Official Comment

1. Source. Former Section 9-501(1), (2), (5).

2. Enforcement: In General. The rights of a secured party to enforce its security interest in collateral after the debtor's default are an important feature of a secured transaction. (Note that the term "rights," as defined in Section 1-201, includes "remedies.") This Part provides those rights as well as certain limitations on their exercise for the protection of the defaulting debtor, other creditors, and other affected persons. However, subsections (a) and (d) [Maine cite subsections (1) and (4)] make clear that the rights provided in this Part do not exclude other rights provided by agreement.

3. When Remedies Arise. Under subsection (a) [Maine cite subsection (1)] the secured party's rights arise "[a]fter default." As did former Section 9501, this Article leaves to the agreement of the parties the circumstances giving rise to a default. This Article does not determine whether a secured party's post-default conduct can constitute a waiver of default in the face of an agreement stating that such conduct shall not constitute a waiver. Rather, it continues to leave to the parties' agreement, as supplemented by law other than this Article, the determination whether a default has occurred or has been waived. See Section 1-103.

4. Possession of Collateral; Section 9-207 [Maine cite section 9-1207]. After a secured party takes possession of collateral following a default, there is no longer any distinction between a security interest that before default was nonpossessory and a security interest that was possessory before default, as under a common-law pledge. This Part generally does not distinguish between the rights of a secured party with a nonpossessory security interest and those of a secured party with a possessory security interest. However, Section 9-207 [Maine cite section 9-1207] addresses rights and duties with respect to collateral in a secured party's possession. Under subsection (b) [Maine cite subsection (2)] of this section, Section 9-207 [Maine cite section 9-1207] applies not only to possession before default but also to possession after default. Subsection (b) [Maine cite subsection (2)] also has been conformed to Section 9- 207 [Maine cite section 9-1207], which, unlike former Section 9- 207, applies to secured parties having control of collateral.