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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 9A : Uniform Commercial Code

Article 009 : SECURED TRANSACTIONS

(Cite as: 9A V.S.A. § 9-205)
  • § 9-205. Use or disposition of collateral permissible

    (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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)