§ 5.2.4 Determination of the Propriety of a Proceeding to Enforce a Debt.

• Jurisdiction: Arizona

§ 5.2.4 Determination of the Propriety of a Proceeding to Enforce a Debt. Article 9 of the Uniform Commercial Code, codified in Arizona in A.R.S. §§ 47-9101 to -9709, authorizes a secured party to dispose of collateral in several ways, as long as the disposition is “commercially reasonable.” UCC § 9-610 ; A.R.S. § 47-9610. If the sale or other disposition is not performed in a commercially reasonable manner, the creditor may lose its right to all or part of the deficiency. UCC §§ 9-625, 9-626. See, e.g., Norton v. National Bank of Commerce, 240 Ark. 143, 398 S.W.2d 538 (1966), abrogated by First State Bank of Morrilton v. Hallett, 291 Ark. 37, 722 S.W.2d 555 (1987) (creditor failing to notify debtor of private sale had burden of proof on existence of deficiency).

Where the collateral is extremely valuable, the balance owing is large and the potential...