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ACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION OF OBLIGATION; COMPULSORY DISPOSITION OF COLLATERAL(a) Except as otherwise provided in subsection (g) of this section, 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) of this section;(2) the secured party does not receive, within the time set forth in subsection (d) of this section, a notification of objection to the proposal signed by:(A)a person to which the secured party was required to send a proposal under Section 1-9-621 of this title; 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) of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section 1-9-624 of this title.(b) A purported or apparent acceptance of collateral under this section is ineffective unless:(1)

pose of the collateral or the debtor waives the requirement pursuant to Section 1-9-624 of this title.(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) of this section 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 (20) days after

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 (20) days after the proposal is sent.(d) To be effective under paragraph (2) of subsection (a) of this section, 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 Section 1-9-621 of this title, within twenty (20) days after notification was sent to that person; and(2) in other cases:(A)within twenty (20) days after the last notification was sent pursuant to Section 1-9-621 of this title; or(B)if a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 1-9-610 of this title within the time specified in subsection (f) of this section if:(1) Sixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(2) Sixty percent (60%) of the principal amount of the obligation secured has been paid in the

) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(2) Sixty percent (60%) 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) of this section, the secured party shall dispose of the collateral:(1) within ninety (90) 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.Added by Laws 2000, c. 371, § 127, eff. July 1, 2001. Amended by Laws 2024, c. 13, § 87, eff. Nov. 1, 2024.