WILLIAM DONALD SCHAEFER, Governor                           S.B. 209

(II) "CONSUMER GOODS" DOES NOT INCLUDE MONEY,

DOCUMENTS, INSTRUMENTS, ACCOUNTS, CHATTEL PAPER, OR GENERAL
INTANGIBLES.

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

(I) HAS BEEN REPOSSESSED BY THE CREDIT UNION; OR

(II) IS IN ACTUAL OR CONSTRUCTIVE POSSESSION OF THE CREDIT
UNION 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 BORROWER HAS PAID 60 PERCENT OF THE CASH PRICE OR
60 PERCENT OF THE LOAN IN THE CASE OF ANOTHER SECURITY INTEREST IN
CONSUMER GOODS AND, AFTER DEFAULT, HAS NOT SIGNED A STATEMENT
RENOUNCING OR MODIFYING THE BORROWER'S RIGHTS UNDER THIS SUBSECTION,
A CREDIT UNION THAT 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.

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

(II) IF A CREDIT UNION PROPOSES TO RETAIN PROPERTY IN FULL
SATISFACTION OF THE OBLIGATIONS OF THE BORROWER UNDER THE LOAN, THE
CREDIT UNION SHALL SEND WRITTEN NOTICE OF THE PROPOSAL TO:

1. THE BORROWER; AND

2. EXCEPT IN THE CASE OF CONSUMER GOODS, ANY OTHER
PERSON WHO HAS A SECURITY INTEREST IN THE PROPERTY, AND WHO HAS DULY
FILED A FINANCING STATEMENT INDEXED IN THE NAME OF THE BORROWER IN
THIS STATE OR IS KNOWN BY THE CREDIT UNION TO HAVE A SECURITY INTEREST IN
THE PROPERTY.

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

2. IN THE ABSENCE OF WRITTEN OBJECTION, THE CREDIT
UNION MAY RETAIN THE PROPERTY IN SATISFACTION OF THE OUTSTANDING
UNPAID INDEBTEDNESS UNDER THE LOAN.

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