§ 36-9-624. (b) A purported or apparent acceptance of collateral under this Section is ineffective unless: (1) the secured party con.
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§ 36-9-624.
(b)A purported or apparent acceptance of collateral under this Section is ineffective unless:
(1)the secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and
(2)the conditions of subsection
(a)are met.
(c)For purposes of this section:
(1)a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and
(2)a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:
(A)sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;
(B)in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and
(C)does not receive a notification of objection authenticated by the debtor within twenty days after the proposal is sent.
(d)To be effective under subsection (a)(2), a notification of objection must be received by the secured party:
(1)in the case of a person to which the proposal was sent pursuant to Section 36-9-621, within twenty days after notification was sent to that person; and
(2)in other cases:
(A)within twenty days after the last notification was sent pursuant to Section 36-9-621; or
(B)if a notification was not sent, before the debtor consents to the acceptance under subsection (c).
(e)A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 36-9-610 within the time specified in subsection
(f)if:
(1)sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or
(2)sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.
(f)To comply with subsection (e), the secured party shall dispose of the collateral:
(1)within ninety days after taking possession; or
(2)within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.
(g)In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.