1999 Minnesota Statutes

     336.9-205 Use or disposition of collateral without 
  accounting permissible. 

    A security interest is not invalid or fraudulent against 
 creditors by reason of liberty in the debtor to use, commingle 
 or dispose of all or part of the collateral (including returned 
 or repossessed goods) or to collect or compromise accounts or 
 chattel paper, or to accept the return of goods or make 
 repossessions, or to use, commingle or dispose of proceeds, or 
 by reason of the failure of the secured party to require the 
 debtor to account for proceeds or replace collateral.  This 
 section does not relax the requirements of possession where 
 perfection of a security interest depends upon possession of the 
 collateral by the secured party or by a bailee. 

    HIST: 1965 c 811 s 336.9-205; 1976 c 135 s 13