J. MILLARD TAWES, Governor                        925

ment or chattel paper reasonable care includes taking necessary steps
to preserve rights against prior parties unless otherwise agreed.

(2)   Unless otherwise agreed, when collateral is in the secured
party's possession

(a)  reasonable expenses (including the cost of any insurance and
payment of taxes or other charges) incurred in the custody, preser-
vation, use or operation of the collateral are chargeable to the debtor
and are secured by the collateral;

(b)  the risk of accidental loss or damage is on the debtor to the
extent of any deficiency in any effective insurance coverage;

(c)  the secured party may hold as additional security any increase
or profits (except money) received from the collateral, but money so
received, unless remitted to the debtor, shall be applied in reduction
of the secured obligation;

(d)  the secured party must keep the collateral identifiable but
fungible collateral may be commingled;

(e)  the secured party may repledge the collateral upon terms
which do not impair the debtor's right to redeem it.

(3)  A secured party is liable for any loss caused by his failure to
meet any obligation imposed by the preceding subsections but does
not lose his security interest.

(4) A secured party may use or operate the collateral for the
purpose of preserving the collateral or its value or pursuant to the
order of a court of appropriate jurisdiction or, except in the case of
consumer goods, in the manner and to the extent provided in the
security agreement.

9—208. Request for Statement of Account or List of Collateral.

(1)  A debtor may sign a statement indicating what he believes to
be the aggregate amount of unpaid indebtedness as of a specified
date and may send it to the secured party with a request that the
statement be approved or corrected and returned to the debtor. When
the security agreement or any other record kept by the secured party
identifies the collateral a debtor may similarly request the secured
party to approve or correct a list of the collateral.

(2)   The secured party must comply with such a request within
two weeks after receipt by sending a written correction or approval.
If the secured party claims a security interest in all of a particular
type of collateral owned by the debtor he may indicate that fact in
his reply and need not approve or correct an itemized list of such
collateral. If the secured party without reasonable excuse fails to
comply he is liable for any loss caused to the debtor thereby; and if
the debtor has properly included in his request a good faith statement
of the obligation or a list of the collateral or both the secured party
may claim a security interest only as shown in the statement against
persons misled by his failure to comply. If he no longer has an in-
terest in the obligation or collateral at the time the request is received
he must disclose the name and address of any successor in interest
known to him and he is liable for any loss caused to the debtor as a
result of failure to disclose. A successor in interest is not subject
to this section until a request is received by him.