8.9A-627 - A-627. Determination of whether conduct was commercially reasonable. - Virginia Statutes

§ 8.9A-627. Determination of whether conduct 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 securedparty is not of itself sufficient to preclude the secured party fromestablishing that the collection, enforcement, disposition, or acceptance wasmade in a commercially reasonable manner.

(b) Dispositions that are commercially reasonable. A disposition ofcollateral is made in a commercially reasonable manner if the disposition ismade:

(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 practices amongdealers in the type of property that was the subject of the disposition.

(c) Approval by court or on behalf of creditors. A collection, enforcement,disposition, or acceptance is commercially 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) not necessary; absence of approval has noeffect. Approval under subsection (c) need not be obtained, and lack ofapproval does not mean that the collection, enforcement, disposition, oracceptance is not commercially reasonable.

(1964, c. 219, § 8.9-507; 2000, c. 1007.)