Document ID: chunk:federal_register_of_legislation:C2024C00719:section:125
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 125
Character Range: 224427–225363

125  Obligation to dispose of or retain collateral
 (1) A secured party who seizes collateral under section 123 must:
 (a) dispose of the collateral in accordance with Division 3; or
 (b) take action to retain the collateral in accordance with Division 4.
 (2) Before disposing of or taking action to retain the collateral, the secured party is, subject to the security agreement that covers the collateral, entitled to a reasonable period in which:
 (a) to secure, store and value the collateral; and
 (b) to determine how to deal with the collateral.
 (3) The secured party may delay disposing of, or taking action to retain, the whole or part of the collateral beyond the reasonable period mentioned in subsection (2). However, the delay must:
 (a) if the security agreement providing for the security interest allows for the delay—be in accordance with the security agreement; or
 (b) otherwise—be reasonable in the circumstances.