Arizona Laws 47-9627. Determination of whether conduct was commercially reasonable
A. The fact that a greater amount could have been obtained by a collection, enforcement, disposition or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition or acceptance was made in a commercially reasonable manner.
Terms Used In Arizona Laws 47-9627
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Property: includes both real and personal property. See Arizona Laws 1-215
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
B. A disposition of collateral is made in a commercially reasonable manner if the disposition is made:
1. In the usual manner on any recognized market;
2. At the price current in any recognized market at the time of the disposition; or
3. Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.
C. A collection, enforcement, disposition or acceptance is commercially reasonable if it has been approved:
1. In a judicial proceeding;
2. By a bona fide creditors’ committee;
3. By a representative of creditors; or
4. By an assignee for the benefit of creditors.
D. Approval under subsection C need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition or acceptance is not commercially reasonable.