Current through 2024 Legislative Session
Section 41-09-15 - (9-205) Use or disposition of collateral permissible1. A security interest is not invalid or fraudulent against creditors solely because: a. The debtor has the right or ability to: (1) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;(2) Collect, compromise, enforce, or otherwise deal with collateral;(3) Accept the return of collateral or make repossessions; or(4) Use, commingle, or dispose of proceeds; orb. The secured party fails to require the debtor to account for proceeds or replace collateral.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.