Non Consumer

Article 9 of the Uniform Commercial Code (UCC), as adopted by all fifty states, generally governs secured transactions where security interests are taken in personal property. It regulates creation and enforcement of security interests in movable property, intangible property, and fixtures.

Nonjudicial Foreclosures Under the U.C.C. provides that, after a 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. U.C.C.

UCC Section 9-617 The purchaser of assets in a UCC foreclosure sale "takes all of the debtor's 'rights' in the collateral, and the sale discharges the security interest under which the sale is made and any subordinate liens." Clark on UCC ¶ 4.09c, citing Section 9-617 of the UCC.

Nonjudicial Foreclosures Under the U.C.C. provides that, after a 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. U.C.C.

A sale is commercially reasonable if it is a disposition in any recognizable market, is otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition, or is approved in a judicial proceeding, by a bona fide creditor's committee, by a

Tax liens, judgment liens, UCC liens, and even other mortgages might have survived the foreclosure. The buyer's eyes must be wide open for any outstanding agreementseither to obtain assurance that they will not become the buyer's responsibility, or to prepare for resolving the liens (see below).

Disposition of the Collateral. A secured party can sell or otherwise dispose of collateral in a private or public sale and use the proceeds to pay off the secured debt.