47-9205. Use or disposition of collateral permissible
A. A security interest is not invalid or fraudulent against creditors solely because:
1. The debtor has the right or ability to:
(a) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;
(b) Collect, compromise, enforce or otherwise deal with collateral;
(c) Accept the return of collateral or make repossessions; or
(d) Use, commingle or dispose of proceeds; or
2. The secured party fails to require the debtor to account for proceeds or replace collateral.
B. This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends on possession of the collateral by the secured party.
Section: Previous 47-9108 47-9109 47-9110 47-9201 47-9202 47-9203 47-9204 47-9205 47-9206 47-9207 47-9208 47-9209 47-9210 47-9301 47-9302 NextLast modified: October 13, 2016