§ 6A-9-207 Rights and duties of securedparty having possession or control of collateral. – (a) Duty of care when secured party in possession. Except as otherwiseprovided in subsection (d), a secured party shall use reasonable care in thecustody and preservation of collateral in the secured party's possession. Inthe case of chattel paper or an instrument, reasonable care includes takingnecessary steps to preserve rights against prior parties unless otherwiseagreed.
(b) Expenses, risks, duties, and rights when secured partyin possession. Except as otherwise provided in subsection (d), if a securedparty has possession of collateral:
(1) Reasonable expenses, including the cost of insurance andpayment of taxes or other charges, incurred in the custody, preservation, use,or operation of the collateral are chargeable to the debtor and are secured bythe collateral;
(2) The risk of accidental loss or damage is on the debtor tothe extent of a deficiency in any effective insurance coverage;
(3) The secured party shall keep the collateral identifiable,but fungible collateral may be commingled; and
(4) The secured party may use or operate the collateral:
(i) For the purpose of preserving the collateral or its value;
(ii) As permitted by an order of a court having competentjurisdiction; or
(iii) Except in the case of consumer goods, in the manner andto the extent agreed by the debtor.
(c) Duties and rights when secured party in possession orcontrol. Except as otherwise provided in subsection (d), a secured partyhaving possession of collateral or control of collateral under §§6A-7-106, 6A-9-104, 6A-9-105, 6A-9-106, or 6A-9-107:
(1) May hold as additional security any proceeds, exceptmoney or funds, received from the collateral;
(2) Shall apply money or funds received from the collateralto reduce the secured obligation, unless remitted to the debtor; and
(3) May create a security interest in the collateral.
(d) Buyer of certain rights to payment. If the securedparty is a buyer of accounts, chattel paper, payment intangibles, or promissorynotes or a consignor:
(1) Subsection (a) does not apply unless the secured party isentitled under an agreement:
(i) To charge back uncollected collateral; or
(ii) Otherwise to full or limited recourse against the debtoror a secondary obligor based on the nonpayment or other default of an accountdebtor or other obligor on the collateral; and
§ 6A-9-207 Rights and duties of securedparty having possession or control of collateral. – (a) Duty of care when secured party in possession. Except as otherwiseprovided in subsection (d), a secured party shall use reasonable care in thecustody and preservation of collateral in the secured party's possession. Inthe case of chattel paper or an instrument, reasonable care includes takingnecessary steps to preserve rights against prior parties unless otherwiseagreed.
(b) Expenses, risks, duties, and rights when secured partyin possession. Except as otherwise provided in subsection (d), if a securedparty has possession of collateral:
(1) Reasonable expenses, including the cost of insurance andpayment of taxes or other charges, incurred in the custody, preservation, use,or operation of the collateral are chargeable to the debtor and are secured bythe collateral;
(2) The risk of accidental loss or damage is on the debtor tothe extent of a deficiency in any effective insurance coverage;
(3) The secured party shall keep the collateral identifiable,but fungible collateral may be commingled; and
(4) The secured party may use or operate the collateral:
(i) For the purpose of preserving the collateral or its value;
(ii) As permitted by an order of a court having competentjurisdiction; or
(iii) Except in the case of consumer goods, in the manner andto the extent agreed by the debtor.
(c) Duties and rights when secured party in possession orcontrol. Except as otherwise provided in subsection (d), a secured partyhaving possession of collateral or control of collateral under §§6A-7-106, 6A-9-104, 6A-9-105, 6A-9-106, or 6A-9-107:
(1) May hold as additional security any proceeds, exceptmoney or funds, received from the collateral;
(2) Shall apply money or funds received from the collateralto reduce the secured obligation, unless remitted to the debtor; and
(3) May create a security interest in the collateral.
(d) Buyer of certain rights to payment. If the securedparty is a buyer of accounts, chattel paper, payment intangibles, or promissorynotes or a consignor:
(1) Subsection (a) does not apply unless the secured party isentitled under an agreement:
(i) To charge back uncollected collateral; or
(ii) Otherwise to full or limited recourse against the debtoror a secondary obligor based on the nonpayment or other default of an accountdebtor or other obligor on the collateral; and
§ 6A-9-207 Rights and duties of securedparty having possession or control of collateral. – (a) Duty of care when secured party in possession. Except as otherwiseprovided in subsection (d), a secured party shall use reasonable care in thecustody and preservation of collateral in the secured party's possession. Inthe case of chattel paper or an instrument, reasonable care includes takingnecessary steps to preserve rights against prior parties unless otherwiseagreed.
(b) Expenses, risks, duties, and rights when secured partyin possession. Except as otherwise provided in subsection (d), if a securedparty has possession of collateral:
(1) Reasonable expenses, including the cost of insurance andpayment of taxes or other charges, incurred in the custody, preservation, use,or operation of the collateral are chargeable to the debtor and are secured bythe collateral;
(2) The risk of accidental loss or damage is on the debtor tothe extent of a deficiency in any effective insurance coverage;
(3) The secured party shall keep the collateral identifiable,but fungible collateral may be commingled; and
(4) The secured party may use or operate the collateral:
(i) For the purpose of preserving the collateral or its value;
(ii) As permitted by an order of a court having competentjurisdiction; or
(iii) Except in the case of consumer goods, in the manner andto the extent agreed by the debtor.
(c) Duties and rights when secured party in possession orcontrol. Except as otherwise provided in subsection (d), a secured partyhaving possession of collateral or control of collateral under §§6A-7-106, 6A-9-104, 6A-9-105, 6A-9-106, or 6A-9-107:
(1) May hold as additional security any proceeds, exceptmoney or funds, received from the collateral;
(2) Shall apply money or funds received from the collateralto reduce the secured obligation, unless remitted to the debtor; and
(3) May create a security interest in the collateral.
(d) Buyer of certain rights to payment. If the securedparty is a buyer of accounts, chattel paper, payment intangibles, or promissorynotes or a consignor:
(1) Subsection (a) does not apply unless the secured party isentitled under an agreement:
(i) To charge back uncollected collateral; or
(ii) Otherwise to full or limited recourse against the debtoror a secondary obligor based on the nonpayment or other default of an accountdebtor or other obligor on the collateral; and
