What type of notification must be given before the resale of collateral?

Before the resale of collateral, it is essential to provide a written notification authenticated by the secured party. This requirement ensures that the debtor and any other interested parties are formally informed of the impending sale, which protects their rights. The authenticity of the notification signifies that it is a legitimate communication from the secured party, which is crucial in legal contexts. Written notification is generally deemed preferable to oral notification as it creates a verifiable record, minimizing the chance of disputes regarding whether or when notification was given.

Written notifications also typically include essential details about the collateral and the time and place of the resale, which is necessary for maintaining transparency and adhering to uniform commercial code requirements. This formal approach helps ensure that all relevant parties are on equal footing regarding any potential sale of the collateral.

In contrast, informal notifications lack official documentation and may not provide the necessary legal assurance to the involved parties. Additionally, requirement of notification to only the debtor disregards the interests of other secured parties or lienholders in the collateral, which can cause complications if their rights are not adequately recognized or protected.