Section 57A-9-620 - Acceptance of collateral in full or partial satisfaction of obligation-Compulsory disposition of collateral(a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction 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 in subsection (d), a notification of objection to the proposal signed by: (A) A person to which the secured party was required to send a proposal under § 57A-9-621; or(B) Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;(3) If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and(4) Subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 57A-9-624.(b) A purported or apparent acceptance of collateral under this section is ineffective unless: (1) The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and(2) The conditions of subsection (a) are met.(c) For purposes of this section:(1) A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and(2) A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:(A) Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;(B) In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and(C) Does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.(d) 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 § 57A-9-621, 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 § 57A-9-621; or(B) If a notification was not sent, before the debtor consents to the acceptance under subsection (c).(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to § 57A-9-610 within the time specified in subsection (f) if:(1) Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(2) Sixty percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.(f) To comply with subsection (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 obligors have agreed in an agreement to that effect entered into and signed after default.(g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures. SL 2000, ch 231; SL 2024, ch 198, §89.Amended by S.L. 2024, ch. 198,s. 89, eff. 7/1/2024.