A Secured Creditor's Right to Collect a Deficiency Judgment under UCC Section 9-504: A Need to Remedy the Impasse

THERE IS CONTROVERSY CENTERING AROUND THE AVAILABILITY OF DAMAGES TO THE DEBTOR UNDER SECTION 9-507 ( 1 ) WHERE THE QUESTION IS - IF A DEBTOR HAS A CLAIM FOR DAMAGES UNDER SECTION 9-507 ( 1 ), SHOULD SECTION 9-504 OPERATE TO PRECLUDE OR LIMIT THE SECURED CREDITOR'S RIGHT TO RECOVER A DEFICIENCY JUDGMENT. BASED ON THE PRECISE LANGUAGE OF THE SECTIONS, THERE IS NO CLEAR-CUT SOLUTION TO THE QUESTION. THE COURTS HAVE REACHED AN IRRECONCILABLE IMPASSE. THE UCC EDITORIAL BOARD AND THE STATE LEGISLATURES SHOULD RECOGNIZE THAT SUCH AN IMPASSE HAS BEEN REACHED AND THAT THE ONLY SOLUTION IS TO REDRAFT ALL OR A PORTION OF SECTIONS 9-504 AND 9-507 ( 1 ). ONLY THEN WILL THE STATED PURPOSE OF THE UCC, TO MAKE UNIFORM THE LAWS OF THE VARIOUS JURISDICTIONS, BE MET.