2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 92 - Effectiveness of Security Agreement, Attachment of Security Interest and Rights of Parties to Security Agreement
Section 9205 - Use or disposition of collateral permissible

     § 9205.  Use or disposition of collateral permissible.
        (a)  When security interest not invalid or fraudulent.--A
     security interest is not invalid or fraudulent against creditors
     solely because any of the following apply:
            (1)  The debtor has the right or ability to:
                (i)  use, commingle or dispose of all or part of the
            collateral, including returned or repossessed goods;
                (ii)  collect, compromise, enforce or otherwise deal
            with collateral;
                (iii)  accept the return of collateral or make
            repossessions; or
                (iv)  use, commingle or dispose of proceeds.
            (2)  The secured party fails to require the debtor to
        account for proceeds or replace collateral.
        (b)  Requirements of possession not relaxed.--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.