RIGHTS UPON DEFAULT

Question 1

Recovering Property

Answer 1

1. Self-Help repossession allowed if can be done w/o breaching the peace
2. Judicial Process

Question 2

Default Generally

Answer 2

SP has right to take possession & sell/lease/otherwise dispose

Ignoring D’s default may waive SP’s rights

Notice to D of default/intent to repossess not required absent agreement

Question 3

Breaching the Peace

Answer 3

1. Debtor objects
2. D’s consent obtained by force/threat
3. Trespass of D’s residence/garage

Question 4

Debtor’s Remedies for Breach of Peace

Answer 4

Conversion, Commission of any torts, Punitive damages

Question 5

Commercially Reasonable Manner

Answer 5

Must sell/dispose of property in usual manner in recognized market at recognized current price/consistent w/ reasonable commercial practices for that property

Question 6

Written Notice for Sale/Disposition

Answer 6

Must be sent in reasonable manner & w/ reasonable advance notice

Question 7

Written Notice Recipients

Answer 7

Must include debtor, if non-consumer goods must also notify other secured parties or lien holders

Question 8

Sale/Disposition Effect

Answer 8

Sale discharges SI & ALL SUBORDINATE SIs

Question 9

Debtor’s Remedies for Sale/Disposition

Answer 9

Injunctive relief to stop sale/disposition

Question 10

Strict Foreclosure/Keeping the Property

Answer 10

Not allowed for CGs 60%+ paid for w/o written waiver

Question 11

Full Strict Foreclosure

Answer 11

SP opts to keep property in full satisfaction of debt:

1. Must notify D & other GPs
2. Allowed if no one objects w/I 20 days
3. If objection: property must be sold

Question 12

Partial Strict Foreclosure

Answer 12

SP opts to keep property in partial satisfaction of debt:

1. Not allowed w/ consumer transaction
2. Must notify D, 2ndary obligor, other SPs
3. Allowed if no one objects w/I 20 days
4. If objection, must sell property