{"data":{"id":"us-ut/utah-code-70a-9a-620","jurisdiction":"us-ut","citation":"Utah Code § 70A-9a-620","heading":"Acceptance of collateral in full or partial satisfaction of obligation -- Compulsory disposition of collateral.","body":"(1) Except as otherwise provided in Subsection (7), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:\n(a) the debtor consents to the acceptance under Subsection (3);\n(b) the secured party does not receive, within the time set forth in Subsection (4), a notification of objection to the proposal signed by:\n(i) a person to which the secured party was required to send a proposal under Section 70A-9a-621; or\n(ii) 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(c) 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(d) Subsection (5) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section 70A-9a-624.\n(2) A purported or apparent acceptance of collateral under this section is ineffective unless:\n(a) the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and\n(b) the conditions of Subsection (1) are met.\n(3) For purposes of this section:\n(a) 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 signed after default; and\n(b) 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 signed after default or the secured party:\n(i) 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(ii) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and\n(iii) does not receive a notification of objection signed by the debtor within 20 days after the proposal is sent.\n(4) To be effective under Subsection (1)(b), a notification of objection must be received by the secured party:\n(a) in the case of a person to which the proposal was sent pursuant to Section 70A-9a-621, within 20 days after notification was sent to that person; and\n(b) in other cases:\n(i) within 20 days after the last notification was sent pursuant to Section 70A-9a-621; or\n(ii) if a notification was not sent, before the debtor consents to the acceptance under Subsection (3).\n(5) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 70A-9a-610 within the time specified in Subsection (6) if:\n(a) 60% of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or\n(b) 60% 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(6) To comply with Subsection (5), the secured party shall dispose of the collateral:\n(a) within 90 days after taking possession; or\n(b) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.\n(7) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","path":["Title 70A Uniform Commercial Code","Chapter 70A-9a Uniform Commercial Code - Secured Transactions","Part 70A-9a-6 Default"],"source_url":"https://le.utah.gov/xcode/Title70A/Chapter9a/70A-9a-S620.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"04a4b9b621996ea9d2a96e64f251a54429780be60405398cf21ee8cc3a6b7a89","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-70a-9a-619","next":"us-ut/utah-code-70a-9a-621"},"notice":"GroundRules: Original legal text. Not legal advice."}