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Simple English definitions for legal terms

absolute-bar rule

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A quick definition of absolute-bar rule:

The absolute-bar rule is a law that says if a creditor sells something that a borrower used as collateral for a loan in a way that is not fair, they cannot ask the borrower to pay any remaining debt. For example, if someone borrows money and uses their car as collateral, the creditor cannot sell the car for much less than it is worth and then ask the borrower to pay the difference. The law requires that the creditor sell the collateral in a fair way and notify the borrower before doing so. This rule is part of the Uniform Commercial Code and has been adopted by California.

A more thorough explanation:

The absolute-bar rule is a legal principle that prevents a creditor from obtaining a deficiency judgment if they dispose of collateral in a commercially unreasonable manner. This means that if a debtor defaults on a loan and the creditor takes possession of the collateral (such as a car or house), they must sell it in a way that is fair and reasonable. If they do not, they cannot seek additional payment from the debtor.

For example, the Uniform Commercial Code (UCC) and the California Commercial Code (COM) both require that creditors dispose of collateral in a commercially reasonable manner. They also require that debtors be notified before the collateral is sold. If a creditor fails to follow these rules and sells the collateral for less than it is worth, they cannot seek a deficiency judgment against the debtor.

One example of the absolute-bar rule in action is the case of Beardmore v. Am. Summit Fin. Holdings, L.L.C. In this case, the court applied the absolute-bar rule even though the Texas legislature had abandoned it. This was because the creditor had sold the collateral before the law changed, so they were still subject to the old rule.

Overall, the absolute-bar rule is an important protection for debtors. It ensures that creditors cannot take advantage of them by selling their collateral for less than it is worth and then seeking additional payment.

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Dkk
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I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
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i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
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Exactly. My version of that awful poem.
Dkk
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I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
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president who respects sex is crazy
windyMagician
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we had bill clinton already
Dkk
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Bill Clinton, first and last black president
windyMagician
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I want to go running but my leg feels weird
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it doesn't hurt its just tingly
Dkk
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It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
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stretches make me think it's just soreness
windyMagician
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I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
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@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
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I will take In N Out everyday over it when I can though.
texaslawhopefully
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In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
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Indeed, indeed.
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