Code of Alabama
Ala. Code § 7-9-504 (2026)
Secured Party’s Right to Dispose of Collateral After Default; Effect of Disposition.
✓ 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Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.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; Acts 1981, No. 81-312, p. 399.)
Notes of Decisions
Cited in 52
cases, 1978–2000 · leading case: Simmons MacH. Co. Inc. v. M. & M Brokerage, Inc., 409 So. 2d 743 (Ala. 1981).
Simmons MacH. Co. Inc. v. M. & M Brokerage, Inc., 409 So. 2d 743 (Ala. 1981). “81-312) [1] to § 7-9-504 and other sections of Article 9 of our Uniform Commercial Code expressly allow a debtor to waive his right to notice after default, the present effective section is silent about this issue.”
McGrady v. Nissan Motor Acceptance Corp., 40 F. Supp. 2d 1323 (M.D. Ala. 1998). “Improper Notice Count Two of Plaintiffs complaint alleges that Defendant Nissan violated Alabama Code § 7-9-504 by failing to provide proper notice prior to the sale of the vehicle.”
Rhodes v. Gen. Motors Corp., 621 So. 2d 945 (Ala. 1993). “" With regard to collateral such as automobiles, § 7-9-504(3) provides that "reasonable notification of the time after which any private sale or other intended disposition is to be made shall be sent by the secured party to the debtor.”
Greene v. Assocs. (In Re Green), 248 B.R. 583 (Bankr. N.D. Ala. 2000). “But for Hall Motors, none of this need be considered to know why under Alabama’s Uniform Commercial Code a defaulting debtor, before the occurrence of either a sale or other disposition of collateral under Ala.Code §§ 7-9-504, 506 (1997), possesses a property interest in the…”
First Alabama Bank of Montgomery, NA v. Parsons, 390 So. 2d 640 (Ala. Civ. App. 1980). “The trial court granted defendants' motions for a directed verdict on ground that *Page 642 the bank's failure to comply with § 7-9-504 (3), Code of Ala. 1975 (notice to debtor of disposition of collateral after repossession), bars the bank's recovery of a deficiency judgment.”
Turner v. DeKalb Bank (In Re Turner), 209 B.R. 558 (Bankr. N.D. Ala. 1997). ““When collateral is disposed of by a secured party after default, the disposition transfers to a purchaser for value all of the debtor’s rights therein, discharges the security interest under which it is made and any security interest or lien subordinate thereto.”
Prescott v. Thompson Tractor Co., Inc., 495 So. 2d 513 (Ala. 1986). “" Pursuant to Code 1975, § 7-9-504 (3), appellants in the instant case had the right to raise the issue of the commercial reasonableness of Thompson's disposition of Art's secured collateral.”
Farmers & Merchants Bank of Centre v. Hancock, 506 So. 2d 305 (Ala. 1987). “' Code 1975, § 7-9-507, Comment 1. `[E]very aspect of the disposition including the method, manner, time, place and terms must be commercially reasonable.”
Underwood v. First Ala. Bank of Huntsville, 453 So. 2d 742 (Ala. Civ. App. 1983). “On appeal, the debtor contends that the Bank did not supply adequate notice of the resale according to the provisions of Ala. Code § 7-9-504 (3) (1975). Additionally, the debtor contends that a certain clause contained in the sale contract is an undisclosed security interest in…”
Wadsworth v. Yancey Bros. Co., 423 So. 2d 1343 (Ala. 1982). “(b) (sale of chattel paper); § 7-9-102 (2) (transfer for security of chattel paper); § 7-9-105 (1)(a) (definition of account debtor), -(1)(b) (definition of chattel paper), -(1)(d) (definition of debtor); § 7-9-308 (priority of rights after outright sale of chattel paper); §…”
Ott v. Fox, 362 So. 2d 836 (Ala. 1978). “First, such evidence goes toward proof of conversion under § 7-9-504, Code 1975, because no notice of these subsequent sales was given Fox.”
First Nat. Bank of Dothan v. Rikki Tikki Tavi, Inc., 445 So. 2d 889 (Ala. 1984). “Rikki Tikki Tavi counterclaimed, alleging that the Bank's sale of the collateral was not conducted in a commercially reasonable manner as required by Code 1975, § 7-9-504. The trial court directed a verdict in favor of the bank on the original complaint.”
— Ala. Code § 7-9-504(1) — 2 cases
Greene v. Assocs. (In Re Green), 248 B.R. 583 (Bankr. N.D. Ala. 2000). “But for Hall Motors, none of this need be considered to know why under Alabama’s Uniform Commercial Code a defaulting debtor, before the occurrence of either a sale or other disposition of collateral under Ala.Code §§ 7-9-504, 506 (1997), possesses a property interest in the…”
Hope v. Performance Auto., Inc., 710 So. 2d 1235 (Ala. 1998).
— Ala. Code § 7-9-504(1)(c) — 1 case
Warrior River Towing, Inc. v. Kennedy, 574 So. 2d 843 (Ala. Civ. App. 1990).
— Ala. Code § 7-9-504(2) — 1 case
Ruffin v. Nissan Motor Acceptance Corp., 953 F. Supp. 373 (M.D. Ala. 1996).
— Ala. Code § 7-9-504(3) — 20 cases
Simmons MacH. Co. Inc. v. M. & M Brokerage, Inc., 409 So. 2d 743 (Ala. 1981). “81-312) [1] to § 7-9-504 and other sections of Article 9 of our Uniform Commercial Code expressly allow a debtor to waive his right to notice after default, the present effective section is silent about this issue.”
Rhodes v. Gen. Motors Corp., 621 So. 2d 945 (Ala. 1993). “" With regard to collateral such as automobiles, § 7-9-504(3) provides that "reasonable notification of the time after which any private sale or other intended disposition is to be made shall be sent by the secured party to the debtor.”
McGrady v. Nissan Motor Acceptance Corp., 40 F. Supp. 2d 1323 (M.D. Ala. 1998). “Improper Notice Count Two of Plaintiffs complaint alleges that Defendant Nissan violated Alabama Code § 7-9-504 by failing to provide proper notice prior to the sale of the vehicle.”
First Alabama Bank of Montgomery v. Parsons, 426 So. 2d 416 (Ala. 1983).
Underwood v. Coffee Cnty. Bank, 668 So. 2d 10 (Ala. Civ. App. 1994).
— Ala. Code § 7-9-504(3)(1975) — 1 case
Turner v. DeKalb Bank (In Re Turner), 209 B.R. 558 (Bankr. N.D. Ala. 1997). ““When collateral is disposed of by a secured party after default, the disposition transfers to a purchaser for value all of the debtor’s rights therein, discharges the security interest under which it is made and any security interest or lien subordinate thereto.”
— Ala. Code § 7-9-504(4) — 2 cases
Greene v. Assocs. (In Re Green), 248 B.R. 583 (Bankr. N.D. Ala. 2000). “But for Hall Motors, none of this need be considered to know why under Alabama’s Uniform Commercial Code a defaulting debtor, before the occurrence of either a sale or other disposition of collateral under Ala.Code §§ 7-9-504, 506 (1997), possesses a property interest in the…”
Hope v. Performance Auto., Inc., 710 So. 2d 1235 (Ala. 1998).
— Ala. Code § 7-9-504(5) — 1 case
Wadsworth v. Yancey Bros. Co., 423 So. 2d 1343 (Ala. 1982). “(b) (sale of chattel paper); § 7-9-102 (2) (transfer for security of chattel paper); § 7-9-105 (1)(a) (definition of account debtor), -(1)(b) (definition of chattel paper), -(1)(d) (definition of debtor); § 7-9-308 (priority of rights after outright sale of chattel paper); §…”
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