(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 upon possession of the collateral by the secured party.
Section: Previous 45.29.201 45.29.202 45.29.203 45.29.204 45.29.205 45.29.206 45.29.207 45.29.208 45.29.209 45.29.210 NextLast modified: November 15, 2016