§ 6A-9-607 Collection and enforcement bysecured party. – (a) Collection and enforcement generally. If so agreed, and in any eventafter default, a secured party:
(1) May notify an account debtor or other person obligated oncollateral to make payment or otherwise render performance to or for thebenefit of the secured party;
(2) May take any proceeds to which the secured party isentitled under § 6A-9-315;
(3) May enforce the obligations of an account debtor or otherperson obligated on collateral and exercise the rights of the debtor withrespect to the obligation of the account debtor or other person obligated oncollateral to make payment or otherwise render performance to the debtor, andwith respect to any property that secures the obligations of the account debtoror other person obligated on the collateral;
(4) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(1), may apply the balance of thedeposit account to the obligation secured by the deposit account; and
(5) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(2) or (3), may instruct the bankto pay the balance of the deposit account to or for the benefit of the securedparty.
(b) Nonjudicial enforcement of mortgage. If necessaryto enable a secured party to exercise under subsection (a)(3) the right of adebtor to enforce a mortgage nonjudicially, the secured party may record in theoffice in which a record of the mortgage is recorded:
(1) A copy of the security agreement that creates or providesfor a security interest in the obligation secured by the mortgage; and
(2) The secured party's sworn affidavit in recordable formstating that:
(i) A default has occurred; and
(ii) The secured party is entitled to enforce the mortgagenonjudicially.
(c) Commercially reasonable collection andenforcement. A secured party shall proceed in a commercially reasonablemanner if the secured party:
(1) Undertakes to collect from or enforce an obligation of anaccount debtor or other person obligated on collateral; and
(2) Is entitled to charge back uncollected collateral orotherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement. A securedparty may deduct from the collections made pursuant to subsection (c)reasonable expenses of collection and enforcement, including reasonableattorney's fees and legal expenses incurred by the secured party.
(e) Duties to secured party not affected. This sectiondoes not determine whether an account debtor, bank, or other person obligatedon collateral owes a duty to a secured party.
§ 6A-9-607 Collection and enforcement bysecured party. – (a) Collection and enforcement generally. If so agreed, and in any eventafter default, a secured party:
(1) May notify an account debtor or other person obligated oncollateral to make payment or otherwise render performance to or for thebenefit of the secured party;
(2) May take any proceeds to which the secured party isentitled under § 6A-9-315;
(3) May enforce the obligations of an account debtor or otherperson obligated on collateral and exercise the rights of the debtor withrespect to the obligation of the account debtor or other person obligated oncollateral to make payment or otherwise render performance to the debtor, andwith respect to any property that secures the obligations of the account debtoror other person obligated on the collateral;
(4) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(1), may apply the balance of thedeposit account to the obligation secured by the deposit account; and
(5) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(2) or (3), may instruct the bankto pay the balance of the deposit account to or for the benefit of the securedparty.
(b) Nonjudicial enforcement of mortgage. If necessaryto enable a secured party to exercise under subsection (a)(3) the right of adebtor to enforce a mortgage nonjudicially, the secured party may record in theoffice in which a record of the mortgage is recorded:
(1) A copy of the security agreement that creates or providesfor a security interest in the obligation secured by the mortgage; and
(2) The secured party's sworn affidavit in recordable formstating that:
(i) A default has occurred; and
(ii) The secured party is entitled to enforce the mortgagenonjudicially.
(c) Commercially reasonable collection andenforcement. A secured party shall proceed in a commercially reasonablemanner if the secured party:
(1) Undertakes to collect from or enforce an obligation of anaccount debtor or other person obligated on collateral; and
(2) Is entitled to charge back uncollected collateral orotherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement. A securedparty may deduct from the collections made pursuant to subsection (c)reasonable expenses of collection and enforcement, including reasonableattorney's fees and legal expenses incurred by the secured party.
(e) Duties to secured party not affected. This sectiondoes not determine whether an account debtor, bank, or other person obligatedon collateral owes a duty to a secured party.
§ 6A-9-607 Collection and enforcement bysecured party. – (a) Collection and enforcement generally. If so agreed, and in any eventafter default, a secured party:
(1) May notify an account debtor or other person obligated oncollateral to make payment or otherwise render performance to or for thebenefit of the secured party;
(2) May take any proceeds to which the secured party isentitled under § 6A-9-315;
(3) May enforce the obligations of an account debtor or otherperson obligated on collateral and exercise the rights of the debtor withrespect to the obligation of the account debtor or other person obligated oncollateral to make payment or otherwise render performance to the debtor, andwith respect to any property that secures the obligations of the account debtoror other person obligated on the collateral;
(4) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(1), may apply the balance of thedeposit account to the obligation secured by the deposit account; and
(5) If it holds a security interest in a deposit accountperfected by control under § 6A-9-104(a)(2) or (3), may instruct the bankto pay the balance of the deposit account to or for the benefit of the securedparty.
(b) Nonjudicial enforcement of mortgage. If necessaryto enable a secured party to exercise under subsection (a)(3) the right of adebtor to enforce a mortgage nonjudicially, the secured party may record in theoffice in which a record of the mortgage is recorded:
(1) A copy of the security agreement that creates or providesfor a security interest in the obligation secured by the mortgage; and
(2) The secured party's sworn affidavit in recordable formstating that:
(i) A default has occurred; and
(ii) The secured party is entitled to enforce the mortgagenonjudicially.
(c) Commercially reasonable collection andenforcement. A secured party shall proceed in a commercially reasonablemanner if the secured party:
(1) Undertakes to collect from or enforce an obligation of anaccount debtor or other person obligated on collateral; and
(2) Is entitled to charge back uncollected collateral orotherwise to full or limited recourse against the debtor or a secondary obligor.
(d) Expenses of collection and enforcement. A securedparty may deduct from the collections made pursuant to subsection (c)reasonable expenses of collection and enforcement, including reasonableattorney's fees and legal expenses incurred by the secured party.
(e) Duties to secured party not affected. This sectiondoes not determine whether an account debtor, bank, or other person obligatedon collateral owes a duty to a secured party.
