§ 25-9-627. Determination of whether conduct was commercially reasonable. - North Carolina Statutes

§25‑9‑627.  Determination of whether conduct was commerciallyreasonable.

(a)        Greater amountobtainable under other circumstances; no preclusion of commercialreasonableness. – The fact that a greater amount could have been obtained by acollection, enforcement, disposition, or acceptance at a different time or in adifferent method from that selected by the secured party is not of itselfsufficient to preclude the secured party from establishing that the collection,enforcement, disposition, or acceptance was made in a commercially reasonablemanner.

(b)        Dispositions thatare commercially reasonable. – A disposition of collateral is made in acommercially reasonable manner if the disposition is made:

(1)        In the usual manneron any recognized market;

(2)        At the price currentin any recognized market at the time of the disposition; or

(3)        Otherwise inconformity with reasonable commercial practices among dealers in the type ofproperty that was the subject of the disposition.

(c)        Approval by courtor on behalf of creditors. – A collection, enforcement, disposition, oracceptance is commercially reasonable if it has been approved:

(1)        In a judicialproceeding;

(2)        By a bona fidecreditors' committee;

(3)        By a representativeof creditors; or

(4)        By an assignee forthe benefit of creditors.

(d)        Approval undersubsection (c) of this section not necessary; absence of approval has noeffect. – Approval under subsection (c) of this section need not be obtained,and lack of approval does not mean that the collection, enforcement,disposition, or acceptance is not commercially reasonable. (1965,c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)