{"data":{"id":"us-nj/n.j.-stat.-12a-9-205","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-205","heading":"Use or disposition of collateral permissible.","body":"Use or Disposition of Collateral Permissible.\n(a)\tWhen security interest not invalid or fraudulent.  A security interest is not invalid or fraudulent against creditors solely because:\n(1)\tthe debtor has the right or ability to:\n(A)\tuse, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;\n(B)\tcollect, compromise, enforce, or otherwise deal with collateral;\n(C)\taccept the return of collateral or make repossessions; or\n(D)\tuse, commingle, or dispose of proceeds; or\n(2)\tthe secured party fails to require the debtor to account for proceeds or replace collateral.\n(b)\tRequirements 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.\nL.2001, c.117, s.1; amended 2001, c.386, s.11.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"d52dedaab129a4000d3c01fa8e0d78399c38eae00565064b20d80e00358c4b45","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-204","next":"us-nj/n.j.-stat.-12a-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}