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§ 9-205. Use or disposition of collateral permissible

West's Annotated Code of MarylandCommercial Law

West's Annotated Code of Maryland
Commercial Law
Title 9. Secured Transactions (Refs & Annos)
Subtitle 2. Effectiveness of Security Agreement; Attachment of Security Agreement; Rights of Parties to Security Agreement (Refs & Annos)
MD Code, Commercial Law, § 9-205
§ 9-205. Use or disposition of collateral permissible
Currentness
(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.

Credits

Added by Acts 1999, c. 282, § 2, eff. July 1, 2001.
MD Code, Commercial Law, § 9-205, MD COML § 9-205
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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