400.9-627. Determination of whether conduct was commercially reasonable. - Missouri Statutes

Determination of whether conduct was commercially reasonable.

400.9-627. (a) The fact that a greater amount could have beenobtained by a collection, enforcement, disposition, or acceptance at adifferent time or in a different method from that selected by the securedparty is not of itself sufficient to preclude the secured party fromestablishing that the collection, enforcement, disposition, or acceptancewas made in a commercially reasonable manner.

(b) A disposition of collateral is made in a commercially reasonablemanner if the disposition is made:

(1) In the usual manner on any recognized market;

(2) At the price current in any recognized market at the time of thedisposition; or

(3) Otherwise in conformity with reasonable commercial practicesamong dealers in the type of property that was the subject of thedisposition.

(c) A collection, enforcement, disposition, or acceptance iscommercially reasonable if it has been approved:

(1) In a judicial proceeding;

(2) By a bona fide creditors' committee;

(3) By a representative of creditors; or

(4) By an assignee for the benefit of creditors.

(d) Approval under subsection (c) need not be obtained, and lack ofapproval does not mean that the collection, enforcement, disposition, oracceptance is not commercially reasonable.

(L. 2001 S.B. 288)

Effective 7-01-01