Who must be notified by the creditor during the strict foreclosure process?

In the strict foreclosure process, the creditor is required to notify other creditors and secondary obligors. This requirement is critical because strict foreclosure can impact the rights of all parties with an interest in the collateral. When a debtor defaults, simply notifying the debtor is not sufficient since other creditors may also have a claim against the collateral being foreclosed upon.

Notifying other creditors ensures that they are aware of the creditor's intent to enforce their security interest without taking the collateral to a public sale. This is important because other creditors may have priority interests that could be affected by the foreclosure process. Failing to notify them could result in a violation of their rights and may lead to legal challenges against the creditor who is pursuing strict foreclosure.

In contrast, the other options do not encompass the full range of parties that need to be informed. Simply notifying the debtor would overlook critical stakeholders in the process. Moreover, focusing only on those with a UCC-1 filing or limiting notification to insurers and appraisers does not satisfy the requirement to ensure that all parties with interests in the collateral are adequately informed of actions that may affect their rights. Therefore, B is the correct choice as it reflects the inclusive nature of the notification obligation during strict foreclosure.