Default Flashcards
1
Q
Default
A
not defined in article 9, generally defined in the security agreement, but note generally includes failure to pay or perform.
2
Q
self help repossession
A
can be done if it can be done without a breach of the peace.
3
Q
breach of the peace
A
conduct by secured party that has potential to lead to violence
4
Q
other default options
A
- judicial process
- render the equipment unusable.
5
Q
strict forclosure
A
have to send notice to junior lien holders and must obtain debtor consent.
6
Q
consumer goods 60% rule
A
the secured party must dispose of the collateral within 90 days after repossession.
7
Q
resale of collateral
A
must be done in commercially reasonable manner
8
Q
failure to comply with code rules
A
- liable for actual damages.
- if consumer goods- statutory damages.
- may loose ability to get deficiency judgment.
9
Q
debtor right to redeem.
A
debtor ability to recover collateral by paying everything owed to creditor before the foreclosure sale.
