(1) The notice to creditors (Section 6-105) shall state:
(a) that a bulk transfer is about to be made; and
(b) the names and business addresses of the transferor and transferee, and all other business names and addresses used by the transferor within three years last past so far as known to the transferee; and
(c) whether or not all the debts of the transferor are to be paid in full as they fall due as a result of the transaction, and if so, the address to which creditors should send their bills.
(2) If the debts of the transferor are not to be paid in full as they fall due or if the transferee is in doubt on that point then the notice shall state further:
(a) the location and general description of the property to be transferred and the estimated total of the transferor's debts;
(b) the address where the schedule of property and list of creditors (Section 6-104) may be inspected;
(c) whether the transfer is to pay existing debts and if so the amount of such debts and to whom owing; and
(d) whether the transfer is for new consideration and if so the amount of such consideration and the time and place of payment.
(3) The notice in any case shall be delivered personally or sent by registered or certified mail to all the persons shown on the list of creditors furnished by the transferor (Section 6-104) and to all other persons who are known to the transferee to hold or assert claims against the transferor, but, if the transferor is the obligor of an outstanding issue of bonds, debentures or the like as to which there is an indenture trustee, no notice need be delivered or sent to holders of the bonds, debentures or the like.
UNIFORM LAWS COMMENT: Prior Uniform Statutory Provision: None.
Purposes:
1. This section specifies the contents of the notice to be given on all the transfers covered by Section 6-105 (that is, all transfers subject to the Article except those made by auction sale) and the manner in which it is to be given.
2. Under the section, if the debts of the transferor are to be paid in full as they fall due, a short form of notice is provided. This facilitates honest and solvent transactions.
3. If the transfer is by auction sale Section 6-108 applies.
4. Subsection (2)(e) is a corollary of Section 6-106 and should be omitted if that section is.
Cross References:
Definitional Cross References:
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