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  • 6 minutes

Account Redirection Notices - UCC Article 9 Foreclosures


Account-redirection notices must be commercially reasonable.

As a secured party, if you take a security interest in accounts, generally applies to accounts receivable, then you have the right to redirect payments from the people who own money to your debtor to yourself. After a redirect notice is delivered to account debtors, the debtor can only discharge obligations by paying the secured party. This video reviews the account-redirection process and various provisions.

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Hugh McCullough

Hugh McCullough

Davis Wright Tremaine LLP

  • Partner in the Seattle office of Davis Wright Tremaine LLP
  • Advises clients in litigations and transactions involving bankruptcy, the payments industry, and secured financings; regularly helps clients with matters that never reach a courtroom, but in cases requiring litigation, he has argued and won in the Washington Supreme Court, the 9th Circuit Court of Appeals, and federal courts around the country
  • American Bankruptcy Institute; board of directors, Turnaround Management Association, Pacific Northwest chapter; board member, 2016-present; president, board of directors, 2016-2018 – Consumer Education and Training Services (CENTS); Amicus Brief Committee, Washington State Bar Association, 2014-2016
  • J.D. degree, Northwestern University School of Law
  • Can be contacted at 206-757-8189 or [email protected]
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