What option does a secured party NOT have after a default?

A secured party's options after a default are generally guided by the Uniform Commercial Code (UCC). After a default, the secured party has several remedies available to them concerning the collateral that secures the obligation.

One option that a secured party cannot exercise is transferring the debt to another party. This action is not within the purview of a secured party's remedies upon default because it relates to the assignment of the underlying obligation rather than a remedy regarding the secured collateral. Each party to the original debt has obligations that cannot simply be assigned without consent or specific provision, and a secured party retains their rights concerning the collateral itself.

In contrast, repossessing the collateral is a common remedy after default, allowing the secured party to reclaim the property used as collateral. Additionally, retaining the collateral in satisfaction of the debt offers the secured party the ability to cancel the obligation if they choose not to sell the collateral and instead keep it as payment. Leasing the collateral to a third party is also permissible under certain conditions following a default, provided it is done in accordance with UCC provisions and respects the rights of the original borrower.

Thus, the correct option illustrates that transferring the debt does not fall under the remedies typically available to a secured party after a default, making it