WILLIAM DONALD SCHAEFER, Governor                         S.B. 329

(II) "CONSUMER GOODS" DOES NOT INCLUDE MONEY,
DOCUMENTS, INSTRUMENTS, ACCOUNTS, CHATTEL PAPER, GENERAL INTANGIBLES,
OR MINERALS OR OTHER NATURAL RESOURCES BEFORE EXTRACTION OR
GENERAL INTANGIBLES.

(2)      THIS SUBSECTION APPLIES TO TANGIBLE PERSONAL PROPERTY
SECURING A PLAN THAT:

(I)      HAS BEEN REPOSSESSED BY THE CREDIT GRANTOR; AN© OR

(II)     IS IN ACTUAL OR CONSTRUCTIVE POSSESSION OF THE CREDIT
GRANTOR WHERE THE PERFECTION OF THE SECURITY INTEREST IN THE PROPERTY
DEPENDS ON THE POSSESSION OF THE PROPERTY.

(3)      IN THE CASE OF A PURCHASE MONEY SECURITY INTEREST IN
CONSUMER GOODS, IF A CONSUMER BORROWER HAS PAID 60 PERCENT OF THE
CASH PRICE AND, AFTER DEFAULT, HAS NOT SIGNED A STATEMENT RENOUNCING
OR MODIFYING THE CONSUMER BORROWER'S RIGHTS UNDER THIS SUBSECTION, A
CREDIT GRANTOR WHO HAS REPOSSESSED THE CONSUMER GOODS MUST TAKE
REASONABLE ACTION WITHIN 90 DAYS AFTER THE REPOSSESSION TO COMMENCE
DISPOSAL OF THEM IN THE MANNER PROVIDED UNDER SUBSECTION (J) OF THIS
SECTION WITHIN 90 DAYS AFTER THE REPOSSESSION.

(4)      (I) IN ANY OTHER CASE INVOLVING TANGIBLE PERSONAL
PROPERTY SECURING A PLAN, A CREDIT GRANTOR MAY, AFTER DEFAULT, PROPOSE
TO RETAIN THE PROPERTY IN FULL SATISFACTION OF THE OBLIGATIONS OF THE
BORROWER UNDER THE PLAN.

(II)     IF, AS AUTHORIZED BY SUBPARAGRAPH (I) OF THIS
PARAGRAPH, A CREDIT GRANTOR PROPOSES TO RETAIN PROPERTY IN FULL
SATISFACTION OF THE OBLIGATIONS OF THE BORROWER UNDER THE PLAN, THE
CREDIT GRANTOR SHALL SEND WRITTEN NOTICE OF THE PROPOSAL SHALL BE SENT
TO:

1.       THE CONSUMER BORROWER; OR AND

2.        EXCEPT IN THE CASE OF CONSUMER GOODS, ANY OTHER
PERSON WHO HAS A SECURITY INTEREST IN THE PROPERTY AND WHO:

A.       HAS DULY FILED A FINANCING STATEMENT INDEXED IN
THE NAME OF THE CONSUMER BORROWER IN THIS STATE; OR

B.       IS KNOWN BY THE CREDIT GRANTOR TO HAVE A
SECURITY INTEREST IN THE PROPERTY.

(III)    1. IF THE CONSUMER BORROWER OR OTHER PERSON
ENTITLED TO RECEIVE NOTIFICATION OBJECTS IN WRITING WITHIN 30 DAYS FROM
THE SENDING OF THE NOTIFICATION, THE CREDIT GRANTOR MUST TAKE
REASONABLE ACTION TO DISPOSE OF THE PROPERTY IN THE MANNER PROVIDED
UNDER SUBSECTION (J) OF THIS SECTION.

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