{"data":{"id":"us-dc/d.c.-code-28-9-620","jurisdiction":"us-dc","citation":"D.C. Code § 28:9-620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.","body":"(a)\nExcept as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\n(1)\nThe debtor consents to the acceptance under subsection (c);\n(2)\nThe secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:\n(A)\nA person to which the secured party was required to send a proposal under § 28:9-621; or\n(B)\nAny 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(3)\nIf the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and\n(4)\nSubsection (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.\n\n(b)\nA purported or apparent acceptance of collateral under this section is ineffective unless:\n(1)\nThe secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(2)\nThe conditions of subsection (a) of this section are met.\n\n(c)\nFor purposes of this section:\n(1)\nA 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\n(2)\nA 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:\n(A)\nSends 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(B)\nIn the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(C)\nDoes not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n\n(d)\nTo be effective under subsection (a)(2), a notification of objection must be received by the secured party:\n(1)\nIn 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\n(2)\nIn other cases:\n(A)\nWithin 20 days after the last notification was sent pursuant to § 28:9-621; or\n(B)\nIf a notification was not sent, before the debtor consents to the acceptance under subsection (c) of this section.\n\n(e)\nA 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:\n(1)\n60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(2)\n60 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.\n\n(f)\nTo comply with subsection (e), the secured party shall dispose of the collateral:\n(1)\nWithin 90 days after taking possession; or\n(2)\nWithin 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.\n\n(g)\nIn a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Title 28. Commercial Instruments and Transactions. [Enacted title]","Subtitle I. Uniform Commercial Code.","Article 9. Secured Transactions.","Part VI. Default.","Subpart 1. Default and Enforcement of Security Interest."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/28:9-620","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"3049df18dd0840dd0769c1b00a007c5da23987187bc071b90ca0511d38fdbd60","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-28-9-619","next":"us-dc/d.c.-code-28-9-621"},"notice":"GroundRules: Original legal text. Not legal advice."}