9620 - Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.

     § 9620.  Acceptance of collateral in full or partial                satisfaction of obligation; compulsory disposition of                collateral.        (a)  Conditions to acceptance in satisfaction.--Except as     otherwise provided in subsection (g), a secured party may accept     collateral in full or partial satisfaction of the obligation it     secures only if all of the following paragraphs apply:            (1)  The debtor consents to the acceptance under        subsection (c).            (2)  The secured party does not receive, within the time        set forth in subsection (d), a notification of objection to        the proposal authenticated by:                (i)  a person to which the secured party was required            to send a proposal under section 9621 (relating to            notification of proposal to accept collateral); or                (ii)  any other person, other than the debtor,            holding an interest in the collateral subordinate to the            security interest which is the subject of the proposal.            (3)  If the collateral is consumer goods, the collateral        is not in the possession of the debtor when the debtor        consents to the acceptance.            (4)  Subsection (e) does not require the secured party to        dispose of the collateral or the debtor waives the        requirement pursuant to section 9624 (relating to waiver).        (b)  Purported acceptance ineffective.--A purported or     apparent acceptance of collateral under this section is     ineffective unless:            (1)  the secured party consents to the acceptance in an        authenticated record or sends a proposal to the debtor; and            (2)  the conditions of subsection (a) are met.        (c)  Debtor's consent.--For purposes of this section:            (1)  A debtor consents to an acceptance of collateral in        partial satisfaction of the obligation it secures only if the        debtor agrees to the terms of the acceptance in a record        authenticated after default.            (2)  A debtor consents to an acceptance of collateral in        full satisfaction of the obligation it secures only if the        debtor agrees to the terms of the acceptance in a record        authenticated after default or the secured party:                (i)  sends to the debtor after default a proposal            which is unconditional or subject only to a condition            that collateral not in the possession of the secured            party be preserved or maintained;                (ii)  in the proposal, proposes to accept collateral            in full satisfaction of the obligation it secures; and                (iii)  does not receive a notification of objection            authenticated by the debtor within 20 days after the            proposal is sent.        (d)  Effectiveness of notification.--To be effective under     subsection (a)(2), a notification of objection must be received     by the secured party:            (1)  In the case of a person to which the proposal was        sent pursuant to section 9621, within 20 days after        notification was sent to that person.            (2)  In other cases:                (i)  within 20 days after the last notification was            sent pursuant to section 9621; or                (ii)  if a notification was not sent, before the            debtor consents to the acceptance under subsection (c).        (e)  Mandatory disposition of consumer goods.--A secured     party that has taken possession of collateral shall dispose of     the collateral pursuant to section 9610 (relating to disposition     of collateral after default) within the time specified in     subsection (f) if:            (1)  60% of the cash price has been paid in the case of a        purchase-money security interest in consumer goods; or            (2)  60% of the principal amount of the obligation        secured has been paid in the case of a nonpurchase-money        security interest in consumer goods.        (f)  Compliance with mandatory disposition requirement.--To     comply with subsection (e), the secured party shall dispose of     the collateral:            (1)  within 90 days after taking possession; or            (2)  within any longer period to which the debtor and all        secondary obligors have agreed in an agreement to that effect        entered into and authenticated after default.        (g)  No partial satisfaction in consumer transaction.--In a     consumer transaction, a secured party may not accept collateral     in partial satisfaction of the obligation it secures.        Cross References.  Section 9620 is referred to in sections     9102, 9602, 9624 of this title; section 5108 of Title 12     (Commerce and Trade).