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Can you summarize MNST 336.9-620?
UNIFORM COMMERCIAL CODE > ACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION OF OBLIGATION; COMPULSORY DISPOSITION OF COLLATERAL.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the acceptance of collateral in full or partial satisfaction of an obligation and the compulsory disposition of collateral. It outlines the conditions under which a secured party may accept collateral as satisfaction of the obligation, including obtaining the debtor’s consent and not receiving any objections from other interested parties within a specified time. The document also specifies that if the collateral is consumer goods, it should not be in the possession of the debtor when consent is given. Additionally, it addresses the mandatory disposition of consumer goods by a secured party who has taken possession of the collateral, based on the percentage of payment received. The document provides guidelines for compliance with the mandatory disposition requirement and states that in consumer transactions, collateral cannot be accepted in partial satisfaction of the obligation. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Secured parties and debtors involved in transactions where collateral is used to secure an obligation
What does it govern?
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Minnesota