Under the UCC Secured Transactions Article (Article 9), if a debtor defaults, which of the following is a right of the secured party?

Answer options:

To retain the collateral in full satisfaction of the debt, even if the debtor objects.

To take possession of the collateral without judicial process if it can be done without a breach of the peace.

To sell the collateral at a private sale without notifying the debtor.

To keep any surplus from the sale of the collateral.

How to approach this question

Repo Man Rule: You can take the car (collateral) yourself, as long as you don't break the law or start a fight (breach of peace).

Full Answer

B.To take possession of the collateral without judicial process if it can be done without a breach of the peace.✓ Correct

UCC §9-609 allows a secured party to take possession of collateral after default without judicial process (self-help), provided they do not breach the peace.

Common mistakes

Thinking you always need a court order.

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