§ 62A.9A-205. Use or disposition of collateral permissible
(a) When security interest not invalid or fraudulent. 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) Requirements of possession not relaxed. 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.
[2000 c 250 § 9A-205.]
Sections: Previous 62A.9A-108 62A.9A-109 62A.9A-110 62A.9A-201 62A.9A-202 62A.9A-203 62A.9A-204 62A.9A-205 62A.9A-206 62A.9A-207 62A.9A-208 62A.9A-209 62A.9A-210 62A.9A-301 62A.9A-302 NextLast modified: April 7, 2009