(810 ILCS 5/9-205) (from Ch. 26, par. 9-205)
Sec. 9-205.
Use or disposition of collateral permissible.
(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;
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(B) collect, compromise, enforce, or otherwise
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(C) accept the return of collateral or make
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(D) use, commingle, or dispose of proceeds; or
(2) the secured party fails to require the debtor to
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| account for proceeds or replace collateral.
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(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.
(Source: P.A. 91-893, eff. 7-1-01.)
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