Title 47, Uniform Commercial Code

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…

A. This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated or a protected purchaser of a security. These holders or purchasers take priority over an earlier security int…

A. A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party. B. A transferee of funds from a deposit account takes the funds free of a security interest in the deposit ac…

A. In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien: 1. That secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's bu…

A. A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land. B. This chapter does n…

A. A security interest may be created in an accession and continues in collateral that becomes an accession. B. If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. C. Except as otherwise provided…

A. In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass. B. A security interest does not exist in commingled goods as such. However, a security interest may attach to a produc…

If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security int…

If a security interest or agricultural lien is perfected by a filed financing statement providing information that is described in section 47-9516, subsection B, paragraph 5 and that is incorrect at the time the financing statement is filed: 1. The security interest or agricultur…

This chapter does not preclude subordination by agreement by a person entitled to priority.

A. Except as otherwise provided in subsection C of this section, a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account. B. Except as otherwise provided in subs…

Except as otherwise provided in section 47-9340, subsection C, and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended or modified by: 1. The creation, att…

This article does not require a bank to enter into an agreement of the kind described in section 47-9104, subsection A, paragraph 2, even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreeme…

A. Except as otherwise provided in subsection B of this section and sections 47-9406, 47-9407, 47-9408 and 47-9409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter. B. An agreement between the debt…

The existence of a security interest, agricultural lien or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.

A. In this section, "value" has the meaning provided in section 47-3303, subsection A. B. Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have a…

A. Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections B through E, the rights of an assignee are subject to: 1. All terms of the agreement between the account debtor and assignor and any defense or claim in reco…

A. A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breac…

A. Subject to subsections B through H of this section, an account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the…

A. Except as otherwise provided in subsection B of this section, a term in a lease agreement is ineffective to the extent that it: 1. Prohibits, restricts or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection or …

A. Except as otherwise provided in subsection B of this section, a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license or franchise, a…

A. A term in a letter of credit or a rule of law, statute, regulation, custom or practice applicable to the letter of credit that prohibits, restricts or requires the consent of an applicant, issuer or nominated person to a beneficiary's assignment of or creation of a security in…

A. Except as otherwise provided in subsection B, if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is: 1. The office designated for…

A. Subject to subsection B of this section, a financing statement is sufficient only if it: 1. Provides the name of the debtor; 2. Provides the name of the secured party or a representative of the secured party; and 3. Indicates the collateral covered by the financing statement. …

A. A financing statement sufficiently provides the name of the debtor: 1. Except as otherwise provided in paragraph 3 of this subsection, if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing state…

A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: 1. A description of the collateral pursuant to section 47-9108; or 2. An indication that the financing statement covers all assets or all personal property.

A. A consignor, lessor or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in section 47-9311, subsection A, using the terms "consignor", "consignee", "lessor"…

A. A financing statement substantially satisfying the requirements of this article is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. B. Except as otherwise provided in subsection C of this sec…

A. A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition. B. Ex…

A. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had t…

A. A person may file an initial financing statement, amendment that adds collateral covered by a financing statement or amendment that adds a debtor to a financing statement only if: 1. The debtor authorizes the filing in an authenticated record or pursuant to subsection B or C o…

A. A filed record is effective only to the extent that it was filed by a person that may file it under section 47-9509. B. A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record. C. A continuation…

A. A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under …

A. Subject to section 47-9509, a person may add or delete collateral covered by, continue or terminate the effectiveness of or, subject to subsection E of this section, otherwise amend the information provided in a financing statement by filing an amendment that: 1. Identifies, b…

A. A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and: 1. There is no obligation secured by the collateral covered by the financing stat…

A. Except as otherwise provided in subsection C of this section, an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name…