{"data":{"id":"us-me/11-m.r.s.-9-1620","jurisdiction":"us-me","citation":"11 M.R.S. §9-1620","heading":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral","body":"(1).   Except as otherwise provided in subsection (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\n(a).  The debtor consents to the acceptance under subsection (3);\n(b).  The secured party does not receive, within the time set forth in subsection (4), a notification of objection to the proposal signed by:\n(i)  A person to which the secured party was required to send a proposal under section 9‑1621; or\n(ii)  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(c).  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(d).  Subsection (5) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to section 9‑1624.\n(2).   A purported or apparent acceptance of collateral under this section is ineffective unless:\n(a).  The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(b).  The conditions of subsection (1) are met.\n(3).   For purposes of this section:\n(a).  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(b).  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(i)  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(ii)  In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(iii)  Does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n(4).   To be effective under subsection (1), paragraph (b), a notification of objection must be received by the secured party:\n(a).  In the case of a person to which the proposal was sent pursuant to section 9‑1621 within 20 days after notification was sent to that person; and\n(b).  In other cases:\n(i)  Within 20 days after the last notification was sent pursuant to section 9‑1621; or\n(ii)  If a notification was not sent, before the debtor consents to the acceptance under subsection (3).\n(5).   A secured party that has taken possession of collateral shall dispose of the collateral pursuant to section 9‑1610 within the time specified in subsection (6) if:\n(a).  Sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(b).  Sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.\n(6).   To comply with subsection (5), the secured party shall dispose of the collateral:\n(a).  Within 90 days after taking possession; or\n(b).  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(7).   In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["TITLE 11: UNIFORM COMMERCIAL CODE","PART 6: DEFAULT"],"source_url":"https://legislature.maine.gov/statutes/11/title11sec9-1620.html","current_through":"October 1, 2025","vintage":"","retrieved_at":"2026-09-04T15:12:25Z","sha256":"a23af0974eadc8e230a37365951b30f015de5332676c69295d7f3df11a21ad35","source_id":"us-me","stale":false,"prev":"us-me/11-m.r.s.-9-1619","next":"us-me/11-m.r.s.-9-1621"},"notice":"GroundRules: Original legal text. Not legal advice."}