Page:United States Statutes at Large Volume 77.djvu/800

 768

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

§28:9—505. Compulsory disposition of collateral; acceptance of the collateral as discharge of obligation (1) If the debtor has paid sixty per cent of the cash price in the case of a purchase^ money security interest in consumer goods or,sixty per cent of the loan in the case of another security interest in consumer goods, and has not signed after default a statement renouncing or modifying his rights under this part a secured party who has taken possession of collateral must dispose of it under section 28:9—504 and if he fails to do so within ninety days after he takes possession the debtor at his option may recover in conversion or under section 28:9— 507(1) on secured party's liability. (2) I n any other case involving consumer goods or any other collateral a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation. Written notice of such proposal shall be sent to the debtor and except in the case of consumer goods to any other secured party who has a security interest in the collateral and who has duly filed a financing statement indexed in the name of the debtor in the District or is known by the secured party in possession to have a security interest in it. If the debtor or other person entitled to receive notification objects in writing within thirty days from the receipt of the notification or if any other secured party objects in writing within thirty days after the secured party obtains possession the secured party must dispose of the collateral under section 28:9—504. In the absence of such written objection the secured party may retain the collateral in satisfaction of the debtor's obligation. §28:9—506. Debtor's right to redeem collateral At any time before the secured party has disposed of collateral or entered into a contract for its disposition under section 28:9—504 or before the obligation has been discharged under section 28:9^—505(2) the debtor or any other secured party may unless otherwise agreed in writing after default redeem the collateral by tendering fulfillment of all obligations secured by the collateral as well as the expenses reasonably incurred by the secured party in retaking, holding and preparing the collateral for disposition, in arranging for the sale, and to the extent provided in the agreement and not prohibited by law, his reasonable attorneys' fees and legal expenses. § 28:9—507. Secured party's liability for failure to comply with this part (1) If it is established that the secured party is not proceeding in accordance with the provisions of this Part disposition may be ordered or restrained on appropriate terms and conditions. If the disposition has occurred the debtor or any person entitled to notification or whose security interest has been made known to the secured party prior to the disposition has a right to recover from the secured party any loss caused by a failure to comply with the provisions of this Part. If the collateral is consumer goods, the debtor has a right to recover in any event an amount not less than the credit service charge plus ten per cent of the principal amount of the debt or the time price differential plus ten per cent of the cash price. (2) The fact that a better price could have been obtained by a sale at a different time or in a different method from that selected by the secured party is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the secured party either sells the collateral in the usual manner in any recognized market therefor or if he sells at the price current in such market at the time of his sale or if he has otherwise sold in conformity with reasonable commercial practices among dealers in the type of property sold

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