KRS 355.9-610: Disposition of collateral after default.

(1) After default, a secured party may sell, lease, license, or otherwise dispose of any or

all of the collateral in its present condition or following any commercially

reasonable preparation or processing.

(2) Every aspect of a disposition of collateral, incl uding the method, manner, time,

place, and other terms, must be commercially reasonable. If commercially

reasonable, a secured party may dispose of collateral by public or private

proceedings, by one (1) or more contracts, as a unit or in parcels, and at a ny time

and place and on any terms.

(3) A secured party may purchase collateral:

(a) At a public disposition; or

(b) At a private disposition only if the collateral is of a kind that is customarily

sold on a recognized market or the subject of widely distributed standard price

quotations.

(4) A contract for sale, lease, license, or other disposition includes the warranties

relating to title, possession, quiet enjoyment, and the like which by operation of law

accompany a voluntary disposition of property of the kind subject to the contract.

(5) A secured party may disclaim or modify warranties under subsection (4) of this

section:

(a) In a manner that would be effective to disclaim or modify the warranties in a

voluntary disposition of property of the kind su bject to the contract of

disposition; or

(b) By communicating to the purchaser a record evidencing the contract for

disposition and including an express disclaimer or modification of the

warranties.

(6) A record is sufficient to disclaim warranties under s ubsection (5) of this section if it

indicates "There is no warranty relating to title, possession, quiet enjoyment, or the

like in this disposition" or uses words of similar import.

(7) The acquisition of a repossession title by a secured party shall not b e deemed a

disposition of collateral under this section.