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355.9-610 Disposition of collateral after default.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
After default, a secured party may sell, lease, license, or otherwise dispose of any or
all of the collateral in its present condition or following any commercially
reasonable preparation or processing.
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 party may dispose of collateral by public or private
proceedings, by one (1) or more contracts, as a unit or in parcels, and at any time
and place and on any terms.
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 a recognized market or the subject of widely distributed standard price
quotations.
A contract for sale, lease, license, or other disposition includes the warranties
relating to title, possession, quiet enjoyment, and the like which by operation of law
accompany a voluntary disposition of property of the kind subject to the contract.
A secured party may disclaim or modify warranties under subsection (4) of this
section:
(a) In a manner that would be effective to disclaim or modify the warranties in a
voluntary 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
disposition and including an express disclaimer or modification of the
warranties.
A record is sufficient to disclaim warranties under subsection (5) of this section if it
indicates "There is no warranty relating to title, possession, quiet enjoyment, or the
like in this disposition" or uses words of similar import.
The acquisition of a repossession title by a secured party shall not be deemed a
disposition of collateral under this section.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 128, effective July 1, 2001.
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