§490:9-205  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 upon possession of the collateral by the secured
party. [L 2000, c 241, pt of §1]