Rights on Default Flashcards
What are the two biggest ways of defaulting on a secured property?
failing to make payments or maintain insurance on the property.
Generally, what are the two big remedies for a creditor when a debtor has defaulted on the secured property?
the creditor can 1) repossess the property and sell it; or 2) repossess the property and retain it in satisfaction of the debt.
Can a creditor sue on the debt itself?
yes
Must the sale of repossessed collateral be at a public sale?
no, it can be a private sale
All aspects of a sale of repossessed collateral must be ____________.
commercial reasonable
When organizing a sale of repossessed collateral, the repossessor must do what?
notify all sureties on the debt and all other secured parties of the sale.
Notice of a sale must be sent . . .
within a reasonable time before the beginning of the sale.
Where a debtor has paid 60 percent or more of a PMSI or a non-PMSI loan, what must the secured party wishing to sell the property do?
they must sell the property within 90 days of the repossession.
Where a creditor wishes to retain the property in satisfaction of the debt, what must they do?
they must 1) notify the debtor; and 2) the debtor must consent to the retention.
Where a creditor wishes to retain property in satisfaction of the debt, and a person entitled to notice objects in writing within 20 days, what must the creditor do?
the creditor must dispose of the collateral and distribute the proceeds.
Generally, what state’s law governs perfection?
the state where the debtor is located.
