Introduced By: Senator Paiva Weed
Date Introduced : February 3, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Section 6A-9-503 of the General Laws in Chapter 6A-9 entitled "Secured Transactions--Sales of Accounts, Contract Rights and Chattel Paper" is hereby amended to read as follows:
6A-9-503. Secured party's right to take possession after default. -- Unless otherwise agreed, a secured party has on default the right to take possession of the collateral. In taking possession a secured party may proceed without judicial process if this can be done without breach of the peace or may proceed by action. {ADD Provided however, in the case of repossession of any motor vehicle without knowledge of the retail buyer, the local police department shall be notified of such repossession within one (1) hour after obtaining such possession. In the absence of a local police department or if the local police department cannot be reached for notification, the state police shall be promptly notified of such repossession. ADD} If the security agreement so provides the 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. Without removal a secured party may render equipment unusable, and may dispose of collateral on the debtor's premises under section 6A-9-504.
SECTION 2. This act shall take effect upon passage.
