Public Sale Goods

Having a UCC filed on your business credit report can have negative effects in general on your overall credit risk, scoring and other associated risk analysis, (across all three business credit bureaus) and can even kill your chances at getting financing for your business.

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.

Finally, the bankruptcy court reviewed §7-9-506 (UCC A§9-506), which grants the debtor the right to redeem the collateral at any time before the secured party has disposed of or entered into a contract for its disposition.

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.

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.

The UCC covers many of the commercial dealings and transactions that your company has each business day. This includes virtually everything your company purchases and sells, every check that your company writes and receives, and every deposit and withdrawal that your company makes.

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.