400.9-610. Disposition of collateral after default. - Missouri Statutes

Disposition of collateral after default.

400.9-610. (a) After default, a secured party may sell, lease,license, or otherwise dispose of any or all of the collateral in itspresent condition or following any commercially reasonable preparation orprocessing.

(b) Every aspect of a disposition of collateral, including themethod, manner, time, place, and other terms, must be commerciallyreasonable. If commercially reasonable, a secured party may dispose ofcollateral by public or private proceedings, by one or more contracts, as aunit or in parcels, and at any time and place and on any terms.

(c) A secured party may purchase collateral:

(1) At a public disposition; or

(2) At a private disposition only if the collateral is of a kind thatis customarily sold on a recognized market or the subject of widelydistributed standard price quotations.

(d) A contract for sale, lease, license, or other dispositionincludes the warranties relating to title, possession, quiet enjoyment, andthe like which by operation of law accompany a voluntary disposition ofproperty of the kind subject to the contract.

(e) A secured party may disclaim or modify warranties undersubsection (d):

(1) In a manner that would be effective to disclaim or modify thewarranties in a voluntary disposition of property of the kind subject tothe contract of disposition; or

(2) By communicating to the purchaser a record evidencing thecontract for disposition and including an express disclaimer ormodification of the warranties.

(f) A record is sufficient to disclaim warranties under subsection(e) if it indicates "There is no warranty relating to title, possession,quiet enjoyment, or the like in this disposition" or uses words of similarimport.

(L. 2001 S.B. 288)

Effective 7-01-01