A debtor may redeem collateral at any time prior to the time that the secured party has disposed of the collateral or entered into a binding contract for resale by tendering the entire obligation that is owed plus any legal costs and expenses incurred by the secured party.

Question

Quizplus · Accepted Answer

This statement is correct according to the UCC (Uniform Commercial Code) 9-623. A debtor has the right to redeem their collateral by paying the entire amount owed plus any legal costs and expenses incurred by the creditor prior to the disposal or resale of the collateral.

A Debtor May Redeem Collateral at Any Time Prior to the Time