N.C. Gen. Stat. § 25-9-205
Use or disposition of collateral permissible
Redline — June 1, 2021 → current.View current text →
Current — April 1, 2022
As of June 1, 2021
(1) When security interest not invalid or fraudulent. - A security interest is not invalid or fraudulent against creditors solely because: The debtor has the right or ability to: Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(1) When security interest not invalid or fraudulent. — A security interest is not invalid or fraudulent against creditors solely because: The debtor has the right or ability to: Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(2) Collect, compromise, enforce, or otherwise deal with collateral;
(2) Collect, compromise, enforce, or otherwise deal with collateral;
(3) Accept the return of collateral or make repossessions; or
(3) Accept the return of collateral or make repossessions; or
(4) Use, commingle, or dispose of proceeds; or
(4) Use, commingle, or dispose of proceeds; or
(5) The secured party fails to require the debtor to account for proceeds or replace collateral.
(5) The secured party fails to require the debtor to account for proceeds or replace collateral.
(6) 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.
(6) 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.
History
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.