{"data":{"id":"us-tx/tex.-business-commerce-code-9.620","jurisdiction":"us-tx","citation":"Tex. Business \u0026 Commerce Code § 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 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 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 20 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 9.621, within 20 days after notification was sent to that person; and\n(2) in other cases:\n(A) within 20 days after the last notification was sent pursuant to Section 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 9.610 within the time specified in Subsection (f) if:\n(1) 60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(2) 60 percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.\n(f) To comply with Subsection (e), the secured party shall dispose of the collateral:\n(1) within 90 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.\nAdded 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 F. DEFAULT"],"source_url":"https://statutes.capitol.texas.gov/Docs/BC/htm/BC.9.htm#9.620","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:56Z","sha256":"6b73fe7318812ca5b8a835f785246f0e1decc78e2c766979ccb05d75cc1af02b","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-commerce-code-9.619","next":"us-tx/tex.-business-commerce-code-9.621"},"notice":"GroundRules: Original legal text. Not legal advice."}