§ 9205. Use or disposition of collateral permissible.
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/pa/title-13/chapter-92/9205A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 9205. 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 any of the following apply:
(1)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.
(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.
13c9206s