Com. Code, § 9205 · Chapter 2. Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement
Com. Code, § 9205
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) A security interest is not invalid or fraudulent against creditors solely because either of the following applies:
(1) The debtor has the right or ability to do any of the following:
(A) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods.
(B) Collect, compromise, enforce, or otherwise deal with collateral.
(C) Accept the return of collateral or make repossessions.
(D) Use, commingle, or dispose of proceeds.
(2) The secured party fails to require the debtor to account for proceeds or replace collateral.
(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.
Notes and commentary — not statutory text
History
Amended (as to be added by Stats. 1999, Ch. 991) by Stats. 2000, Ch. 1003, Sec. 8. Effective January 1, 2001. Addition and amendment operative July 1, 2001, by Stats. 1999, Ch. 991, Sec. 75, and Stats. 2000, Ch. 1003, Sec. 56.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=COM§ionNum=9205.
- Text hash
- sha256 b19b82847c286b04cdf30845f225ed37e9dae4fe49430f612479279920e54130
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 4 provisions
Provisions in this library whose text cites Com. Code, § 9205. Each shows the citation as that text prints it.
Public Utilities Code
- Pub. Util. Code, § 843Printed as Sections 9204 and 9205 of the Commercial Code
- Pub. Util. Code, § 848.3Printed as Sections 9204 and 9205 of the Commercial Code
- Pub. Util. Code, § 849.4Printed as Sections 9204 and 9205 of the Commercial Code
- Pub. Util. Code, § 850.3Printed as Sections 9204 and 9205 of the Commercial Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.