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A is corrent because upon default, the secured party normally has the right to retain (or sell) the collateral to satisfy the obligation. However, the secured party cannot retain the collateral if it is consumer goods and the debtor has paid 60% or more of the obligation. In such a case, the debtor is entitled to a compulsory disposition of the goods. Control’s security interest is in equipment, not consumer goods, and Arrow has paid only 50% of the obligation. Thus, Arrow is not entitled to a compulsory disposition.
B is incorrect because Control may retain the collateral if written notice of such was sent to the debtor, Arrow, and Arrow did not object within 21 days.
C is incorrect because Arrow can redeem the collateral at any time up to when it is sold by paying the full obligation plus expenses of the secured party incurred during the repossession of the equipment.
D is incorrect because upon default the secured party has a right to sell the collateral at either a private sale or a public sale. In either type of sale the secured party must act in a commercially reasonable manner and normally must give notice to the debtor prior to the sale.