Bonn,a secured party,intends to sell collateral at a private sale after the debtor defaults.Which of the following statements is false?
A)The debtor has the right to redeem the collateral until Bonn actually disposes of it.
B)As long as the debtor was given notice of the private sale,he cannot object to it,claiming that it is commercially unreasonable.
C)Bonn must notify the debtor of the private sale.
D)Bonn must notify the debtor of the time and place of the private sale.

Question

Quizplus · Accepted Answer

Notice of the time and place of a public sale must be given to the debtor,as must notice of a private sale.If the creditor decides to sell the collateral at a public sale such as an auction,then the creditor must give the debtor accurate advance notice of the time and place of the public sale.Similarly,if the creditor proposes to make a private sale of the collateral,notice must be given to the debtor.This gives the debtor a chance to object to the proposed private sale if she considers it not to be commercially reasonable or to otherwise protect her interests [9-613].Until the collateral is actually disposed of by the creditor,the buyer has the right to redeem it.

Bonn,a Secured Party,intends to Sell Collateral at a Private Sale