NC General Statutes

N.C. Gen. Stat. § 25-9-610 (2026)

Disposition of collateral after default

✓ current as of 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) of this section:

(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) of this section 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. (1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)

Notes of Decisions

Cited in 5 cases (1 in the last 5 years), 2006–2021 · leading case: Bartlett Milling Co., LP v. Walnut Grove Auction & Realty Co., Inc., 665 S.E.2d 478 (N.C. Ct. App. 2008).

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Bartlett Milling Co., LP v. Walnut Grove Auction & Realty Co., Inc., 665 S.E.2d 478 (N.C. Ct. App. 2008). · cites it 6× “” N.C. Gen. Stat. § 25-9-610 (a) (2007). By the express terms of this provision, defendants could sell the Stephens’ cattle only if 1) they proved they had a valid security interest in said cattle, and 2) they proved that the Stephens had defaulted in their obligations pursuant…”

Country Boys Auction & Realty Co. v. Carolina Warehouse, Inc., 636 S.E.2d 309 (N.C. Ct. App. 2006). · cites it 4× “N.C. Gen. Stat. §§ 25-9-610 (b), -9-615(a)(1) (2005).”

Com. Credit Grp., Inc. v. Barber, 682 S.E.2d 760 (N.C. Ct. App. 2009). · cites it 12× “” N.C. Gen. Stat. § 25-9-610 (b) (2007). “When deciding if a sale of repossessed collateral meets the statute[,] the trier of fact must consider all the elements of the sale together.”

Potts v. Kel, LLC, 2021 NCBC 72 (N.C. Bus. Ct. 2021). “§ 25-9-610(b). Notice may be sent by mail “addressed to any address reasonable under the circumstances,” id.”

VFS Leasing v. Bric Constructors, LLC (Tenn. Ct. App. 2012). “” N.C. Gen. Stat. Ann. § 25-9-610 (a) and (b).”

— N.C. Gen. Stat. § 25-9-610(b) — 2 cases

Com. Credit Grp., Inc. v. Barber, 682 S.E.2d 760 (N.C. Ct. App. 2009). “” N.C. Gen. Stat. § 25-9-610 (b) (2007). “When deciding if a sale of repossessed collateral meets the statute[,] the trier of fact must consider all the elements of the sale together.”

Potts v. Kel, LLC, 2021 NCBC 72 (N.C. Bus. Ct. 2021). “§ 25-9-610(b). Notice may be sent by mail “addressed to any address reasonable under the circumstances,” id.”

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