§9-1607. Collection and enforcement by secured party
(1).
If so agreed, and in any event after default, a secured party:
(a). 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; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). May take any proceeds to which the secured party is entitled under section 9-1315; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(c). 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; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(d). If it holds a security interest in a deposit account perfected by control under
section 9-1104, subsection (1), paragraph (a), may apply the balance of the deposit
account to the obligation secured by the deposit account; and [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(e). If it holds a security interest in a deposit account perfected by control under
section 9-1104, subsection (1), paragraph (c) or (d), may instruct the bank to pay
the balance of the deposit account to or for the benefit of the secured party. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(2).
If necessary to enable a secured party to exercise under subsection (1), paragraph
(c) 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:
(a). A copy of the security agreement that creates or provides for a security interest
in the obligation secured by the mortgage; and [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). The secured party's sworn affidavit in recordable form stating that:
(i) A default has occurred with respect to the obligation by the mortgage; and
(ii) The secured party is entitled to enforce the mortgage nonjudicially. [2013, c. 317, Pt. A, §28 (AMD).]
[
2013, c. 317, Pt. A, §28 (AMD)
.]
(3).
A secured party shall proceed in a commercially reasonable manner if the secured
party:
(a). Undertakes to collect from or enforce an obligation of an account debtor or other
person obligated on collateral; and [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). Is entitled to charge back uncollected collateral or otherwise to full or limited
recourse against the debtor or a secondary obligor. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(4).
A secured party may deduct from the collections made pursuant to subsection (3)
reasonable expenses of collection and enforcement, including reasonable attorney's
fees and legal expenses incurred by the secured party.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(5).
This section does not determine whether an account debtor, bank or other person
obligated on collateral owes a duty to a secured party.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
SECTION HISTORY
1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).
2013, c. 317, Pt. A, §28 (AMD).