U.C.C. & Secured Transactions: LAWDOG California Laws Credits & Collection

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Secured Transactions:

The State of Arizona generally adopts the provisions of the Uniform Commercial Code in secured transactions.

A creditor generally is entitled to recover possession of collateral upon the default of a debtor on a secured transaction. In obtaining possession of collateral, a creditor may do so without judicial process if it can be done without breach of the peace or by judicial action. (ARS 47-9503)

After a debtor's default, a secured creditor may sell, lease or otherwise dispose of the collateral in a commercially reasonable manner. (ARS 47-9504.) Any time before the disposition of the collateral, a debtor may have a right to redeem the collateral by tendering full payment of the obligation owed and all reasonable expenses incurred by the creditor. (ARS 47-9506.)

The disposition of the collateral may be conducted by public or private sale. Unless the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, reasonable notification of the time and place of any public sale or reasonable notification of the time after which any private sale or other intended disposition is to be made shall be sent by the secured party to the debtor, if he has not signed after default a statement renouncing or modifying his right to notification of sale. In the case of consumer goods no other notification need be sent. In other cases notification shall be sent to any person who (at the time of the filing of a notice of proposed disposition of collateral by the secured party under ARS section 47-9409) either was in possession of the collateral or was the person from whom the secured party obtained possession of the collateral or had duly filed a financing statement indexed in the name of the debtor in this state. (ARS 47-9504(C).) A creditor must account to the debtor any surplus, and unless otherwise agreed, the debtor may be liable for any deficiency. (ARS 47-9502.)

See Uniform Commercial Code at the Legal Information Institute (Cornell Law) linked here. Also see Arizona Secretary of State Business Services linked here.

Review Arizona Revised Statutes here. Always discuss actual cases with your actual legal advisor or legal department. The Arizona Bar Association is linked here.

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