In January, General Betrayus decided to purchase a vintage diamond and sapphire necklace for his paramour, Paula. Newt’s Fidelity & Trust loaned the General $25,000, and took a security interest in the General’s antique gun collection, currently worth $35,000. Now, apparently preoccupied by pressing matters not related to national security, the General is in default. Newt’s Fidelity & Trust has taken possession of the gun collection and intends to sell it. Newt’s Bank sent the following notice via email to General Betrayus:
To: General Betrayus (Debtor)
From: Newt’s Bank & Trust (Secured Party)
Date: November 16, 2012
On December 1, 2012, at 10:00 A.M., at the Boone County Fairgrounds, Newt’s Fidelity & Trust (secured party) will hold a public sale of your antique gun collection (collateral). You are entitled to an accounting of the unpaid indebtedness securing the collateral, which you may obtain by contacting Newt Mpathy at (573) 222-7777. This accounting will be provided to you for a fee of $10.00. You may re-obtain the collateral by paying the full amount owed to Newt’s Fidelity & Trust any time prior to the sale. You may contact Mr. Mpathy at (573) 222-7777 for information regarding this amount. The proceeds of the sale (after deducting Newt’s Fidelity & Trust’s expenses) will reduce the amount you owe. If the gun collection sells for less than is owed, you will still owe the remaining balance. If you need additional information regarding the sale, please contact Mr. Mpathy at (573) 222-7777.
Which of the following is correct?
1. The notice complies fully with Article 9.
2. The notice partially complies with Article 9.
3. The notice is void of any compliance with Article 9.
4. General Betrayus is not entitled to notice, so compliance with Article 9 is not relevant.