Default

Question 1

Resale of Collateral after Default

Answer 1

after default, the SP may sell, lease, or license collateral and apply profit to debt
Sale may priv/pub

Question 2

Strict Foreclosure

Answer 2

Upon default or repo, SP retains collateral in full satisfaction of debt.
SP must send written proposal to retain collateral

Question 3

Under Strict Foreclosure - Who must receive notice if Collateral is Consumer Goods?

Answer 3

give notice to:

1) debtor
2) any secondary obligors

Question 4

Under Strict Foreclosure - Who must receive notice if Collateral is Nonconsumer Goods?

Answer 4

give notice to:

1) Debtor
2) any other SP from whom foreclosing party has received notice of a claim to the collateral; and
3) any other perfected TP that filed FS or made notation on a cert of title

Question 5

When may Strict Foreclosure be void?

Answer 5

if any party objects within 20 days after notice sent —> no SF - collateral must be disposed of by sale (may object for any reason or no reason)

Question 6

Sale of Collateral Req’ts

Answer 6

1) must be commercially reasonable
2) reasonable authenticated notice must be sent w/in reasonable period of time before sale
3) content of notice must include:
- (NCG) description of D & SP
- description of collateral
- method of sale
- stmt that debtor is entitled to accting for unpaid debt, AND
- time/place of pub/priv sale