[Previous] [Next]

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.
   

[Previous] [Next]