§ 6A-9-627 - Determination of whether conduct was commercially reasonable. - Rhode Island Statutes

SECTION 6A-9-627

   § 6A-9-627  Determination of whetherconduct was commercially reasonable. – (a) Greater amount obtainable under other circumstances; no preclusion ofcommercial reasonableness. 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 secured partyis not of itself sufficient to preclude the secured party from establishingthat the collection, enforcement, disposition, or acceptance was made in acommercially reasonable manner.

   (b) Dispositions that are commercially reasonable. Adisposition of collateral is made in a commercially reasonable manner if thedisposition is made:

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

   (2) At the price current in any recognized market at the timeof the disposition; or

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

   (c) Approval by court or on behalf of creditors. Acollection, enforcement, disposition, or acceptance is commercially reasonableif 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) not necessary; absenceof approval has no effect. Approval under subsection (c) need not beobtained, and lack of approval does not mean that the collection, enforcement,disposition, or acceptance is not commercially reasonable.