Law360, New York ( June 2, 2015, 11:02 AM EDT) -- When a debtor defaults on a loan secured by personal property, the secured lender has several options for repayment. One option is to sell the collateral securing the debt pursuant to Article 9 of the Uniform Commercial Code (UCC).[1] From the senior secured lender's viewpoint, an Article 9 sale may be a preferred option to maximize its recovery because the process is expedited, avoids the administrative costs and delays associated with an alternative bankruptcy sale, and divests junior security interests by operation of law. From the debtor's perspective, cooperating with an under-secured senior creditor to repay its debt (in whole or in part) through an Article 9 sale may prove advantageous, especially if the debtor can negotiate a release of deficiency claims, personal guarantees or specific collateral to distribute to remaining creditors. A debtor's cooperation may also be consistent with its contractual obligation under its loan documents. With the right type of collateral and business circumstances, an Article 9 sale supported by the debtor and the secured lender can maximize the secured lender's recovery and at the same time discharge the debtor's duties and obligations to its creditors. This article discusses the procedures of an Article 9 sale as well as the advantages and pitfalls....