Secured parties have the right to sell, lease or dispose of their collateral.
In exercising this right, secured parties enjoy great flexibility. The UCC's drafters wisely concluded that the best policy was to permit secured parties the discretion to determine a commercially reasonable way to dispose of collateral. Courts have held uniformly that a debtor may not waive the defense of commercial reasonableness. These courts, expressing the view that a secured party should attempt to obtain the highest possible price for collateral, typically look to see the difference between a collateral's fair market value and a sale's proceeds. A sizable disparity between these two prices alone can be grounds for finding commercially unreasonable conduct by a secured party.