{"data":{"id":"us-tx/tex.-business-commerce-code-9.205","jurisdiction":"us-tx","citation":"Tex. Business \u0026 Commerce Code § 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.\nAmended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.","path":["BUSINESS AND COMMERCE CODE","TITLE 1. UNIFORM COMMERCIAL CODE","CHAPTER 9. SECURED TRANSACTIONS","SUBCHAPTER B. EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT"],"source_url":"https://statutes.capitol.texas.gov/Docs/BC/htm/BC.9.htm#9.205","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:56Z","sha256":"b3154ebb05827fce58357999cb024e81bc08f9ccda261b4eed06c98998e959fd","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-commerce-code-9.204","next":"us-tx/tex.-business-commerce-code-9.206"},"notice":"GroundRules: Original legal text. Not legal advice."}