Liberty Bank v. Honolulu Providoring, Inc.

OPINION OF THE COURT BY

LUM, J.

The salient issue in this appeal is whether the trial court erred in concluding as a matter of law that a public auction of collateral to satisfy an unpaid loan was held in a commercially reasonable manner under HRS § 496:9-504 of the Uniform Commercial Code. Finding an affirmative answer on the basis of the very language of the security agreement, we reverse the lower court’s decision and remand the case for execution of the appropriate remedy.

I

Defendant-appellant Honolulu Providoring, Inc. (“Providoring”) entered into a note and security agreement with…