Secured Transactions:

The State of Utah generally adopts the provisions of the Uniform Commercial Code in secured transactions. (Title 70A, Chapter 9 of the Utah Code.)

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. (Utah Code 70A-9-503.)

After a debtor's default, a secured creditor may sell, lease or otherwise dispose of the collateral in a commercially reasonable manner. (Utah Code 70A-9-504.) 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. (Utah Code 70A-9-506.)

The disposition of the collateral may be conducted by public or private sale. Reasonable notice of the time and place of the sale is generally required to be given to other secured creditors and the debtor. (Utah Code 70A-9-504(3).) A creditor must account to the debtor any surplus, and unless otherwise agreed, the debtor may be liable for any deficiency. (Utah Code 70A-9-502(2).)  However, under the Uniform Consumer Credit Code (Title 70C of the Utah Code),   a creditor may not seek a deficiency judgment if it repossesses or voluntarily accepts the surrender or return of consumer goods in which it has a security interest of consumer goods having a value of $3,000.00 or less.  (Utah Code 70C-7-101.)

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