This lesson is about the secured party’s right and remedy of foreclosure and strict foreclosure.

I. Foreclosure on Intangible Assets

Sometimes, collateral consists of intangible assets, such as accounts.  An account is a debtor’s right to payment from a third party called an account debtor. A secured party may take steps to collect from the account debtor amounts due on the account to the debtor. See UCC § 9-607. This practice is known as foreclosure on intangible assets.

The secured...