(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.(1959, P.A. 133, S. 9-205; P.A. 76-369, S. 16; P.A. 01-132, S. 15.)History: P.A. 76-369 deleted reference to collection or compromise of contract rights; P.A. 01-132 rephrased provisions and inserted Subsec., Subdiv. and Subpara. designators.
Connecticut Legal Code