Under the new section 9-620 (b), acceptance of the insured party is entirely at the order of choice and acceptance cannot be imposed on an insured party (as some courts have found under the old section 9). However, an insured party that holds guarantees for an extended period of time without good reason may be considered economically inappropriate, thus exposing the insured party to the risks associated with non-compliance with Article 9. See Chapter 38 (corrective measures in case of non-compliance with Article 9 by an insured party). If the jet had been purchased for personal, family or domestic purposes, would adoption be an option for Chavers? The attempt to encourage liquidation by accepting the debt in part implies that the secured party and the debtor can negotiate an acceptance that is not directly subject to the requirement of economically reasonable orders. In addition, under the new section 9-622 A(1), a debt is made satisfactory by a partial payment of the debt only in accordance with the agreement, and the remaining debt is pursued as a possible basis for a default action of the guaranteed party. Under the new section 9-620 (g), it is not possible to accept a debt in the event of partial satisfaction in a consumer transaction. According to official note 12 to the new 9-620, an attempt to accept a debt in a consumer affair is for partial satisfaction. As a result of a debtor`s default (for example. B due to the absence of debt payments), the creditor could ignore the security interest and sue against the underlying debts.
But creditors rarely use this method because it takes time and is expensive. Most creditors prefer to recover and sell collateral or keep the property to pay off their debts. In the event of a late payment, the creditor may sue the debtor for a judgment. But the whole purpose of secure transactions is to avoid this costly and tedious litigation. The most typical situation is that the creditor withdraws the collateral and sells it either at auction (sale) or keeps it in debt satisfaction (strict seizure). In the first situation, the creditor can then act against the debtor for default. In consumer cases, the creditor cannot apply strict security if 60 per cent of the purchase price has been paid. Unless subsection (g) is made, an insured party may accept guarantees in full or partial performance of the undertaking it guarantees only if: under the new section 9-624 (b), a debtor may waive the right to make a decision by force, but only by a late and authenticated agreement. On the other hand, if an acceptance is not effective because the debtor has not given his consent or because a party entitled to make a statement has objected in a timely manner, the subordinate interest is not discharged or denounced. See official note 2 to 9-622. In the case of In re Cadiz Properties, Inc., 278 B.R. 105 (ND Tex.
2002), it was found that, if no proposal for acceptance had ever been made, there could be no transfer of ownership of shares to the insured party and, as the owner of shares giving the debtor a dominant interest in the company, a debtor-elected board of directors had the power to bankrupt the business. (A) forwards to the debtor, after a late payment, a proposal that is unconditional or that is subordinated only to the receipt or maintenance of security that is not held by the guaranteed party; 1. A debtor only agrees to accept security in partial performance of the obligation he has guaranteed if the debtor accepts the terms of acceptance on a certified compliant note after a late payment; under the former section 9-505 (2), an insured party that has duly notified the debtor and certain other parties who have retained security could result in strictly enforced enforcement (i.e. maintaining guarantees for debt satisfaction and waive any need to take into account a surplus or right to default), but the debtor or any other entitled to the notification could prevent and force retaliation in a timely and all legality.