Section 9-1205 - Use or disposition of collateral permissible(1). A security interest is not invalid or fraudulent against creditors solely because:(a). The debtor has the right or ability to:(i) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;(ii) Collect, compromise, enforce or otherwise deal with collateral;(iii) Accept the return of collateral or make repossessions; or(iv) Use, commingle or dispose of proceeds; or [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).](b). The secured party fails to require the debtor to account for proceeds or replace collateral. [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).] [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).]
(2). This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends upon possession of the collateral by the secured party. [1999, c. 699, Pt. A, §2(NEW); 1999, c. 699, Pt. A, §4(AFF).]
1999, c. 699, §A2 (NEW) . 1999, c. 699, §A4 (AFF) .