70A-9a-627 - Determination of whether conduct was commercially reasonable.
70A-9a-627. Determination of whether conduct was commercially reasonable.
(1) The fact that a greater amount could have been obtained by a collection, enforcement,disposition, or acceptance at a different time or in a different method from that selected by thesecured party is not of itself sufficient to preclude the secured party from establishing that thecollection, enforcement, disposition, or acceptance was made in a commercially reasonablemanner.
(2) A disposition of collateral is made in a commercially reasonable manner if thedisposition is made:
(a) in the usual manner on any recognized market;
(b) at the price current in any recognized market at the time of the disposition; or
(c) otherwise in conformity with reasonable commercial practices among dealers in thetype of property that was the subject of the disposition.
(3) A collection, enforcement, disposition, or acceptance is commercially reasonable if ithas been approved:
(a) in a judicial proceeding;
(b) by a bona fide creditors' committee;
(c) by a representative of creditors; or
(d) by an assignee for the benefit of creditors.
(4) Approval under Subsection (3) need not be obtained, and lack of approval does notmean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.
Enacted by Chapter 252, 2000 General Session