{"data":{"id":"us-ar/ark.-code-ann.-4-9-205","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-9-205","heading":"Use or disposition of collateral permissible.","body":"(a) A security interest is not invalid or fraudulent against creditors solely because:\n(1) the debtor has the right or ability to:\n(A) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;\n(B) collect, compromise, enforce, or otherwise deal with collateral;\n(C) accept the return of collateral or make repossessions; or\n(D) use, commingle, or dispose of proceeds; or\n(2) the secured party fails to require the debtor to account for proceeds or replace collateral.\n(b) 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.","path":["Title 4 Business and Commercial Law","Subtitle 1. Uniform Commercial Code","Chapter 9 Secured Transactions","Part 2 — Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement","Subpart 1 Effectiveness and Attachment"],"source_url":"https://archive.org/download/gov.ar.code/release78.2020.11.06/gov.ar.code.title.04.odt","current_through":"2020-11-06","vintage":"Arkansas Code Release 78 (2020-11), retrieved 2026-09-17","retrieved_at":"2026-09-17T21:07:03Z","sha256":"cd511ea4ffcd78fbb19a4134c246b532ba3cc1b4390cc86c3a07e2a87a45e5e9","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-9-204","next":"us-ar/ark.-code-ann.-4-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}