§490:9-607  Collection and enforcement by
secured party.  (a)  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 490:9-315;



(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 that secures the obligations of the account
debtor or other person obligated on the collateral;



(4)  If it holds a security interest in a deposit
account perfected by control under section 490:9-104(a)(1), may apply the
balance of the deposit account to the obligation secured by the deposit
account; and



(5)  If it holds a security interest in a deposit
account perfected by control under section 490:9-104(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)  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 that creates or
provides for a security interest in the obligation secured by the mortgage; and



(2)  The secured party's sworn affidavit in recordable
form stating that:



(A)  A default has occurred; and



(B)  The secured party is entitled to enforce
the mortgage nonjudicially.



(c)  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)  A secured party may deduct from the
collections made pursuant to subsection (c) reasonable expenses of collection
and enforcement, including reasonable attorney's fees and legal expenses
incurred by the secured party.



(e)  This section does not determine whether an
account debtor, bank, or other person obligated on collateral owes a duty to a
secured party. [L 2000, c 241, pt of §1]