{"data":{"id":"us-pa/13-pa.c.s.-9205","jurisdiction":"us-pa","citation":"13 Pa.C.S. § 9205","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 any of the following apply:\n(1) The debtor has the right or ability to:\n(i) use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;\n(ii) collect, compromise, enforce or otherwise deal with collateral;\n(iii) accept the return of collateral or make repossessions; or\n(iv) use, commingle or dispose of proceeds.\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 13 - COMMERCIAL CODE","CHAPTER 92 EFFECTIVENESS OF SECURITY AGREEMENT, ATTACHMENT OF SECURITY INTEREST AND RIGHTS OF PARTIES TO SECURITY AGREEMENT","SUBCHAPTER A EFFECTIVENESS AND ATTACHMENT"],"source_url":"https://www.palegis.us/statutes/consolidated/view-statute?txtType=HTM\u0026ttl=13\u0026div=0\u0026chpt=92\u0026sctn=5\u0026subsctn=0","current_through":"2025-12-01 (Statute Update stamp, 13 Pa.C.S.)","vintage":"","retrieved_at":"2026-09-02T16:31:03Z","sha256":"aa0167e834b4fea1fcdf3bbebcada78292f07e079df42470434a9efde1694d34","source_id":"us-pa","stale":false,"prev":"us-pa/13-pa.c.s.-9204","next":"us-pa/13-pa.c.s.-9206"},"notice":"GroundRules: Original legal text. Not legal advice."}