2006 Ohio Revised Code - 1309.623. (UCC 9-623) Right to redeem collateral.

§ 1309.623. (UCC 9-623) Right to redeem collateral.
 

(A)  A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. 

(B)  To redeem collateral, a person shall tender: 

(1) Fulfillment of all obligations secured by the collateral; and 

(2) The reasonable expenses and attorney's fees described in division (A)(1) of section 1309.615 of the Revised Code. 

(C)  A redemption may occur at any time before a secured party: 

(1) Has collected collateral under section 1309.607 of the Revised Code; 

(2) Has disposed of collateral or entered into a contract for its disposition under section 1309.610 of the Revised Code; or 

(3) Has accepted collateral in full or partial satisfaction of the obligation it secures under section 1309.622 of the Revised Code. 
 

HISTORY: 149 v S 74. Eff 7-1-2001.
 

The effective date is set by section 4 of SB 74. 

 

Official Comment

1. Source. Former section 9-506. 

2. Redemption Right. Under this section, as under former section 9-506, the debtor or another secured party may redeem collateral as long as the secured party has not collected (section 9-607), disposed of or contracted for the disposition of (section 9-610), or accepted (section 9-620) the collateral. Although this section generally follows former section 9-506, it extends the right of redemption to holders of nonconsensual liens. To redeem the collateral a person must tender fulfillment of all obligations secured, plus certain expenses. If the entire balance of a secured obligation has been accelerated, it would be necessary to tender the entire balance. A tender of fulfillment obviously means more than a new promise to perform an existing promise. It requires payment in full of all monetary obligations then due and performance in full of all other obligations then matured. If unmatured secured obligations remain, the security interest continues to secure them (i.e., as if there had been no default). 

3. Redemption of Remaining Collateral Following Partial Enforcement. Under section 9-610 a secured party may make successive dispositions of portions of its collateral. These dispositions would not affect the debtor's, another secured party's, or a lienholder's right to redeem the remaining collateral. 

4. Effect of "Repledging." Section 9-207 generally permits a secured party having possession or control of collateral to create a security interest in the collateral. As explained in the comments to that section, the debtor's right (as opposed to its practical ability) to redeem collateral is not affected by, and does not affect, the priority of a security interest created by the debtor's secured party.