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HomeCommercial CodeDiv. 9Ch. 6§ 9602 Debtor Rights In Collateral

§ 9602 Debtor Rights In Collateral

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 9602 Debtor Rights In Collateral

Key Takeaways

  • •If you owe money and the lender takes your stuff (like a car or house) as payment, they can't make you sign away certain rights.
  • •The lender must tell you how much you owe and what stuff they’re taking.
  • •If the lender sells your stuff, they have to give you any extra money left after paying the debt.
  • •The lender can’t take your stuff in a way that causes a fight or breaks the peace.

Example

You borrow money to buy a car, but you can’t pay it back. The bank says they’ll take the car instead of the money you owe.

The bank can’t make you sign a paper that says you give up your right to get extra money if they sell the car for more than you owe. They also can’t take the car by breaking into your garage or causing a scene.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 9602 Debtor Rights In Collateral

Except as otherwise provided in Section 9624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections: (1) Subparagraph (C) of paragraph (4) of subdivision (b) of Section 9207, which deals with use and operation of the collateral by the secured party. (2) Section 9210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account. (3) Subdivision (c) of Section 9607, which deals with collection and enforcement of collateral. (4) Subdivision (a) of Section 9608 and subdivision (c) of Section 9615 to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition. (5) Subdivision (a) of Section 9608 and subdivision (d) of Section 9615 to the extent that they require accounting for or payment of surplus proceeds of collateral. (6) Section 9609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace. (7) Subdivision (b) of Section 9610, and Sections 9611, 9613, and 9614, which deal with disposition of collateral. (8) Subdivision (f) of Section 9615, which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor. (9) Section 9616, which deals with explanation of the calculation of a surplus or deficiency. (10) Section 9620, 9621, and 9622, which deal with acceptance of collateral in satisfaction of obligation. (11) Section 9623, which deals with redemption of collateral. (12) Section 9624, which deals with permissible waivers. (13) Sections 9625 and 9626, which deal with the existence of a deficiency and with the secured party’s liability for failure to comply with this division. (Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)

Last verified: January 23, 2026

Key Terms

debtorobligorsecured partywaivecollateral

Related Statutes

  • § 9628 Secured Party Liability Exemption
  • § 9605 Secured Party Duties Limits
  • § 9613 Notification Of Disposition Rules
  • § 9619 Transfer Statement Rights
  • § 9625 Secured Party Compliance Damages

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 9602.
View Official Source