Acceptance of collateral in full or partial satisfaction ofobligation--compulsory disposition of collateral.
400.9-620. (a) Except as otherwise provided in subsection (g), asecured party may accept collateral in full or partial satisfaction of theobligation 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 insubsection (d), a notification of objection to the proposal authenticatedby:
(A) A person to which the secured party was required to send aproposal under section 400.9-621; or
(B) Any other person, other than the debtor, holding an interest inthe collateral subordinate to the security interest that is the subject ofthe proposal;
(3) If the collateral is consumer goods, the collateral is not in thepossession of the debtor when the debtor consents to the acceptance; and
(4) Subsection (e) does not require the secured party to dispose ofthe collateral or the debtor waives the requirement pursuant to section400.9-624.
(b) A purported or apparent acceptance of collateral under thissection is ineffective unless:
(1) The secured party consents to the acceptance in an authenticatedrecord 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 partialsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default; and
(2) A debtor consents to an acceptance of collateral in fullsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default or thesecured party:
(A) Sends to the debtor after default a proposal that isunconditional or subject only to a condition that collateral not in thepossession of the secured party be preserved or maintained;
(B) In the proposal, proposes to accept collateral in fullsatisfaction of the obligation it secures; and
(C) Does not receive a notification of objection authenticated by thedebtor within twenty days after the proposal is sent.
(d) To be effective under subsection (a)(2), a notification ofobjection must be received by the secured party:
(1) In the case of a person to which the proposal was sent pursuantto section 400.9-621, within twenty days after notification was sent tothat person; and
(2) In other cases:
(A) Within twenty days after the last notification was sent pursuantto section 400.9-621; or
(B) If a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) A secured party that has taken possession of collateral shalldispose of the collateral pursuant to section 400.9-610 within the timespecified in subsection (f) if:
(1) Sixty percent of the cash price has been paid in the case of apurchase-money security interest in consumer goods; or
(2) Sixty percent of the principal amount of the obligation securedhas been paid in the case of a non-purchase-money security interest inconsumer goods.
(f) To comply with subsection (e), the secured party shall dispose ofthe collateral:
(1) Within ninety days after taking possession; or
(2) Within any longer period to which the debtor and all secondaryobligors have agreed in an agreement to that effect entered into andauthenticated after default.
(g) In a consumer transaction, a secured party may not acceptcollateral in partial satisfaction of the obligation it secures.
Acceptance of collateral in full or partial satisfaction ofobligation--compulsory disposition of collateral.
400.9-620. (a) Except as otherwise provided in subsection (g), asecured party may accept collateral in full or partial satisfaction of theobligation 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 insubsection (d), a notification of objection to the proposal authenticatedby:
(A) A person to which the secured party was required to send aproposal under section 400.9-621; or
(B) Any other person, other than the debtor, holding an interest inthe collateral subordinate to the security interest that is the subject ofthe proposal;
(3) If the collateral is consumer goods, the collateral is not in thepossession of the debtor when the debtor consents to the acceptance; and
(4) Subsection (e) does not require the secured party to dispose ofthe collateral or the debtor waives the requirement pursuant to section400.9-624.
(b) A purported or apparent acceptance of collateral under thissection is ineffective unless:
(1) The secured party consents to the acceptance in an authenticatedrecord 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 partialsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default; and
(2) A debtor consents to an acceptance of collateral in fullsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default or thesecured party:
(A) Sends to the debtor after default a proposal that isunconditional or subject only to a condition that collateral not in thepossession of the secured party be preserved or maintained;
(B) In the proposal, proposes to accept collateral in fullsatisfaction of the obligation it secures; and
(C) Does not receive a notification of objection authenticated by thedebtor within twenty days after the proposal is sent.
(d) To be effective under subsection (a)(2), a notification ofobjection must be received by the secured party:
(1) In the case of a person to which the proposal was sent pursuantto section 400.9-621, within twenty days after notification was sent tothat person; and
(2) In other cases:
(A) Within twenty days after the last notification was sent pursuantto section 400.9-621; or
(B) If a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) A secured party that has taken possession of collateral shalldispose of the collateral pursuant to section 400.9-610 within the timespecified in subsection (f) if:
(1) Sixty percent of the cash price has been paid in the case of apurchase-money security interest in consumer goods; or
(2) Sixty percent of the principal amount of the obligation securedhas been paid in the case of a non-purchase-money security interest inconsumer goods.
(f) To comply with subsection (e), the secured party shall dispose ofthe collateral:
(1) Within ninety days after taking possession; or
(2) Within any longer period to which the debtor and all secondaryobligors have agreed in an agreement to that effect entered into andauthenticated after default.
(g) In a consumer transaction, a secured party may not acceptcollateral in partial satisfaction of the obligation it secures.
Acceptance of collateral in full or partial satisfaction ofobligation--compulsory disposition of collateral.
400.9-620. (a) Except as otherwise provided in subsection (g), asecured party may accept collateral in full or partial satisfaction of theobligation 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 insubsection (d), a notification of objection to the proposal authenticatedby:
(A) A person to which the secured party was required to send aproposal under section 400.9-621; or
(B) Any other person, other than the debtor, holding an interest inthe collateral subordinate to the security interest that is the subject ofthe proposal;
(3) If the collateral is consumer goods, the collateral is not in thepossession of the debtor when the debtor consents to the acceptance; and
(4) Subsection (e) does not require the secured party to dispose ofthe collateral or the debtor waives the requirement pursuant to section400.9-624.
(b) A purported or apparent acceptance of collateral under thissection is ineffective unless:
(1) The secured party consents to the acceptance in an authenticatedrecord 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 partialsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default; and
(2) A debtor consents to an acceptance of collateral in fullsatisfaction of the obligation it secures only if the debtor agrees to theterms of the acceptance in a record authenticated after default or thesecured party:
(A) Sends to the debtor after default a proposal that isunconditional or subject only to a condition that collateral not in thepossession of the secured party be preserved or maintained;
(B) In the proposal, proposes to accept collateral in fullsatisfaction of the obligation it secures; and
(C) Does not receive a notification of objection authenticated by thedebtor within twenty days after the proposal is sent.
(d) To be effective under subsection (a)(2), a notification ofobjection must be received by the secured party:
(1) In the case of a person to which the proposal was sent pursuantto section 400.9-621, within twenty days after notification was sent tothat person; and
(2) In other cases:
(A) Within twenty days after the last notification was sent pursuantto section 400.9-621; or
(B) If a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) A secured party that has taken possession of collateral shalldispose of the collateral pursuant to section 400.9-610 within the timespecified in subsection (f) if:
(1) Sixty percent of the cash price has been paid in the case of apurchase-money security interest in consumer goods; or
(2) Sixty percent of the principal amount of the obligation securedhas been paid in the case of a non-purchase-money security interest inconsumer goods.
(f) To comply with subsection (e), the secured party shall dispose ofthe collateral:
(1) Within ninety days after taking possession; or
(2) Within any longer period to which the debtor and all secondaryobligors have agreed in an agreement to that effect entered into andauthenticated after default.
(g) In a consumer transaction, a secured party may not acceptcollateral in partial satisfaction of the obligation it secures.
