§490:9-620  Acceptance of collateral in full
or partial satisfaction of obligation; compulsory disposition of collateral. 
(a)  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 490:9-621; 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 490:9-624.



(b)  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)  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 twenty days after the proposal is
sent.



(d)  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 490:9-621, within twenty days after notification was
sent to that person; and



(2)  In other cases:



(A)  Within twenty days after the last
notification was sent pursuant to section 490:9-621; or



(B)  If a notification was not sent, before the
debtor consents to the acceptance under subsection (c).



(e)  A secured party that has taken possession
of collateral shall dispose of the collateral pursuant to section 490:9-610
within the time specified in subsection (f) if:



(1)  Sixty per cent of the cash price has been paid in
the case of a purchase-money security interest in consumer goods; or



(2)  Sixty per cent 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)  To comply with subsection (e), the secured
party shall dispose of the collateral:



(1)  Within ninety 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)  In a consumer transaction, a secured party
may not accept collateral in partial satisfaction of the obligation it secures.
[L 2000, c 241, pt of §1]