{"data":{"id":"us-sc/s.c.-code-ann.-36-9-205","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 36-9-205","heading":"Use or disposition of collateral permissible.","body":"(a) 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) 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 36 - COMMERCIAL CODE","CHAPTER 9 Commercial Code—Secured Transactions","Part 2 Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement"],"source_url":"https://www.scstatehouse.gov/code/t36c009.php","current_through":"2025 Session of the General Assembly","vintage":"","retrieved_at":"2026-09-02T07:08:49Z","sha256":"cd511ea4ffcd78fbb19a4134c246b532ba3cc1b4390cc86c3a07e2a87a45e5e9","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-36-9-204","next":"us-sc/s.c.-code-ann.-36-9-206"},"notice":"GroundRules: Original legal text. Not legal advice."}