8.9A-610 - A-610. Disposition of collateral after default.
§ 8.9A-610. Disposition of collateral after default.
(a) Disposition after default. After default, a secured party may sell,lease, license, or otherwise dispose of any or all of the collateral in itspresent condition or following any commercially reasonable preparation orprocessing.
(b) Commercially reasonable disposition. Every aspect of a disposition ofcollateral, including the method, manner, time, place, and other terms, mustbe commercially reasonable. If commercially reasonable, a secured party maydispose of collateral by public or private proceedings, by one or morecontracts, as a unit or in parcels, and at any time and place and on anyterms.
(c) Purchase by secured party. A secured party may purchase collateral:
(1) at a public disposition; or
(2) at a private disposition only if the collateral is of a kind that iscustomarily sold on a recognized market or the subject of widely distributedstandard price quotations.
(d) Warranties on disposition. A contract for sale, lease, license, or otherdisposition includes the warranties relating to title, possession, quietenjoyment, and the like which by operation of law accompany a voluntarydisposition of property of the kind subject to the contract.
(e) Disclaimer of warranties. A secured party may disclaim or modifywarranties under subsection (d):
(1) in a manner that would be effective to disclaim or modify the warrantiesin a voluntary disposition of property of the kind subject to the contract ofdisposition; or
(2) by communicating to the purchaser a record evidencing the contract fordisposition and including an express disclaimer or modification of thewarranties.
(f) Record sufficient to disclaim warranties. A record is sufficient todisclaim warranties under subsection (e) if it indicates "There is nowarranty relating to title, possession, quiet enjoyment, or the like in thisdisposition" or uses words of similar import.
(1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.)