Default/Repossession

Question 1

Default defined

Answer 1

Grounds for default (e.g. not paying debt) are specified in security agreement

Question 2

Repossession

Answer 2

Can be done via:

1. Judicial process (e.g. replevin)
   - or-
2. Self-help (e.g. repo man) as long as it doesn’t Breach the Peace.

Question 3

Breach of the Peace

Answer 3

Any conduct by secured party that has the potential to lead to violence.
Generally, physical presence by debtor plus verbal objection is enough to create a breach.

Question 4

Retention of collateral (strict foreclosure)

Answer 4

Secured party may propose retaining collateral in full or partial satisfaction of debt.
Can be done by either:
1. Agreeing in an authenticated record with debtor
-or-
2. if full foreclosure, debtor fails to make objection w/i 30 days after receiving notice

Question 5

Debtor right to redeem

Answer 5

Debtor may attempt to redeem collateral by complying with full terms of security agreement