{"data":{"id":"us-sc/s.c.-code-ann.-36-9-620","jurisdiction":"us-sc","citation":"S.C. Code Ann. § 36-9-620","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(1) the debtor consents to the acceptance under subsection (c);\n(2) the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal authenticated by:\n(A) a person to which the secured party was required to send a proposal under Section 36-9-621; or\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(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(4) subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section 36-9-624.\n(b) A purported or apparent acceptance of collateral under this Section is ineffective unless:\n(1) the secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and\n(2) the conditions of subsection (a) are met.\n(c) For purposes of this section:\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 authenticated after default; and\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 authenticated after default or the secured party:\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(B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(C) does not receive a notification of objection authenticated by the debtor within twenty days after the proposal is sent.\n(d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:\n(1) in the case of a person to which the proposal was sent pursuant to Section 36-9-621, within twenty days after notification was sent to that person; and\n(2) in other cases:\n(A) within twenty days after the last notification was sent pursuant to Section 36-9-621; or\n(B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c).\n(e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 36-9-610 within the time specified in subsection (f) if:\n(1) sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(2) 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(f) To comply with subsection (e), the secured party shall dispose of the collateral:\n(1) within ninety days after taking possession; or\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 authenticated after default.\n(g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Title 36 - COMMERCIAL CODE","CHAPTER 9 Commercial Code—Secured Transactions","Part 6 Default"],"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":"c7086fbe53604273fdd1b0f66c7ab4488062b48e96e67cb0b25fcf775c42d8c0","source_id":"us-sc","stale":false,"prev":"us-sc/s.c.-code-ann.-36-9-619","next":"us-sc/s.c.-code-ann.-36-9-621"},"notice":"GroundRules: Original legal text. Not legal advice."}