{"data":{"id":"us-hi/haw.-rev.-stat.-490-9-620","jurisdiction":"us-hi","citation":"Haw. Rev. Stat. § 490:9-620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.","body":"(a) Except 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\n(1) The debtor consents to the acceptance under subsection (c);\n\n(2) The secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:\n\n(A) A person to which the secured party was required to send a proposal under section 490:9-621; 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\n(3) 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\n(4) Subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to section 490:9-624.\n\n(b) A purported or apparent acceptance of collateral under this section is ineffective unless:\n\n(1) The secured party consents to the acceptance in [a] signed record or sends a proposal to the debtor; and\n\n(2) The conditions of subsection (a) are met.\n\n(c) For purposes of this section:\n\n(1) 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 signed after default; and\n\n(2) 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 signed 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 signed by the debtor within twenty days after the proposal is sent.\n\n(d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:\n\n(1) In the case of a person to which the proposal was sent pursuant to section 490:9-621, within twenty days after notification was sent to that person; and\n\n(2) In other cases:\n\n(A) Within twenty days after the last notification was sent pursuant to section 490:9-621; or\n\n(B) If a notification was not sent, before the debtor consents to the acceptance under subsection (c).\n\n(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 490:9-610 within the time specified in subsection (f) if:\n\n(1) Sixty per cent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n\n(2) Sixty per cent 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) To comply with subsection (e), the secured party shall dispose of the collateral:\n\n(1) Within ninety days after taking possession; or\n\n(2) Within 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) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Hawaii Code","Division 2","Title 27","Chapter 490"],"source_url":"http://www.capitol.hawaii.gov/hrscurrent/Vol11_Ch0476-0490/HRS0490/HRS_0490-0009-0620.htm","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:11Z","sha256":"53cba79a170758bcbd0dbd6ce3a379ccd254e319d90d2992e378a2ef9df0e7a5","source_id":"us-hi","stale":false,"prev":"us-hi/haw.-rev.-stat.-490-9-619","next":"us-hi/haw.-rev.-stat.-490-9-621"},"notice":"GroundRules: Original legal text. Not legal advice."}