§ 41-09-122 — (9-627) 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 the secured party is not of itself sufficient to preclude the secured party from
establishing that the collection, enforcement, disposition, or acceptance was made in a
commercially reasonable manner.
2. A disposition of collateral is made in a commercially reasonable manner if the
disposition 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
the type of property that was the subject of the disposition.
3. A collection, enforcement, disposition, or acceptance is commercially reasonable if it
has 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 not
mean that the collection, enforcement, disposition, or acceptance is not commercially
reasonable.