Page 63 - Microsoft Word - NEW 2017 Standard Program.docx

Section 9-620: Acceptance of Collateral in Full or Partial Satisfaction of Obligation;
Compulsory Disposition of Collateral
Under this Section, a secured party may accept certain collateral in full or partial
satisfaction of the obligation if certain conditions are met by the secured party and the
debtor.

Section 9-621: Notification of Proposal to Accept Collateral
This Section provides for requirements the secured party must meet, and to whom
Notification must be sent when the secured party is accepting collateral in full or partial
payment of the obligation.

Section 9-622: Effects of Acceptance of Collateral
This Section pertains to the effects an acceptance of full or partial acceptance will have
on the secured party and obligors.

Section 9-623: Right to Redeem Collateral
A very important part of Article 9, this Section sets the parameters and
responsibilities of a secured party and obligor(s), when the obligor(s) wishes to
redeem the collateral which the secured party has taken.

Section 9-624: Waiver
Under this Section, a debtor or secondary obligor may waive the right to any Notification
of Disposition of collateral required by Section 9-611. Further, a debtor may waive the
right to require disposition of collateral as required under Subsection (e) of Section 9-
620. Either of these agreements must be authenticated. In addition, except in a consumer-
goods transaction, a debtor or secondary obligor may waive the right to redeem collateral
as outlined in Section 9-623. This Waiver, also, must be authenticated.

Section 9-625: Remedies for Secured Party’s Failure to Comply With Article
This Section sets the parameters and amount of damages recoverable by a debtor or
obligor for a secured party’s failure to comply with Article 9.

Section 9-626: Action in Which Deficiency or Surplus is an Issue
Sets the rules where the amount of deficiency becomes an issue regarding the disposition
of collateral other than a consumer-goods transaction.

Section 9-627: Determination of Whether Conduct was Commercially Reasonable
Sets the parameters to determine whether disposition of collateral meets the requirements
of a commercially reasonable disposition.

Section 9-628: Non-Liability and Limitation on Liability of Secured Party; Liability
of a Secondary Obligor
Establishes the parameters for the non-liability or limits of liability of a secured party as
to Notification. This Section also states, in part, that a secured party is not liable to any
person, a person’s liability for a deficiency is not affected due to any act or omission
arising out of the secured party’s reasonable belief that a transaction is not a consumer-
goods transaction or a consumer transaction, or that goods are not consumer-goods, if the
secured party’s belief is based on its reliance of certain criteria.

Again, we urge the student to obtain a complete copy of this new version of Article 9
in an effort to understand and comply with the requirements of these regulations.

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