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B is corrent because a purchaser for value at a public sale who is without knowledge of any defects in that sale and who is not in collusion with the secured creditor will take the property free of the debtor’s rights and any security interests. A purchaser for value at a private sale will take free of the debtor’s rights and any security interests if he acts in good faith. The debtor’s remedy for an improperly conducted sale is a cause of action for money damages against the secured party. The debtor and any secondarily secured party have an absolute right to redeem the collateral at any time prior to the sale of the collateral by tendering all amounts due the secured party.
A is incorrect because a secured creditor may dispose of the collateral at either a public or private sale. The secured party may buy at any public sale and may also buy at a private sale if the collateral is either widely distributed at a standard price or is customarily sold in a recognized market.
A is incorrect because a secured creditor may dispose of the collateral at either a public or private sale. The secured party may buy at any public sale and may also buy at a private sale if the collateral is either widely distributed at a standard price or is customarily sold in a recognized market.
D is incorrect because secured parties with subordinate claims do not have the right to redeem the collateral after disposition to a third party has been made. Subordinate secured parties, however, do have a right to the proceeds from the disposition after payment of the secured party’s reasonable expenses and the debt secured by the collateral.