Document ID: chunk:federal_register_of_legislation:C2024C00719:section:122
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 122
Character Range: 221551–222701

122  Guide to this Part

      This Part deals with the seizure and disposal or retention of collateral following default by a debtor under a security agreement.
      Division 2 contains rules about when and how a secured party may seize collateral.
      Division 3 deals with the disposal of collateral by a secured party after seizure of the collateral.
      Division 4 deals with the retention of collateral by a secured party after seizure of the collateral.
      If a secured party proposes to dispose of, or retain, collateral, the party must give notice to the grantor and any other secured party with a security interest in the collateral that has a higher priority. A notice of disposal may be given in the approved form, while a notice of retention must be given in the approved form.
      A person may object if a secured party proposes to enforce a security interest by purchasing or retaining the collateral (see Division 5).
      A person exercising or discharging rights, duties and obligations arising under this Part must act honestly and in a commercially reasonable manner (see section 111).

Division 2—Seizing collateral