§ 9-205. 9-205

126 words·~1 min read·/us/ucc/a9/s9-205

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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 .