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This entry was published on 2014-09-22
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SECTION 185.05
Fraud involving a security interest
Penal (PEN) CHAPTER 40, PART 3, TITLE K, ARTICLE 185
§ 185.05 Fraud involving a security interest.

A person is guilty of fraud involving a security interest when, having
executed a security agreement creating a security interest in personal
property securing a monetary obligation owed to a secured party, and:

1. Having under the security agreement both the right of sale or other
disposition of the property and the duty to account to the secured party
for the proceeds of disposition, he sells or otherwise disposes of the
property and wrongfully fails to account to the secured party for the
proceeds of disposition; or

2. Having under the security agreement no right of sale or other
disposition of the property, he knowingly secretes, withholds or
disposes of such property in violation of the security agreement.

Fraud involving a security interest is a class A misdemeanor.