Which of the following is true of disposition of collateral?
A) Disposition of collateral must be a public proceeding.
B) The debtor is entitled to receive any surplus collateral that remains after disposition.
C) The debtor need not be notified of the disposition as the creditor has complete claim on the collateral.
D) Disposition of collateral occurs when the default is by the creditor.

Question

Quizplus · Accepted Answer

The debtor is entitled to receive any surplus collateral that remains after disposition. Disposition of collateral must be done in a commercially reasonable manner, and the creditor is required to notify the debtor of the time and place of the sale so the debtor can attend and bid on the collateral. Any surplus funds resulting from the sale belong to the debtor, while any deficiency is still the debtor's responsibility to pay. The disposition of collateral occurs when the debtor defaults on the loan or lease agreement.

Which of the Following Is True of Disposition of Collateral