§ 8.9A-620. Acceptance of collateral in full or partial satisfaction ofobligation; compulsory disposition of collateral.
(a) Conditions to acceptance in satisfaction. Except as otherwise provided insubsection (g), a secured party may accept collateral in full or partialsatisfaction 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 insubsection (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§ 8.9A-621; or
(B) any other person, other than the debtor, holding an interest in thecollateral subordinate to the security interest that is the subject of theproposal;
(3) subsection (e) does not require the secured party to dispose of thecollateral or the debtor waives the requirement pursuant to § 8.9A-624.
(b) Purported acceptance ineffective. A purported or apparent acceptance ofcollateral under this section is ineffective unless:
(1) the secured party consents to the acceptance in an authenticated recordor sends a proposal to the debtor; and
(2) the conditions of subsection (a) are met.
(c) Debtor's consent. For purposes of this section:
(1) a debtor consents to an acceptance of collateral in partial satisfactionof the obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default; and
(2) a debtor consents to an acceptance of collateral in full satisfaction ofthe obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default or the secured party:
(A) sends to the debtor after default a proposal that is unconditional orsubject only to a condition that collateral not in the possession of thesecured party be preserved or maintained;
(B) in the proposal, proposes to accept collateral in full satisfaction ofthe obligation it secures; and
(C) does not receive a notification of objection authenticated by the debtorwithin twenty days after the proposal is sent.
(d) Effectiveness of notification. 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 §8.9A-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 §8.9A-621; or
(B) if a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) Mandatory disposition of consumer goods. A secured party that has takenpossession of collateral shall dispose of the collateral pursuant to §8.9A-610 within the time specified 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 secured has beenpaid in the case of a nonpurchase-money security interest in consumer goods.
(f) Compliance with mandatory disposition requirement. To comply withsubsection (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 obligorshave agreed in an agreement to that effect entered into and authenticatedafter default.
(g) No partial satisfaction in consumer transaction. In a consumertransaction, a secured party may not accept collateral in partialsatisfaction of the obligation it secures.
(Code 1950, § 55-93; 1964, cc. 219, 410, § 8.9-505; 1973, c. 509; 2000, c.1007.)
§ 8.9A-620. Acceptance of collateral in full or partial satisfaction ofobligation; compulsory disposition of collateral.
(a) Conditions to acceptance in satisfaction. Except as otherwise provided insubsection (g), a secured party may accept collateral in full or partialsatisfaction 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 insubsection (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§ 8.9A-621; or
(B) any other person, other than the debtor, holding an interest in thecollateral subordinate to the security interest that is the subject of theproposal;
(3) subsection (e) does not require the secured party to dispose of thecollateral or the debtor waives the requirement pursuant to § 8.9A-624.
(b) Purported acceptance ineffective. A purported or apparent acceptance ofcollateral under this section is ineffective unless:
(1) the secured party consents to the acceptance in an authenticated recordor sends a proposal to the debtor; and
(2) the conditions of subsection (a) are met.
(c) Debtor's consent. For purposes of this section:
(1) a debtor consents to an acceptance of collateral in partial satisfactionof the obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default; and
(2) a debtor consents to an acceptance of collateral in full satisfaction ofthe obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default or the secured party:
(A) sends to the debtor after default a proposal that is unconditional orsubject only to a condition that collateral not in the possession of thesecured party be preserved or maintained;
(B) in the proposal, proposes to accept collateral in full satisfaction ofthe obligation it secures; and
(C) does not receive a notification of objection authenticated by the debtorwithin twenty days after the proposal is sent.
(d) Effectiveness of notification. 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 §8.9A-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 §8.9A-621; or
(B) if a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) Mandatory disposition of consumer goods. A secured party that has takenpossession of collateral shall dispose of the collateral pursuant to §8.9A-610 within the time specified 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 secured has beenpaid in the case of a nonpurchase-money security interest in consumer goods.
(f) Compliance with mandatory disposition requirement. To comply withsubsection (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 obligorshave agreed in an agreement to that effect entered into and authenticatedafter default.
(g) No partial satisfaction in consumer transaction. In a consumertransaction, a secured party may not accept collateral in partialsatisfaction of the obligation it secures.
(Code 1950, § 55-93; 1964, cc. 219, 410, § 8.9-505; 1973, c. 509; 2000, c.1007.)
§ 8.9A-620. Acceptance of collateral in full or partial satisfaction ofobligation; compulsory disposition of collateral.
(a) Conditions to acceptance in satisfaction. Except as otherwise provided insubsection (g), a secured party may accept collateral in full or partialsatisfaction 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 insubsection (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§ 8.9A-621; or
(B) any other person, other than the debtor, holding an interest in thecollateral subordinate to the security interest that is the subject of theproposal;
(3) subsection (e) does not require the secured party to dispose of thecollateral or the debtor waives the requirement pursuant to § 8.9A-624.
(b) Purported acceptance ineffective. A purported or apparent acceptance ofcollateral under this section is ineffective unless:
(1) the secured party consents to the acceptance in an authenticated recordor sends a proposal to the debtor; and
(2) the conditions of subsection (a) are met.
(c) Debtor's consent. For purposes of this section:
(1) a debtor consents to an acceptance of collateral in partial satisfactionof the obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default; and
(2) a debtor consents to an acceptance of collateral in full satisfaction ofthe obligation it secures only if the debtor agrees to the terms of theacceptance in a record authenticated after default or the secured party:
(A) sends to the debtor after default a proposal that is unconditional orsubject only to a condition that collateral not in the possession of thesecured party be preserved or maintained;
(B) in the proposal, proposes to accept collateral in full satisfaction ofthe obligation it secures; and
(C) does not receive a notification of objection authenticated by the debtorwithin twenty days after the proposal is sent.
(d) Effectiveness of notification. 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 §8.9A-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 §8.9A-621; or
(B) if a notification was not sent, before the debtor consents to theacceptance under subsection (c).
(e) Mandatory disposition of consumer goods. A secured party that has takenpossession of collateral shall dispose of the collateral pursuant to §8.9A-610 within the time specified 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 secured has beenpaid in the case of a nonpurchase-money security interest in consumer goods.
(f) Compliance with mandatory disposition requirement. To comply withsubsection (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 obligorshave agreed in an agreement to that effect entered into and authenticatedafter default.
(g) No partial satisfaction in consumer transaction. In a consumertransaction, a secured party may not accept collateral in partialsatisfaction of the obligation it secures.
(Code 1950, § 55-93; 1964, cc. 219, 410, § 8.9-505; 1973, c. 509; 2000, c.1007.)
