§9-1205. Use or disposition of collateral permissible
(1).
A security interest is not invalid or fraudulent against creditors solely because:
(a).
The debtor has the right or ability to:
(i)
Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;
(ii)
Collect, compromise, enforce or otherwise deal with collateral;
(iii)
Accept the return of collateral or make repossessions; or
(iv)
Use, commingle or dispose of proceeds; or
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b).
The secured party fails to require the debtor to account for proceeds or replace collateral.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(2).
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.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1999, c. 699, §A2 (NEW). PL 1999, c. 699, §A4 (AFF).