On default, a secured party who chooses not to retain the collateral must dispose of it in a commercially reasonable manner.

Question

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Under the Uniform Commercial Code, a secured party who chooses not to retain the collateral must dispose of it in a commercially reasonable manner. This is to ensure that the value of the collateral is maximized and that the debtor receives any surplus funds after the debt is satisfied.

On Default, a Secured Party Who Chooses Not to Retain