PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 131 Duty of secured party disposing of collateral to obtain market value

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 131

    A secured party who disposes of collateral under section   128 (other than by purchasing the collateral) owes a duty, to any other person with a security interest in the collateral, and to the grantor, immediately before the disposal, to exercise all reasonable care:

  (a)   if the collateral has a market value at the time of disposal--to obtain at least that market value; or

  (b)   otherwise--to obtain the best price that is reasonably obtainable at the time of disposal, having regard to the circumstances existing at that time.

Note:   A different rule applies in relation to disposal by purchase (see subsection   129(3)).