Document ID: chunk:federal_register_of_legislation:C2024C00719:section:131
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 131
Character Range: 235268–235963

131  Duty of secured party disposing of collateral to obtain market value
  A secured party who disposes of collateral under section 128 (other than by purchasing the collateral) owes a duty, to any other person with a security interest in the collateral, and to the grantor, immediately before the disposal, to exercise all reasonable care:
 (a) if the collateral has a market value at the time of disposal—to obtain at least that market value; or
 (b) otherwise—to obtain the best price that is reasonably obtainable at the time of disposal, having regard to the circumstances existing at that time.
Note: A different rule applies in relation to disposal by purchase (see subsection 129(3)).