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)