Big-Time Trouble For A Secured Creditor Who Engaged In Foreclosure Misbehavior

LexisNexis (March 20, 2017, 12:42 PM EDT) -- In a notable decision from Texas, the majority partner in a single-asset limited partnership sold the minority partner's interest in a private foreclosure sale, using the debt that was allegedly owed to the partnership by the minority partner as the basis of a credit bid.  The court ruled that such a foreclosure sale was flatly prohibited by UCC 9-610(c)(2), which forbids the secured party from buying the collateral at a private sale unless the collateral is of a kind that is customarily sold on a recognized...
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