(a)__Within 90 days after taking possession; or

(b)__Within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.

(7)__In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.

Official Comment

1. Source. Former Section 9-505.

2. Overview. This section and the two sections following deal with strict foreclosure, a procedure by which the secured party acquires the debtor's interest in the collateral without the need for a sale or other disposition under Section 9-610 [Maine cite section 9-1610]. Although these provisions derive from former Section 9-505, they have been entirely reorganized and substantially rewritten. The more straightforward approach taken in this Article eliminates the fiction that the secured party always will present a "proposal" for the retention of collateral and the debtor will have a fixed period to respond. By eliminating the need (but preserving the possibility) for proceeding in that fashion, this section eliminates much of the awkwardness of former Section 9-505. It reflects the belief that strict foreclosures should be encouraged and often will produce better results than a disposition for all concerned.

Subsection (a) [Maine cite subsection (1)] sets forth the conditions necessary to an effective acceptance (formerly, retention) of collateral in full or partial satisfaction of the secured obligation. Section 9-621 [Maine cite section 9-1621] requires in addition that a secured party who wishes to proceed under this section notify certain other persons who have or claim to have an interest in the collateral. Unlike the failure to meet the conditions in subsection (a) [Maine cite subsection (1)], under Section 9-622(b) [Maine cite section 9-1622, subsection (2)] the failure to comply with the notification requirement of Section 9-621 [Maine cite section 9-1621] does not render the acceptance of collateral ineffective. Rather, the acceptance can take effect notwithstanding the secured party's noncompliance. A person to whom the required notice was not sent has the right to recover damages under Section 9-625(b) [Maine cite section 9-1625, subsection (2)]. Section 9-622(a) [Maine