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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-627. Determination of whether conduct was commercially reasonable

(a) 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.

(b) A

disposition of collateral is made in a commercially reasonable manner if the

disposition is made:

(1) in the usual

manner on any recognized market;

(2) at the price

current in any recognized market at the time of the disposition; or

(3) otherwise in

conformity with reasonable commercial practices among dealers in the type of

property that was the subject of the disposition.

(c) A

collection, enforcement, disposition, or acceptance is commercially reasonable

if it has been approved:

(1) in a

judicial proceeding;

(2) by a bona

fide creditors' committee;

(3) by a

representative of creditors; or

(4) by an

assignee for the benefit of creditors.

(d) Approval

under subsection (c) need not be obtained, and lack of approval does not mean

that the collection, enforcement, disposition, or acceptance is not commercially

reasonable. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)