Enforcement of Interests

Question 1

Prerequisite of Enforcement

Answer 1

Default

Question 2

Upon Default

Answer 2

Secured party may repossess collateral if can be done without breach of the peace. Otherwise must resort to judicial repossession.

Question 3

Selling Repossessed Collateral

Answer 3

After repossession, secured party may sell collateral PRIVATELY or AT AUCTION

Question 4

Requirements for Private or Auction Sale

Answer 4

Secured party gives Written, Signed Notice (10 days) before sale to debtor and any secured party of record AND every aspect of the sale is commercially reasonable.

Question 5

Failure to Follow Requirements of Sale

Answer 5

Secured party is liable for damages to debtor

Question 6

Distribution from Proceeds of Sale

Answer 6

Expenses of Sale, Foreclosing Party’s unpaid debt, unpaid debt of junior secured parties, surplus if any to debtor.

Question 7

Deficiency Judgement

Answer 7

Debtor is liable for deficiency, secured party must send explaination to any consumer debtor of calculations of deficiency OR surplus.