Code of Alabama
Ala. Code § 7-9-207 (2026)
Rights and Duties When Collateral Is in Secured Party’s Possession.
✓ official Alabama Legislature (ALISON) text, current July 2026
Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.
(Acts 1965, No. 549, p. 811.)
Notes of Decisions
Cited in 8
cases, 1979–1998 · leading case: Wadsworth v. Yancey Bros. Co., 423 So. 2d 1343 (Ala. 1982).
Wadsworth v. Yancey Bros. Co., 423 So. 2d 1343 (Ala. 1982). “This is evidenced by the Code of Alabama of 1975, § 7-9-207 (1). . . . "The first . . . was the transaction in which [Wadsworth] granted to [Yancey] a security interest in [the tractor].”
Yeager v. Gen. Motors Acceptance Corp., 719 So. 2d 210 (Ala. 1998). “On June 27, 1996, Yeager sued, on behalf of himself and all others similarly situated, alleging that GMAC and Solomon Chevrolet had violated § 7-9-207, Ala. Code 1975, and had committed fraudulent suppression; he based the claims on the defendants' alleged failure to pay…”
Toomey Equip. Co. v. Com. CREDIT, ETC., 386 So. 2d 1155 (Ala. Civ. App. 1980). “Bohannon's death, CCEC violated § 7-9-207 (1), which reads: A secured party must use reasonable care in the custody and preservation of collateral in his possession.”
Gen. Elec. Credit Corp. v. Alford & Assoc., 374 So. 2d 1316 (Ala. 1979). “" We held that Code 1975, § 7-9-207, mandates that "unless otherwise agreed" any money representing an increase or profit from the collateral shall be remitted to the debtor or applied in reduction of the secured obligation.”
Turner v. DeKalb Bank (In Re Turner), 209 B.R. 558 (Bankr. N.D. Ala. 1997). “Section 7-9-207(1) states that the creditor must use “reasonable care in the custody and preservation of collateral in his possession.”
Cent. Accept. Corp. v. Colonial Bank of Ala., 439 So. 2d 144 (Ala. 1983). “They point out that the non-claim statute, § 43-2-131 , generally prevents the filing of an action against an administrator or an executor until six months after the grant of letters of administration or letters testamentary.”
Cramton v. Altus Bank, 596 So. 2d 902 (Ala. 1992). “Code 1975, §§ 7-9-501 , -503. Only after taking possession of the collateral does a secured party have an obligation to exercise reasonable care in preserving the collateral.”
Walsh v. Douglas, 717 So. 2d 807 (Ala. Civ. App. 1998). “Walsh argues that Douglas had possession of the collateral within the meaning of § 7-9-207. He bases this contention on the following factors.”
— Ala. Code § 7-9-207(1) — 3 cases
Wadsworth v. Yancey Bros. Co., 423 So. 2d 1343 (Ala. 1982). “This is evidenced by the Code of Alabama of 1975, § 7-9-207 (1). . . . "The first . . . was the transaction in which [Wadsworth] granted to [Yancey] a security interest in [the tractor].”
Turner v. DeKalb Bank (In Re Turner), 209 B.R. 558 (Bankr. N.D. Ala. 1997). “Section 7-9-207(1) states that the creditor must use “reasonable care in the custody and preservation of collateral in his possession.”
Walsh v. Douglas, 717 So. 2d 807 (Ala. Civ. App. 1998). “Walsh argues that Douglas had possession of the collateral within the meaning of § 7-9-207. He bases this contention on the following factors.”
— Ala. Code § 7-9-207(2)(c) — 1 case
Yeager v. Gen. Motors Acceptance Corp., 719 So. 2d 210 (Ala. 1998). “On June 27, 1996, Yeager sued, on behalf of himself and all others similarly situated, alleging that GMAC and Solomon Chevrolet had violated § 7-9-207, Ala. Code 1975, and had committed fraudulent suppression; he based the claims on the defendants' alleged failure to pay…”
— Ala. Code § 7-9-207(c)(2) — 1 case
Yeager v. Gen. Motors Acceptance Corp., 719 So. 2d 210 (Ala. 1998). “On June 27, 1996, Yeager sued, on behalf of himself and all others similarly situated, alleging that GMAC and Solomon Chevrolet had violated § 7-9-207, Ala. Code 1975, and had committed fraudulent suppression; he based the claims on the defendants' alleged failure to pay…”
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