ÿWPC–2 T!Ðø?Á¿‹QÖôÇÙRÔS"!ÙW«ïŽN Ý,Áº‹;œ ŒÛ òÌ<vwz”(qˆ hÚÔÄدž‘øs3dÐ9i욤íÜ^ŸMŒÏ{æA¬NÞùg‡ÃìíÆÑGýG‰¯Sh¬™›×Zȃª†[Ä™vÚS8µ£Ç¨?8ÿ«<Yª›]LQ£Ùóû½4îC1ž@â-Äœæã]9Ù¶ô‰(”ùˆˆ9Ê+>W–ÛÜÁÐGs7+dd¹O¾”Ï‹ÁÏõÁ™a¹œˆŽÆeÖSd,$znm>l§K–~?ÎçÌ[@M‚¿îCóW”QäÉåÒ¾À2:êGd#N®è+M¶ j”’Àü Ê]û2[ò2órý]nA¢þeÙôŠÃu’Ý<ÎH5Î#ø®¥øâfô¦ªÉ=luôÅvZFjí4 R- wºD["& %X¥ß "üz›€Pv›öG-@[‡|1jA1œ@OãŠÛ±ç>õÀ4FÚ4<}ËQpC ªóZ†îï?!ãT*?SBÉJ*ƒ:X´ÐöºVÇÙ¼FCÓ>“;áÎ|åŸíÆ—iG¦äÛÛš¸jØ€©p3ÌŒ ž‘±ëâi2ÑâEª‹SIüÙ Ágib#É\ %% UN+ 0ˆy U#N ^ O 3[ zŽ Ò NÚ g(8 0 DÇÆ ÆÑÆ—Æ]w #N-ë/E 4"E 69{)´+¯Ã+r- mt-t-t-t-t-t-t-t-t-t-t-t-t-t-t-t-t-b‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹-‹- 0 ë“-“-“-“- B~.~. 0¤›. D3?/ D-r/ 0KŸ/Ÿ/ ASê/Æ=0 0¤1 0D§1 A«ë1˜\\IB01S02\CLERKJACÈÈ,,,,ÈÈ0»(ÖÃ9 Z‹6Times New Roman Regular(`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regularsvq1Ï  )Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€Although€the€record€does€not€specify€why€the€loan€was€in€default,€we€assume€that€the€default€resulted€fromÐ ° Ðthe€non„payment€of€the€loan€indebtedness.€€ ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt DÝ ƒRË$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€The€civil€warrant€filed€by€R€&€J€listed€the€address€on€the€promissory€note€as€Mr.€Ô_ÔBlankenshipÔ_Ôððs€home€addressÐ ° Ðfor€service€of€process€purposes.€ ]Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€Prior€to€assigning€the€promissory€note€to€R€&€J,€the€Bryant€boat€was€sold€and€the€proceeds€applied€towardÐ ° Ðthe€outstanding€debt.€€As€a€result,€the€Bank€released€the€boat€as€collateral€securing€the€loan.€ .Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€This€deficiency€represented€the€deficit€left€after€the€sale€of€the€collateral€and€the€outstanding€interest€owedÐ ° Ðon€the€loan€amount€and€attorneyððs€fees.€(#Ã$òòÚ  Ú0Ú  ÚóóLevel 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5 áÝ ƒRË$ÝÓ  Óà  àòòÚ  Ú5Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€The€Tennessee€Code€provides:Ð ° ÐÌÓ °ÓÓ °Óò òTrial€òòde€novo€óóon€appeal€ð"ð€Decision€on€meritsó ó.€€Ð 2‚ ÐÌNo€civil€case,€originating€in€a€general€sessions€court€and€carried€to€a€higher€court,Ð ¸ Ðshall€be€dismissed€by€such€court€for€any€informality€whatever,€but€shall€be€tried€onÐ yÉ Ðits€merits;€and€the€court€shall€allow€all€amendments€in€the€form€of€action,€the€partiesÐ : Š Ðthereto,€or€the€statement€of€the€cause€of€action,€necessary€to€reach€the€merits,€uponÐ û K Ðsuch€terms€as€may€be€deemed€just€and€proper.€€The€trial€shall€be€òòde€novoóó,€includingÐ ¼  Ðdamages.€€Ð } Í  ÐÌÓ °¿ÓÓ °±ÓTenn.€Code€Ann.€ðð€16„15„729€(2003).€€ð ðCases€appealed€from€the€general€sessions€court€to€the€circuit€court€pursuant€toÐ ÿ O  ÐTenn.€Code€Ann.€ðð€16„15„729€should€be€treated€for€all€purposes€as€if€they€originated€in€the€circuit€court.ðð€€òòB€&€G€Constr.,Ð À   ÐInc.€v.€Polkóó,€37€S.W.3d€462,€465€(Tenn.€Ct.€App.€2000).€€ üÝ ƒRË$ÝÓ  Óà  àòòÚ  Ú9Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€We€recognize€that€we€did€not€address€Mr.€Ô_ÔBlankenshipÔ_Ôððs€fourth€issue€regarding€whether€the€trial€courtÐ ° Ðproperly€addressed€the€evidence€presented€concerning€the€value€of€the€tractor.€€Addressing€this€issue€is€unnecessary€givenÐ qÁ Ðour€need€to€remand€this€case€to€the€trial€court€for€the€reasons€stated€herein.€€€6hö0ê:i¢×+00 ; Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú7Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€A€ð ðsecondary€Ô_ÔobligorÔ_Ôðð€is€defined€as€ð ðan€Ô_ÔobligorÔ_Ô€to€the€extent€that:€(A)€the€Ô_ÔobligorÔ_Ôððs€obligation€is€secondary;Ð ° Ðor€(B)€the€Ô_ÔobligorÔ_Ô€has€a€right€of€recourse€with€respect€to€an€obligation€secured€by€collateral€against€the€debtor,€anotherÐ qÁ ÐÔ_ÔobligorÔ_Ô,€or€property€of€either.ðð€€Tenn.€Code€Ann.€ðð€47„9„102(71)€(2003).€€The€official€comment€to€the€definition€sectionÐ 2‚ Ðto€Article€9€of€the€Code€provides,€in€relevant€part,€as€follows:Ð óC ÐÓ °ÓÓ °ÓDetermining€whether€a€person€was€a€ð ðdebtorðð€under€former€section€9„105(1)(d)Ð ´ Ðrequired€a€close€examination€of€the€context€in€which€the€term€was€used.€€To€reduceÐ uÅ Ðthe€need€for€this€examination,€this€article€redefines€ð ðdebtorðð€and€adds€new€definedÐ 6 † Ðterms,€ð ðsecondary€Ô_ÔobligorÔ_Ôðð€and€ð ðÔ_ÔobligorÔ_Ô.ðð€€In€the€context€of€part€6€(default€andÐ ÷ G Ðenforcement),€these€definitions€distinguish€among€three€classes€of€persons:€(Ô_ÔiÔ_Ô)Ð ¸   ÐThose€persons€who€may€have€a€stake€in€the€proper€enforcement€of€a€securityÐ ° Ðinterest€by€virtue€of€their€Ô_ÔnonlienÔ_Ô€property€interest€(typically,€an€ownership€interest)Ð qÁ Ðin€the€collateral;€(ii)€those€persons€who€may€have€a€stake€in€the€proper€enforcementÐ 2‚ Ðof€the€security€interest€because€of€their€obligation€to€pay€the€secured€debt;€and€(iii)Ð óC Ðthose€persons€who€have€an€obligation€to€pay€the€secured€debt€but€have€no€stake€inÐ ´ Ðthe€proper€enforcement€of€the€security€interest.€€Persons€in€the€first€class€areÐ uÅ Ðdebtors.€€Persons€in€the€second€class€are€secondary€Ô_ÔobligorsÔ_Ô€if€any€portion€of€theÐ 6 † Ðobligation€is€secondary€or€if€the€Ô_ÔobligorÔ_Ô€has€a€right€of€recourse€against€the€debtorÐ ÷ G Ðor€another€Ô_ÔobligorÔ_Ô€with€respect€to€an€obligation€secured€by€collateral.€€One€mustÐ ¸  Ðconsult€the€law€of€Ô_ÔsuretyshipÔ_Ô€to€determine€whether€an€obligation€is€secondary.Ð y É  ÐÓ °3ÓÓ °%ÓTenn.€Code€Ann.€ðð€47„9„102€Ô_ÔcmtÔ_Ô.€2€(2003).€€In€the€instant€case,€Mr.€Ô_ÔBlankenshipÔ_Ô€qualifies€as€a€secondary€Ô_ÔobligorÔ_Ô.€€òòSeeÐ : Š  ÐHardy€v.€Milleróó,€No.€M1998„00940„Ô_ÔCOAÔ_Ô„R3„CV,€2001€Tenn.€App.€LEXIS€898,€at€*5ð!ð6€(Tenn.€Ct.€App.€Dec.€10,€2001);Ð û K  ÐRobert€M.€Lloyd,€òòThe€New€Article€9:€Its€Impact€on€Tennessee€Law€(Part€II)óó,€67€Tenn.€L.€Rev.€329,€353€(2000)Ð ¼  Ð(discussing€the€manner€in€which€Revised€Article€9€eliminates€the€controversy€over€whether€notice€of€sale€must€be€sentÐ }Í  Ðto€a€guarantor).€€ /Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú8Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€In€the€complaint€Larry€Ô_ÔMeltonÔ_Ô,€Steve€Ô_ÔMeltonÔ_Ô,€and€R€&€J€allege€that€several€defendants,€including€Mr.Ð ° ÐÔ_ÔBlankenshipÔ_Ô,€engaged€in€deceptive€lending€practices€in€violation€of€the€federal€Racketeer€Influenced€CorruptÐ qÁ ÐOrganization€Act€and€Truth€in€Lending€Act,€as€well€as€various€state€causes€of€action.€3|x ¥Ý ƒRË$ÝÓ  Óà  àòòÚ  Ú6Ú  ÚóóÔ€ôªò»»ÔÝ  ÝÔ_Ô€ð ðSubsection€(b)€does€not€apply€if€the€collateral€is€perishable€or€threatens€to€decline€speedily€in€value€or€is€ofÐ ° Ða€type€customarily€sold€on€a€recognized€market.ðð€€Tenn.€Code€Ann.€ðð€47„9„611(d)€(2003).€€Neither€is€at€issue€in€theÐ qÁ Ðpresent€case.€€ÿU‹ÿÀÀÀ- ù-(|G2Ë$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€ˆa»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€ôªò»»Ô d(|3?$££Ý ƒ£ª!ÝÑ€.ÑÑ8€ˆa»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV'ÿÿdxd)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3?$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€ˆa»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€ˆa»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÑ  ÑÔ€¼ˆa»»»ÔÑ8€Ã_XXdé»»d8ÑÑ  Ñà@ò ò ìàÔ‡î`ˆaÔIN€THE€COURT€OF€APPEALS€OF€TENNESSEEˆÐ ° Ðà@òò%ìàAT€JACKSONÔ#†¼ˆa»îî` #ԈРÓ# ÐÓ  ÓSEPTEMBER€20,€2004€SessionÐ öF ÐÔ‡XÃ_X»¼ˆaÔÌò òÔ#†¼ˆa»XXÃ_õ#ÔR€&€J€OF€TENNESSEE,€INC.òòóó€v.€BLANKENSHIP„MELTON€REALÐ ï? ÐESTATE,€INC.€and€WALDEN€BLANKENSHIP,€INDIVIDUALLYòòóóÔ‡XÃ_X»¼ˆaÔó óÐ  P ÐÌà@@½½ìàò òDirect€Appeal€from€the€Circuit€Court€for€Henderson€CountyÐ ú J Ðà@@øøìàNo.€03„002€€€€€€Roy€B.€Morgan,€Jr.,€JudgeÐ ä 4 ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<¡` AßÐ ¢ò  ÐÌà@@TTìàNo.€W2004„00185„COA„R3„CVññ€„€Filed€November€17,€2004ññÐ ›ë  ÐÌßA€V) °°` dE<n` AßÐ o¿  Ðó óÌÓ  ÓÔ‡X:>XXXÃ_ÔThis€case€involves€a€lawsuit€filed€by€a€secured€party€against€a€guarantor€seeking€a€deficiencyÐ g· Ðjudgment€following€a€foreclosure€sale.€€The€guarantor€argued€that€the€secured€party€was€not€entitledÐ P  Ðto€a€deficiency€because€he€was€given€inadequate€notice€and€the€sale€was€conducted€in€aÐ 9‰ Ðcommercially€unreasonable€manner.€€Following€a€hearing,€the€trial€court€awarded€the€secured€partyÐ "r Ða€deficiency€judgment.€€We€reverse€and€remand€to€the€trial€court€for€further€action€consistent€withÐ  [ Ðthis€opinion.€€Ð ôD ÐÔ#†XÃ_XXX:>½#ÔÔ#†¼ˆa»XXÃ_À#ÔÔ‡XÃ_X»¼ˆaÔÌÓ±ÓÌò òTenn.€R.€App.€P.€3;€Appeal€as€of€Right;€Judgment€of€the€Circuit€Court€Reversed€andÐ ¯ÿ ÐRemandedó óÐ ™é ÐÌòòÓ  ÓÔ#†¼ˆa»àXÃ_‹#ÔÔ‡XÃ_X.¼ˆaÔAlan€E.€Highers,€J.óó,€delivered€the€opinion€of€the€court,€in€which€òòW.€Frank€Crawford,€P.J.,€W.S.,óóÐ l¼ Ðand€òòDavid€R.€Farmer,€J.óó,€joined.Ð U¥ ÐÌKevin€Carter,€Lexington,€TN,€for€AppellantÐ ' w ÐÌHoward€F.€Douglass,€Lexington,€TN,€for€AppelleeÐ ù!I! ÐÓJÓÌò òOPINIONó óÔ#†¼ˆa»XXÃ_y#ÔÔ‡XÃ_X»¼ˆaÔÐ Ë## ÐÌòòóóÔ#†¼ˆa»XXÃ_ #ÔÔ‡XÃ_X»¼ˆaÔÓ  Óò òÔ‡X:>XXXÃ_Ôà@é é ìàI.€€€Factual€Background€and€Procedural€HistoryˆÐ ž%î % ÐÌó ó€€€€€€€€€On€February€23,€2000,€Walden€Blankenship€(ð ðMr.€Blankenshipðð),€as€acting€president€ofÐ r'Â"' ÐBlankenship„Melton€Real€Estate,€Inc.€(ð ðBlankenship„Meltonðð),€entered€into€a€loan€transaction€withÐ [(«#( Ðthe€Bank€of€Henderson€County€(the€ð ðBankðð).€€In€exchange€for€the€Bank€loaning€Blankenship„MeltonÐ D)”$) Ð$40,133.00,€Blankenship„Melton€executed€a€security€agreement€granting€the€Bank€a€security€interestÐ -*}%* Ðin€a€€1999€Bryant€boat,€a€New€Holland€tractor,€a€1999€Ford€F150€truck,€and€a€1994€mobile€home.€Ð +f&+ ÐThe€agreement€called€for€Blankenship„Melton€to€pay€off€the€loan€by€June€18,€2000.€€Ð ÿ+O', Ðâ âÐ è,8(-ýe Ðà  àThe€collateral€used€to€secure€the€loan€was€purchased€by€Blankenship„Melton€prior€toÐ ° Ðâ âentering€into€the€loan€in€question.€€According€to€Mr.€Blakenship,€Larry€Melton,€a€director€ofÐ ™é ÐBlankenship„Melton,€purchased€the€truck€new€for€an€amount€between€$23,000€and€$24,000,€and€theÐ ‚Ò Ðvehicleððs€title€listed€Blankenship„Melton€as€the€owner.€€Mr.€Blankenship€purchased€the€tractor€usedÐ k» Ðas€collateral,€as€well€as€a€tiller,€a€bush€hog,€and€a€boom€pole,€for€an€amount€between€$17,000€andÐ T¤ Ð$18,000.€€Mr.€Blankenship€also€stated€that€Blankenship„Melton€paid€approximately€$15,000€for€theÐ =  Ðdouble„wide€mobile€home€when€they€purchased€it.€€At€the€time€the€loan€agreement€was€entered€intoÐ & v Ðin€February€of€2000,€the€Bank€estimated€the€value€of€all€of€the€collateral€to€be€at€least€$40,000.€€€Ð  _ ÐÌà  àContemporaneously€with€the€execution€of€the€promissory€note,€Mr.€Blankenship€executedÐ á 1  Ða€guaranty€agreement€promising€to€remain€personally€liable€on€the€promissory€note€owed€to€theÐ Ê   ÐBank.€€The€guaranty€agreement€identified€Mr.€Blankenshipððs€home€address€as€ð ð2820€Shady€HillÐ ³  ÐRoad,€Lexington,€TN,€38351.ðð€€In€addition,€Larry€Melton€and€his€son,€Steve€Melton,€the€secretaryÐ œì  Ðof€Blankenship„Melton,€also€executed€personal€guarantees€to€secure€the€loan.€€The€Bank€renewedÐ …Õ  Ðthe€loan€on€two€separate€occasions,€extending€the€due€date€for€six€months€each€time.€€At€some€point,Ð n¾  Ðthe€loan€went€into€default.׃×Ý ƒ #ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€During€this€period€of€time,€Mr.€Blankenship€asserted€that€heÐ W§  Ðcommunicated€with€the€Bank€and€asked€the€Bank€to€foreclose€on€the€collateral.€€Stan€Reynolds,€aÐ @ Ðrepresentative€of€the€Bank,€did€not€recall€Mr.€Blankenship€making€such€a€request.€€Regardless€of€thisÐ )y Ðdispute,€Mr.€Blankenship€never€personally€paid€any€amounts€toward€the€outstanding€loan€amount.€Ð b Ðà  àÌà  àJohnny€Melton€is€the€majority€shareholder€and€president€of€R€&€J€of€Tennessee,€Inc.€(ð ðR€&Ð ä4 ÐJðð€or€ð ðAppelleeðð).€€Larry€Melton€and€Steve€Melton€approached€Johnny€Melton€explaining€that€thisÐ Í Ðparticular€note€had€come€due€and€asked€for€help€with€some€outstanding€loans€Blankenship„MeltonÐ ¶ Ðowed€to€the€Bank.€€On€November€6,€2001,€Johnny€Melton,€acting€as€agent€for€R€&€J,€purchased€theÐ Ÿï Ðpromissory€note€from€the€Bank€for€$26,455.39.€€At€the€time€R€&€J€purchased€the€promissory€noteÐ ˆØ Ðfrom€the€Bank,€Blankenship„Melton€was€already€in€default€on€the€loan,€and€the€Bank€had€alreadyÐ qÁ Ðbegun€to€institute€foreclosure€proceedings€on€the€collateral.€€In€addition,€only€the€truck,€tractor,€andÐ Zª Ðmobile€home€were€left€as€collateral€to€secure€the€note.׃ ×Ý ƒ #ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€€When€R€&€J€purchased€the€note,€SteveÐ C“ ÐMelton€had€been€living€in€the€trailer€which€was€used€as€collateral,€and€he€never€paid€rent€toÐ ,| ÐBlankenship„Melton€during€his€periods€of€occupancy.€€Larry€Melton€had€possession€of€the€FordÐ e Ðtruck€and€drove€it€on€a€daily€basis.€€The€tractor€remained€in€Larry€Meltonððs€possession€and€wasÐ þN Ðstored€at€his€personal€residence.€€According€to€Johnny€Melton,€at€the€time€R€&€J€purchased€the€note,Ð ç 7 Ðthe€tractor€was€inoperable€due€to€mechanical€problems.€Ð Ð!   ÐÌà  àIn€June€of€2002,€Johnny€Melton,€acting€as€agent€for€R€&€J,€began€the€foreclosure€process.€Ð ¢#ò" ÐOn€June€11,€2002,€Johnny€Melton€sent€a€notice€to€Mr.€Blankenship€indicating€that€the€collateralÐ ‹$Û# Ðwould€be€sold€at€a€public€sale€on€June€21,€2002.€€According€to€Johnny€Melton,€Steve€Melton€andÐ t%Ä $ ÐLarry€Melton€continued€to€use€the€collateral€during€this€period€of€time.€€R€&€J€sent€the€notice€of€saleÐ ]&­!% Ðby€certified€mail€to€Mr.€Blankenship€at€the€address€listed€in€the€promissory€note.€€Mr.€Blankenship,Ð ° Ðhowever,€had€subsequently€moved€and€conceded€that€he€never€notified€the€Bank€of€his€new€homeÐ ™é Ðaddress.€€According€to€Johnny€Melton,€similar€notices€were€also€sent€to€Larry€Melton€and€SteveÐ ‚Ò ÐMelton.€€Johnny€Melton€also€posted€a€copy€of€the€notice€of€sale€at€R€&€Jððs€office,€the€courthouse,Ð k» Ðand€on€the€collateral.€€The€envelope€containing€the€notice€to€Mr.€Blankenship,€which€was€introducedÐ T¤ Ðas€an€exhibit€at€trial,€indicated€that€the€postal€service€attempted€to€deliver€the€notice€to€Mr.Ð =  ÐBlankenship€at€his€old€address€on€June€13€and€18,€2002.€€Despite€having€not€received€a€return€receiptÐ & v Ðindicating€successful€delivery€of€the€notice,€R€&€J€went€ahead€with€the€sale€of€the€collateral€on€JuneÐ  _ Ð21,€2002.€€On€June€28,€2002,€the€postal€service€returned€the€notice€to€R€&€J€marked€ð ðnot€deliverableÐ ø H Ðas€addressed.ðð€Ð á 1  ÐÌà  àOn€the€date€of€the€public€sale,€only€Johnny€Melton,€on€behalf€of€R€&€J,€and€Larry€MeltonÐ ³  Ðwere€present,€and€only€Johnny€Melton€placed€a€bid€on€the€collateral.€€R€&€J€purchased€the€mobileÐ œì  Ðhome€for€$8,000,€the€Ford€truck€for€$11,000,€and€the€tractor€for€$1,000.€€Johnny€Melton€stated€thatÐ …Õ  Ðhe€used€his€previous€experience€in€the€banking€industry€and€mobile€home€business€to€assess€theÐ n¾  Ðvalue€of€each€item€of€the€collateral€at€the€time€of€the€sale.€€On€August€26,€2002,€Johnny€Melton,€onÐ W§  Ðbehalf€of€R€&€J,€filed€a€lawsuit׃ ×Ý ƒ #ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€against€Mr.€Blankenship€in€the€General€Sessions€Court€ofÐ @ ÐHenderson€County,€seeking€a€deficiency€judgment€in€the€amount€of€$13,388.40׃ ×Ý ƒ #ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×€pursuant€to€theÐ )y Ðpersonal€guaranty.€€The€general€sessions€court€found€in€favor€of€Mr.€Blankenship,€and€R€&€JÐ b Ðappealed€the€decision€to€the€Circuit€Court€of€Henderson€County.׃\×Ý ƒ #ÃÝòòÚ  Ú5Ú  ÚóóÝ  Ý×  ×€€Following€a€òòde€novo€óóbench€trial,Ð ûK Ðthe€circuit€court€entered€a€deficiency€judgment€against€Mr.€Blankenship€in€the€amount€ofÐ ä4 Ð$10,847.29.€Ð Í ÐÌà  àMr.€Blankenship€filed€a€timely€notice€of€appeal€to€this€Court€and€presents€the€followingÐ Ÿï Ðâ âissues€for€our€review:Ð ˆØ ÐI.à0  àWhether€Appellant,€Walden€Blankenship,€was€given€statutorily€sufficient€notice€regardingÐ ° Ðâ âthe€public€sale€of€the€collateral€pursuant€to€section€47„9„611(b)€of€the€Tennessee€Code;Йé(#(# ÐII.à0  àWhether€Appellee,€R€&€J€of€Tennessee,€failed€to€dispose€of€the€collateral€in€a€commerciallyÐ ‚Ò Ðreasonable€manner€under€section€47„9„610(b)€of€the€Tennessee€Code€and€to€exercise€goodÐ k» Ðfaith€pursuant€to€section€47„1„203€of€the€Tennessee€Code;ÐT¤(#(# ÐIII.à0  àWhether€Appellee,€R€&€J€of€Tennessee,€exercised€reasonable€care€pursuant€to€section€47„9„Ð =  Ð207(a)€of€the€Tennessee€Code€in€preserving€and€exercising€custody€of€the€collateral€used€toÐ & v Ðsecure€the€loan€at€issue;€and€Ð _(#(# ÐIV.à0  àWhether€the€trial€court€erred€in€finding€that€no€evidence€was€introduced€at€trial€regarding€theÐ ø H Ðcondition€and€value€of€the€tractor€on€the€date€of€the€foreclosure€sale€as€it€relates€toÐ á 1  ÐAppelleeððs€bid.ÐÊ  (#(# ÐÌIn€addition€to€the€issues€raised€by€Appellant,€we€are€also€asked€to€review€the€following€issue€raisedÐ œì  Ðby€Appellee:Ð …Õ  ÐÌV.à0  àWhether€Appellant,€Walden€Blankenship,€waived€the€objections€to€the€foreclosure€saleÐ W§  Ðwhich€he€now€raises€on€appeal€according€to€the€terms€of€the€personal€guaranty.Ð@(#(# ÐÌFor€the€reasons€contained€herein,€we€reverse€the€decision€of€the€trial€court.Ð b ÐÌÓ  Óò òII.€€€Standard€of€ReviewÐ ä4 ÐÌó óÓ  Ó€€€€€€€€€€€€This€Court€will€review€findings€of€fact€made€by€the€trial€court€sitting€without€a€jury€ð ðòòde€novoÐ ¸ Ðóóupon€the€record€of€the€trial€court,€accompanied€by€a€presumption€of€correctness€of€the€finding,Ð ¡ñ Ðunless€the€preponderance€of€the€evidence€is€otherwise.ðð€€Tenn.€R.€App.€P.€13(d)€(2003);€òòsee€alsoÐ ŠÚ ÐDecatur€County€Bank€v.€Smithóó,€No.€02A01„9903„CV„00074,€1999€Tenn.€App.€LEXIS€864,€at€*4Ð sà Ð(Tenn.€Ct.€App.€Dec.€27,€1999).€€We€review€the€lower€courtððs€conclusions€of€lawòò€de€novo€óówithoutÐ \¬ Ðany€presumption€of€correctness.€€òòDennis€Joslin€Co.€v.€Johnsonóó,€138€S.W.3d€197,€200€(Tenn.€Ct.€App.Ð E• Ð2003)€(citing€òòUnion€Carbide€Corp.€v.€Huddlestonóó,€854€S.W.2d€87,€91€(Tenn.€1993)).€€Ð .~ ÐÌÓ  Óò òIII.€€€Waiver€of€ObjectionsÐ  P ÐÌÓ  Óó ó€€€€€€€€€€€€€€€R€&€J€asserts€on€appeal€that€Mr.€Blankenship€has€waived€his€right€to€contest€the€sufficiencyÐ Ô!$  Ðof€the€foreclosure€sale€and€notice€based€upon€the€terms€of€the€personal€guaranty.€€The€applicableÐ ½" ! Ðprovision€of€Tennesseeððs€version€of€the€Uniform€Commercial€Code€provides:Ð ¦#ö" ÐÓ °ÓÓ °Óò òWaiver.€ó óð"ð€Ð $ß# ÐÌ(a)€òòWaiver€of€Disposition€Notificationóó.€€A€debtor€or€secondaryÐ d&´!% Ðobligor€may€waive€the€right€to€notification€of€disposition€of€collateralÐ M'"& Ðunder€ðð€47„9„611€only€by€an€agreement€to€that€effect€entered€into€andÐ 6(†#' Ðauthenticated€òòafter€defaultóó.Ð )o$( Ðâ âÐ *X%) ÐÓ °!5ÓÓ °5ÓTenn.€Code€Ann.€ðð€47„9„624(a)€(2003)€(emphasis€added).€€Accordingly,€we€find€this€issue€to€beÐ ° Ðwithout€merit.€€òòSee€Tropical€Jewelers,€Inc.€v.€Nationsbank,€N.A.óó,€781€So.2d€392,€396€(Fla.€Dist.€Ct.Ð ™é ÐApp.€2000).€€Ð ‚Ò Ðâ âò òÌÓ  ÓIV.€€€Notice€of€Sale€Ð U¥ ÐÌó óÓ  Ó€€€€€€€€€€€€The€loan€transaction€at€issue€in€this€case€is€governed€by€Tennesseeððs€version€of€Article€9€ofÐ ) y Ðthe€Uniform€Commercial€Code,€codified€at€section€47„9„101€òòet€seqóó.€of€the€Tennessee€Code.€€òòSeeÐ  b ÐNationsbank€v.€Cleggóó,€No.€01„A„01„9510„CH„00469,€1996€Tenn.€App.€LEXIS€214,€at€*3€(Tenn.€Ct.Ð û K ÐApp.€Apr.€10,€1996).€€The€question€of€whether€the€notice€given€by€R€&€J€in€this€instance€wasÐ ä 4  Ðsufficient€is€a€question€for€the€trier€of€fact,€and€R€&€J€bears€the€burden€of€proof€on€this€issue.€€òòIdóó.€atÐ Í   Ð*13;€òòsee€also€óóTenn.€Code€Ann.€ðð€47„9„626(2)€(2003).€€The€trial€court€found,€and€the€parties€do€notÐ ¶  Ðdispute,€that€Mr.€Blankenship€never€received€actual€notice€of€the€sale.€After€reviewing€theÐ Ÿï  ÐAppellantððs€Brief,€we€have€come€to€the€conclusion€that€Mr.€Blankenship€is€arguing,€in€essence,€thatÐ ˆØ  Ðsection€47„9„611(b)€of€the€Tennessee€Code€requires€that€a€person€in€Mr.€Blankenshipððs€position€mustÐ qÁ  Ðreceive€actual€notice€of€the€disposition€of€the€collateral€prior€to€a€public€sale€in€order€for€the€noticeÐ Zª  Ðto€be€adequate€under€Tennesseeððs€version€of€Revised€Article€9€of€the€Uniform€Commercial€Code.€Ð C“ ÐÌà  àIn€support€of€this€argument,€Mr.€Blankenship€points€to€the€mandatory€language€ð ðshallðð€inÐ e Ðthe€applicable€statute€which€provides:Ð þN ÐÌÓ °ÓÓ °ÓòòNotification€of€Disposition€Requiredóó.€€Except€as€otherwiseÐ Ð  Ðprovided€in€subsection€(d),׃×Ý ƒ #ÃÝòòÚ  Ú6Ú  ÚóóÝ  Ý×  ×€€a€secured€party€that€disposes€ofÐ ¹  Ðcollateral€under€ðð€47„9„610€shall€send€to€the€persons€specified€inÐ ¢ò Ðsubsection€(c)€a€reasonable€authenticated€notification€of€disposition.€Ð ‹Û ÐÌÌÓ °Y>ÓÓ °K>ÓTenn.€Code€Ann.€ðð€47„9„611(b)€(2003).€€Section€47„9„611(c),€setting€forth€the€persons€to€be€notifiedÐ F– Ðbefore€a€secured€party€disposes€of€the€collateral,€provides€that,€in€order€ð ð[t]o€comply€with€subsectionÐ / Ð(b),€the€secured€party€shall€send€an€authenticated€notification€of€disposition€to€.€.€.€any€secondaryÐ h Ðobligor.ðð׃Ó×Ý ƒ #ÃÝòòÚ  Ú7Ú  ÚóóÝ  Ý×  ×€€Tenn.€Code€Ann.€ðð€47„9„611(c)(2)€(2003).€€Alternatively,€R€&€J€asserts€that€it€sent€theÐ  Q Ðnotice€to€Mr.€Blankenship€at€the€address€he€listed€on€the€personal€guaranty,€and,€therefore,€he€shouldÐ ° Ðbear€the€responsibility€for€not€receiving€the€notice€since€he€failed€to€notify€the€Bank€of€his€changeÐ ™é Ðin€address.€Ð ‚Ò ÐÌà  àThe€trial€court€held€that€the€notice€provided€to€Mr.€Blankenship€in€this€case€was€sufficient.€Ð T¤ ЀIn€support€of€his€position€that€the€notice€in€this€instance€was€inadequate,€Mr.€Blankenship€directsÐ =  Ðour€attention€to€two€facts.€€First,€he€points€to€the€fact€that€R€&€J€proceeded€with€the€sale€despiteÐ & v Ðhaving€not€received€any€indication€that€the€notice€had€been€delivered€to€Mr.€Blankenship.€€Second,Ð  _ ÐMr.€Blankenship€asserts€that€Johnny€Melton€had€actual€knowledge€of€Mr.€Blankenshipððs€correctÐ ø H Ðhome€address€and€failed€to€send€the€notice€to€that€address.€€Mr.€Blankenship€points€to€a€copy€of€aÐ á 1  Ðcomplaint׃  ×Ý ƒ #ÃÝòòÚ  Ú8Ú  ÚóóÝ  Ý×  ×€filed€in€federal€court€on€June€21,€2002,€the€day€of€the€public€sale.€€The€complaint,Ð Ê   Ðattached€to€Mr.€Blankenshipððs€Amended€Motion€to€Alter€or€Amend€Judgment€or€for€a€New€TrialÐ ³  Ðsubmitted€to€the€circuit€court€below,€named€Mr.€Blankenship€as€a€defendant€and€correctly€listed€hisÐ œì  Ðcurrent€address€as€341€Box€Road,€Darden,€Tennessee,€38328.€After€conducting€a€hearing,€the€trialÐ …Õ  Ðcourt€issued€an€order€denying€Mr.€Blankenshipððs€motion.€€Ð n¾  ÐÌà  àThe€decision€as€to€whether€to€grant€a€motion€for€new€trial€or€to€alter€or€amend€a€finalÐ @ Ðjudgment€based€on€newly€discovered€evidence€is€entirely€within€the€discretion€of€the€trial€judge.òò€Ð )y ÐCollins€v.€Greene€County€Bankóó,€916€S.W.2d€941,€945€(Tenn.€Ct.€App.€1996)€(citing€òòSeay€v.€City€ofÐ b ÐKnoxvilleóó,€654€S.W.2d€397,€400ð!ð01€(Tenn.€Ct.€App.€1983)).€€We€review€a€trial€courtððs€decision€inÐ ûK Ðthis€regard€under€an€abuse€of€discretion€standard.€€òòChambliss€v.€Stohleróó,€124€S.W.3d€116,€120€(Tenn.Ð ä4 ÐCt.€App.€2003)€(citing€òòBradley€v.€McLeodóó,€984€S.W.2d€929,€933€(Tenn.€Ct.€App.€1998)).€€InÐ Í Ðapplying€this€standard€this€Court€has€stated:Ð ¶ ÐÌÓ °ÓÓ °Óà ¸ àIt€is€clear€that€a€finding€of€an€abuse€of€discretion€cannot€beÐ ˆØ Ðbased€simply€upon€an€appellate€courtððs€determination€that€it€wouldÐ qÁ Ðhave€decided€the€question€differently.òò€€Whiton€v.€Whitonóó,€No.€E2000„Ð ° Ð00467„COA„R3„CV,€2002€Tenn.€App.€LEXIS€512[,]€at€*21€(Tenn.Ð ™é ÐCt.€App.€July€18,€2002).€€Rather,€this€standard€requires€that€weÐ ‚Ò Ðdetermine€ð ðwhether€the€lower€courtððs€exercise€of€its€discretion€wentÐ k» Ðbeyond€the€bounds€of€a€fair€exercise€of€discretion.ðð€€òòIdóó.Ð T¤ ÐÌÓ °LÓÓ °LÓòòDavis€v.€Estate€of€Johnnie€Rex€Flynnóó,€No.€E2001„02480„COA„R3„CV,€2002€Tenn.€App.€LEXIS€702,Ð & v Ðat€*23€(Tenn.€Ct.€App.€Sept.€30,€2002).€€The€federal€complaint€was€filed€on€June€21,€2002,€and€theÐ  _ Ðtrial€in€this€matter€occurred€on€July€28,€2003.€€We€presume€that€Mr.€Blankenship€received€serviceÐ ø H Ðof€the€federal€complaint€prior€to€the€trial€of€this€matter€in€the€court€below.€€ð ðThe€moving€party€mustÐ á 1  Ðdemonstrate€that€the€new€evidence€was€not€known€prior€to€or€during€the€trial€and€that€it€could€notÐ Ê   Ðhave€been€ascertained€by€the€exercise€of€reasonable€diligence.ðð€€òòCollinsóó,€916€S.W.2d€at€945;€òòsee€alsoÐ ³  ÐSeayóó,€654€S.W.2d€at€399.€€Accordingly,€we€find€that€the€trial€court€did€not€abuse€its€discretion€inÐ œì  Ðdenying€Mr.€Blankenshipððs€motion€partially€based€on€the€information€contained€in€the€federalÐ …Õ  Ðcomplaint.€€In€turn,€we€are€constrained€to€reviewing€only€the€evidence€presented€at€trial€whenÐ n¾  Ðdetermining€whether€the€notice€sent€to€Mr.€Blankenship€was€sufficient€under€section€47„9„611(b)Ð W§  Ðof€the€Tennessee€Code.ò òòòóóó óÐ @ ÐÌà  àThe€official€comment€to€section€47„9„611(b)€provides€that€ð ð[t]he€notification€must€beÐ b Ðreasonable€as€to€the€manner€in€which€it€is€sent,€its€timeliness€(i.e.,€a€reasonable€time€before€theÐ ûK Ðdisposition€is€to€take€place),€and€its€content.ðð€€Tenn.€Code€Ann.€ðð€47„9„611€cmt.€2€(2003).€€Mr.Ð ä4 ÐBlankenship€does€not€contest€that€R€&€J€failed€to€send€the€notice€in€a€timely€fashion.€€òòSee€óóTenn.Ð Í ÐCode€Ann.€ðð€47„9„612.€€Rather,€he€contests€whether€the€notice€was€sent€in€a€reasonable€mannerÐ ¶ Ðwhen€it€was€addressed€to€an€address€where€he€no€longer€lived.€€€In€addition€to€the€timing€of€theÐ Ÿï Ðnotice,€the€reasonableness€of€the€notice€also€encompasses€a€consideration€of€where€the€notice€wasÐ ˆØ Ðsent.€€òòCommercial€Credit€Corp.€v.€Cutshallóó,€28€U.C.C.€Rep.€Serv.€(Callaghan)€277€(Tenn.€Ct.€App.Ð qÁ Ð1979).€€Ð Zª Ðà  àSection€47„9„611€of€the€Tennessee€Code€ð ðleaves€to€judicial€resolution,€based€upon€the€factsÐ C“ Ðof€each€case,€the€question€whether€the€requirement€of€ððreasonable€notificationðð€requires€a€ððsecondÐ ,| Ðtry,ðð€i.e.,€whether€a€secured€party€who€sends€notification€and€learns€that€the€debtor€did€not€receiveÐ e Ðit€must€attempt€to€locate€the€debtor€and€send€another€notification.ðð€€Tenn.€Code€Ann.€ðð€47„9„612Ð þN Ðcmt.€6€(2003).€€We€begin€by€examining€the€definitions€of€the€key€terms€contained€in€section€47„9„Ð ç 7 Ð611(b)€of€the€Tennessee€Code.€€The€term€ð ðsendðð€is€defined€as€follows:Ð Ð!   ÐÌÓ °ÓÓ °Óð ðSendðð,€in€connection€with€a€record€or€notification,€means:Ð ¢#ò" Ð(A)€to€deposit€in€the€mail,€deliver€for€transmission,€or€transmit€by€anyÐ ‹$Û# Ðother€usual€means€of€communication,€with€postage€or€cost€ofÐ t%Ä $ Ðtransmission€provided€for,€addressed€to€any€address€reasonable€underÐ ]&­!% Ðthe€circumstances;€orÐ F'–"& Ð(B)€to€cause€the€record€or€notification€to€be€received€within€the€timeÐ /(#' Ðthat€it€would€have€been€received€if€properly€sent€under€subparagraphÐ )h$( Ð(A).Ð *Q%) Ðâ âÐ ê*:&* ÐÓ °`ZÓÓ °RZÓTenn.€Code€Ann.€ðð€47„9„102(74)€(2003).€€The€definition€section€applicable€to€Tennesseeððs€versionÐ ° Ðâ âof€Article€9€does€not€define€ð ðnotice,ðð€but€we€find€guidance€in€the€general€definition€section€of€theÐ ™é ÐCode,€which€provides:Ð ‚Ò ÐÌÓ °ÓÓ °ÓA€person€ð ðnotifiesðð€or€ð ðgivesðð€a€notice€or€notification€to€another€byÐ T¤ Ðtaking€such€steps€as€may€be€reasonably€required€to€inform€the€otherÐ =  Ðin€ordinary€course€òòwhether€or€not€such€other€actually€comes€to€knowÐ & v Ðof€itóó.€€A€person€ð ðreceivesðð€a€notice€or€notification€when:Ð  _ Ð(A)€It€comes€to€his€attention;€or€Ð ø H Ð(B)€It€is€duly€delivered€at€the€place€of€business€òòthrough€which€theÐ á 1  Ðcontract€was€made€or€at€any€other€place€held€out€by€him€óóas€the€placeÐ Ê   Ðfor€receipt€of€such€communications[.]Ð ³  ÐÌÓ °A^ÓÓ °3^ÓTenn.€Code€Ann.€ðð€47„1„201(26)€(2003)€(emphasis€added).€€Ð …Õ  ÐÌà  àThe€policy€justifications€for€providing€notice€to€a€debtor€are€equally€applicable€to€aÐ W§  Ðsecondary€obligor,€and€can€be€stated€as€follows:Ð @ ÐÌÓ °ÓÓ °ÓWe€think€the€provision€for€notice€in€connection€with€a€sale€isÐ b Ðintended€to€afford€the€debtor€a€reasonable€opportunity€(1)€to€avoid€aÐ ûK Ðsale€altogether€by€discharging€the€debt€and€redeeming€the€collateralÐ ä4 Ðor€(2)€in€case€of€sale,€to€see€that€the€collateral€brings€a€fair€price.€€AÐ Í Ðnotice€that€does€not€afford€him€this€reasonable€opportunity€is€notÐ ¶ Ðreasonable€notification€and€a€sale€under€it€is€not€commerciallyÐ Ÿï Ðreasonable.Ð ˆØ ÐÌÓ °*bÓÓ °bÓòòIntððl€Harvester€Credit€Corp.€v.€Ingramóó,€619€S.W.2d€134,€137€(Tenn.€Ct.€App.€1981)€(citingÐ Zª ÐòòMallicoat€v.€Volunteer€Fin.€&€Loan€Corpóó.,€415€S.W.2d€347,€350€(Tenn.€Ct.€App.€1966)).€€€Ð C“ ÐÌà  àIn€support€of€his€argument€that€the€notice€given€was€not€reasonable,€Mr.€Blankenship€reliesÐ e Ðon€our€decision€in€òòMallicoat€v.€Volunteer€Finance€&€Loan€Corp.óó,€415€S.W.2d€347€(Tenn.€Ct.€App.Ð þN Ð1966).€€In€òòMallicoatóó,€the€secured€party€sent€a€notice€of€sale€to€the€debtor€by€certified€mail,€but€theÐ ç 7 Ðnotice€was€returned€to€the€secured€party€undelivered.€€òòMallicoatóó,€415€S.W.2d€at€òòóó349.€€After€receivingÐ Ð!   Ðthe€returned€notice,€the€secured€party€continued€to€conduct€a€sale€of€the€collateral€and€sued€theÐ ¹" ! Ðdebtor€for€a€deficiency€judgment.€€òòIdóó.€€In€finding€the€notice€in€that€case€insufficient€under€theÐ ¢#ò" Ðpredecessor€statute€to€section€47„9„611,€we€stated:€Ð ‹$Û# ÐÌÓ °ÓÓ °Óà ¸ àIn€view€of€the€undisputed€proof€in€this€case€that€the€debtor€didÐ ]&­!% Ðnot€receive€the€notice€and€that€the€secured€creditor€was€aware€that€heÐ F'–"& Ðhad€not€received€it,€it€is€our€opinion€the€creditor€not€only€failed€toÐ /(#' Ðshow€a€compliance€with€the€Act€but€that€the€record€affirmativelyÐ )h$( Ðshows€a€lack€of€compliance€and€a€conscious€disregard€of€the€debtorððsÐ *Q%) Ðright€to€notice.€€The€property€was€not€perishable.€€The€debtor€lived€inÐ ê*:&* ÐKnoxville€where€the€creditor€had€its€place€of€business€and€sold€theÐ Ó+#'+ Ðproperty.€€In€addition,€the€creditor€had€information€as€to€where€theÐ ° Ðdebtor€was€employed€and€where€his€parents€lived.€€Yet,€the€sale€wasÐ ™é Ðallowed€to€proceed€without€any€further€effort€to€comply€with€theÐ ‚Ò Ðnotice€requirement.€€Ð k» ÐÌÓ °¾hÓÓ °°hÓòòIdóó.€at€350;€òòsee€also€First€Tenn.€Bank€Natððl€Assððn€v.€Heltonóó,€No.€03A01„9501„CV„00026,€1995€Tenn.Ð =  ÐApp.€LEXIS€339,€at€*5ð!ð6€(Tenn.€Ct.€App.€May€23,€1995).€€Ð & v ÐÌà  àCourts€throughout€the€country€vary€as€to€whether€the€secured€party€has€the€burden€of€provingÐ ø H Ðthat€the€debtor€or€a€secondary€obligor€received€actual€notice€of€a€pending€sale.€€òòSeeóó€Richard€C.Ð á 1  ÐTinney,€Annotation,€òòSufficiency€of€Secured€Partyððs€Notification€of€Sale€or€Other€IntendedÐ Ê   ÐDisposition€of€Collateral€Under€UCC€ðð€9„504(3)óó,€11€A.L.R.€4th€241,€ðððð€14ð!ð16€(2003).€€Many€of€ourÐ ³  Ðsister€states€interpret€the€notice€provision€to€require€only€€that€the€creditor€send€notice.€€òòSeeóóÐ œì  ÐòòUnderwood€v.€First€Ala.€Bank€of€Huntsvilleóó,€453€So.2d€742,€745€(Ala.€Civ.€App.€1983);òò€Hall€v.Ð …Õ  ÐOwen€County€State€Bankóó,€370€N.E.2d€918,€925€(Ind.€Ct.€App.€1977);€òòMcKee€v.€Miss.€Bank€&€TrustÐ n¾  ÐCo.óó,€366€So.2d€234,€238€(Miss.€1979);òò€Commerce€Bank€of€St.€Louis€v.€Doolingóó,€875€S.W.2d€943,Ð W§  Ð946€(Mo.€Ct.€App.€1994);€òòFirst€Natððl€Bank€&€Trust€Co.€of€Lincoln€v.€Hermannóó,€286€N.W.2d€750,Ð @ Ð752€(Neb.€1980).€€Our€decision€in€òòMallicoatóó,€however,€demonstrates€that€Tennessee€requires€moreÐ )y Ðthan€a€mere€ð ðsendingðð€in€order€for€a€secured€party€to€be€in€compliance€with€the€statute.€€James€J.Ð b ÐWhite€&€Robert€S.€Summers,€òòUniform€Commercial€Code€óóðð€26„10,€at€987€(1972).€€Ð ûK ÐÌà  àAt€the€other€end€of€the€notice€spectrum,€we€have€held€that€the€notice€requirement€is€satisfiedÐ Í Ðwhen€the€following€occurs:Ð ¶ ÐÌÓ °ÓÓ °Óà ¸ àThe€sending€of€notice,€certified,€return€receipt€requested,€isÐ ˆØ Ðcommercially€reasonable.€€When€a€plaintiff€forwards€notice€to€theÐ qÁ Ðdebtorððs€proper€address,€certified,€return€receipt€requested,€and€theÐ Zª Ðnotice€is€received€at€that€address€and€returned€signed€by€someone€atÐ C“ Ðthe€address,€it€is€reasonable€for€plaintiff€to€assume€that€the€defendantÐ ,| Ðreceived€the€notice.€Ð e ÐÌÓ °çsÓÓ °ÙsÓòòCaterpillar€Fin.€Services€Corp.€v.€Woodsóó,€No.€89„326„II,€1990€Tenn.€App.€LEXIS€117,€at€*7ð!ð8Ð ç 7 Ð(Tenn.€Ct.€App.€Feb.€22,€1990).€€Our€case€law€makes€clear€that€ð ðthe€creditor€will€not€be€forced€toÐ Ð!   Ðtake€responsibility€for€lost€mail€or€the€debtorððs€refusal€to€accept€properly€delivered€mail.ðð€Ð ¹" ! ÐòòNationsbank€v.€Cleggóó,€No.€01„A„01„9510„CH„00469,€1996€Tenn.€App.€LEXIS€214,€at€*14€(Tenn.Ð ¢#ò" ÐCt.€App.€Apr.€10,€1996).€€Yet,€we€have€also€made€clear€that:Ð ‹$Û# ÐÌÓ °ÓÓ °Óà ¸ àWhile€absolute€proof€of€receipt€of€notice€may€not€be€requiredÐ ]&­!% Ðin€every€instance,€a€creditor,€who€only€makes€one€attempt€to€contactÐ F'–"& Ðthe€debtor,€and€is€left€uncertain€of€receipt€of€the€notice,€has€notÐ /(#' Ðfulfilled€its€obligation€to€the€debtor€when€it€proceeds€with€aÐ )h$( Ðdisposition€less€than€two€weeks€from€mailing€its€first€notice.Ð *Q%) ÐÌÓ °LxÓÓ °>xÓòòIdóó.€at€*15ð!ð16.€Ð Ó+#'+ Їà  àWe€disagree€with€Mr.€Blankenshipððs€assertion€that€section€47„9„611(b)€requires€the€securedÐ ° Ðparty€to€prove€that€the€secondary€obligor€actually€received€the€notice.€€òòSee€Commercial€Credit€Corp.Ð ™é Ðv.€Cutshallóó,€28€U.C.C.€Rep.€Serv.€(Callaghan)€277€(Tenn.€Ct.€App.€1979).€€Based€on€the€factsÐ ‚Ò Ðpresented€to€the€trial€court€below,€however,€we€find€the€trial€courtððs€holding€that€notice€in€this€caseÐ k» Ðwas€sufficient€under€the€statute€to€be€erroneous€as€a€matter€of€law.€€We€are€mindful€that€Mr.Ð T¤ ÐBlankenship€bears€some€responsibility€for€not€receiving€notice€in€this€case.€€òòSee€The€Cent.€Trust€Co.Ð =  Ðof€Northeastern€Ohio€v.€Snairóó,€No.€CA„5818,€1982€Ohio€App.€LEXIS€15214,€at€*2ð!ð3€(Ohio€Ct.€App.Ð & v ÐJune€23,€1982);€òòGen.€Motors€Acceptance€Corp.€v.€Hornóó,€No.€5861,€1978€Ohio€App.€LEXIS€11155,Ð  _ Ðat€*5€(Ohio€Ct.€App.€July€20,€1978).€€However,€R€&€J€sent€the€notice€to€Mr.€Blankenship€on€JuneÐ ø H Ð11,€2002,€and€conducted€a€sale€ten€days€later€on€June€21,€2002,€without€receiving€any€indication€asÐ á 1  Ðto€whether€the€notice€actually€reached€Mr.€Blankenship.€€We€find,€therefore,€that€this€amounts€toÐ Ê   Ðunreasonable€notice€under€the€statute€and€reverse€the€trial€courtððs€holding€on€this€issue.€€ò òó óòòSeeÐ ³  ÐNationsbank€v.€Cleggóó,€No.€01„A„01„9510„CH„00469,€1996€Tenn.€App.€LEXIS€214,€at€*15ð!ð16Ð œì  Ð(Tenn.€Ct.€App.€Apr.€10,€1996)Ð …Õ  Ðà  àò òÌÓ  ÓV.€€€Commercial€Reasonableness€of€the€Sale€of€the€Collateraló óÐ X¨  ÐÌÓ  Óà  àLack€of€reasonable€notice€to€a€secondary€obligor€is€one€factor€bearing€upon€whether€the€saleÐ +{ Ðof€the€collateral€was€commercially€reasonable.€€òòSee€Mallicoat€v.€Volunteer€Fin.€&€Loan€Corp.,€óó415Ð d ÐS.W.2d€347,€351€(Tenn.€Ct.€App.€1966);€òòGen.€Motors€Acceptance€Corp.€v.€Middletonóó,€No.€02A01„Ð ýM Ð9103„CH„00033,€1991€Tenn.€App.€LEXIS€820,€at€*7€(Tenn.€Ct.€App.€Oct.€16,€1991).€€ð ðHowever,Ð æ6 Ðnotice€by€itself€is€not€conclusive€on€the€question€of€whether€a€sale€was€commercially€reasonable.ððòò€Ð Ï ÐDecatur€County€Bank€v.€Smithóó,€No.€02A01„9903„CV„00074,€1999€Tenn.€App.€LEXIS€864,€at€*9Ð ¸ Ð(Tenn.€Ct.€App.€Dec.€27,€1999).€€We€note€that€the€remaining€issues€presented€by€Appellant€for€ourÐ ¡ñ Ðreview€focus€upon€whether€Appellee€conducted€the€sale€of€the€collateral€in€a€commerciallyÐ ŠÚ Ðreasonable€manner.€€Accordingly,€we€will€discuss€these€issues€collectively€in€this€section€of€theÐ sà Ðopinion.€Ð \¬ ÐÌà  àð ðAfter€default,€a€secured€party€may€sell,€lease,€license,€or€otherwise€dispose€of€any€or€all€ofÐ .~ Ðthe€collateral€in€its€present€condition€or€following€any€commercially€reasonable€preparation€orÐ g Ðprocessing.ðð€€Tenn.€Code€Ann.€ðð€47„9„610(a)€(2003).€€As€a€secured€party€conducting€a€public€sale,Ð  P ÐR€&€J€also€had€the€right€to€purchase€the€collateral€at€the€sale.€€Tenn.€Code€Ann.€ðð€47„9„610(c)(1)Ð é 9 Ð(2003).€€In€carrying€out€the€sale€of€the€collateral€R€&€J€was€bound€by€two€standards.€ð ðFirst,€inÐ Ò!"  Ðexercising€his€rights€upon€default€the€secured€party€is€bound€by€the€good€faith€requirementÐ »" ! Ðapplicable€throughout€the€Uniform€Commercial€Code.ðð€€òòDecatur€County€Bank,óó1999€Tenn.€App.Ð ¤#ô" ÐLEXIS€864,€at€*6€(citing€Tenn.€Code€Ann.€ðð€47„1„203).€€The€second€requirement€that€R€&€J€wasÐ $Ý# Ðbound€to€follow€addresses€the€procedures€used€in€selling€the€collateral€and€provides:Ð v%Æ $ ÐÌÓ °ÓÓ °ÓòòCommercially€reasonable€dispositionóó.€€Every€aspect€of€aÐ H'˜"& Ðdisposition€of€collateral,€including€the€method,€manner,€time,€place,Ð 1(#' Ðand€other€terms,€must€be€commercially€reasonable.€€If€commerciallyÐ )j$( Ðreasonable,€a€secured€party€may€dispose€of€the€collateral€by€public€orÐ *S%) Ðprivate€proceedings,€by€one€(1)€or€more€contracts,€as€a€unit€or€inÐ ì*<&* Ðparcels,€and€at€any€time€and€place€and€on€any€terms.€€Ð Õ+%'+ Ð‡Ó °¯‰ÓÓ °¡‰ÓTenn.€Code€Ann.€ðð€47„9„610(b)€(2003);€òòsee€also€Am.€City€Bank€of€Tullahoma€v.€W.€Auto€Supply€Co.óó,Ð ° Ð631€S.W.2d€410,€419€(Tenn.€Ct.€App.€1981).€€This€Court€has€defined€ð ðcommercially€reasonableðð€asÐ ™é Ðfollows:Ð ‚Ò ÐÌÓ °ÓÓ °ÓThe€requirement€that€the€property€be€disposed€of€in€a€ð ðcommerciallyÐ T¤ Ðreasonableðð€manner€seems€to€us€to€signify€that€the€disposition€shallÐ =  Ðbe€made€in€keeping€with€prevailing€trade€practices€among€reputableÐ & v Ðand€responsible€business€and€commercial€enterprises€engaged€in€theÐ  _ Ðsame€or€a€similar€business.Ð ø H ÐÌÓ °ÓÓ °øŒÓòòMallicoat€v.€Volunteer€Fin.€&€Loan€Corpóó.,€415€S.W.2d€347,€350€(Tenn.€Ct.€App.€1966);òò€see€alsoÐ Ê   ÐóóTenn.€Code€Ann.€ðð€47„9„627(b)€(2003).€€The€trial€court€found€that€R€&€J€conducted€the€sale€in€goodÐ ³  Ðfaith€and€in€a€commercially€reasonable€manner.€€We€disagree.€€Ð œì  ÐÌà  àLike€notice,€review€of€a€sale€of€collateral€to€determine€whether€it€was€conducted€in€good€faithÐ n¾  Ðand€in€a€commercially€reasonable€manner€is€an€inquiry€dependent€upon€the€facts€of€each€case.€€InÐ W§  Ðreviewing€the€facts€of€this€case,€we€are€cognizant€of€the€following:Ð @ ÐÌÓ °ÓÓ °ÓRather€than€viewing€in€isolation€specific€details€of€the€sale€of€theÐ b Ðdebtorððs€collateral,€it€is€the€aggregate€of€circumstances€in€each€caseÐ ûK Ðwhich€should€be€emphasized€in€reviewing€the€sale.€€The€elements€ofÐ ä4 Ðmanner,€method,€time,€place€and€terms€cited€by€the€UniformÐ Í ÐCommercial€Code€are€to€be€viewed€as€necessary€and€interrelatedÐ ¶ Ðparts€of€the€whole€transaction.Ð Ÿï ÐÌÓ °w‘ÓÓ °i‘ÓòòIn€re€Four€Star€Music€Co.,€Incóó.,€2€B.R.€454,€463€(Bankr.€M.D.€Tenn.€1979)€(citations€omitted).€€ThisÐ qÁ Ðcourt€has€often€looked€to€the€following€factors€when€attempting€to€ascertain€whether€a€foreclosureÐ Zª Ðsale€was€conducted€in€a€commercially€reasonable€manner:Ð C“ ÐÌÓ °ÓÓ °Óà ¸ àAlthough€the€statute€has€not€attempted€to€define€theÐ e Ðparameters€of€the€term€ð ðcommercially€reasonableðð,€case€law€hasÐ þN Ðspecified€six€factors€by€which€the€statute€requirements€may€beÐ ç 7 Ðmeasured:Ð Ð!   Ð(1)€à0 ¸ àthe€type€of€collateral€involved;€andй" !¸ x¸ x Ð(2)à0 ¸ àthe€condition€of€the€collateral;€and€Ð¢#ò"¸ x¸ x Ð(3)à0 ¸ àthe€number€of€bids€solicited;€andЋ$Û#¸ x¸ x Ð(4)à0 ¸ àthe€time€and€place€of€sale;€andÐt%Ä $¸ x¸ x Ð(5)à0 ¸ àthe€purchase€price€received€or€the€terms€of€the€sale;€andÐ]&­!%¸ x¸ x Ð(6)à0 ¸ àany€special€circumstances€involved.ÐF'–"&¸ x¸ x ÐÌÓ °ß”ÓÓ °Ñ”ÓòòDecatur€County€Bank€v.€Smithóó,€No.€02A01„9903„CV„00074,€1999€Tenn.€App.€LEXIS€864,€at€*7ð!ð8Ð )h$( Ð(Tenn.€Ct.€App.€Dec.€27,€1999)€(quoting€òòIn€re€Four€Star€Music€Co.,€Inc.óó,€2€B.R.€454,€461€(Bankr.Ð *Q%) Ðâ âM.D.€€Tenn.€1979)).€€ð ðThe€burden€of€proving€that€a€sale€of€collateral€is€commercially€reasonableÐ ê*:&* Ðunder€these€statutes€is€on€the€secured€party€seeking€the€deficiency€judgment.ðð€€òòDecatur€County€Bankóó,Ð ° Ð1999€Tenn.€App.€LEXIS€864,€at€*7.€€Ð ™é Ðâ âÌà  àMr.€Blankenship€argues€that€the€timing€of€the€sale€demonstrates€it€was€conducted€in€aÐ k» Ðcommercially€unreasonable€manner.€€In€support€of€his€position,€he€points€to€the€fact€that€R€&€JÐ T¤ Ðdelayed€in€conducting€a€sale€of€the€collateral€for€seven€and€one„half€months€after€purchasing€theÐ =  Ðnote.€€Mr.€Blankenship€notes€that€at€the€time€R€&€J€purchased€the€note€it€had€already€been€in€defaultÐ & v Ðfor€some€time.€Ð  _ ÐÌà  àThe€official€comment€to€section€47„9„610€of€the€Tennessee€Code€provides:Ð á 1  ÐÓ °ÓÓ °ÓTime€of€Disposition.€€This€article€does€not€specify€a€period€withinÐ Ê   Ðwhich€a€secured€party€must€dispose€of€collateral.€€This€is€consistentÐ ³  Ðwith€this€articleððs€policy€to€encourage€private€dispositions€throughÐ œì  Ðregular€commercial€channels.€€It€may,€for€example,€be€prudent€not€toÐ …Õ  Ðdispose€of€goods€when€the€market€has€collapsed.€€Or,€it€might€beÐ n¾  Ðmore€appropriate€to€sell€a€large€inventory€in€parcels€over€a€period€ofÐ W§  Ðtime€instead€of€in€bulk.€€Of€course,€under€subsection€(b)€every€aspectÐ @ Ðof€a€disposition€of€collateral€must€be€commercially€reasonable.€€ThisÐ )y Ðrequirement€explicitly€includes€the€ð ðmethod,€manner,€time,€place,€andÐ b Ðother€terms.ðð€€òòFor€example,€if€a€secured€party€does€not€proceed€underÐ ûK Ðsection€9„620€[ðð€47„9„620]€and€holds€collateral€for€a€long€period€ofÐ ä4 Ðtime€without€disposing€of€it,€and€if€there€is€no€good€reason€for€notÐ Ë Ðmaking€a€prompt€disposition,€the€secured€party€may€be€determinedÐ ² Ðnot€to€have€acted€in€a€ð ðcommercially€reasonableðð€manneróó.€€òòSee€alsoÐ ™é Ðóósection€1„203€[ðð€47„1„203]€(general€obligation€of€good€faith).€€Ð ‚Ò ÐÌÓ °ÚœÓÓ °ÌœÓTenn.€Code€Ann.€ðð€47„9„610€cmt.€3€(2003)€(emphasis€added).€€Mr.€Blankenship€directs€our€attentionÐ T¤ Ðto€this€Courtððs€holding€in€òòNationsbank€v.€Cleggóó,€No.€01„A„01„9510„CH„00469,€1996€Tenn.€App.Ð = ÐLEXIS€214€(Tenn.€Ct.€App.€Apr.€10,€1996),€where€we€stated:Ð &v ÐÌÓ °ÓÓ °Óà ¸ àOf€concern€to€this€Court€is€the€fact€that€the€secured€parties€inÐ øH Ðthis€instance€permitted€an€automobile€to€sit€idly€for€over€13€monthsÐ á 1 Ðafter€default.€€The€UCC€does€not€state€particular€time€limits€for€aÐ Ê!  Ðsecured€party€to€take€possession€of€the€collateral,€or€to€proceed€withÐ ³"! Ða€sale€following€the€taking€of€possession.€€The€determination€ofÐ œ#ì" Ðwhether€delay€is€commercially€unreasonable€requires€considerationÐ …$Õ# Ðof€all€surrounding€circumstances,€including€market€conditions,€theÐ n%¾ $ Ðpossible€physical€deterioration€of€the€collateral,€its€economicÐ W&§!% Ðdeterioration€through€obsolescence,€and€the€time€required€to€assembleÐ @'"& Ðthe€collateral€and€prepare€it€for€sale.€€Ð )(y#' Ðà ¸ à.€.€.€.Ð )b$( Ðà ¸ àWe€have€found€no€evidence€in€the€record,€or€other€authorityÐ û)K%) Ðwhich€indicates€that€the€13€month€delay€in€selling€the€automobile,€aÐ ä*4&* Ðdepreciating€asset,€is€ð ðin€keeping€with€the€prevailing€trade€practicesÐ Í+'+ Ðamong€reputable€firms€engaged€in€similar€business€activities,ðð€inÐ ° ÐTennessee.€€Thus,€the€delay€appears€unreasonable€to€this€Court.€.€.€.€Ð ™é Ðà ¸ àIn€exercising€its€rights€upon€default,€Nationsbank€is€bound€byÐ ‚Ò Ðthe€good€faith€requirement€applicable€throughout€the€UniformÐ k» ÐCommercial€Code.€€Tenn€Code€Ann.€ðð€47„1„203.€€òòAmerican€CityÐ T¤ ÐBank€of€Tullahoma€v.€Western€Auto€Supplyóó,€631€S.W.2d€410,€420Ð =  Ð(Tenn.€App.€1981).€€The€obligation€of€good€faith€required€the€securedÐ & v Ðparties€in€this€instance€to€have€sold€the€car€with€greater€haste.€€Ð  _ ÐÌÓ ° £ÓÓ °®£ÓòòNationsbankóó,€1996€Tenn.€App.€LEXIS€214,€at€*8ð!ð10€(citations€omitted).€€Ð á 1  ÐÌà  àIn€response,€R€&€J€contends€that,€unlike€the€facts€in€òòNationsbankóó,€the€collateral€in€this€caseÐ ³  Ðdid€not€sit€unused€during€the€period€leading€up€to€the€sale.€€To€the€contrary,€Larry€Melton€continuedÐ œì  Ðto€drive€the€truck,€and€Steve€Melton€continued€to€live€in€the€mobile€home.€€Only€the€tractor€remainedÐ …Õ  Ðunused€since€it€was€inoperable€at€the€time€of€the€foreclosure€sale.Ð n¾  ÐÌà  àð ðThe€policy€of€the€Uniform€Commercial€Code,€as€to€the€disposition€of€collateral,€is€toÐ @ Ðbalance€and€protect€the€rights€of€both€debtor€and€creditor,€while€maximizing€the€recovery€from€theÐ )y Ðdisposition€of€the€collateral€for€the€benefit€of€all€parties.ðð€€òòNationsbankóó,€1996€Tenn.€App.€LEXISÐ b Ð214,€at€*8€(citations€omitted).€€Upon€reviewing€the€entire€record,€we€find€that€the€evidence€clearlyÐ ûK Ðpreponderates€against€the€trial€courtððs€finding€that€the€sale€of€the€collateral€conducted€by€R€&€J€inÐ ä4 Ðthis€case€was€commercially€reasonable.€€Once€a€debtor€or€secondary€obligor€raises€the€issue€of€theÐ Í Ðcommercial€reasonableness€of€a€sale,€the€secured€party,€in€this€case€R€&€J,€bears€the€burden€ofÐ ¶ Ðproving€that€the€sale€was€carried€out€in€a€commercially€reasonable€manner.€€€òòDecatur€County€BankÐ Ÿï Ðv.€Smithóó,€No.€02A01„9903„CV„00074,€1999€Tenn.€App.€LEXIS€864,€at€*7€(Tenn.€Ct.€App.€Dec.€27,Ð ˆØ Ð1999).€€R€&€J€failed€to€carry€this€burden€at€trial.€€Ð qÁ ÐÌà  àIn€addition€to€the€failure€to€provide€adequate€notice,€R€&€J€failed€to€offer€a€reasonableÐ C“ Ðexplanation€as€to€why€it€waited€in€excess€of€seven€months€to€conduct€a€sale€of€the€collateral,€duringÐ ,| Ðwhich€time€Larry€Melton€and€Steve€Melton€were€allowed€to€continue€using€the€collateral.òò€€€SeeÐ e ÐNationsbankóó,€1996€Tenn.€App.€LEXIS€214,€at€*8ð!ð10.€€Contrary€to€R€&€Jððs€position,€we€note€that€useÐ þN Ðof€the€items€of€collateral€in€this€case€would€cause€them€to€depreciate€more€rapidly,€not€less.€òòóó€Mr.Ð ç 7 ÐBlankenship€also€raises€a€related€issue€regarding€R€&€Jððs€handling€of€the€collateral€after€it€purchasedÐ Ð!   Ðthe€note€in€question.€€Mr.€Blankenship€asserts€that,€by€allowing€Steve€Melton€and€Larry€Melton€toÐ ¹" ! Ðcontinue€to€use€the€collateral€over€the€seven€and€one„half€months€before€the€sale,€R€&€J€increasedÐ ¢#ò" Ðthe€amount€of€the€deficiency.€€According€to€Mr.€Blankenship,€in€addition€to€constituting€bad€faithÐ ‹$Û# Ðon€the€part€of€R€&€J,€this€amounts€to€a€violation€of€section€49„9„207(a)€which€provides,€in€relevantÐ t%Ä $ Ðpart,€as€follows:Ð ]&­!% ÐÌÓ °ÓÓ °Óò òRights€and€duties€of€secured€party€having€possession€or€controlÐ /(#' Ðof€collateral.ó ó€ð"ð€Ð )i$( ÐÌ(a)€òòDuty€of€care€when€secured€party€in€possessionóó.€€Except€asÐ î*>&* Ðotherwise€provided€in€subsection€(d),€a€secured€party€shall€useÐ ×+''+ Ðreasonable€care€in€the€custody€and€preservation€of€collateral€in€theÐ ° Ðsecured€partyððs€possession.€€Ð ™é ÐÌÓ °ð¶ÓÓ °â¶ÓTenn.€Code€Ann.€ðð€47„9„207(a)€(2003).€€We€agree€with€Mr.€Blankenship€that€the€actions€by€R€&€JÐ k» Ðrelating€to€the€use€and€custody€of€the€collateral€constitute€an€additional€factor€demonstrating€that€theÐ T¤ Ðdisposition€of€the€collateral€in€this€case€was€commercially€unreasonable.€€òòSee€Farmers€&€MerchantsÐ =  ÐBank€v.€Barnesóó,€705€S.W.2d€450,€453€(Ark.€Ct.€App.€1986)€(holding€a€sale€of€collateralÐ & v Ðcommercially€unreasonable€where€the€collateral€remained€in€the€custody€of€the€original€owner€whoÐ  _ Ðwas€permitted€to€continue€using€it€for€six€months€prior€to€the€sale);€òòThe€Bank€Josephine€v.€Connóó,€599Ð ø H ÐS.W.2d€773,€775€(Ky.€Ct.€App.€1980)€(finding€a€sale€of€collateral€commercially€unreasonable€whereÐ á 1  Ðthe€secured€party€did€not€dispose€of€the€collateral€for€four€to€five€weeks€after€repossessing€it,€therebyÐ Ê   Ðallowing€it€to€deteriorate€further€prior€to€the€sale).€€Ð ³  ÐÌà  àWe€also€agree€with€Mr.€Blankenship€that€R€&€Jððs€actions€in€allowing€Larry€Melton€and€SteveÐ …Õ  ÐMelton€to€continue€to€use€the€collateral€prior€to€the€sale€constituted€bad€faith.€€Johnny€Meltonððs€ownÐ n¾  Ðtestimony,€indicating€that€Larry€Melton€and€Steve€Melton€also€continued€to€retain€possession€of€theÐ W§  Ðcollateral€after€the€sale,€supports€this€conclusion:€€Ð @ ÐÌÓ °ÓÓ ûÓQ.à0  àWho€keeps€the€vehicle€for€you,€Mr.€Melton?Ðb x x ÐA.à0  àLarry€Melton€still€takes€care€of€it.ÐûK x x ÐQ.à0  àYes.€€The€tractor,€where€is€the€tractor€at?Ðä4 x x ÐA.à0  àItððs€still€at€their€place.ÐÍ x x ÐQ.à0  àAt€the€Melton€place?ж x x ÐA.à0  àAt€the€Melton€place.Пï x x Ð.€.€.€.€Ð ˆØ ÐQ.à0  àWhere€is€the€mobile€home€at€currently?ÐqÁ x x ÐA.à0  àItððs€still€on€the€property€where€it€was.ÐZª x x Ð.€.€.€.€Ð C“ ÐQ.à0  àIs€Mr.€Larry€Melton€living€in€that€mobile€home?Ð,| x x ÐA.à0  àNot€that€Iððm€aware€of.Ðe x x ÐQ.à0  àWho€is€living€in€it?ÐþN x x ÐA.à0  àSteve€is€living€in€it.Ðç 7 x x ÐQ.à0  àOkay.€€Steve€Melton?ÐÐ!   x x ÐA.à0  àUh„huh.€€Ð¹" ! x x ÐÌÓ ûÁ¾ÓÓ °³¾ÓÌà  àProviding€notice€of€a€public€sale€to€the€general€public€corresponds€with€additional€factorsÐ t%Ä $ Ðrelated€to€the€procedures€employed€by€the€secured€party€in€conducting€the€sale.€€When€a€securedÐ ]&­!% Ðparty€undertakes€to€dispose€of€the€collateral€by€public€sale,€advertising€of€some€sort€should€beÐ F'–"& Ðconducted€in€order€to€increase€competitive€bidding€and€maximize€proceeds.€€òòGezon€Motors€v.€Gouldóó,Ð /(#' Ð18€U.C.C.€Rep.€Serv.€(Callaghan)€1339€(Mich.€Dist.€1976).€€Although€R€&€J€posted€a€notice€of€saleÐ )h$( Ðat€the€courthouse€and€on€the€collateral,€the€record€also€indicates€that€R€&€J€never€advertised€the€saleÐ *Q%) Ðin€a€public€newspaper€or€utilized€an€experienced€auctioneer.€€òòSee€First€Tenn.€Bank€Natððl€Assoc.€v.Ð ê*:&* ÐHeltonóó,€No.€03A01„9501„CV„00026,€1995€Tenn.€App.€LEXIS€339,€at€*7ð!ð8€(Tenn.€Ct.€App.€MayÐ Ó+#'+ Ð23,€1995);€òòsee€also€U.S.€v.€Warwickóó,€695€F.2d€1063,€1073€(7th€Cir.€1982);€òòBenton€v.€Gen.€MobileÐ ° ÐHomes,€Incóó.,€678€S.W.2d€774,€776€(Ark.€Ct.€App.€1984).€€Given€the€nature€of€the€collateral,€this€isÐ ™é Ðanother€factor€indicating€the€sale€was€not€conducted€by€R€&€J€in€a€commercially€reasonable€manner.€Ð ‚Ò ÐòòLeasing€Serv.€Corp.€v.€Broetjeóó,€640€F.Supp.€51,€53€(E.D.€Wash.€1986)€(finding€a€public€saleÐ k» Ðcommercially€reasonable,€despite€the€fact€that€the€secured€party€was€the€only€bidder€present,€whereÐ T¤ Ðthe€secured€party€properly€notified€the€debtor€and€advertised€the€sale€in€newspapers€in€the€area€ofÐ =  Ðthe€sale);€òòKobuk€Engððg€&€Contracting€Services€Inc.€v.€Superior€Tank€&€Constr.€Co„Alaska,€Inc.óó,€568Ð & v ÐP.2d€1007,€1011€(Alaska€1977)€(holding€that€a€sale€was€not€commercially€reasonable€where€theÐ  _ Ðsecured€party€merely€gave€a€copy€of€the€notice€to€the€court€clerk€for€posting€on€a€bulletin€board€andÐ ø H Ðdid€not€advertise€in€the€newspaper€in€the€area€where€the€collateral€was€to€be€sold);€òòThe€BankÐ á 1  ÐJosephine€v.€Connóó,€599€S.W.2d€773,€775€(Ky.€Ct.€App.€1980)€(stating€that€a€sale€was€commerciallyÐ Ê   Ðunreasonable€where€the€secured€party€failed€to€prove€where€he€posted€notices,€did€not€advertise€inÐ ³  Ðany€newspapers,€and€was€the€only€bidder€at€the€sale).€€Ð œì  ÐÌà  à€€In€addition€to€being€the€only€bidder€at€the€sale,€R€&€J€also€valued€the€collateral€instead€ofÐ n¾  Ðseeking€an€independent€appraisal.€€Johnny€Melton€did€testify€that€he€had€prior€experience€in€theÐ W§  Ðbanking€and€mobile€home€industries€which€he€used€to€value€the€collateral.€€We€note€that€anÐ @ Ðindependent€appraisal€may€not€be€required€in€every€case.€€When€coupled€with€the€other€facts€presentÐ )y Ðin€this€case,€however,€R€&€Jððs€failure€to€do€so€in€this€instance€is€an€additional€factor€indicating€thatÐ b Ðthis€sale€was€not€conducted€in€a€commercially€reasonable€manner.€òòSee€In€re€Cummingsóó,€147€B.R.Ð ûK Ð738,€746€(D.S.D.€1992)€(holding€that€a€secured€party€failed€to€conduct€a€sale€in€a€commerciallyÐ ä4 Ðreasonable€manner€where€he€did€not€obtain€an€appraisal,€exerted€minimal€effort€to€notify€potentialÐ Í Ðbuyers,€and€failed€to€give€notice€to€the€debtor);òò€In€re€Thomasóó,€12€U.C.C.€Rep.€Serv.€(Callaghan)€578Ð ¶ Ð(W.D.€Va.€1973)€(stating€that€the€fact€that€the€secured€party€failed€to€obtain€an€independent€valuationÐ Ÿï Ðof€the€collateral€by€a€third€party€was€a€factor€supporting€the€commercial€unreasonableness€of€theÐ ˆØ Ðsale);€òòKobuk€Engððg€&€Contracting€Services,€Inc.€v.€Superior€Tank€&€Constr.€Co„Alaska,€Inc.óó,€568Ð qÁ ÐP.2d€1007,€1011€(Alaska€1977)€(expressing€the€opinion€that,€had€the€secured€party€conducted€anÐ Zª Ðindependent€appraisal€of€the€collateral,€a€finding€of€commercial€reasonableness€would€be€moreÐ C“ Ðlikely);€òòJefferson€Bank€&€Trust€Co.€v.€Horstóó,€599€S.W.2d€201,€203€(Mo.€Ct.€App.€1980)€(finding€aÐ ,| Ðpublic€sale€of€a€mobile€home€commercially€reasonable€where€the€secured€party€obtained€anÐ e Ðindependent€appraisal).Ð þN ÐÌà  àThe€aggregate€of€circumstances€in€this€case€demonstrates€that€the€sale€of€the€collateralÐ Ð!   Ðconducted€by€R€&€J€was€not€conducted€in€good€faith€or€in€a€commercially€reasonable€manner€asÐ ¹" ! Ðrequired€by€Article€9€of€Tennesseeððs€Uniform€Commercial€Code.€€Ð ¢#ò" Ðà  àÌÓ  Óò òVI.€€€Effect€of€Failure€to€Conduct€a€Commercially€Reasonable€Sale€and€Provide€SufficientÐ t%Ä $ ÐNoticeÐ ^&®!% ÐÌó óÓ  Óà0  àBecause€R€&€J€failed€to€provide€Mr.€Blankenship€with€adequate€notice€under€section€49„Ð2(‚#'(#(# Ð9„611,€Mr.€Blankenship€may€be€entitled€to€certain€statutory€damages.€€Tenn.€Code€Ann.€ðð€47„9„625Ð )k$( Ð(2003).€€We€remand€this€case€to€the€trial€court€and€instruct€the€court€to€determine€what€damages,€ifÐ *T%) Ðany,€Mr.€Blankenship€is€entitled€to€pursuant€to€section€47„9„625€of€the€Tennessee€Code€due€to€R€&Ð í*=&* ÐJððs€failure€to€provide€adequate€notice.€€òòSee€Mallicoat€v.€Volunteer€Finance€&€Loan€Corp.óó,€415Ð Ö+&'+ ÐS.W.2d€347,€351ð!ð52€(Tenn.€Ct.€App.€1966);€òòsee€also€Gen.€Motors€Acceptance€Corp.€v.€Middletonóó,Ð ° ÐNo.€02A01„9103„CH„00033,€1991€Tenn.€App.€LEXIS€820,€at€*11ð!ð12€(Tenn.€Ct.€App.€Oct.€16,Ð ™é Ð1991).Ð ‚Ò ÐÌà  àOn€remand,€the€trial€court€must€also€conduct€an€additional€inquiry.€€Tennessee€follows€theÐ T¤ Ðð ðrebuttable€presumption€ruleðð€which€governs€a€creditorððs€failure€to€comply€with€Tennesseeððs€versionÐ =  Ðof€the€Uniform€Commercial€Code.€€Ð & v ÐÌÓ °ÓÓ °ÓUnder€Tennessee€law,€in€the€event€the€creditors€foreclose€uponÐ ø H Ðsecurity€interest€in€collateral€and€conduct€a€commerciallyÐ á 1  Ðunreasonable€sale,€there€is€a€presumption€that€the€debtor€is€damagedÐ Ê   Ðto€the€extent€of€the€deficiency€claimed.€€The€fact€of€an€unreasonableÐ ³  Ðsale€does€not€result€in€the€extinguishment€of€any€deficiencyÐ œì  Ðwhatsoever.€€òòFederal€Deposit€Insurance€Corp.€v.€Morganóó,€727Ð …Õ  ÐS.W.2d€500€(Tenn.€Ct.€App.€1986).€€This€presumption€shifts€theÐ n¾  Ðburden€of€proving€to€the€creditor€the€amount€that€should€reasonablyÐ W§  Ðhave€been€obtained€through€sale€conducted€according€to€the€law.€€òòITTÐ @ ÐIndustrial€Co.€v.€Rectoróó,€[34€U.C.C.€Rep.€Serv.€(Callaghan)€379Ð )y Ð(Tenn.€Ct.€App.€1982)].€€The€presumption€is€a€presumption€of€law,Ð b Ðand€is€a€burden€shifting€device,€requiring€the€party€who€is€in€a€betterÐ ûK Ðposition,€to€go€forward€with€the€evidence.€€Where€evidence€isÐ ä4 Ðpresented€sufficient€to€rebut€the€presumption,€creditors€are€entitled€toÐ Í Ðrecover€the€deficiency.€€òòIdóó.€€Ð ¶ ÐÌÓ °?ÛÓÓ °1ÛÓòòDecatur€County€Bank€v.€Smithóó,€No.€02A01„9903„CV„00074,€1999€Tenn.€App.€LEXIS€864,€at€*9ð!ð10Ð ˆØ Ð(Tenn.€Ct.€App.€Dec.€27,€1999).€€ð ðIt€is€the€burden€of€the€secured€party€to€rebut€this€presumption€andÐ qÁ Ðfailure€to€rebut€the€presumption€with€evidence€of€fair€market€value€in€the€record€results€in€denial€ofÐ Zª Ðthe€secured€partyððs€claims€for€deficiency€judgment.ðð€€òòIn€re€Frazieróó,€93€B.R.€366,€372€(Bankr.€M.D.Ð C“ ÐTenn.€1988)€(citations€omitted);€òòsee€also€Fed.€Deposit€Ins.€Corp.€v.€Morganóó,€727€S.W.2d€500,€502Ð ,| Ð(Tenn.€Ct.€App.€1987)€(citing€òòUnited€States€v.€Willisóó,€593€F.2d€247,€260€(6th€Cir.€1979));òò€EmpireÐ e ÐS.,€Inc.€v.€Reppóó,€756€P.2d€745,€750ð!ð51€(Wash.€Ct.€App.€1988).€€Ð þN ÐÌà  àAt€trial,€the€parties€presented€conflicting€testimony€regarding€the€value€of€the€collateral€onÐ Ð!   Ðthe€date€of€the€foreclosure€sale.׃×Ý ƒ #ÃÝòòÚ  Ú9Ú  ÚóóÝ  Ý×  ×€€In€rendering€a€judgment€below,€the€trial€court€listed€the€proceedsÐ ¹" ! Ðfrom€the€foreclosure€sale€in€its€tabulation€of€the€deficiency€owed€R€&€J,€but€the€court€failed€to€stateÐ ¢#ò" Ðwhether€this€amount€constituted€the€fair€market€value€of€the€collateral€on€the€date€of€the€sale.Ð ‹$Û# ÐTherefore,€we€are€unable€to€determine€what€the€fair€market€value€of€the€collateral€was€on€the€dateÐ t%Ä $ Ðof€the€foreclosure€sale€and€whether€R€&€J€overcame€the€presumption€that€the€amount€received€at€theÐ ]&­!% Ðsale€equaled€the€debt€owed.€€òòSee€In€re€Frazieróó,€93€B.R.€at€372.€€On€remand,€the€trial€court€isÐ F'–"& Ðinstructed€to€determine€whether€R€&€J€presented€sufficient€proof€in€this€regard€and€is€entitled€to€aÐ /(#' Ðdeficiency€judgment.€€òòSee€Provident€Employees€Credit€Union€v.€Austinóó,€31€U.C.C.€Rep.€Serv.Ð ° Ð(Callaghan)€786€(Tenn.€Ct.€App.€1981).€€If€the€trial€court€determines€that€R€&€J€has€overcome€theÐ ™é Ðpresumption€and€is€entitled€to€a€deficiency,€then€the€trial€court€is€instructed€to€determine€whetherÐ ‚Ò Ðthe€deficiency€should€be€offset€by€any€damages€due€Mr.€Blankenship€pursuant€to€section€47„9„625Ð k» Ðof€the€Tennessee€Code.€€òòSee€Gen.€Motors€Acceptance€Corp.óó,€1991€Tenn.€App.€LEXIS€820,€atÐ T¤ Ð*11ð!ð12.€€Ð =  ÐÌÓ  Óò òVII.€€€ConclusionÐ  _ ÐÌó óÓ  Óà  àFor€the€foregoing€reasons,€we€reverse€the€trial€courtððs€decision.€€We€remand€this€case€to€theÐ ã 3  Ðtrial€court€with€instructions€to€determine€whether€the€Appellant€is€entitled€to€damages€againstÐ Ì   ÐAppellee€consistent€with€this€opinion.€€We€also€instruct€the€trial€court€to€determine€whether€AppelleeÐ µ  Ðis€entitled€to€a€deficiency€and,€if€so,€the€amount€that€the€deficiency€should€be€offset€by€AppellantððsÐ žî  Ðdamages,€if€any,€consistent€with€this€opinion.€€Costs€of€this€appeal€are€taxed€against€Appellee,€R€&Ð ‡×  ÐJ€of€Tennessee,€Inc.,€for€which€execution€may€issue€if€necessary.€€Ô#†XÃ_XXX:>£ #ÔÔ#†¼ˆa»XXÃ_u #ÔÔ€XÃ_X»¼ˆaÔÐ pÀ  ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  à___________________________________€Ð d Ðà  àà ` àà ¸ àà  àà h àà À àà  àALAN€E.€HIGHERS,€JUDGE