70A-9a-610 - Disposition of collateral after default. - Utah Statutes

70A-9a-610. Disposition of collateral after default.
(1) After default, a secured party may sell, lease, license, or otherwise dispose of any orall of the collateral in its present condition or following any commercially reasonable preparationor processing.
(2) Every aspect of a disposition of collateral, including the method, manner, time, place,and other terms, must be commercially reasonable. If commercially reasonable, a secured partymay dispose of collateral by public or private proceedings, by one or more contracts, as a unit orin parcels, and at any time and place and on any terms.
(3) A secured party may purchase collateral:
(a) at a public disposition; or
(b) at a private disposition only if the collateral is of a kind that is customarily sold on arecognized market or the subject of widely distributed standard price quotations.
(4) A contract for sale, lease, license, or other disposition includes the warranties relatingto title, possession, quiet enjoyment, and the like which by operation of law accompany avoluntary disposition of property of the kind subject to the contract.
(5) A secured party may disclaim or modify warranties under Subsection (4):
(a) in a manner that would be effective to disclaim or modify the warranties in avoluntary disposition of property of the kind subject to the contract of disposition; or
(b) by communicating to the purchaser a record evidencing the contract for dispositionand including an express disclaimer or modification of the warranties.
(6) A record is sufficient to disclaim warranties under Subsection (5) if it indicates "Thereis no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or useswords of similar import.

Enacted by Chapter 252, 2000 General Session