In addition to the requirements of the preceding section, any bulk transfer subject to this Article except one made by auction sale (Section 6-108) is ineffective against any creditor of the transferor unless at least ten days before he takes possession of the goods or pays for them, whichever happens first, the transferee gives notice of the transfer in the manner and to the persons hereafter provided (Section 6-107).
NOTES: UNIFORM LAWS COMMENT: Prior Uniform Statutory Provision: None.
Purposes:
1. This section is the heart of the Article. It requires notice to creditors of all bulk transfers subject to the Article, except those made by auction sale. The contents of the notice, the persons to whom it must be given, and the manner of giving it are stated in Section 6-107. The section on auction sales (6-108) also calls for notice, but by a different person and with a different sanction.
2. The notice in all cases must be given ten days in advance. See Points 3 and 4 to Section 6-101. 3. The sanction for noncompliance with the section is that the transfer is ineffective against creditors. Comment 2 to Section 6-104 applies.
Cross References:
Point 1: Sections 6-107 and 6-108.
Point 2: Points 3 and 4 to Section 6-101.
Point 3: Comment 2 to Section 6-104.
Definitional Cross References:
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