Indiana Code
Chapter 9.1. Secured Transactions
26-1-9.1-207. Rights and Duties of Secured Party Having Possession or Control of Collateral

Sec. 207. (a) Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b) Except as otherwise provided in subsection (d), if a secured party has possession of collateral:
(1) reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(2) the risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;
(3) the secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and
(4) the secured party may use or operate the collateral:
(A) for the purpose of preserving the collateral or its value;
(B) as permitted by an order of a court having competent jurisdiction; or
(C) except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(c) Except as otherwise provided in subsection (d), a secured party having possession of collateral or control of collateral under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, or IC 26-1-9.1-107:
(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.
(d) If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:
(1) subsection (a) does not apply unless the secured party is entitled under an agreement:
(A) to charge back uncollected collateral; or
(B) otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(2) subsections (b) and (c) do not apply.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.67.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 9.1. Secured Transactions

26-1-9.1-101. Short Title

26-1-9.1-102. Definitions and Index of Definitions

26-1-9.1-102.5. "Take Free"; "Takes Free"; "Takes the Money Free"; "Takes the Funds Free"

26-1-9.1-103. Purchase-Money Security Interest; Application of Payment; Burden of Establishing

26-1-9.1-104. Control of Deposit Account

26-1-9.1-105. Control of Electronic Chattel Paper

26-1-9.1-106. Control of Investment Property

26-1-9.1-107. Control of Letter-of-Credit Right

26-1-9.1-107.1. Control of Controllable Electronic Record, Controllable Account, or Controllable Payment Intangible

26-1-9.1-108. Sufficiency of Description

26-1-9.1-109. Scope

26-1-9.1-110. Security Interests Arising Under Ic 26-1-2 or Ic 26-1-2.1

26-1-9.1-201. General Effectiveness of Security Agreement

26-1-9.1-202. Title to Collateral Immaterial

26-1-9.1-203. Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites

26-1-9.1-204. After-Acquired Property; Future Advances

26-1-9.1-205. Use or Disposition of Collateral Permissible

26-1-9.1-206. Security Interest Arising in Purchase or Delivery of Financial Asset

26-1-9.1-207. Rights and Duties of Secured Party Having Possession or Control of Collateral

26-1-9.1-208. Additional Duties of Secured Party Having Control of Collateral

26-1-9.1-209. Duties of Secured Party if Account Debtor Has Been Notified of Assignment

26-1-9.1-210. Request for Accounting; Request Regarding List of Collateral or Statement of Account

26-1-9.1-301. Law Governing Perfection and Priority of Security Interests

26-1-9.1-302. Law Governing Perfection and Priority of Agricultural Liens

26-1-9.1-303. Law Governing Perfection and Priority of Security Interests in Goods Covered by a Certificate of Title

26-1-9.1-304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

26-1-9.1-305. Law Governing Perfection and Priority of Security Interests in Investment Property

26-1-9.1-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights

26-1-9.1-307. Location of Debtor

26-1-9.1-308. When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection

26-1-9.1-309. Security Interest Perfected Upon Attachment

26-1-9.1-310. When Filing Required to Perfect Security Interest or Agricultural Lien; Security Interests and Agricultural Liens to Which Filing Provisions Do Not Apply

26-1-9.1-311. Perfection of Security Interests in Property Subject to Certain Statutes, Regulations, and Treaties

26-1-9.1-312. Perfection by Permissive Filing; Perfection Only by Control or Possession; Temporary Perfection Without Filing or Transfer of Possession

26-1-9.1-313. When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing

26-1-9.1-314. Perfection by Control

26-1-9.1-315. Secured Party's Rights on Disposition of Collateral and in Proceeds

26-1-9.1-316. Continued Perfection of Security Interest Following Change in Governing Law

26-1-9.1-317. Interests That Take Priority Over or Take Free of Unperfected Security Interest or Agricultural Lien

26-1-9.1-318. No Interest Retained in Right to Payment That Is Sold; Rights and Title of Seller of Account or Chattel Paper With Respect to Creditors and Purchasers

26-1-9.1-319. Rights and Title of Consignee With Respect to Creditors and Purchasers

26-1-9.1-320. Buyer of Goods

26-1-9.1-321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business

26-1-9.1-322. Priorities Among Conflicting Security Interests in and Agricultural Liens on Same Collateral

26-1-9.1-323. Future Advances

26-1-9.1-324. Priority of Purchase-Money Security Interests

26-1-9.1-325. Priority of Security Interests in Transferred Collateral

26-1-9.1-326. Priority of Security Interests Created by New Debtor

26-1-9.1-327. Priority of Security Interests in Deposit Account

26-1-9.1-328. Priority of Security Interests in Investment Property

26-1-9.1-329. Priority of Security Interests in Letter-of-Credit Rights

26-1-9.1-330. Priority of Purchases of Chattel Paper or Instrument

26-1-9.1-331. Priority of Rights of Holders or Purchasers; Persons Protected Against Adverse Claims; Filing Not Considered Notice of Claim or Defense

26-1-9.1-332. Transfer of Money; Transfer of Funds From Deposit Account

26-1-9.1-333. Priority of Certain Liens Arising by Operation of Law

26-1-9.1-334. Priority of Security Interests in Fixtures and Crops

26-1-9.1-335. Accessions

26-1-9.1-336. Commingled Goods

26-1-9.1-337. Priority of Security Interests in Goods Covered by Certificate of Title

26-1-9.1-338. Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

26-1-9.1-339. Priority Subject to Subordination

26-1-9.1-340. Effectiveness of Right of Recoupment or Setoff Against Deposit Account

26-1-9.1-341. Bank's Rights and Duties With Respect to Deposit Account

26-1-9.1-342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement

26-1-9.1-401. Alienability of Debtor's Rights

26-1-9.1-402. Secured Party Not Obligated on Contract of Debtor or in Tort

26-1-9.1-403. Agreement Not to Assert Defenses Against Assignee

26-1-9.1-404. Rights Acquired by Assignee; Claims and Defenses Against Assignee

26-1-9.1-405. Modification of Assigned Contract

26-1-9.1-406. Discharge of Account Debtor; Notification of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective

26-1-9.1-407. Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest

26-1-9.1-408. Restrictions on Assignment of Promissory Notes, Health Care Insurance Receivables, and Certain General Intangibles Ineffective

26-1-9.1-409. Restrictions on Assignment of Letter-of-Credit Rights Ineffective

26-1-9.1-501. Filing Office

26-1-9.1-502. Contents of Financing Statement; Record of Mortgage as Financing Statement; Time of Filing Financing Statement

26-1-9.1-503. Name of Debtor and Secured Party

26-1-9.1-504. Indication of Collateral

26-1-9.1-505. Filing and Compliance With Other Statutes and Treaties for Consignments, Leases, Other Bailments, and Other Transactions

26-1-9.1-506. Effect of Errors or Omissions

26-1-9.1-507. Effect of Certain Events on Effectiveness of Financing Statement

26-1-9.1-508. Effectiveness of Financing Statement if New Debtor Becomes Bound by Security Agreement

26-1-9.1-509. Persons Entitled to File a Record

26-1-9.1-510. Effectiveness of Filed Record

26-1-9.1-511. Secured Party of Record

26-1-9.1-512. Amendment of Financing Statement

26-1-9.1-513. Termination Statement

26-1-9.1-514. Assignment of Powers of Secured Party of Record

26-1-9.1-515. Duration and Effectiveness of Financing Statement; Effect of Lapsed Financing Statement

26-1-9.1-516. What Constitutes Filing; Effectiveness of Filing

26-1-9.1-517. Effect of Indexing Errors

26-1-9.1-518. Claim Concerning Inaccurate or Wrongfully Filed Record

26-1-9.1-519. Numbering, Maintaining, and Indexing Records; Communicating Information Provided in Records

26-1-9.1-520. Acceptance and Refusal to Accept Record

26-1-9.1-521. Written Record Filing; Format

26-1-9.1-522. Maintenance and Destruction of Records

26-1-9.1-523. Information From Filing Office; Sale or License of Records

26-1-9.1-524. Delay by Filing Office

26-1-9.1-525. Fees

26-1-9.1-526. Filing—office Rules

26-1-9.1-527. Duty to Report

26-1-9.1-601. Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes

26-1-9.1-602. Waiver and Variance of Rights and Duties

26-1-9.1-603. Agreement on Standards Concerning Rights and Duties

26-1-9.1-604. Procedure if Security Agreement Covers Real Property or Fixtures

26-1-9.1-605. Unknown Debtor or Secondary Obligor

26-1-9.1-606. Time of Default for Agricultural Lien

26-1-9.1-607. Collection and Enforcement by Secured Party

26-1-9.1-608. Application of Proceeds of Collection or Enforcement; Liability for Deficiency and Right to Surplus

26-1-9.1-609. Secured Party's Right to Take Possession After Default

26-1-9.1-610. Disposition of Collateral After Default

26-1-9.1-611. Notification Before Disposition of Collateral

26-1-9.1-612. Timeliness of Notification Before Disposition of Collateral

26-1-9.1-613. Contents and Form of Notification Before Disposition of Collateral; General

26-1-9.1-614. Contents and Form of Notification Before Disposition of Collateral; Consumer Goods Transaction

26-1-9.1-615. Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus

26-1-9.1-616. Explanation of Calculation of Surplus or Deficiency

26-1-9.1-617. Rights of Transferee of Collateral

26-1-9.1-618. Rights and Duties of Certain Secondary Obligors

26-1-9.1-619. Transfer of Record or Legal Title

26-1-9.1-620. Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsory Disposition of Collateral

26-1-9.1-621. Notification of Proposal to Accept Collateral

26-1-9.1-622. Effect of Acceptance of Collateral

26-1-9.1-623. Right to Redeem Collateral

26-1-9.1-624. Waiver

26-1-9.1-625. Remedies for Secured Party's Failure to Comply With Chapter

26-1-9.1-626. Action in Which Deficiency or Surplus Is in Issue

26-1-9.1-627. Determination of Whether Conduct Was Commercially Reasonable

26-1-9.1-628. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

26-1-9.1-701. Effective Date

26-1-9.1-702. Savings Clause

26-1-9.1-703. Security Interest Perfected Before Effective Date

26-1-9.1-704. Security Interest Unperfected Before Effective Date

26-1-9.1-705. Effectiveness of Action Taken Before Effective Date

26-1-9.1-706. Filing of Initial Financing Statement; Effectiveness of Financing Statement

26-1-9.1-707. Pre-Effective-Date Financing Statement

26-1-9.1-708. Persons Entitled to File Initial Financing Statement or Continuation Statement

26-1-9.1-709. Priority

26-1-9.1-801. Transactions or Liens Entered Into or Created Before July 1, 2013

26-1-9.1-802. Security Interest Perfected Before July 1, 2013

26-1-9.1-803. Security Interest Unperfected Before July 1, 2013

26-1-9.1-804. Effectiveness of Action Taken Before July 1, 2013

26-1-9.1-805. When Initial Financing Statement Suffices to Continue Effectiveness of Financing Statement

26-1-9.1-806. Amendment of Financing Statement Filed Before July 1, 2013

26-1-9.1-807. Person Entitled to File Initial Financing Statement or Continuation Statement

26-1-9.1-808. Priority

26-1-9.1-901. Refusal to Accept Financing Statements; Fraudulent Financing Statements; No Duty to Inspect Financing Statements

26-1-9.1-902. Judicial Reviews of Financing Statements; Pro Se Motions