Arizona Laws 47-9205. Use or disposition of collateral permissible
A. A security interest is not invalid or fraudulent against creditors solely because:
Terms Used In Arizona Laws 47-9205
- account for: means a right to payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, for services rendered or to be rendered, for a policy of insurance issued or to be issued, for a secondary obligation incurred or to be incurred, for energy provided or to be provided, for the use or hire of a vessel under a charter or other contract, arising out of the use of a credit or charge card or information contained on or for use with the card or as winnings in a lottery or other game of chance operated or sponsored by a state, a governmental unit of a state or a person licensed or authorized to operate the game by a state or governmental unit of a state. See Arizona Laws 47-9102
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- Goods: means all things that are movable when a security interest attaches. See Arizona Laws 47-9102
- including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
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 on possession of the collateral by the secured party.