_______________________________________________
SENATE
BILL 5181
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Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 01/17/97.
Referred to Committee on Law & Justice.
Making certain
debtors liable for any deficiency after default.
AN
ACT Relating to a debtor's liability for a deficiency after default under a
security agreement; and amending RCW 62A.9-501.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
62A.9-501 and 1981 c 41 s 34 are each amended to read as follows:
(1)
When a debtor is in default under a security agreement, a secured party has the
rights and remedies provided in this Part and except as limited by subsection
(3) of this section those provided in the security agreement. He or
she may reduce his or her claim to judgment, foreclose or otherwise
enforce the security interest by any available judicial procedure. If the
collateral is documents the secured party may proceed either as to the
documents or as to the goods covered thereby. A secured party in possession
has the rights, remedies and duties provided in RCW 62A.9-207. The rights and
remedies referred to in this subsection are cumulative.
((Notwithstanding
any other provision of this Code, in the case of a purchase money security
interest in consumer goods taken or retained by the seller of such collateral
to secure all or part of its price, the debtor shall not be liable for any
deficiency after the secured party has disposed of such collateral under RCW
62A.9-504 or has retained such collateral in satisfaction of the debt under
subsection (2) of RCW 62A.9-505.))
(2)
After default, the debtor has the rights and remedies provided in this Part,
those provided in the security agreement and those provided in RCW 62A.9-207.
(3)
To the extent that they give rights to the debtor and impose duties on the
secured party, the rules stated in the subsections referred to ((below))
in (a) through (e) of this subsection may not be waived or varied
except as provided with respect to compulsory disposition of collateral
(subsection (3) of RCW 62A.9-504 and RCW 62A.9-505) and with respect to
redemption of collateral (RCW 62A.9-506) but the parties may by agreement
determine the standards by which the fulfillment of these rights and duties is
to be measured if such standards are not manifestly unreasonable:
(a)
subsection (2) of RCW 62A.9-502 and subsection (2) of RCW 62A.9-504 insofar as
they require accounting for surplus proceeds of collateral;
(b)
subsection (3) of RCW 62A.9-504 and subsection (1) of RCW 62A.9-505 which deal
with disposition of collateral;
(c)
subsection (2) of RCW 62A.9-505 which deals with acceptance of collateral as
discharge of obligation;
(d)
RCW 62A.9-506 which deals with redemption of collateral; and
(e)
subsection (1) of RCW 62A.9-507 which deals with the secured party's liability
for failure to comply with this Part.
(4)
If the security agreement covers both real and personal property, the secured
party may proceed under this Part as to the personal property or he or she
may proceed as to both the real and the personal property in accordance with
his or her rights and remedies in respect of the real property in which
case the provisions of this Part do not apply.
(5) When a secured party has reduced his or her claim to
judgment the lien of any levy which may be made upon his or her
collateral by virtue of any execution based upon the judgment shall relate back
to the date of the perfection of the security interest in such collateral. A
judicial sale, pursuant to such execution, is a foreclosure of the security
interest by judicial procedure within the meaning of this section, and the
secured party may purchase at the sale and thereafter hold the collateral free
of any other requirements of this Article.
