1997 Minnesota Statutes

     336.9-502 Collection rights of secured party. 

    (1) When so agreed and in any event on default the secured 
 party is entitled to notify an account debtor or the obligor on 
 an instrument to make payment to the secured party whether or 
 not the assignor was theretofore making collections on the 
 collateral, and also to take control of any proceeds to which 
 the secured party is entitled under section 336.9-306. 

    (2) A secured party who by agreement is entitled to charge 
 back uncollected collateral or otherwise to full or limited 
 recourse against the debtor and who undertakes to collect from 
 the account debtors or obligors must proceed in a commercially 
 reasonable manner and may deduct reasonable expenses of 
 realization from the collections.  If the security agreement 
 secures an indebtedness, the secured party must account to the 
 debtor for any surplus, and, unless otherwise agreed, the debtor 
 is liable for any deficiency.  But, if the underlying 
 transaction was a sale of accounts or chattel paper, the debtor 
 is entitled to any surplus or is liable for any deficiency only 
 if the security agreement so provides. 

    HIST: 1965 c 811 s 336.9-502; 1976 c 135 s 34; 1986 c 444