What can a secured creditor do after the debtor defaults?

When a debtor defaults, the secured creditor typically has the right to repossess the collateral. This right is grounded in the Uniform Commercial Code (UCC), which governs secured transactions. The significant aspect of this right is that the creditor can repossess the collateral without prior notice.

The UCC allows a secured party to take possession of the collateral after a default by any means permitted, as long as the method of repossession does not breach the peace. This means that while a creditor can act quickly to secure their interest, they must do so in a way that does not involve physical confrontation or violation of law, which emphasizes the need for the manner of repossession to prioritize peaceful arrangements.

In this case, the option that indicates the ability to repossess the collateral without notice and by any means reflects the broad rights that a secured creditor has in addressing defaults under a security agreement. Consequently, this choice correctly identifies the secured creditor's rights in the context of default, acknowledging both the urgency and the limitations on how repossession can be executed.