Default

Question 1

Upon default, a secured party has the right to repossess tangible collateral if:

Answer 1

it can do so without a breach of the peace

Question 2

What if the secured party can’t obtain the collateral without a breach of the peace?

Answer 2

they bring an action for replevin and the sheriff can seize the property when the court issues the writ for replevin

Question 3

Before the collateral is foreclosed on, what can debtors do?

Answer 3

they have a right to redeem the collateral by tendering to the secured party the TOTAL amount of the obligation, including interest and reasonable expenses and attorneys fees

Question 4

Before disposing of collateral what must the secured party send to the debtor?

Answer 4

reasonable authenticated notice of disposition

Question 5

How are cash proceeds of collection, enforcement, or disposition applied?

Answer 5

(1) first - reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral + reasonable legal fees incurred by secured party
(2) second - satisfaction of obligations secured by the security interest
(3) third - satisfaction of obligations secured by any subordinate security interest on the collateral (if the secured party received an authenticated demand before disposal)
(4) fourth - secured party pays the debtor any surplus or debtor is liable for deficiency