enforcement of SI Flashcards
when can SC repossession of collateral
when in default SC can reposs the collateral w/o notice and by ANY MEANS AS LONG AS NOT
1) BREACHING THE PEACE
if creditor breaches the peace can they come back later and reposs?
YES
if there is threat after the possession is there a breach of peace?
NO.
how to collect collateral on “accounts:
telling account debtors (debtor’s debtor’s) that to pay the creditor now and not the debtor
- payment to the debtor is no longer effective to discharge the account debtor’s debt
what is redeemption
debtor can redeem the repossessed collateral (take it back) by paying off the debt plus the C’s respossesion expeses and fees
what must happen for foreclosure by sale (words
COMMERCIALLY REASONABLY
2) notice to D and other C’s
just b/c a better price COULD have been achieved by using another method, does that make it commercially unreasonable
NO. just better price is NOT enough
what is the requirements for notice during forclosure
creditor must send notice to
1) debtor
2) secondary obligor (gurantors)
3) other parties whom the disposing creditor actually or constructively (ucc1) knows have interests in collateral
when is the only time the D can WAIVE notice
AFTER DEFAULT.
- can NEVER waive default before default
what is x/c for when notice not needed
when collateral is perishable and will depreciate quickly or is a type customarily sold on a recognized market (stock)
what is strict foreclosure
creditor negotiates to buy collateral from Debtor
what all needs to happen for strict foreclosure
1) proposal: forgiveness of some or all of the debt
2) notice: same as other notices
3) assent:
what is the assent requirement in strict foreclosure
accepted if w/i 20 days of sending, debtor assents by failure to make a written objection, and no other notice party objects
what if the strict foreclosure is only for partial sanctification, is assent by silence enough?
NO. the debtor must send a record of assent, silence after 20 days not good enough
what is the remedy for creditor’s failure to comply with foreclosure requirements
loss of deficiency
- C must prove it complied with the rules of deficiency remains.
- in non-consumer cases PRESUMED that a commercially reasonable sale would have left no deficiency
