AR Code § 4-9-620 (2020)
2020 Arkansas Code|Title 4 - Business and Commercial Law|Subtitle 1 - Uniform Commercial Code|Chapter 9 - Secured Transactions|Part 6 - Default|Subpart 1 - Default and Enforcement of Security Interest|§ 4-9-620. Acceptance of collateral in full or partial satisfaction of obligation — Compulsory disposition of collateral

 (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:  (1) the debtor consents to the acceptance under subsection (c);  (2) the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal authenticated by:  (A) a person to which the secured party was required to send a proposal under § 4-9-621; or  (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;    (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  (4) subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 4-9-624.    (b) A purported or apparent acceptance of collateral under this section is ineffective unless:  (1) the secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and  (2) the conditions of subsection (a) are met.    (c) For purposes of this section:  (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  (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:  (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;  (B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and  (C) does not receive a notification of objection authenticated by the debtor within twenty (20) days after the proposal is sent.      (d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:  (1) in the case of a person to which the proposal was sent pursuant to § 4-9-621, within twenty (20) days after notification was sent to that person; and  (2) in other cases:  (A) within twenty (20) days after the last notification was sent pursuant to § 4-9-621; or  (B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c).      (e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to § 4-9-610 within the time specified in subsection (f) if:  (1) sixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or  (2) sixty percent (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.    (f) To comply with subsection (e), the secured party shall dispose of the collateral:  (1) within ninety (90) days after taking possession; or  (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.    (g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.