Current through L. 2024, ch. 259
Section 47-9205 - Use or disposition of collateral permissibleA. 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; or2. 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 on possession of the collateral by the secured party.