Resale of Collateral

Question 1

RESALE OF COLLATERAL

Answer 1

After default, the secured party may sell, lease, license, or otherwise dispose of the collateral in its condition when repossessed or after reasonable preparation. The sale may be either public (auction) or
private, and may be by one or more contracts

Question 2

Reasonable Notification Required

Answer 2

Reasonable notice that is authenticated by the secured party (that is, the notice can’t be oral) must be given (1) to the debtor and any sureties on the debt, and (except in the case of consumer goods) (2) to any other secured parties who have notified the secured party of their interests, and (3) to any secured parties who have perfected by filing a financing statement or making a notation on a certificate of title.

Question 3

Timeliness

Answer 3

The notice must be sent within a reasonable time before the sale (a question of fact). In nonconsumer transactions, notice is deemed to be sent within a reasonable time if it’s sent 10 days or more before
the sale.

Question 4

Contents of Notice

Answer 4

The content of the notice depends on the type of sale and type of collateral. For a public sale, notice of the time and place of sale is required. For a private sale, notice of the time after which the sale will occur must be given. The notice must also describe the parties
and the collateral. Extra info is required for consumer goods

Question 5

Sale Must Be Commercially Reasonable

Answer 5

Every aspect of the sale (including the method, manner, time, place, and terms) must be commercially reasonable.