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§12A-9-505.
§12A-9-505.
Compulsory Disposition of Collateral; Acceptance of the Collateral as
Discharge of Obligation. - (1) If the debtor has paid sixty percent
(60%) of the cash price in the case of a purchase money security
interest in consumer goods or sixty percent (60%) of the loan in the
case of another security interest in consumer goods, and has not
signed, after default, a statement renouncing or modifying his rights
under this part a secured party who has taken possession of collateral
must dispose of it under Section 9-504 and if he fails to do so within
ninety (90) days after he takes possession, the debtor at his option
may recover in conversion or under Section 9-507(1) on secured party's
liability.
(2) In any other case involving consumer goods or any other collateral
a secured party in possession may, after default, propose to retain
the collateral in satisfaction of the obligation. Written notice of
such proposal shall be sent to the debtor if he has not signed, after
default, a statement renouncing or modifying his rights under this
subsection. In the case of consumer goods, no other notice need be
given. In other cases, notice shall be sent to any other secured party
and any holder of a subordinate lien from whom the secured party has
received, before sending his notice to the debtor or before the
debtor's renunciation of his rights, written notice of a claim of an
interest in the collateral. If the secured party receives objection in
writing from a person entitled to receive notification within
twenty-one (21) days after the notice was sent, the secured party must
dispose of the collateral under Section 9-504. In the absence of such
written objection, the secured party may retain the collateral in
satisfaction of the debtor's obligation.
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