§490:9-205 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 upon possession of the collateral by the secured party. [L 2000, c 241, pt of §1]
Section: Previous 490-9-108 490-9-109 490-9-110 490-9-201 490-9-202 490-9-203 490-9-204 490-9-205 490-9-206 490-9-207 490-9-208 490-9-209 490-9-210 490-9-301 490-9-302 NextLast modified: October 27, 2016