Foreclose | Practical Law
Foreclose
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Foreclose
Practical Law Glossary Item 1-383-2188
(Approx. 3 pages)
Glossary
Foreclose
Also known as foreclosure. A secured lender's act to terminate a debtor's interest in
collateral
.
In addition to its contractual rights under the
loan documents
and its rights in the courts, the secured party has rights upon a default by the debtor under Article 9 of the
UCC
. The secured party's rights may be exercised using judicial and nonjudicial enforcement and may involve foreclosure on the collateral. The lender can foreclose by taking title and possession of the collateral or by forcing a sale of the collateral. For more information on foreclosure, see
Practice Notes, Lender's Remedies and Enforcement Issues: Remedies under the UCC
,
Typical Remedies set out in the Collateral Documents
, and
Borrower's Defenses
and
Borrower Defaults and Lender Remedies in Commercial Real Estate Loans
.