400.9-205. Use or disposition of collateral permissible. - Missouri Statutes

Use or disposition of collateral permissible.

400.9-205. (a) A security interest is not invalid or fraudulentagainst 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 forproceeds or replace collateral.

(b) This section does not relax the requirements of possession ifattachment, perfection, or enforcement of a security interest depends uponpossession of the collateral by the secured party.

(L. 1963 p. 503 § 9-205, A.L. 1988 S.B. 583, A.L. 2001 S.B. 288)

Effective 7-01-01