Code of Alabama

Ala. Code § 7-9A-610 (2026)

Disposition of Collateral After Default.

✓ official Alabama Legislature (ALISON) text, current July 2026

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(a) Disposition after default. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.

(b) Commercially reasonable disposition. Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.

(1) at a public disposition; or

(2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.

(d) Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.

(e) Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection (d):

(1) in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or

(2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.

(f) Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection (e) if it indicates “There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition” or uses words of similar import.

(Act 2001-481, p. 647, §1.)

Notes of Decisions

Cited in 3 cases (1 in the last 5 years), 2007–2025 · leading case: In Re Spurgeon, 378 B.R. 197 (Bankr. E.D. Tenn. 2007).

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In Re Spurgeon, 378 B.R. 197 (Bankr. E.D. Tenn. 2007). “Green Tree will acquire possession of the mobile home as a result of the order lifting the stay or as a result of confirmation of the proposed plan.”

SE Prop. Holdings, LLC v. Sandy Creek II, LLC, 954 F. Supp. 2d 1322 (S.D. Ala. 2013). · cites it 2× “” Ala.Code § 7-9A-610(b). However, “a secured party’s failure to have conducted a sale or disposition of collateral in a commercially reasonable manner does not absolutely bar the secured party from recovering the deficiency between the amount due on the secured debt and the…”

Indep. Bank v. Kimberly Susan Davis & William W. Rylee (Ala. Civ. App. 2025). · cites it 3× “In pertinent part, § 7-9A-610(b), Ala. Code 1975, provides: "Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable.”

— Ala. Code § 7-9A-610(b) — 2 cases

SE Prop. Holdings, LLC v. Sandy Creek II, LLC, 954 F. Supp. 2d 1322 (S.D. Ala. 2013). “” Ala.Code § 7-9A-610(b). However, “a secured party’s failure to have conducted a sale or disposition of collateral in a commercially reasonable manner does not absolutely bar the secured party from recovering the deficiency between the amount due on the secured debt and the…”

Indep. Bank v. Kimberly Susan Davis & William W. Rylee (Ala. Civ. App. 2025). “In pertinent part, § 7-9A-610(b), Ala. Code 1975, provides: "Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable.”

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