California § 9205 - A security interest is not invalid or fraudulent against creditors solely because

Full text of California Public Contract Code - PCC § 9205 — A security interest is not invalid or fraudulent against creditors solely because, with citation guidance and answers to common questions.

§ 9205. A security interest is not invalid or fraudulent against creditors solely because

(a) A security interest is not invalid or fraudulent against creditors solely because either of the following applies: (1) The debtor has the right or ability to do any of the following: (A) Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods. (B) Collect, compromise, enforce, or otherwise deal with collateral. (C) Accept the return of collateral or make repossessions. (D) Use, commingle, or dispose of proceeds. (2) The secured party fails to require the debtor to account for proceeds or replace collateral. (b) This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.

Source: official California text · Last verified 2026-08-27

Frequently Asked Questions About California § 9205

What does Public Contract Code - PCC § 9205 cover?

Section 9205 ("A security interest is not invalid or fraudulent against creditors solely because") is part of the Public Contract Code - PCC, the codified statutory law of California. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite California § 9205?

A common citation format is "Public Contract Code - PCC § 9205" (California). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of California law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the California official source linked on this page or consult a licensed California attorney.

How does California § 9205 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in California can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in California.