US Uniform Commercial Code Article 9 Secured Transactions
Part 6: default, collection, repossession, disposition, acceptance of collateral, redemption and remedies – US Uniform Commercial Code Article 9 Secured Transactions

US Uniform Commercial Code Article 9 Secured Transactions 9-620-9-623-acceptance-redemption: Accept collateral in full or partial satisfaction only with the debtor's consent and no timely objection, never for consumer goods in partial satisfaction, dispose of consumer goods within ninety days where sixty per cent has been paid, and allow redemption until disposition

What does 9-620-9-623-acceptance-redemption require?

Strict foreclosure, keeping the collateral to satisfy the debt in full or in part, is allowed only if the debtor consents (after default, in an authenticated record, or by failing to object within twenty days after a proposal for full satisfaction is sent), no timely objection is received from a person entitled to notification or from any other person holding a subordinate interest, and, for consumer goods, the debtor no longer holds the collateral when consenting; partial satisfaction is not available in a consumer transaction, and where sixty per cent of the purchase-money cash price, or of the principal, has been paid on consumer goods the secured party must dispose of them within ninety days after taking possession or a longer agreed period, rather than keep them (section 9-620). The proposal must be sent to the debtor, any secondary obligor and the other secured parties and lienholders of record identified by the same search rules as for disposition (section 9-621); acceptance wipes out the obligation to the extent agreed, transfers the debtor's rights and discharges the security interest and subordinate interests (section 9-622). Until collection, disposition or acceptance has happened, the debtor, a secondary obligor or another secured party or lienholder can redeem the collateral by tendering the full obligation and the reasonable expenses and fees (section 9-623).

Maintained by Gerard Blokdyk

Other controls in Part 6: default, collection, repossession, disposition, acceptance of collateral, redemption and remedies – US Uniform Commercial Code Article 9 Secured Transactions

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