47-9205. Use or disposition of collateral
permissible


A. 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. This section does not relax the requirements of possession if attachment,
perfection or enforcement of a security interest depends on possession of the collateral
by the secured party.