McDonald v. Yarchenko
United States District Court for the District of Oregon
81 UCC Rep. Serv. 2d 165 (2013)
Relevant factsFree
McDonald (plaintiff) loaned Yarchenko (defendant) $22,000, secured by Yarchenko's interest in a limited liability company (LLC) worth more than $400,000, and the parties signed a promissory note. After Yarchenko defaulted, McDonald sent him an unconditional proposal to accept the LLC interest in full satisfaction of the debt; Yarchenko never responded. McDonald then executed a strict foreclosure and sued Yarchenko to recover the loan and accrued interest.
IssueFree
Whether, in a strict foreclosure, a secured party may choose to repossess and keep the collateral in satisfaction of the defaulting debtor's obligation if the debtor does not timely object.