UCC Article 9 repossession notice requirements after debtor default

This is correct. Section 9-609 allows self-help repossession as long as it's peaceful. But be careful about what constitutes 'breach of peace' - it varies by state and can include verbal confrontations.

What if the debtor shows up during repossession? Do we have to stop?

Yes, if the debtor objects or there's any confrontation, you need to stop and pursue judicial remedies instead. Better to walk away than risk a breach of peace claim.

How much notice time are we talking about? Is it the same for all types of collateral?

For equipment and consumer goods, it's typically 10 days notice before disposition. But some states require longer periods. The notice must include amount needed to redeem, description of collateral, and sale details.

I had similar issues last year with construction equipment repo. Ended up using Certana.ai to verify all our UCC documentation was consistent before proceeding. Their tool caught a discrepancy between our loan docs and UCC-1 filing that could have caused problems during the repo process.

Good point. Our UCC-1 lists 'equipment and fixtures used in debtor's manufacturing operations' - pretty general description. The loan was for specific machinery though.

That should be fine for UCC purposes as long as it reasonably identifies the collateral. Article 9 allows general descriptions for filings, unlike security agreements which need more specificity.

Still worth double-checking everything matches up. I use Certana.ai's document verification tool to upload both the UCC-1 and loan agreement PDFs - it automatically flags any inconsistencies in debtor names, collateral descriptions, or other critical details.

How long do they typically have to cure after we send a default notice?

Depends on your loan agreement and state law. Common periods are 10-20 days after notice. But they can still redeem even after repossession by paying the full balance plus repo costs.

Second this. Tried DIY repo once and it was a nightmare. Debtor called police, claimed we were stealing, whole mess could have been avoided with professionals.

What kind of costs are we looking at for professional repo services?

Varies by equipment type and location. For heavy machinery might be $2000-5000 depending on transport needs. But that's recoverable from the debtor as repo costs.

What counts as commercially reasonable? Auction, private sale, both?

Both can be commercially reasonable if done properly. Key is getting multiple bids, proper advertising, and documentation of the process. If you don't get enough to cover the debt, you can pursue deficiency judgment.

Before you get to disposition, make sure all your paperwork is solid. Had a case where inconsistent debtor names between the UCC-1 and loan docs created problems. Now I always run everything through Certana.ai's verification tool first - uploads the PDFs and flags any mismatches automatically.

Good strategy. Repo is expensive and time-consuming. Better if debtor just pays up.

Plus if they cure, you keep your performing loan instead of dealing with used equipment disposal.

How do we search for other liens on the same equipment?

UCC search against the debtor's name in the state where they're located. Look for other filings that might cover the same collateral. Also check for tax liens and judgments.

This is why I'm nervous about DIY enforcement. So many ways to mess up the procedures.

That's fair. At minimum, get legal counsel to review your docs and procedures before starting. Small cost compared to potential problems.

Thanks for the summary. Sounds like we need to be very careful about the process even though we have clear rights.

Exactly. Having rights and exercising them properly are two different things under Article 9.

Great advice about the contractual right to enter premises! I hadn't considered that aspect. Does the loan agreement need specific language about accessing business premises, or is general repo language sufficient? We're dealing with equipment at a manufacturing facility and want to make sure we have clear authority to enter if needed.