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Chapter 5

Form 5-10

Letter to Debtor Giving Notice of Intent to Retain Collateral in Satisfaction of Debt

[Date]

[Name and address of debtor]
[Include name[s] and address[es] of other secured parties if applicable]

Re:   [description of collateral, note, and security agreement]

[Salutation]

You are hereby notified that my client, [name of creditor], as secured party now in pos­session of the above-described collateral under the referenced note and security agreement now in default, proposes to retain the collateral in satisfaction of the obligation.

Sincerely yours,

   
[Name of attorney]

Certified Mail No. [number]

Return Receipt Requested

c:   [name of creditor]