ADVOKS GLOBAL · KENYA
Movable Property Security Rights Act
60. Notification of a security right and payment of a receivable
Edition: 2022-12-31 · In force
60. Notification of a security right and payment of a receivable
(1)Notification of a security right in a receivable is effective when received by the debtor of the receivable if it reasonably identifies the encumbered receivable and the secured creditor.(2)Notification of a security right in a receivable may relate to receivables arising after notification.(3)Unless the debtor of the receivable receives notification of a security right in a receivable, the debt may be discharged by paying in accordance with the original contract.(4)After the debtor of the receivable receives notification of a security right in a receivable, the debt may be discharged only by paying the secured creditor or by paying as otherwise instructed in the notification or subsequently by the secured creditor in writing received by the debtor of the receivable.(5)If the debtor of the receivable receives notification of more than one security right in the same receivable created by the same grantor, it is discharged by paying in accordance with the first notification received.(6)The debtor of the receivable is entitled to request the secured creditor to provide within a reasonable period of time adequate proof that the security right in a receivable has been created.(7)Until the secured creditor complies with subsection (6), the debtor of the receivable may discharge its obligation by paying the grantor, even if the debtor of the receivable has received a notification of a security right.