Opinion ID: 1133106
Heading Depth: 1
Heading Rank: 3

Heading: question for the supreme court of alabama

Text: Where a security agreement containing non-waiver acceleration, and non-modification clauses is in default in payment, is the secured party required to give notice to the buyer prior to repossession when past due payments have been repeatedly accepted; and if so, is the method and contents of the pre-repossession notices in the case sub judice sufficient as a matter of law? The entire record in this case, together with copies of the briefs of the parties and agreed certification in this Court, are transmitted herewith. APPENDIX Exhibit No. 21. Ford Motor Credit Company P.O. Box 9007 Mobile, Alabama 36609 Dear Customer: I have made several attempts to contact you by letter and by telephone regarding payments on your car. The records in your account file show that every opportunity has been given to you to bring your account current or to contact us to make other arrangements. We do not want your car, we want to help you pay for it. Once again, I request that you send us your check for the past due payments, and contact me as soon as possible. Sincerely, Customer Account Representative Account Number: My Telephone Number: 344-3820 REMIT LATE CHARGES DUE $___________ Exhibit No. 22. Ford Motor Credit Company P.O. Box 9007 Mobile, Alabama 36609 RE: Dear Customer: We have written you on two occasions in the past regarding your seriously delinquent account. It is imperative now that you forward $ in the enclosed envelope or call this office at 344-3820. Failure to comply could result in the repossession of your automobile in accordance with the terms of your contract. Your prompt attention to the above will be expected. Yours very truly, REMIT LATE CHARGES DUE $___________ Collection Supervisor We answer the first question in the negative. A security agreement is effective according to its terms. Code of 1975, § 7-9-201; Waters v. Union Bank of Repton, Ala., 370 So.2d 957 (1979); 13 ABR 1468. The inadvertence of the debtor here cannot raise an estoppel against the contractual interest of the creditor under the express terms of the security agreement. Cf. Draughon v. General Finance Credit Corp., Ala., 362 So.2d 880 (1978). There having been no modification of the express agreement, the secured party, upon default, had the right to take possession of the collateral. Code of 1975, § 7-9-503; Ford Motor Credit Co. v. Ditton, 52 Ala.App. 555, 295 So.2d 408 (1974). Notice of the statutory right to take possession is not required. Section 7-9-503, supra; Speigle v. Chrysler Credit Corp., 56 Ala.App. 469, 323 So.2d 360, cert. den. 295 Ala. 420, 323 So.2d 367 (1976). Having answered the first question in the negative it is unnecessary to address the second question. CERTIFIED QUESTION ANSWERED. TORBERT, C. J., and BLOODWORTH, MADDOX, ALMON and SHORES, JJ., concur. FAULKNER, JONES and EMBRY, JJ., dissent.