ROBERT L. EHRLICH, JR., Governor                           H.B. 140

9-207.

(c) Except as otherwise provided in subsection (d), a secured party having
possession of collateral or control of collateral under [§ 9-104, § 9-105, § 9-106, or §
9-107] § 7-106, § 9-104, § 9-105, § 9-106, OR § 9-107:

(1)     May hold as additional security any proceeds, except money or funds,
received from the collateral;

(2)     Shall apply money or funds received from the collateral to reduce the
secured obligation, unless remitted to the debtor; and

(3)     May create a security interest in the collateral.
9-208.

(b) Within 10 days after receiving an authenticated demand by the debtor:

(1)     A secured party having control of a deposit account under §
9-104(a)(2) shall send to the bank with which the deposit account is maintained an
authenticated statement that releases the bank from any further obligation to comply
with instructions originated by the secured party;

(2)     A secured party having control of a deposit account under §
9-104(a)(3) shall:

(A)    Pay the debtor the balance on deposit in the deposit account; or

(B)    Transfer the balance on deposit into a deposit account in the
debtor's name;

(3)     A secured party, other than a buyer, having control of electronic
chattel paper under § 9-105 shall:

(A)     Communicate the authoritative copy of the electronic chattel
paper to the debtor or its designated custodian;

(B)    If the debtor designates a custodian that is the designated
custodian with which the authoritative copy of the electronic chattel paper is
maintained for the secured party, communicate to the custodian an authenticated
record releasing the designated custodian from any further obligation to comply with
instructions originated by the secured party and instructing the custodian to comply
with instructions originated by the debtor; and

(C)     Take appropriate action to enable the debtor or its designated
custodian to make copies of or revisions to the authoritative copy which add or change
an identified assignee of the authoritative copy without the consent of the secured
party;

(4)     A secured party having control of investment property under §
8-106(d)(2) of this article or § 9-106(b) shall send to the securities intermediary or
commodity intermediary with which the security entitlement or commodity contract
is maintained an authenticated record that releases the securities intermediary or

- 2953 -