400.9-607. Collection and enforcement by secured party. - Missouri Statutes

Collection and enforcement by secured party.

400.9-607. (a) If so agreed, and in any event after default, asecured party:

(1) May notify an account debtor or other person obligated oncollateral to make payment or otherwise render performance to or for thebenefit of the secured party;

(2) May take any proceeds to which the secured party is entitledunder section 400.9-315;

(3) May enforce the obligations of an account debtor or other personobligated on collateral and exercise the rights of the debtor with respectto the obligation of the account debtor or other person obligated oncollateral to make payment or otherwise render performance to the debtor,and with respect to any property that secures the obligations of theaccount debtor or other person obligated on the collateral;

(4) If it holds a security interest in a deposit account perfected bycontrol under section 400.9-104(a)(1), may apply the balance of the depositaccount to the obligation secured by the deposit account; and

(5) If it holds a security interest in a deposit account perfected bycontrol under section 400.9-104(a)(2) or (3), may instruct the bank to paythe balance of the deposit account to or for the benefit of the securedparty.

(b) If necessary to enable a secured party to exercise undersubsection (a)(3) the right of a debtor to enforce a mortgagenonjudicially, the secured party may record in the office in which a recordof the mortgage is recorded:

(1) A copy of the security agreement that creates or provides for asecurity interest in the obligation secured by the mortgage; and

(2) The secured party's sworn affidavit in recordable form statingthat:

(A) A default has occurred; and

(B) The secured party is entitled to enforce the mortgagenonjudicially.

(c) A secured party shall proceed in a commercially reasonable mannerif the secured party:

(1) Undertakes to collect from or enforce an obligation of an accountdebtor or other person obligated on collateral; and

(2) Is entitled to charge back uncollected collateral or otherwise tofull or limited recourse against the debtor or a secondary obligor.

(d) A secured party may deduct from the collections made pursuant tosubsection (c) reasonable expenses of collection and enforcement, includingreasonable attorney's fees and legal expenses incurred by the securedparty.

(e) This section does not determine whether an account debtor, bank,or other person obligated on collateral owes a duty to a secured party.

(L. 2001 S.B. 288)

Effective 7-01-01