9205 - Use or disposition of collateral permissible. - Pennsylvania Statutes

§ 9205. Use or disposition of collateral permissible. (a) When security interest not invalid or fraudulent.--A security interest is not invalid or fraudulent against creditors solely because any of the following apply: (1) The debtor has the right or ability to: (i) use, commingle or dispose of all or part of the collateral, including returned or repossessed goods; (ii) collect, compromise, enforce or otherwise deal with collateral; (iii) accept the return of collateral or make repossessions; or (iv) use, commingle or dispose of proceeds. (2) The secured party fails to require the debtor to account for proceeds or replace collateral. (b) Requirements of possession not relaxed.--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.