ORS 79.0620
UCC 9-620. Acceptance of collateral in full or partial satisfaction of obligation
- compulsory disposition of collateral
(1)
Except as otherwise provided in subsection (7) of this section, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:(a)
The debtor consents to the acceptance under subsection (3) of this section;(b)
The secured party does not receive, within the time set forth in subsection (4) of this section, a notification of objection to the proposal authenticated by:(A)
A person to which the secured party was required to send a proposal under ORS 79.0621 (UCC 9-621. Notification of proposal to accept collateral); or(B)
Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;(c)
If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and(d)
Subsection (5) of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to ORS 79.0624 (UCC 9-624. Waiver).(2)
A purported or apparent acceptance of collateral under this section is ineffective unless:(a)
The secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and(b)
The conditions of subsection (1) of this section are met.(3)
For purposes of this section:(a)
A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and(b)
A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:(A)
Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;(B)
In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and(C)
Does not receive a notification of objection authenticated by the debtor within 20 days after the proposal is sent.(4)
To be effective under subsection (1)(b) of this section, a notification of objection must be received by the secured party:(a)
In the case of a person to which the proposal was sent pursuant to ORS 79.0621 (UCC 9-621. Notification of proposal to accept collateral), within 20 days after notification was sent to that person; and(b)
In other cases:(A)
Within 20 days after the last notification was sent pursuant to ORS 79.0621 (UCC 9-621. Notification of proposal to accept collateral); or(B)
If a notification was not sent, before the debtor consents to the acceptance under subsection (3) of this section.(5)
A secured party that has taken possession of collateral shall dispose of the collateral pursuant to ORS 79.0610 (UCC 9-610. Disposition of collateral after default) within the time specified in subsection (6) of this section if:(a)
Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(b)
Sixty percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.(6)
To comply with subsection (5) of this section, the secured party shall dispose of the collateral:(a)
Within 180 days after taking possession; or(b)
Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.(7)
In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures. [2001 c.445 §118]
Source:
Section 79.0620 — UCC 9-620. Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral, https://www.oregonlegislature.gov/bills_laws/ors/ors079.html.
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