(a) Except as otherwise provided in subsection (g) of this section, a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
The debtor consents to the acceptance under subsection (c) of this section;
The secured party does not receive, within the time set forth in subsection (d) of thissection, a notification of objection to the proposal authenticated by:
A person to which the secured party was required to send a proposal under section 49-621; or
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
Subsection (e) of this section does not require the secured party to dispose of thecollateral or the debtor waives the requirement pursuant to section 4-9-624.
Reserved.
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 authenticated after default; and
A debtor consents to an acceptance of collateral in full satisfaction of the obligationit secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:
Sends to the debtor after default a proposal that is unconditional or subject only to acondition 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 itsecures; and
Does not receive a notification of objection authenticated by the debtor within twenty days after the proposal is sent.
(d) To be effective under paragraph (2) of subsection (a) of this section, a notification of objection must be received by the secured party:
In the case of a person to which the proposal was sent pursuant to section 4-9-621,within twenty days after notification was sent to that person; and
In other cases:
Within twenty days after the last notification was sent pursuant to section 4-9-621;or
If a notification was not sent, before the debtor consents to the acceptance undersubsection (c) of this section.
(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 4-9-610 within the time specified in subsection (f) of this section if:
Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or
Sixty percent of the principal amount of the obligation secured has been paid in thecase of a non-purchase-money security interest in consumer goods.
(f) To comply with subsection (e) of this section, the secured party shall dispose of the collateral:
Within ninety days after taking possession; or
Within any longer period to which the debtor and all secondary obligors have agreedin an agreement to that effect entered into and authenticated after default.
(g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.
Source: L. 2001: Entire article R&RE, p. 1414, § 1, effective July 1.
Editor's note: This section is similar to former § 4-9-505 as it existed prior to 2001.