The Florida Senate

679.505  Compulsory disposition of collateral; acceptance of the collateral as discharge of obligation.--

(1)  If the debtor has paid 60 percent of the cash price in the case of a purchase money security interest in consumer goods or 60 percent of the loan in the case of another security interest in consumer goods, and has not signed after default a statement renouncing or modifying his or her rights under this part a secured party who has taken possession of collateral must dispose of it under s. 679.504 and if the secured party fails to do so within 90 days after he or she takes possession the debtor at his or her option may recover in conversion or under s. 679.507(1) on secured party's liability.

(2)  In any other case involving consumer goods or any other collateral, a secured party in possession may, after default, propose to retain the collateral in satisfaction of the obligation. Written notice of such proposal shall be sent to the debtor and, except in the case of consumer goods, to any other secured party who has a security interest in the collateral and who has duly filed a financing statement indexed in the name of the debtor in this state. If the debtor or other person entitled to receive notification objects in writing within 30 days from the date the notification is sent by the secured party or if any other secured party objects in writing within 30 days after the secured party obtains possession, the secured party must dispose of the collateral under s. 679.504 if the debtor or such other person has not signed after default a conspicuous statement renouncing or modifying his or her rights under this subsection. In the absence of such written objection, the secured party may retain the collateral in satisfaction of the debtor's obligation.

History.--s. 1, ch. 65-254; s. 35, ch. 79-398; s. 702, ch. 97-102.

Note.--s. 9-505, U.C.C.