§ 34.1-9-205 — Use or disposition of collateral permissible

(a) A security interest is not invalid or fraudulent
against creditors solely because:
(i) 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
(ii) The secured party fails to require the debtor to
account for proceeds or replace collateral.
(b) 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.