70A-9a-205. Use or disposition of collateral permissible.
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70A-9a-205. 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
(b)the secured party fails to require the debtor to account for proceeds or replace collateral.
(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.
Enacted by Chapter 252 , 2000 General Session