Indiana § 26-1-9.1-607 Collection and enforcement by secured party

Indiana Statutes

§ 26-1-9.1-607 — Collection and enforcement by secured party

Indiana § 26-1-9.1-607

Title 26COMMERCIAL LAW

Art. 1UNIFORM COMMERCIAL CODE

Ch. 9.1Secured Transactions

This text of Indiana § 26-1-9.1-607 (Collection and enforcement by secured party) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 26-1-9.1-607 (2026).

Text

(a)If so agreed, and in any event after default, a secured party:

(1)may notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;

(2)may take any proceeds to which the secured party is entitled under IC 26-1-9.1-315;

(3)may enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;

(4)if it holds a security interest in a deposit account perfect

Free access — add to your briefcase to read the full text and ask questions with AI

(a) If so agreed, and in any event after
default, a secured party:
(1) may notify an account debtor or other person obligated on
collateral to make payment or otherwise render performance to or
for the benefit of the secured party;
(2) may take any proceeds to which the secured party is entitled
under IC 26-1-9.1-315;
(3) may enforce the obligations of an account debtor or other
person obligated on collateral and exercise the rights of the debtor
with respect to the obligation of the account debtor or other
person obligated on collateral to make payment or otherwise
render performance to the debtor, and with respect to any property
that secures the obligations of the account debtor or other person
obligated on the collateral;
(4) if it holds a security interest in a deposit account perfected by
control under IC 26-1-9.1-104(a)(1), may apply the balance of the
deposit account to the obligation secured by the deposit account;
and
(5) if it holds a security interest in a deposit account perfected by
control under IC 26-1-9.1-104(a)(2) or IC 26-1-9.1-104(a)(3),
may instruct the bank to pay the balance of the deposit account to
or for the benefit of the secured party.
(b) If necessary to enable a secured party to exercise under
subsection (a)(3) the right of a debtor to enforce a mortgage
nonjudicially, the secured party may record in the office in which a
record of the mortgage is recorded:
(1) a copy of the security agreement that creates or provides for
a security interest in the obligation secured by the mortgage; and
(2) the secured party's sworn affidavit in recordable form stating
that:
(A) a default has occurred with respect to the obligation
secured by the mortgage; and
(B) the secured party is entitled to enforce the mortgage
nonjudicially.
(c) A secured party shall proceed in a commercially reasonable
manner if the secured party:
(1) undertakes to collect from or enforce an obligation of an
account debtor or other person obligated on collateral; and
(2) is entitled to charge back uncollected collateral or otherwise
to full or limited recourse against the debtor or a secondary
obligor.
(d) A secured party may deduct from the collections made pursuant
to subsection (c) reasonable expenses of collection and enforcement,
including reasonable attorney's fees and legal expenses incurred by the
secured party.
(e) This section does not determine whether an account debtor,
bank, or other person obligated on collateral owes a duty to a secured
party.