§ 6A-9-610. Disposition of collateral after default.
(a) Disposition after default. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition. Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
(c) Purchase by secured party. A secured party may purchase collateral:
(1) At a public disposition; or
(2) At a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(d) Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
(e) Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection (d):
(1) In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
(2) By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f) Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection (e) if it indicates “There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition” or uses words of similar import.
History of Section.P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-9 - Secured Transactions
Subpart 1 - Default and Enforcement of Security Interest
Section 6A-9-602. - Waiver and variance of rights and duties.
Section 6A-9-603. - Agreement on standards concerning rights and duties.
Section 6A-9-604. - Procedure if security agreement covers real property or fixtures.
Section 6A-9-605. - Unknown debtor or secondary obligor.
Section 6A-9-606. - Time of default for agricultural lien.
Section 6A-9-607. - Collection and enforcement by secured party.
Section 6A-9-609. - Secured party’s right to take possession after default.
Section 6A-9-610. - Disposition of collateral after default.
Section 6A-9-611. - Notification before disposition of collateral.
Section 6A-9-612. - Timeliness of notification before disposition of collateral.
Section 6A-9-613. - Contents and form of notification before disposition of collateral — General.
Section 6A-9-615.1. - Security interests — Cross collateral.
Section 6A-9-616. - Explanation of calculation of surplus or deficiency.
Section 6A-9-617. - Rights of transferee of collateral.
Section 6A-9-618. - Rights and duties of certain secondary obligors.
Section 6A-9-619. - Transfer of record or legal title.
Section 6A-9-621. - Notification of proposal to accept collateral.
Section 6A-9-622. - Effect of acceptance of collateral.