298

LAWS OF MARYLAND

[Ch. 49

equipment unusable, and may dispose of collateral on the
debtor's premises under § 9—504.

(2) If a secured party elects to proceed by process
of law he may proceed by writ of replevin or otherwise.

9—504. Secured party's right to dispose of collateral
after default; effect of disposition.

(1)   A secured party after default may sell, lease
or otherwise dispose of any or all of the collateral in
its then condition or following any commercially
reasonable preparation or processing. Any sale of goods
is subject to the [subtitle] TITLE on sales ([subtitle]
TITLE 2). The proceeds of disposition shall be applied
in the order following to

(a)    The reasonable expenses of retaking,
holding, preparing for sale, selling and the like and, to
the extent provided for in the agreement and not
prohibited by law, the reasonable attorneys' fees and
legal expenses incurred by the secured party;

(b)   The satisfaction of indebtedness secured
by the security interest under which the disposition is
made;

(c) The satisfaction of indebtedness secured
by any subordinate security interest in the collateral if
written notification of demand therefor is received
before distribution of the proceeds is completed. If
requested by the secured party, the holder of a
subordinate security interest must seasonably furnish
reasonable proof of his interest, and unless he does so,
the secured party need not comply with his demand.

(2)     If the security interest secures an
indebtedness, the secured party must account to the
debtor for any surplus, and unless otherwise agreed, the
debtor is liable for any deficiency. But if the
underlying transaction was a sale of accounts, contract
rights, or chattel paper, the debtor is entitled to any
surplus or is liable for any deficiency only if the
security agreement so provides.

(3)    Disposition of the collateral may be by public
or private proceedings and may be made by way of one or
more contracts. Sale or other disposition may be as a
unit or in parcels and at any time and place and on any
terns but every aspect of the disposition including the
method, manner, time, place and terms must be
commercially reasonable. Unless collateral is
perishable or threatens to decline speedily in value or
is of a type customarily sold on a recognized market