Disposition Of Repossessed Collateral

It is important to keep in mind there are precise statutory requirements dealing with collateral once it is repossessed, including a requirement to use reasonable care to preserve the asset. Any fees, expenses or risks of loss for storage, sale and maintenance must be in the original agreement. Ohio law also allows for a grace period to allow the debtor or another creditor the right to cure the default or the right to pay the loan off before it can be sold. Ohio law requires notice to the debtor, other creditors and to the public before disposing of the property, as well as notification to consumers if the collateral is sold for less than what the debtor owes to the creditor.