Section 57 Notice and Sale Requirements

• Library: Consumer Law and Practice 2010

The key UCC Article 9 requirements that creditors must meet in the repossession and sale of collateral are notice and commercial reasonableness. These requirements are set forth in § 400.9-610(b) and 400.9-611(c), RSMo Supp. 2010. The content of the notice is dictated by § 400.9-613 and 400.9-614, RSMo Supp. 2010, the former setting forth the requirements for commercial transactions and the latter setting forth additional requirements for consumer transactions.

The importance of a proper notice is widely recognized: "The purpose behind the statutory requirement of notice is to apprise the debtor of the details of the disposition so that the debtor may take appropriate action to protect his or her interest." Thong v. My River Home Harbour, Inc., 3 S.W.3d 373, 377 (Mo. App. E.D. 1999). "Proper notice gives the debtor the opportunity (1) to discharge the debt and reclaim the collateral, (2) to find another purchaser, or (3) to verify that the sale is conducted in a commercially reasonable manner." Mancuso v. Long Beach Acceptance Corp., 254 S.W.3d 88, 95 (Mo. App. W.D. 2008) (citing Thong). There is no requirement that the debtor prove reliance on the defective notice or that it caused the debtor any actual damage...