D.C. Code § 28:9-620: Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.

(a)

Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:

(1)

The debtor consents to the acceptance under subsection (c);

(2)

The secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:

(A)

A person to which the secured party was required to send a proposal under § 28:9-621; or

(B)

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;

(3)

If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and

(4)

Subsection (e) of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 28:9-624.

(b)

A purported or apparent acceptance of collateral under this section is ineffective unless:

(1)

The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and

(2)

The conditions of subsection (a) of this section are met.

(c)

For purposes of this section:

(1)

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

(2)

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:

(A)

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;

(B)

In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and

(C)

Does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.

(d)

To be effective under subsection (a)(2), a notification of objection must be received by the secured party:

(1)

In the case of a person to which the proposal was sent pursuant to § 28:9-621, within 20 days after notification was sent to that person; and

(2)

In other cases:

(A)

Within 20 days after the last notification was sent pursuant to § 28:9-621; or

(B)

If a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.

(e)

A secured party that has taken possession of collateral shall dispose of the collateral pursuant to § 28:9-610 within the time specified in subsection (f) if:

(1)

60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or

(2)

60 percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.

(f)

To comply with subsection (e), the secured party shall dispose of the collateral:

(1)

Within 90 days after taking possession; or

(2)

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.

(g)

In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.