Oregon Law Review : Vol. 89, No. 2, p. 623-644 : Exploring the Creditor’s Duty of Reasonable Care Under UCC Article 9 Amidst Recession and Revision
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Date
2010
Authors
Eonas, Anthony G.
Secord, Erin M.
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon Law School
Abstract
The following analysis will explore a secured party’s duties under
sections 9-207(a) and 9-610 individually and in tandem to reveal that,
despite the clarity of the statute on its face, variances abound. The
differences in application of these provisions of the UCC create
uncertainty in the marketplace, which is detrimental during times of
economic decline. Given the higher incidences of default in times of
economic recession, valuation becomes a key determinant of the
outcome for the parties involved. Furthermore, unique collateral
becomes increasingly difficult to value in a slow economy because of
reduced demand. Accordingly, collateral with an established
market is easier to value. This facilitation in collateral valuation leads to a more straightforward assessment of the adequacy of the
secured party’s preservation and disposal of collateral.
Additionally, this Article will investigate the effect of turbulence in
the domestic and global markets on creditors’ duties of preservation
and reasonable sale or disposal under sections 9-207(a) and 9-610.
Description
22 p.
Keywords
Valuation
Citation
89 Or. L. Rev. 623 (2010)