Opinion ID: 1844159
Heading Depth: 1
Heading Rank: 2

Heading: Was the Disposition Commercially Reasonable?

Text: GECC was originally prevented from taking possession of the collateral because of the bankruptcy proceedings. It did not attempt to get immediate permission from the bankruptcy court to remove the equipment, because it felt it was more prudent to leave the equipment in place and negotiate with the occupant of the hotel. This would reduce attorney fees, costs of removal, and, ultimately, the amount of any deficiency judgment. After GECC seized the equipment, it notified Vashis of its intention to dispose of the collateral after ten days. See Iowa Code § 554.9505(2). Vashis responded by offering $15,000 for the equipment but conditioned it on being released from all liability. GECC refused the offer. Self & Associates contacted several hotel management companies to sell the equipment; however, it was discovered that essential software was missing, rendering the equipment virtually worthless. There was testimony that, for all practical purposes, software was not available. Self & Associates also contacted various wholesalers of telecommunications equipment, and GECC attempted to sell the equipment through brokers. GECC ultimately decided to scrap the equipment but has received nothing for it. Whether a disposition of collateral is commercially reasonable is a question of fact. John Deere Leasing, 395 N.W.2d at 887. We believe that substantial evidence supports the trial court's finding that the disposition was commercially reasonable under these facts.