§ 6A-9-205 Use or disposition ofcollateral permissible. – (a) When security interest not invalid or fraudulent. A securityinterest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(i) Use, commingle, or dispose of all or part of thecollateral, including returned or repossessed goods;
(ii) Collect, compromise, enforce, or otherwise deal withcollateral;
(iii) Accept the return of collateral or make repossessions;or
(iv) Use, commingle, or dispose of proceeds; or
(2) The secured party fails to require the debtor to accountfor proceeds or replace collateral.
(b) Requirements of possession not relaxed. Thissection does not relax the requirements of possession if attachment,perfection, or enforcement of a security interest depends upon possession ofthe collateral by the secured party.
§ 6A-9-205 Use or disposition ofcollateral permissible. – (a) When security interest not invalid or fraudulent. A securityinterest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(i) Use, commingle, or dispose of all or part of thecollateral, including returned or repossessed goods;
(ii) Collect, compromise, enforce, or otherwise deal withcollateral;
(iii) Accept the return of collateral or make repossessions;or
(iv) Use, commingle, or dispose of proceeds; or
(2) The secured party fails to require the debtor to accountfor proceeds or replace collateral.
(b) Requirements of possession not relaxed. Thissection does not relax the requirements of possession if attachment,perfection, or enforcement of a security interest depends upon possession ofthe collateral by the secured party.
§ 6A-9-205 Use or disposition ofcollateral permissible. – (a) When security interest not invalid or fraudulent. A securityinterest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(i) Use, commingle, or dispose of all or part of thecollateral, including returned or repossessed goods;
(ii) Collect, compromise, enforce, or otherwise deal withcollateral;
(iii) Accept the return of collateral or make repossessions;or
(iv) Use, commingle, or dispose of proceeds; or
(2) The secured party fails to require the debtor to accountfor proceeds or replace collateral.
(b) Requirements of possession not relaxed. Thissection does not relax the requirements of possession if attachment,perfection, or enforcement of a security interest depends upon possession ofthe collateral by the secured party.
