Section 1-9-205 - Use or disposition of collateral permissible(a) A security interest is not invalid or fraudulent against creditors solely because: (1) the debtor has the right or ability to: (A) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;(B) collect, compromise, enforce, or otherwise deal with collateral;(C) accept the return of collateral or make repossessions; or(D) use, commingle, or dispose of proceeds; or(2) the secured party fails to require the debtor to account for proceeds or replace collateral(b) 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.Okla. Stat. tit. 12A, § 1-9-205
Added by Laws 2000 , SB 1519, c. 371, § 15, eff. 7/1/2001.Oklahoma Code Comment
Revisions to section 9-205 generally recognize broader rights ("enforce or otherwise deal with") for a secured party in more types of collateral, but do not change the basic premise of current section 9-205 . The last sentence in the new section also broadens the caveat contained in the current version regarding the sections' lack of effect on the requirement of possession in cases where attachment, perfection, or enforcement depends upon possession (old section 9- 205 references only perfection).