                                 CODE OF VIRGINIA

DETERMINATION OF WHETHER CONDUCT WAS COMMERCIALLY REASONABLE (§ 8.9A-627)

a. Greater amount obtainable under other circumstances; no preclusion of
commercial reasonableness. The fact that a greater amount could have been
obtained by a collection, enforcement, disposition, or acceptance at a different
time or in a different method from that selected by the secured party is not of
itself sufficient to preclude the secured party from establishing that the
collection, enforcement, disposition, or acceptance was made in a commercially
reasonable manner.

b. Dispositions that are commercially reasonable. A disposition of collateral is
made in a commercially reasonable manner if the disposition is made:

   1. in the usual manner on any recognized market;

   2. at the price current in any recognized market at the time of the
   disposition; or

   3. otherwise in conformity with reasonable commercial practices among dealers
   in the type of property that was the subject of the disposition.

c. Approval by court or on behalf of creditors. A collection, enforcement,
disposition, or acceptance is commercially reasonable if it has been approved:

   1. in a judicial proceeding;

   2. by a bona fide creditors&#8217; committee;

   3. by a representative of creditors; or

   4. by an assignee for the benefit of creditors.

d. Approval under subsection (c) not necessary; absence of approval has no
effect. Approval under subsection (c) need not be obtained, and lack of approval
does not mean that the collection, enforcement, disposition, or acceptance is
not commercially reasonable.

HISTORY: 1964, c. 219, § 8.9-507; 2000, c. 1007.