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Sec. 42a-9-609. Secured party's right to take possession after default. Use of electronic self-help restricted. (a) After default, a secured party:
(1) May take possession of the collateral; and
(2) Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under section 42a-9-610.
(b) A secured party may proceed under subsection (a):
(1) Pursuant to judicial process; or
(2) Without judicial process, if it proceeds without breach of the peace.
(c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
(d) (1) In this subsection, “electronic self-help” means the use of electronic means to exercise a secured party's rights pursuant to subsection (a) of this section with respect to the security agreement, and “electronic” means relating to technology that has electrical, digital, magnetic or wireless optical electromagnetic properties or similar capabilities. “Electronic self-help” includes the use of electronic means to locate the collateral.
(2) Electronic self-help is permitted only if the debtor separately agrees to a term of the security agreement authorizing electronic self-help that requires notice of exercise as provided in subdivision (3) of this subsection. Except in a consumer transaction, the debtor is deemed to have separately agreed to a term of the security agreement authorizing electronic self-help if a clause is included in the security agreement that specifically states that electronic self-help is authorized.
(3) Before resorting to electronic self-help authorized by a term of the security agreement, the secured party shall give notice to the debtor stating:
(A) That the secured party intends to resort to electronic self-help as a remedy on or after fifteen days following communication of the notice to the debtor;
(B) The nature of the claimed breach which entitled the secured party to resort to self-help; and
(C) The name, title, address and telephone number of a person representing the secured party with whom the debtor may communicate concerning the security interest.
(4) A debtor may recover direct and incidental damages caused by wrongful use of electronic self-help. The debtor may also recover consequential damages for wrongful use of electronic self-help even if such damages are excluded by the terms of the security agreement.
(5) Even if the secured party complies with subdivisions (2) and (3) of this subsection, electronic self-help may not be used if the secured party has reason to know that its use will result in substantial injury or harm to the public health or safety or grave harm to the public interest substantially affecting third parties not involved in the dispute.
(P.A. 01-132, S. 106; P.A. 03-62, S. 16, 17.)
Annotations to former section 42a-9-503:
Cited. 207 C. 15; 221 C. 530.
Cited. 18 CA 265; 29 CA 283; judgment reversed, see 228 C. 795; 46 CA 573.
Cited. 40 CS 475.
Nov 27, 2023
Superior
Hartford County, CT
Mar 10, 2015
New Haven County
New Haven County, CT
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