Repossessions: 10.8.9 Good Faith Bargaining Requirement
Every obligation under the UCC imposes an obligation of good faith in its performance.546 Good faith requires both honesty in fact and the observance of reasonable commercial standards of fair dealing.547
The good faith requirement has particular importance for sales without competitive bidding. If the creditor elects to dispose of the collateral without such bidding, the creditor must be careful to engage in good faith bargaining and make sure that there is no self-dealing.