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HRS §490:9-611

Who must get notice before collateral is sold

Before a lender sells or disposes of collateral after a default, it must send a signed notice to the debtor and others with an interest. The notice must be reasonable and sent in time. There are exceptions for perishable goods or items sold on a recognized market.

creditorsdebtors

The statute, as written — Notification before disposition of collateral

(a) In this section, "notification date" means the earlier of the date on which: (1) A secured party sends to the debtor and any secondary obligor [a] signed notification of disposition; or (2) The debtor and any secondary obligor waive the right to notification. (b) Except as otherwise provided in subsection (d), a secured party that disposes of collateral under section 490:9-610 shall send to the persons specified in subsection (c) a reasonable signed notification of disposition. (c) To comply with subsection (b), the secured party shall send [a] signed notification of disposition to: (1) The debtor; (2) Any secondary obligor; and (3) If the collateral is other than consumer goods: (A) Any other person from which the secured party has received, before the notification date, [a] signed notification of a claim of an interest in the collateral; (B) Any other secured party or lienholder that, ten days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that: (i) Identified the collateral; (ii) Was indexed under the debtor's name as of that date; and (iii) Was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and (C) Any other secured party that, ten days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in section 490:9-311(a). (d) Subsection (b) does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market. (e) A secured party complies with the requirement for notification prescribed by subsection (c)(3)(B) if: (1) Not later than twenty days or earlier than thirty days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection (c)(3)(B); and (2) Before the notification date, the secured party: (A) Did not receive a response to the request for information; or (B) Received a response to the request for information and sent [a] signed notification of disposition to each secured party named in that response whose financing statement covered the collateral.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§490:9-311 When filing a financing statement is not needed

§490:9-610 What a lender can do with collateral after you default

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.