Maine Revised Statutes

§9-1205. 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:
(i) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;
(ii) Collect, compromise, enforce or otherwise deal with collateral;
(iii) Accept the return of collateral or make repossessions; or
(iv) Use, commingle or dispose of proceeds; or [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). The secured party fails to require the debtor to account for proceeds or replace collateral. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
[ 1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF) .]
(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.
[ 1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF) .]
SECTION HISTORY
1999, c. 699, §A2 (NEW). 1999, c. 699, §A4 (AFF).