Current through the 2024 Fourth Special Session
Section 70A-9a-205 - 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(b) 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.Enacted by Chapter 252, 2000 General Session.