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§12A-9-502.
§12A-9-502.
Collection Rights of Secured Party. - (1) When so agreed, and in any
event on default, the secured party is entitled to notify an account
debtor or the obligor on an instrument to make payment to him whether
or not the assignor was theretofore making collections on the
collateral, and also to take control of any proceeds to which he is
entitled under Section 9-306.
(2) A secured party who by agreement is entitled to charge back
uncollected collateral or otherwise to full or limited recourse
against the debtor and who undertakes to collect from the account
debtors or obligors must proceed in a commercially reasonable manner
and may deduct his reasonable expenses of realization from the
collections. If the security agreement secures an indebtedness, the
secured party must account to the debtor for any surplus and, unless
otherwise agreed, the debtor is liable for any deficiency. But, if the
underlying transaction was a sale of accounts or chattel paper, the
debtor is entitled to any surplus or is liable for any deficiency only
if the security agreement so provides.
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