§25‑9‑205. Use or disposition of collateral permissible.
(a) When securityinterest not invalid or fraudulent. A security interest is not invalid orfraudulent against creditors solely because:
(1) The debtor has theright or ability to:
a. Use, commingle, ordispose of all or part of the collateral, including returned or repossessedgoods;
b. Collect, compromise,enforce, or otherwise deal with collateral;
c. Accept the return ofcollateral or make repossessions; or
d. Use, commingle, ordispose of proceeds; or
(2) The secured partyfails to require the debtor to account for proceeds or replace collateral.
(b) Requirements ofpossession not relaxed. This section does not relax the requirements ofpossession if attachment, perfection, or enforcement of a security interestdepends upon possession of the collateral by the secured party. (1945,c. 196, s. 7; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)
§25‑9‑205. Use or disposition of collateral permissible.
(a) When securityinterest not invalid or fraudulent. A security interest is not invalid orfraudulent against creditors solely because:
(1) The debtor has theright or ability to:
a. Use, commingle, ordispose of all or part of the collateral, including returned or repossessedgoods;
b. Collect, compromise,enforce, or otherwise deal with collateral;
c. Accept the return ofcollateral or make repossessions; or
d. Use, commingle, ordispose of proceeds; or
(2) The secured partyfails to require the debtor to account for proceeds or replace collateral.
(b) Requirements ofpossession not relaxed. This section does not relax the requirements ofpossession if attachment, perfection, or enforcement of a security interestdepends upon possession of the collateral by the secured party. (1945,c. 196, s. 7; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)
§25‑9‑205. Use or disposition of collateral permissible.
(a) When securityinterest not invalid or fraudulent. A security interest is not invalid orfraudulent against creditors solely because:
(1) The debtor has theright or ability to:
a. Use, commingle, ordispose of all or part of the collateral, including returned or repossessedgoods;
b. Collect, compromise,enforce, or otherwise deal with collateral;
c. Accept the return ofcollateral or make repossessions; or
d. Use, commingle, ordispose of proceeds; or
(2) The secured partyfails to require the debtor to account for proceeds or replace collateral.
(b) Requirements ofpossession not relaxed. This section does not relax the requirements ofpossession if attachment, perfection, or enforcement of a security interestdepends upon possession of the collateral by the secured party. (1945,c. 196, s. 7; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)
