{"data":{"id":"us-az/a.r.s.-47-9620","jurisdiction":"us-az","citation":"A.R.S. § 47-9620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral","body":"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:\n\n1. The debtor consents to the acceptance under subsection C of this section;\n\n2. The secured party does not receive, within the time set forth in subsection D of this section, a notification of objection to the proposal authenticated by:\n\n(a) A person to which the secured party was required to send a proposal under section 47-9621; or\n\n(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;\n\n3. If the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and\n\n4. Subsection E of this section does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to section 47-9624.\n\nB. A purported or apparent acceptance of collateral under this section is ineffective unless:\n\n1. The secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and\n\n2. The conditions of subsection A of this section are met.\n\nC. For purposes of this section:\n\n1. 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\n\n2. 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 authenticated after default or the secured party:\n\n(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;\n\n(b) In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n\n(c) Does not receive a notification of objection authenticated by the debtor within twenty days after the proposal is sent.\n\nD. To be effective under subsection A, paragraph 2 of this section, a notification of objection must be received by the secured party:\n\n1. In the case of a person to which the proposal was sent pursuant to section 47-9621, within twenty days after notification was sent to that person; and\n\n2. In other cases:\n\n(a) Within twenty days after the last notification was sent pursuant to section 47-9621; or\n\n(b) If a notification was not sent, before the debtor consents to the acceptance under subsection C of this section.\n\nE. A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 47-9610 within the time specified in subsection F of this section if:\n\n1. Sixty per cent of the cash price has been paid in the case of a purchase money security interest in consumer goods; or\n\n2. Sixty per cent of the principal amount of the obligation secured has been paid in the case of a nonpurchase money security interest in consumer goods.\n\nF. To comply with subsection E of this section, the secured party shall dispose of the collateral:\n\n1. Within ninety days after taking possession; or\n\n2. Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.\n\nG. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Title 47 Weights and Measures"],"source_url":"https://www.azleg.gov/ars/47/09620.htm","current_through":"57th Legislature, 2nd Regular Session (effective 2027-01-01); mirror section count 24991","vintage":"2026-09-15","retrieved_at":"2026-09-26T04:29:04Z","sha256":"76a1c9f3787fe1488c9860b5d3825a15f177c10e484a57759ddac969993fd6cd","source_id":"us-az","stale":false,"prev":"us-az/a.r.s.-47-9619","next":"us-az/a.r.s.-47-9621"},"notice":"GroundRules: Original legal text. Not legal advice."}