Section 28-9-620 - ACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION OF OBLIGATION - COMPULSORY DISPOSITION OF COLLATERAL(a) A secured party may accept collateral in full or partial satisfaction of the obligation it secures only if: (1) The debtor consents to the acceptance under subsection (c) of this section;(2) The secured party does not receive, within the time set forth in subsection (d) of this section, a notification of objection to the proposal authenticated by: (A) a person to which the secured party was required to send a proposal under section 28-9-621; or(B) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal; and(3) Subsection (e) of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to section 28-9-624.(b) 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) of this section are met.(c) 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; and(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: (A) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;(B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and(C) does not receive a notification of objection authenticated by the debtor within twenty (20) days after the proposal is sent.(d) To be effective under subsection (a)(2) of this section, 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 28-9-621, within twenty (20) days after notification was sent to that person; and(2) In other cases: (A) within twenty (20) days after the last notification was sent pursuant to section 28-9-621; or(B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 28-9-610 within the time specified in subsection (f) of this section if: (1) Sixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or(2) Sixty percent (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) To comply with subsection (e) of this section, the secured party shall dispose of the collateral: (1) Within ninety (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.[28-9-620, added 2001, ch. 208, sec. 2, p. 792.]