{"data":{"id":"us-dc/d.c.-code-28-9-205","jurisdiction":"us-dc","citation":"D.C. Code § 28:9-205","heading":"Use or disposition of collateral permissible.","body":"(a)\nA security interest is not invalid or fraudulent against creditors solely because:\n(1)\nThe debtor has the right or ability to:\n(A)\nUse, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;\n(B)\nCollect, compromise, enforce, or otherwise deal with collateral;\n(C)\nAccept the return of collateral or make repossessions; or\n(D)\nUse, commingle, or dispose of proceeds; or\n(2)\nThe secured party fails to require the debtor to account for proceeds or replace collateral.\n\n(b)\nThis 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 28. Commercial Instruments and Transactions. [Enacted title]","Subtitle I. Uniform Commercial Code.","Article 9. Secured Transactions.","Part II. Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement.","Subpart 1. Effectiveness and Attachment."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/28:9-205","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"e8453bebba50f362e5e4079082e06d2cf6212d434ecb28c105724c3b4c492f14","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-28-9-204","next":"us-dc/d.c.-code-28-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}