West Virginia § 46-9-205 Use or disposition of collateral permissible

West Virginia Statutes

§ 46-9-205 — Use or disposition of collateral permissible

West Virginia § 46-9-205

Ch. 46UNIFORM COMMERCIAL CODE

Art. 9SECURED TRANSACTIONS; SALES OF ACCOUNTS AND CHATTEL PAPER

This text of West Virginia § 46-9-205 (Use or disposition of collateral permissible) is published on Counsel Stack Legal Research, covering West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

W. Va. Code § 46-9-205 (2026).

Text

(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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(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.