The Uncertain Scope of Revised Article 9's Statutory Prohibition of Exculpatory Breach of Peace Clauses

What length may an agent for a secured lender with a lien on a debtor’s personal property go to in order to repossess the debtor property to satisfy the debt? Wombles Charters, a 1990 New York case decided under Article 9 of the Uniform Commercial Code, was the first in a trilogy to condone the use of exculpatory repossession clauses allowing actions that would otherwise amounted to a breach of the peace. In 2001, Article 9 received a makeover that many presumed would invalidate Wombles carve outs yet, there is virtually no case law on the subject. This has led academics to disagree about whether a Womble-like clause would survive judicial scrutiny under Revised Article 9.

This Article takes up the challenge and sorts through the fray of arguments underlying the differing positions.