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Can you summarize NHRS 382-A:9-207?
UNIFORM COMMERCIAL CODE > Rights and Duties of Secured Party Having Possession or Control of Collateral.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, outlines the rights and duties of a secured party who has possession or control of collateral. The secured party is required to exercise reasonable care in the custody and preservation of the collateral, including taking necessary steps to preserve rights against prior parties. The document specifies that reasonable expenses incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and secured by the collateral. The risk of accidental loss or damage is on the debtor, except to the extent of deficient insurance coverage. The secured party must keep the collateral identifiable, but fungible collateral may be commingled. The secured party may use or operate the collateral for preservation purposes, as permitted by a court order, or as agreed upon by the debtor. Additionally, the document outlines the duties and rights of a secured party who has possession or control of collateral, including the ability to hold proceeds as additional security, apply money received from the collateral to reduce the secured obligation, and create a security interest in the collateral. There are exemptions for buyers of certain rights to payment, who are not subject to certain provisions unless entitled under an agreement to charge back uncollected collateral or have recourse against the debtor or secondary obligor based on nonpayment or default.
Whom does it apply to?
Secured parties who have possession or control of collateral
What does it govern?
Rights and Duties of Secured Party Having Possession or Control of Collateral
What are exemptions?
Buyers of accounts, chattel paper, payment intangibles, or promissory notes, or consignors are exempt from subsections (a), (b), and (c) unless entitled under an agreement to charge back uncollected collateral or have recourse against the debtor or secondary obligor based on nonpayment or default.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New Hampshire