Sign Security

What actions should securd party take when debtor defaults?

say Bank loand Sam, and Sam signed security agreement giving bank a security interest in his (some asset) say tools. Bank take all necessary steps to perfect (protect) its security interest. Then Sam defaults on the loan. What will happen?
1. Bank may take possession of only the tools
2. Bank may seek only a judicial jugdment.
3. Bank may take possession of the tools and/or seek a judicial judgment

The bank can repossess the secured item (tools), sell it at auction (probably get much less than market value), apply the amount received to the loan, then go after Sam for the remaining balance.

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