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New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-205

Current as of February 19, 2021 | Updated by FindLaw Staff

 (a) When security interest not invalid or fraudulent.  A security interest is not invalid or fraudulent against creditors solely because:

(1) the debtor has the right or ability to:

 (A) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;

 (B) collect, compromise, enforce, or otherwise deal with collateral;

 (C) accept the return of collateral or make repossessions;  or

 (D) use, commingle, or dispose of proceeds;  or

(2) the secured party fails to require the debtor to account for proceeds or replace collateral.

 (b) Requirements of possession not relaxed.  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.

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Cite this article: FindLaw.com - New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-205 - last updated February 19, 2021 | https://codes.findlaw.com/nj/title-12a-commercial-transactions/nj-st-sect-12a-9-205/

Read this complete New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-205 on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

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