(a. A security interest is not invalid or fraudulent against creditors solely because:
(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
(2. 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.
History
1964, c. 219, § 8.9-205; 1973; c. 509; 2000, c. 1007.
