Retention
This page includes a writing template for analyzing this topic and usage notes to guide its application. In general, the template is designed to serve as a starting point for your analysis. It should be adapted to fit the specific facts of your case and your professor’s preferences.
On this page:
Writing Template
Issue
I: The issue is whether the secured party properly retained the property.
Analysis
R: A secured party may elect to retain the collateral in satisfaction of the debt, either in full or partial satisfaction. However, if the collateral (1) qualifies as a consumer good and (2) has been paid down by at least 60%, then the secured party must obtain (3) a written waiver from the debtor to lawfully retain the collateral in satisfaction of the debt
A: Here, [apply rule to facts].
Full Satisfaction of Debt
R: When a secured party intends to retain the property in full satisfaction of the debt, they are required to notify the debtor and any other known secured parties. If, within a 20-day period, no parties object to the proposed retention, the secured party may retain the collateral. However, if an objection is raised, the secured party is obligated to sell the collateral and apply the proceeds accordingly.
A: Here, [apply rule to facts].
Partial Satisfaction of Debt
R: Retention of collateral in partial satisfaction of a debt is impermissible in a consumer transaction. In other secured transactions, however, a secured party may elect to retain the collateral in partial satisfaction, provided they notify the debtor, any secondary obligors, and other secured parties of the intent to retain. If no objections are made within 20 days, the retention is permitted; otherwise, the property must be sold, and the proceeds applied to the debt.
A: Here, [apply rule to facts].
Conclusion
C: Therefore, the secured party [properly/improperly] retained the property, and the security interest and all subordinate security interests [are/are not] discharged.
Usage Notes
JurisJotter templates synthesize legal principles into a practical format that supports the development of well-structured, point-rich analyses in a timed exam.
The template features (1) headers identifying the overall issue, analysis, and conclusion. If the analysis begins with an umbrella rule that identifies elements, factors, or steps of the analysis, it will be followed by subheaders that signpost the analysis of each component.
The template also features (2) IRAC labels at the beginning of each paragraph. These headers and labels are included for educational purposes, offering guidance on structuring your analysis. Your usage of the headers is optional but can be helpful to readers. We advise against including the IRAC labels in submitted work.
The templates serve as a general guide for writing and should be adapted to align with (1) your specific factual circumstances and (2) your professor’s preferences, particularly if your professor provides explicit formulations of rules or analyses. For example, you may add or subtract an element or modify its language. Regardless of whether your professor provides explicit formulations, (3) this template will assist you in crafting point-rich analyses.
Please note that these templates are writing aids and not finished products. They are efficiently designed for exam essays to demonstrate conceptual understanding; thus, they are not comprehensive outlines with historical context or dicta.
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