Acceptance of collateral in full or partial satisfaction -- compulsory disposition of collateral

30-9A-620 . Acceptance of collateral in full or partial satisfaction -- compulsory disposition of collateral. (1) Except as otherwise provided in subsection (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if: (a) the debtor consents to the acceptance under subsection (3); (b) the secured party does not receive, within the time set forth in subsection (4), a notification of objection to the proposal signed by: (i) a person to which the secured party was required to send a proposal under 30-9A-621 ; or (ii) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal; (c) if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and (d) subsection (5) does not require the secured party to dispose of the collateral. (2) A purported or apparent acceptance of collateral under this section is ineffective unless: (a) the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and (b) the conditions of subsection (1) are met. (3) For purposes of this section: (a) a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and (b) a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party: (i) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained; (ii) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and (iii) does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent. (4) To be effective under subsection (1)(b), a notification of objection must be received by the secured party: (a) in the case of a person to which the proposal was sent pursuant to 30-9A-621 , within 20 days after notification was sent to that person; and (b) in other cases: (i) within 20 days after the last notification was sent pursuant to 30-9A-621 ; or (ii) if a notification was not sent, before the debtor consents to the acceptance under subsection (3). (5) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to 30-9A-610 within the time specified in subsection (6) if: (a) 60% of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or (b) 60% of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods. (6) To comply with subsection (5), the secured party shall dispose of the collateral: (a) within 90 days after taking possession; or (b) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default. (7) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.