104.9205 - Use or disposition of collateral permissible. - Nevada Statutes - USA Laws Searching

Statutes > Nevada Statutes > TITLE 8 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS > Chapter 104 - Uniform Commercial Code—Original Articles > ARTICLE 9 - SECURED TRANSACTIONS > Part 2 - Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement > 104.9205 - Use or disposition of collateral permissible.

104.9205 - Use or disposition of collateral permissible.

104.9205  Use or disposition of collateral permissible.

      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.

      (Added to NRS by 1999, 297)

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