Illinois Compiled Statutes
810 ILCS 5/9-610 (2026)
Disposition of collateral after default
✓ current as of May 2026
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(810 ILCS 5/9-610)
Sec. 9-610. Disposition of collateral after default.
(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.
(c) Purchase by secured party. A secured party may purchase
collateral:
(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.
(g) The provisions of this Section are subject to Section 26.5 of the Retail Installment Sales Act. (Source: P.A. 97-913, eff. 1-1-13.)
Notes of Decisions
Cited in 10
cases (4 in the last 5 years), 2007–2025 · leading case: Edgewater Growth Capital Partners LP v. H.I.G. Capital, Inc., 68 A.3d 197 (Del. Ch. 2013).
Edgewater Growth Capital Partners LP v. H.I.G. Capital, Inc., 68 A.3d 197 (Del. Ch. 2013). “66 Under 810 ILCS 5/9-610, a “secured party may sell .”
Gierum v. Glick (In re Glick), 568 B.R. 634 (Bankr. N.D. Ill. 2017). “AEB’s Post-petition Actions About two months after the petition date, AEB conducted a UCC sale of the collateral securing its loan to Awesome Toys in accordance with section 9-610 of the Illinois Commercial Code, 810 ILCS 5/9-610 (2014). AEB was the successful bidder at the sale…”
Overland Bond & Inv. Corp. v. Calhoun, 2023 IL App (1st) 221804 (Ill. App. Ct. 2023). “Both Calhoun and Orozco pleaded as an affirmative defense that Overland’s use of a kill switch violated section 9- 610 of the Uniform Commercial Code (UCC) (810 ILCS 5/9-610 (West 2022)), insofar as it requires a secured party to sell or dispose of collateral in a “commercially…”
Credit Acceptance Corp. v. Cartwright, 2025 IL App (5th) 240636-U (Ill. App. Ct. 2025). “” 3 3-114(f-5)(2), its sale of her vehicle and the vehicles of class members was commercially unreasonable and violated UCC section 9-610 (810 ILCS 5/9-610 (West 2022)). She further alleged that Credit Acceptance’s presale and post-sale notices were unreasonable, misleading, and…”
Casablanca Trax v. Trax Records (Ill. App. Ct. 2008). “Casablanca contends that it had a right to conduct the judicial sale to itself of all of defendants' assets under section 9-610 of the Uniform Commercial Code (810 ILCS 5/9-610(a) (West 2004)), without reference to this lawsuit.”
Hildene Opportunities Master Fund, Ltd. v. Holata Micco LLC (N.D. Ill. 2019). “” 810 ILCS 5/9-610(b). A sale is conducted in a commercially reasonable manner if it is made “(1) in the usual manner on any recognized market; (2) at the price current in any recognized market at the time of the disposition; or (3) otherwise in conformity with reasonable…”
Wells Fargo Bank, N.A. v. Smith & Co., Inc. (N.D. Ill. 2023). “The court next evaluates defendant’s argument that there is a genuine dispute whether plaintiff’s sale of the first contract equipment, through RSI, was conducted using reasonable commercial practices under 810 ILCS 5/9-610(b). According to defendant, a reasonable jury could…”
Landmark Credit Union v. Burnidge, 2024 IL App (2d) 240123-U (Ill. App. Ct. 2024). “Section 9-610(a) of the UCC (810 ILCS 5/9-610(a) (West 2020)) provides that, in the event of a default, “a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition” to satisfy the indebtedness.”
Parks v. CNAC-Joliet, Inc. (Ill. App. Ct. 2008). “However, before the property may be disbursed by the secured party, the creditor must notify the debtor, and any other interested parties specified in the Code, that the secured creditor intends to dispose of the collateral seized from the debtor.”
Gen. Motors Aceptance Corp. v. Stoval (Ill. App. Ct. 2007). “810 ILCS 5/9-610(a) (West 2002). "Unless there is an agreement to the contrary, the debtor is liable for any deficiency that results from the sale.”
— 810 ILCS 5/9-610(a) — 5 cases
Overland Bond & Inv. Corp. v. Calhoun, 2023 IL App (1st) 221804 (Ill. App. Ct. 2023). “Both Calhoun and Orozco pleaded as an affirmative defense that Overland’s use of a kill switch violated section 9- 610 of the Uniform Commercial Code (UCC) (810 ILCS 5/9-610 (West 2022)), insofar as it requires a secured party to sell or dispose of collateral in a “commercially…”
Casablanca Trax v. Trax Records (Ill. App. Ct. 2008). “Casablanca contends that it had a right to conduct the judicial sale to itself of all of defendants' assets under section 9-610 of the Uniform Commercial Code (810 ILCS 5/9-610(a) (West 2004)), without reference to this lawsuit.”
Landmark Credit Union v. Burnidge, 2024 IL App (2d) 240123-U (Ill. App. Ct. 2024). “Section 9-610(a) of the UCC (810 ILCS 5/9-610(a) (West 2020)) provides that, in the event of a default, “a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition” to satisfy the indebtedness.”
Parks v. CNAC-Joliet, Inc. (Ill. App. Ct. 2008). “However, before the property may be disbursed by the secured party, the creditor must notify the debtor, and any other interested parties specified in the Code, that the secured creditor intends to dispose of the collateral seized from the debtor.”
Gen. Motors Aceptance Corp. v. Stoval (Ill. App. Ct. 2007). “810 ILCS 5/9-610(a) (West 2002). "Unless there is an agreement to the contrary, the debtor is liable for any deficiency that results from the sale.”
— 810 ILCS 5/9-610(b) — 2 cases
Hildene Opportunities Master Fund, Ltd. v. Holata Micco LLC (N.D. Ill. 2019). “” 810 ILCS 5/9-610(b). A sale is conducted in a commercially reasonable manner if it is made “(1) in the usual manner on any recognized market; (2) at the price current in any recognized market at the time of the disposition; or (3) otherwise in conformity with reasonable…”
Wells Fargo Bank, N.A. v. Smith & Co., Inc. (N.D. Ill. 2023). “The court next evaluates defendant’s argument that there is a genuine dispute whether plaintiff’s sale of the first contract equipment, through RSI, was conducted using reasonable commercial practices under 810 ILCS 5/9-610(b). According to defendant, a reasonable jury could…”
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