Title 47 — Uniform Commercial Code

This chapter may be cited as uniform commercial code secured transactions.

1. "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. 2. "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, for…

A. In this section: 1. "Purchase money collateral" means goods or software that secures a purchase money obligation incurred with respect to that collateral. 2. "Purchase money obligation" means an obligation of an obligor incurred as all or part of the price of the collateral or…

A. A secured party has control of a deposit account if: 1. The secured party is the bank with which the deposit account is maintained; 2. The debtor, secured party and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secure…

A. A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. B. A system satisfies subsection A of this s…

A. A person has control of a certificated security, uncertificated security or security entitlement as provided in section 47-8106. B. A secured party has control of a commodity contract if: 1. The secured party is the commodity intermediary with which the commodity contract is c…

A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under section 47-5114, subsectio…

A. Except as otherwise provided in subsections C, D and E, a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. B. Except as otherwise provided in subsection D, a description of collateral reasonab…

A. Except as otherwise provided in subsections C and D of this section, this chapter applies to: 1. A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; 2. An agricultural lien; 3. A sale of accounts, chattel paper,…

A security interest arising under section 47-2401 or 47-2505 or section 47-2711, subsection C or section 47-2A508, subsection E is subject to this chapter. However, until the debtor obtains possession of the goods: 1. The security interest is enforceable, even if section 47-9203,…

A. Except as otherwise provided in this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. B. A transaction subject to this chapter is subject to any applicable rule of law that establis…

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.

A. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. B. Except as otherwise provided in subsections C through I of this section, a security inte…

A. Except as otherwise provided in subsection B, a security agreement may create or provide for a security interest in after-acquired collateral. B. A security interest does not attach under a term constituting an after-acquired property clause to: 1. Consumer goods, other than a…

A. A security interest is not invalid or fraudulent against creditors solely because: 1. The debtor has the right or ability to: (a) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods; (b) Collect, compromise, enforce or otherwise …

A. A security interest in favor of a securities intermediary attaches to a person's security entitlement if: 1. The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities inte…

A. Except as otherwise provided in subsection D of this section, 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 ste…

A. This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations or otherwise give value. B. Within ten days after receiving an authenticated demand by the debtor: 1. A secured party ha…

A. Except as otherwise provided in subsection C of this section, this section applies if: 1. There is no outstanding secured obligation; and 2. The secured party is not committed to make advances, incur obligations or otherwise give value. B. Within ten days after receiving an au…

A. In this section: 1. "Request" means a record of a type described in paragraph 2, 3 or 4 of this subsection. 2. "Request for an accounting" means a record authenticated by a debtor, requesting that the recipient provide an accounting of the unpaid obligations secured by collate…

Except as otherwise provided in sections 47-9303 through 47-9306, the following rules determine the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in collateral: 1. Except as otherwise provided in this section, while a …

While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of an agricultural lien on the farm products.

A. This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. B. Goods become covered by a certificate of title when a valid a…

A. The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a deposit account maintained with that bank. B. The following rules determine a bank's jurisdiction for purposes of this article: 1. …

A. Except as otherwise provided in subsection C of this section, the following rules apply: 1. While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a securit…

A. Subject to subsection C of this section, the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a letter-of-credit right if the issuer's jurisdicti…

A. In this section, "place of business" means a place where a debtor conducts its affairs. B. Except as otherwise provided in this section, the following rules determine a debtor's location: 1. A debtor who is an individual is located at the individual's principal residence. 2. A…

A. Except as otherwise provided in this section and section 47-9309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 47-9310 through 47-9316 have been satisfied. A security interest is perfected when it attache…

The following security interests are perfected when they attach: 1. A purchase money security interest in consumer goods, except as otherwise provided in section 47-9311, subsection B with respect to consumer goods that are subject to a statute or treaty described in section 47-9…

A. Except as otherwise provided in subsection B of this section and section 47-9312, subsection B, a financing statement must be filed to perfect all security interests and agricultural liens. B. The filing of a financing statement is not necessary to perfect a security interest:…

A. Except as otherwise provided in subsection D of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to: 1. A statute, regulation or treaty of the United States whose requirements for a security inte…

A. A security interest in chattel paper, negotiable documents, instruments or investment property may be perfected by filing. B. Except as otherwise provided in section 47-9315, subsections C and D for proceeds: 1. A security interest in a deposit account may be perfected only by…

A. Except as otherwise provided in subsection B of this section, a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security in…

A. A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper or electronic documents may be perfected by control of the collateral under section 47-7106, 47-9104, 47-9105, 47-9106 or 47-9107. B. A security interest in deposit …

A. Except as otherwise provided in this chapter and in section 47-2403, subsection B: 1. A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange or other disposition thereof unless the secured party authorized the dispositio…

A. A security interest perfected pursuant to the law of the jurisdiction designated in section 47-9301, paragraph 1 or section 47-9305, subsection C remains perfected until the earliest of: 1. The time perfection would have ceased under the law of that jurisdiction; 2. The expira…

A. A security interest or agricultural lien is subordinate to the rights of: 1. A person entitled to priority under section 47-9322; and 2. Except as otherwise provided in subsection E of this section, a person that becomes a lien creditor before the earlier of the time: (a) The …

A. A debtor that has sold an account, chattel paper, payment intangible or promissory note does not retain a legal or equitable interest in the collateral sold. B. For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from…

A. Except as otherwise provided in subsection B, for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods iden…

A. Except as otherwise provided in subsection E of this section, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security int…

A. In this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible and in the ordinary course from a person …

A. Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules: 1. Conflicting perfected security interests and agricultural liens rank according to priori…

A. Except as otherwise provided in subsection C of this section, for purposes of determining the priority of a perfected security interest under section 47-9322, subsection A, paragraph 1, perfection of the security interest dates from the time an advance is made to the extent th…

A. Except as otherwise provided in subsection G of this section, a perfected purchase money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in section 47-9327, a pe…

A. Except as otherwise provided in subsection B of this section, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if: 1. The debtor acquired the collateral subject to the security interest created by th…

A. Subject to subsection B of this section, a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for t…

The following rules govern priority among conflicting security interests in the same deposit account: 1. A security interest held by a secured party having control of the deposit account under section 47-9104 has priority over a conflicting security interest held by a secured par…

The following rules govern priority among conflicting security interests in the same investment property: 1. A security interest held by a secured party having control of investment property under section 47-9106 has priority over a security interest held by a secured party that …

The following rules govern priority among conflicting security interests in the same letter-of-credit right: 1. A security interest held by a secured party having control of the letter-of-credit right under section 47-9107 has priority to the extent of its control over a conflict…

A. A purchaser of chattel paper has priority over a security interest in the chattel paper that is claimed merely as proceeds of inventory subject to a security interest if: 1. In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value and…