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HomeCommercial CodeDiv. 9Ch. 6§ 9609 Secured Party Collateral Possession

§ 9609 Secured Party Collateral Possession

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 9609 Secured Party Collateral Possession

Key Takeaways

  • •If you don't pay back a loan, the lender can take the item you used as security (like a car or equipment).
  • •The lender can take the item either by going to court or without court if they don’t cause a fight or break the peace.
  • •If you agreed earlier, the lender can ask you to bring the item to a place that’s easy for both of you after you miss payments.

Example

You bought a car with a loan and used the car as security. You stop making payments.

The bank can take your car back. They can do this by getting a court order or just taking it if they don’t cause trouble. If your loan agreement says so, they might also tell you to bring the car to a nearby location so they can pick it up.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 9609 Secured Party Collateral Possession

(a) After default, a secured party may do both of the following: (1) Take possession of the collateral. (2) Without removal, render equipment unusable and dispose of collateral on a debtor’s premises under Section 9610. (b) A secured party may proceed under subdivision (a) in either of the following ways: (1) Pursuant to judicial process. (2) Without judicial process, if it proceeds without breach of the peace. (c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties. (Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)

Last verified: January 23, 2026

Key Terms

defaultsecured partycollateraljudicial processbreach of the peace

Related Statutes

  • § 9601 Secured Party Post-Default Rights
  • § 9602 Debtor Rights In Collateral
  • § 9606 Agricultural Lien Default Timing
  • § 9611 Secured Party Disposition Notice
  • § 9613 Notification Of Disposition Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 9609.
View Official Source