§ 9607. Collection and enforcement by secured party.
(a) Collection and enforcement generally.--If so agreed, and
in any event after default, a secured party:
(1) may notify an account debtor or other person
obligated on collateral to make payment or otherwise render
performance to or for the benefit of the secured party;
(2) may take any proceeds to which the secured party is
entitled under section 9315 (relating to secured party's
rights on disposition of collateral and in proceeds);
(3) may enforce the obligations of an account debtor or
other person obligated on collateral and exercise the rights
of the debtor with respect to the obligation of the account
debtor or other person obligated on collateral to make
payment or otherwise render performance to the debtor and
with respect to any property which secures the obligations of
the account debtor or other person obligated on the
collateral;
(4) if the secured party holds a security interest in a
deposit account perfected by control under section 9104(a)(1)
(relating to requirements for control), may apply the balance
of the deposit account to the obligation secured by the
deposit account; and
(5) if the secured party holds a security interest in a
deposit account perfected by control under section 9104(a)(2)
or (3), may instruct the bank to pay the balance of the
deposit account to or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage.--If necessary to
enable a secured party to exercise under subsection (a)(3) the
right of a debtor to enforce a mortgage nonjudicially, the
secured party may record in the office in which a record of the
mortgage is recorded:
(1) A copy of the security agreement which creates or
provides for a security interest in the obligation secured by
the mortgage.
(2) The secured party's sworn affidavit in recordable
form stating that:
(i) a default has occurred; and
(ii) the secured party is entitled to enforce the
mortgage nonjudicially.
(c) Commercially reasonable collection and enforcement.--A
secured party shall proceed in a commercially reasonable manner
if the secured party:
(1) undertakes to collect from or enforce an obligation
of an account debtor or other person obligated on collateral;
and
(2) is entitled to charge back uncollected collateral or
otherwise to full or limited recourse against the debtor or a
secondary obligor.
(d) Expenses of collection and enforcement.--A secured party
may deduct from the collections made pursuant to subsection (c)
reasonable expenses of collection and enforcement, including
reasonable attorney fees and legal expenses incurred by the
secured party.
(e) Duties to secured party not affected.--This section does
not determine whether an account debtor, bank or other person
obligated on collateral owes a duty to a secured party.
Cross References. Section 9607 is referred to in sections
9601, 9602, 9608, 9623 of this title.
|