Title 42a — Title 42a: Uniform Commercial Code

Sec. 42a-9-335. Accessions. (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. (…

Sec. 42a-9-336. Commingled goods. (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 secu…

Sec. 42a-9-337. Priority of security interests in goods covered by certificate of title. 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…

Sec. 42a-9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in subdivisio…

Sec. 42a-9-339. Priority subject to subordination. This article does not preclude subordination by agreement by a person entitled to priority. (P.A. 01-132, S. 59.)

Sec. 42a-9-340. Effectiveness of right of recoupment or set-off against deposit account. (a) Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a secu…

Sec. 42a-9-341. Bank's rights and duties with respect to deposit account. Except as otherwise provided in subsection (c) of section 42a-9-340, and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained …

Sec. 42a-9-342. Bank's right to refuse to enter into or disclose existence of control agreement. This article does not require a bank to enter into an agreement of the kind described in subdivision (2) of subsection (a) of section 42a-9-104 even if its customer so requests or dir…

Sec. 42a-9-401. Alienability of debtor's rights. (a) Except as otherwise provided in subsection (b) and sections 42a-9-406 to 42a-9-409, inclusive, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this article. …

Sec. 42a-9-402. Secured party not obligated on contract of debtor or in tort. 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 fo…

Sec. 42a-9-403. Agreement not to assert defenses against assignee. (a) In this section, “value” has the meaning provided in subsection (a) of section 42a-3-303. (b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert …

Sec. 42a-9-404. Rights acquired by assignee. Claims and defenses against assignee. (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) to (e), inclusive, the rights of an assignee are subject to: (1) All …

Sec. 42a-9-405. Modification of assigned contract. (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 prov…

Sec. 42a-9-406. Discharge of account debtor. Notification of assignment. Identification and proof of assignment. Restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective. (a) Subject to subsections (b) to (j), inclusive, of this …

Sec. 42a-9-407. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest. (a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it: (1) Prohibits, restricts or r…

Sec. 42a-9-408. Restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles ineffective. (a) Except as otherwise provided in subsection (b) of this section, a term in a promissory note or in an agreement between an account deb…

Sec. 42a-9-408a. Financing statements covering consigned or leased goods. Section 42a-9-408a is repealed, effective October 1, 2001. (P.A. 76-369, S. 35; P.A. 01-132, S. 183.)

Sec. 42a-9-409. Restrictions on assignment of letter-of-credit rights ineffective. (a) A term in a letter of credit or a rule of law, statute, regulation, custom or practice applicable to the letter of credit which prohibits, restricts or requires the consent of an applicant, iss…

Sec. 42a-9-501. Filing office. (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 lie…

Sec. 42a-9-502. Contents of financing statement. Record of mortgage as financing statement. Time of filing financing statement. (a) Subject to subsection (b), a financing statement is sufficient only if it: (1) Provides the name of the debtor; (2) Provides the name of the secured…

Sec. 42a-9-503. Name of debtor and secured party. (a) A financing statement sufficiently provides the name of the debtor: (1) Except as otherwise provided in subdivision (3) of this subsection, if the debtor is a registered organization or the collateral is held in a trust that i…

Sec. 42a-9-504. Indication of collateral. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: (1) A description of the collateral pursuant to section 42a-910-8; or (2) An indication that the financing statement covers al…

Sec. 42a-9-505. Filing and compliance with other statutes and treaties for consignments, leases, other bailments and other transactions. (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 stateme…

Sec. 42a-9-506. Effect of errors or omissions. (a) A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (b) Except as …

Sec. 42a-9-507. Effect of certain events on effectiveness of financing settlement. (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…

Sec. 42a-9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement. (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…

Sec. 42a-9-509. Persons entitled to file a record. (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 au…

Sec. 42a-9-510. Effectiveness of filed record. (a) A filed record is effective only to the extent that it was filed by a person that may file it under section 42a-9-509. (b) A record authorized by one secured party of record does not affect the financing statement with respect to…

Sec. 42a-9-511. Secured party of record. (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 i…

Sec. 42a-9-512. Amendment of financing statement. (a) Subject to section 42a-9-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwise amend the information provided in, a financing statement by f…

Sec. 42a-9-513. Termination statement. (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…

Sec. 42a-9-514. Assignment of powers of secured party of record. (a) Except as otherwise provided in subsection (c), 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 …

Sec. 42a-9-515. Duration and effectiveness of financing statement. Effect of lapsed financing statement. (a) Except as otherwise provided in subsections (b), (e), (f) and (g) of this section, a filed financing statement is effective for a period of five years after the date of fi…

Sec. 42a-9-516. What constitutes filing. Effectiveness of filing. (a) Except as otherwise provided in subsection (b) of this section, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. In …

Sec. 42a-9-517. Effect of indexing errors. The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. (P.A. 01-132, S. 88.)

Sec. 42a-9-518. Claim concerning inaccurate or wrongfully filed record. Petition to invalidate record that was falsely filed or amended. (a) A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the perso…

Sec. 42a-9-519. Numbering, maintaining and indexing records. Communicating information provided in records. (a) For each record filed in a filing office, the filing office shall: (1) In the case of a record filed in the filing office described in subdivision (2) of subsection (a)…

Sec. 42a-9-520. Acceptance and refusal to accept record. (a) A filing office shall refuse to accept a record for filing for a reason set forth in subsection (b) of section 42a-9-516 and may refuse to accept a record for filing only for a reason set forth in subsection (b) of sect…

Sec. 42a-9-521. Refusal to accept financing statement, amendment or other written record in prescribed form prohibited. Exception. A filing office that accepts written records may not refuse to accept a written initial financing statement, an amendment to a financing statement or…

Sec. 42a-9-522. Maintenance and destruction of records. (a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under section 42a-9-515 with respec…

Sec. 42a-9-523. Information from filing office. Sale or license of records. (a) If a person that files or records a written record requests an acknowledgment of the filing or recording, the filing office, in the case of a filing office described in subdivision (2) of subsection (…

Sec. 42a-9-524. Delay by filing office. Delay by the filing office beyond a time limit prescribed by this part is excused if: (1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment or other circumstances be…

Sec. 42a-9-525. Fees. (a) The filing office described in subdivision (2) of subsection (a) of section 42a-9-501 shall charge and collect the following uniform fee: For filing and indexing an initial financing statement, an information statement or an amendment, fifty dollars. No …

Sec. 42a-9-526. Filing-office regulations. The Secretary of the State shall adopt regulations in accordance with the provisions of chapter 54 to implement this article. (P.A. 01-132, S. 97.) PART 6* DEFAULT *Annotations to former part 5: Cited. 221 C. 530; 241 C. 24.

Sec. 42a-9-601. Rights after default. Judicial enforcement. Consignor or buyer of accounts, chattel paper, payment intangibles or promissory notes. (a) After default, a secured party has the rights provided in this part and, except as otherwise provided in section 42a-9-602, thos…

Sec. 42a-9-602. Waiver and variance of rights and duties. Except as otherwise provided in section 42a-9-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the follow…

Sec. 42a-9-603. Agreement on standards concerning rights and duties. (a) The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in section 42a-9-602 if the standards…

Sec. 42a-9-604. Procedure if security agreement covers real property or fixtures. (a) If a security agreement covers both personal and real property, a secured party may proceed: (1) Under this part as to the personal property without prejudicing any rights with respect to the re…

Sec. 42a-9-605. Unknown debtor or secondary obligor. (a) A secured party does not owe a duty based on its status as secured party: (1) To a person that is a debtor or obligor, unless the secured party knows: (A) That the person is a debtor or obligor; (B) The identity of the pers…

Sec. 42a-9-606. Time of default for agricultural lien. For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created. (P.A. 01-132, S…