Pennsylvania § 9205 Use or disposition of collateral permissible

Pennsylvania Statutes

§ 9205 — Use or disposition of collateral permissible

Pennsylvania § 9205

Title 13COMMERCIAL CODE

Ch. 92EFFECTIVENESS OF SECURITY AGREEMENT,

Subch.EFFECTIVENESS AND ATTACHMENT

This text of Pennsylvania § 9205 (Use or disposition of collateral permissible) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 9205 (2026).

Text

(a)When security interest not invalid or fraudulent.--A security interest is not invalid or fraudulent against creditors solely because any of the following apply:

(1)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.

(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 collat

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(a) When security interest not invalid or fraudulent.--A security interest is not invalid or fraudulent against creditors solely because any of the following apply:

(1) 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.

(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.