Also known as: statements of account · statement of accounts · account statement · SOA
Written by attorneys · grounded in primary & secondary sources — see below
A record stating the aggregate amount of unpaid obligations secured by collateral as of a specified date. A debtor may send a signed request asking the secured party to approve or correct the record when the request reasonably identifies the underlying transaction.
Simon Stern sent Summit Bank a signed record listing the vessels securing his loan and stating the unpaid balance he believed remained. Summit Bank replied with a signed letter that approved the vessel list but corrected the balance figure. The response satisfied the duty because it was a signed approval or correction sent back to the debtor.
Sydney Santos received a monthly statement of account from Sierra Solutions showing several wire transfers. She did not review the statement for unauthorized activity until weeks later. The statement supplied the notice that started the clock for her duty to report discrepancies to the bank.
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The secured party must sign and send the debtor an approval or correction of the statement within fourteen days after receipt. The response must be a signed record that either confirms the debtor's figures or supplies corrected information about the unpaid secured obligations.
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No. The statute requires the secured party to sign and send an approval or correction directly to the debtor. Internal inspection or oral confirmation does not meet the signed-record requirement.
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The secured party violates its statutory duty. The debtor may then pursue remedies available under Article 9 for the noncompliance.
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Yes. The response must provide current information about the unpaid obligations. Sending an outdated statement without updating it for intervening payments fails to satisfy the duty.
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