400.9-205. (a) A security interest is not invalid or fraudulentagainst 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 forproceeds or replace collateral.
(b) This section does not relax the requirements of possession ifattachment, perfection, or enforcement of a security interest depends uponpossession of the collateral by the secured party.
400.9-205. (a) A security interest is not invalid or fraudulentagainst 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 forproceeds or replace collateral.
(b) This section does not relax the requirements of possession ifattachment, perfection, or enforcement of a security interest depends uponpossession of the collateral by the secured party.
400.9-205. (a) A security interest is not invalid or fraudulentagainst 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 forproceeds or replace collateral.
(b) This section does not relax the requirements of possession ifattachment, perfection, or enforcement of a security interest depends uponpossession of the collateral by the secured party.
