§ 4-9-610 — Disposition of collateral after default

(a) After default, a secured
party may sell, lease, license, or otherwise dispose of any or all of the collateral in
its present condition or following any commercially reasonable preparation or
processing.

(b) Every aspect of a disposition of collateral, including the method, manner,
time, place, and other terms, must be commercially reasonable. If commercially
reasonable, a secured party may dispose of collateral by public or private
proceedings, by one or more contracts, as a unit or in parcels, and at any time and
place and on any terms.

(c) 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 is
customarily sold on a recognized market or the subject of widely distributed
standard price quotations.

(d) A contract for sale, lease, license, or other disposition includes the
warranties relating to title, possession, quiet enjoyment, and the like which by
operation of law accompany a voluntary disposition of property of the kind subject
to the contract.

(e) A secured party may disclaim or modify warranties under subsection (d)
of this section:

(1) In a manner that would be effective to disclaim or modify the warranties in
a voluntary disposition of property of the kind subject to the contract of disposition;
or

(2) By communicating to the purchaser, prior to completion of the
transaction, a record evidencing the contract for disposition and including an
express disclaimer or modification of the warranties.

(f) A record is sufficient to disclaim warranties under subsection (e) of this
section if it indicates There is no warranty relating to title, possession, quiet
enjoyment, or the like in this disposition or uses words of similar import.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1403, � 1, effective July 1.