Section 4-9-205 - 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.L. 2001: Entire article R&RE, p. 1336, § 1, effective July 1.This section is similar to former § 4-9-205 as it existed prior to 2001.