70A-9a-620. Acceptance of collateral in full or partial satisfaction of obligation -- Compulsory disposition of collateral.
(1) Except as otherwise provided in Subsection, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if: (7) the debtor consents to the acceptance under Subsection; (3) the secured party does not receive, within the time set forth in Subsection, a notification of objection to the proposal signed by: (4) a person to which the secured party was required to send a proposal under Section; or 70A-9a-621 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; if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and Subsectiondoes not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section. (5) 70A-9a-624
(2) A purported or apparent acceptance of collateral under this section is ineffective unless: the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and the conditions of Subsectionare met. (1)
(3) For purposes of this section: 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 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: 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; in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and 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, a notification of objection must be received by the secured party: (1)(b) in the case of a person to which the proposal was sent pursuant to Section, within 20 days after notification was sent to that person; and 70A-9a-621 in other cases: within 20 days after the last notification was sent pursuant to Section; or 70A-9a-621 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 Sectionwithin the time specified in Subsectionif: 70A-9a-610 (6) 60% of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or 60% of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.
(6) To comply with Subsection, the secured party shall dispose of the collateral: (5) within 90 days after taking possession; or 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.