TX Bus & Com Code § 9.620 (2021)
2021 Texas Statutes|Business and Commerce Code|Title 1 - Uniform Commercial Code|Chapter 9 - Secured Transactions|Subchapter F. Default|Section 9.620. Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsory Disposition of Collateral

Sec. 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 Section 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 Section 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 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 Section 9.621, within 20 days after notification was sent to that person;  and(2)  in other cases:(A)  within 20 days after the last notification was sent pursuant to Section 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 Section 9.610 within the time specified in Subsection (f) if:(1)  60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods;  or(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.(f)  To comply with Subsection (e), the secured party shall dispose of the collateral:(1)  within 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.|Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.|