Code of Alabama
Ala. Code § 7-9-205 (2026)
Use or Disposition of Collateral Without Accounting Permissible.
✓ official Alabama Legislature (ALISON) text, current July 2026
Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.
(Acts 1965, No. 549, p. 811; Acts 1981, No. 81-312, p. 399.)
Notes of Decisions
Cited in 2
cases, 1983–1990 · leading case: Gen. Elec. Credit Corp. v. Strickland Div. of Rebel Lumber Co., 437 So. 2d 1240 (Ala. 1983).
Gen. Elec. Credit Corp. v. Strickland Div. of Rebel Lumber Co., 437 So. 2d 1240 (Ala. 1983). “Such a rule would violate § 7-9-205, which affords creditors wide latitude in dealing with debtors.”
Warrior River Towing, Inc. v. Kennedy, 574 So. 2d 843 (Ala. Civ. App. 1990). “§ 7-9-205, Code 1975. Here, Kennedy and Pake were assigned an account that was already the subject of a perfected security interest; hence, their right to payment of the account is subordinate to that of the secured creditor, First State Bank.”
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