Section 355.9-205 - 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; or4. 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.Effective:7/1/2001
Repealed and reenacted 2000, Ky. Acts ch. 408, sec. 35, effective7/1/2001. -- Amended 1986 Ky. Acts ch. 118, sec. 62, effective 7/1/1987. -- Created 1958 Ky. Acts ch. 77, sec. 9-205, effective 7/1/1960.