Kentucky Statutes 355.9-205 – Use or disposition of collateral permissible
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(1) A security interest is not invalid or fraudulent against creditors solely because: (a) The debtor has the right or ability to:
1. Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
2. Collect, compromise, enforce, or otherwise deal with collateral;
3. Accept the return of collateral or make repossessions; or
4. Use, commingle, or dispose of proceeds; or
(b) The secured party fails to require the debtor to account for proceeds or replace collateral.
(2) 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.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 35, effective July 1, 2001.
— Amended 1986 Ky. Acts ch. 118, sec. 62, effective July 1, 1987. — Created 1958
Ky. Acts ch. 77, sec. 9-205, effective July 1, 1960.
1. Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
Terms Used In Kentucky Statutes 355.9-205
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
2. Collect, compromise, enforce, or otherwise deal with collateral;
3. Accept the return of collateral or make repossessions; or
4. Use, commingle, or dispose of proceeds; or
(b) The secured party fails to require the debtor to account for proceeds or replace collateral.
(2) 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.
Effective: July 1, 2001
History: Repealed and reenacted 2000 Ky. Acts ch. 408, sec. 35, effective July 1, 2001.
— Amended 1986 Ky. Acts ch. 118, sec. 62, effective July 1, 1987. — Created 1958
Ky. Acts ch. 77, sec. 9-205, effective July 1, 1960.