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Session Laws, 1999
Volume 796, Page 2119   View pdf image
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9-603. AGREEMENT ON STANDARDS CONCERNING RIGHTS AND DUTIES.

(A) THE PARTIES MAY DETERMINE BY AGREEMENT THE STANDARDS
MEASURING THE FULFILLMENT OF THE RIGHTS OF A DEBTOR OR OBLIGOR AND THE
DUTIES OF A SECURED PARTY UNDER A RULE STATED IN § 9-602 IF THE STANDARDS
ARE NOT MANIFESTLY UNREASONABLE.

(B) SUBSECTION (A) DOES NOT APPLY TO THE DUTY UNDER § 9-609 TO
REFRAIN FROM BREACHING THE PEACE.

9-604. PROCEDURE IF SECURITY AGREEMENT COVERS REAL PROPERTY OR
FIXTURES.

(A) IF A SECURITY AGREEMENT COVERS BOTH PERSONAL AND REAL
PROPERTY, A SECURED PARTY MAY PROCEED:

(1) UNDER THIS SUBTITLE AS TO THE PERSONAL PROPERTY WITHOUT
PREJUDICING ANY RIGHTS WITH RESPECT TO THE REAL PROPERTY; OR

(2) AS TO BOTH THE PERSONAL PROPERTY AND THE REAL PROPERTY IN
ACCORDANCE WITH THE RIGHTS WITH RESPECT TO THE REAL PROPERTY, IN WHICH
CASE THE OTHER PROVISIONS OF THIS SUBTITLE DO NOT APPLY.

(B) SUBJECT TO SUBSECTION (C), IF A SECURITY AGREEMENT COVERS GOODS
THAT ARE OR BECOME FIXTURES, A SECURED PARTY MAY PROCEED:

(1) UNDER THIS SUBTITLE; OR

(2) IN ACCORDANCE WITH THE RIGHTS WITH RESPECT TO REAL
PROPERTY, IN WHICH CASE THE OTHER PROVISIONS OF THIS SUBTITLE DO NOT
APPLY.

(C) SUBJECT TO THE OTHER PROVISIONS OF THIS SUBTITLE, IF A SECURED
PARTY HOLDING A SECURITY INTEREST IN FIXTURES HAS PRIORITY OVER ALL
OWNERS AND ENCUMBRANCERS OF THE REAL PROPERTY, THE SECURED PARTY,
AFTER DEFAULT, MAY REMOVE THE COLLATERAL FROM THE REAL PROPERTY.

(D) A SECURED PARTY THAT REMOVES COLLATERAL SHALL PROMPTLY
REIMBURSE ANY ENCUMBRANCER OR OWNER OF THE REAL PROPERTY, OTHER THAN
THE DEBTOR, FOR THE COST OF REPAIR OF ANY PHYSICAL INJURY CAUSED BY THE
REMOVAL. THE SECURED PARTY NEED NOT REIMBURSE THE ENCUMBRANCER OR
OWNER FOR ANY DIMINUTION IN VALUE OF THE REAL PROPERTY CAUSED BY THE
ABSENCE OF THE GOODS REMOVED OR BY ANY NECESSITY OF REPLACING THEM. A
PERSON ENTITLED TO REIMBURSEMENT MAY REFUSE PERMISSION TO REMOVE
UNTIL THE SECURED PARTY GIVES ADEQUATE ASSURANCE FOR THE PERFORMANCE
OF THE OBLIGATION TO REIMBURSE.

9-605. UNKNOWN DEBTOR OR SECONDARY OBLIGOR.

A SECURED PARTY DOES NOT OWE A DUTY BASED ON ITS STATUS AS SECURED
PARTY:

 

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Session Laws, 1999
Volume 796, Page 2119   View pdf image
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