Secured Transactions - Repossession of Collateral

Vocabulary flashcards covering key terms and concepts related to repossession of collateral in secured transactions, based on lecture notes.

Repossession

Taking possession of collateral after a debtor defaults on a secured loan.

UCC 9-609(a)

After default, a secured party may take possession of the collateral.

Breach of the Peace (BoP)

Conduct that incites or is likely to incite immediate public turbulence, leading to a loss of public order and tranquility during repossession.

Replevin

A cause of action (writ) for possession, allowing a secured party to reclaim collateral.

UCC 9-609(b)

A secured party may proceed with repossession (1) pursuant to judicial process; or (2) without judicial process, if it proceeds without breach of the peace.

Self-Help Repossession

Repossession without judicial process, permissible if done without breaching the peace.

Judicial Foreclosure

Foreclosure carried out through the court system, often involving a sheriff.

UCC §9-625

Remedies for failure of Secured Party to Comply with Article 9.

UCC §9-609(a)(2)

Allows a secured party to render equipement unusable AND dispose of collateral on a debtor's premises under Section 9-610.

UCC §§9-607 and 9-406(a)

Provide a self-help remedy for an assignee of accounts.

UCC §9-406(c)

An account debtor who is concerned whether the person sending the notice is actually entitled to the money can request proof of the assignment.

Receiver

An officer of the court who takes possession of collateral during foreclosure to preserve it

Texas Assignment of Rents Act

Under Texas law, an assignment of rents arising from real property creates a presently effective security interest in the accrued and unaccrued rents.