{"data":{"id":"us-de/6-del.-c.-9-205","jurisdiction":"us-de","citation":"6 Del. C. § 9-205","heading":"Use or disposition of collateral permissible.","body":"(a) When security interest not invalid or fraudulent. — 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) Requirements of possession not relaxed. — 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 6. Commerce and Trade","SUBTITLE I","Uniform Commercial Code","ARTICLE 9. Secured Transactions","Part 2","Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement"],"source_url":"https://delcode.delaware.gov/title6/c009/sc02/index.html#9-205","current_through":"2026-08-10 (85 Del. Laws, c. 421, 424)","vintage":"","retrieved_at":"2026-09-05T23:02:06Z","sha256":"f6deb0bf313eec44b85e596a9266ce783e69d281035ab7bfdbc3710b5a30cf10","source_id":"us-de","stale":true,"prev":"us-de/6-del.-c.-9-204","next":"us-de/6-del.-c.-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}