes and other charges;
of
(b) to make reasonable use of the asset and apply the revenues it generates
to the payment of the secured obtgafion.
(2) A securcd creditor has the right to inspect the collateral in &e possession
of the debtor or another person.
(3) A debtor is entitled to r€quest the seured creditor to prcvide infomntion
with regard to the secured obligation or the collateral.
(4) Within five working days after receipt of a written request for information,
a secured creditm must prcvide to the
(a)
debtor-
a statement of account that provides an accounting
obligations secued by the collaterah
of the unpaid
(b) a statement indicating the collateral in which the secured creditor claims
a security int€rest;
(c)
o(
a $tatement that bottt provi&s an aceounting of ttre unpaid obligations
secured by the collateral and identifies the collateral subject to a security
interest.
(5) Adebtor is entitled without charge to one rcsponse to a request during any
three-month period.
(6) Tk secured creditor may requirc payment of a charge not exceeding the
amount as may be prescribed in regulations for each additional response.
Protection of obligor of receivable
23. Except as otherwise provided in this Act, the creation of a security interest in
receivable does not affect the rights and obligations of the obligor of the receivable,
including the payment temrs contained in th contract giving rise to the rcceivable.
a
Notification
U.t\
o,f
security interest and payment of receivable
Notificationofa security interest ina rcceivable iseffective whenrcceived
by the obligo of the rreceivable
and the secured creditor.
if it reasonably
170
identifies the encumbered receivable
Select target paragraph3
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