The secured party in a strict foreclosure takes physical possession of collateral, and the debt for which the property served as collateral is discharged as fulfilled.
Would, for instance, a provision in a security agreement that grants the secured party control over the secured property on the occurrence of an insolvency event be void?
On the occurrence of a default by the collateral transferor, the secured party need not take any steps to enforce its rights against the cash collateral.
This can result in a secured party abandoning its collateral to repair or storage companies in situations where the lien costs exceed the market value of the vehicle.