§ 9-620. 9-620
611 words·~3 min read·
/us/ucc/a9/s9-620A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)[Conditions to acceptance in satisfaction.] Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
(1)the debtor consents to the acceptance under subsection (c);
(2)the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal authenticated by:
(A)a person to which the secured party was required to send a proposal under Section 9-621 ; or
(B)any other person, other than the debtor , holding an interest in the collateral subordinate to the security interest that is the subject of the proposal ;
(3)if the collateral is consumer goods , the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and
(4)subsection
(e)does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section 9-624 .
(b)[Purported acceptance ineffective.] 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)[Debtor's consent.] 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 20 days after the proposal is sent.
(d)[Effectiveness of notification.] 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 9-621 , within 20 days after notification was sent to that person; and
(2)in other cases:
(A)within 20 days after the last notification was sent pursuant to Section 9-621 ; or
(B)if a notification was not sent, before the debtor consents to the acceptance under subsection (c).
(e)[Mandatory disposition of consumer goods.] A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 9-610 within the time specified in subsection
(f)if:
(1)60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods ; or
(2)60 percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods .
(f)[Compliance with mandatory disposition requirement.] To comply with subsection (e), the secured party shall dispose of the collateral:
(1)within 90 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)[No partial satisfaction in consumer transaction.] In a consumer transaction , a secured party may not accept collateral in partial satisfaction of the obligation it secures.