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Delaware Statutes, Title 6

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Delaware/Statutes

← All Delaware coverage

Title 6, Commerce and Trade

89 chapters · 1,810 sections in this title.

All chapters in Title 61,810 Ch 9, Article 9. Secured Transactions152 Ch 17, LIMITED PARTNERSHIPS111 Ch 18, LIMITED LIABILITY COMPANY ACT105 Ch 2, Article 2. Sales103 Ch 15, DELAWARE REVISED UNIFORM PARTNERSHIP ACT93 Ch 2a, Article 2A. Leases79 Ch 25, PROHIBITED TRADE PRACTICES78 Ch 3, Article 3. Negotiable Instruments71 Ch 8, Article 8. Investment Securities53 Ch 43, RETAIL INSTALLMENT SALES51 Ch 7, Article 7. Documents of Title43 Ch 51, Commerce and Trade42 Ch 4, Article 4. Bank Deposits and Collections41 Ch 24a, Commerce and Trade39

152 sections·Filtered byTitle 6✕Ch 9✕

6 Del. C. § 9-101. Short title.
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§ 9-101. Short title. This Article may be cited as Uniform Commercial Code — Secured Transactions.72 Del. Laws, c. 401, § 1;
6 Del. C. § 9-102. Definitions and index of definitions.
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§ 9-102. Definitions and index of definitions. (a) Article 9 definitions. — In this Article: (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…
6 Del. C. § 9-103. Purchase-money security interest; application of payments; burden of establishing.
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§ 9-103. Purchase-money security interest; application of payments; burden of establishing. (a) Definitions. — In this section: (1) “purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and (2) “purc…
6 Del. C. § 9-104. Control of deposit account.
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§ 9-104. Control of deposit account. (a) Requirements for control. — 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 a signed record that th…

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6 Del. C. § 9-105. Control of electronic copy of record evidencing chattel paper.

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§ 9-105. Control of electronic copy of record evidencing chattel paper. (a) General rule: control of electronic copy of record evidencing chattel paper. — A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evi…

6 Del. C. § 9-105A. Control of electronic money.

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§ 9-105A. Control of electronic money. (a) General rule: control of electronic money. — A person has control of electronic money if: (1) the electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is reco…

6 Del. C. § 9-106. Control of investment property.

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§ 9-106. Control of investment property. (a) Control under Section 8-106. — A person has control of a certificated security, uncertificated security, or security entitlement as provided in Section 8-106. (b) Control of commodity contract. — A secured party has control of a commod…

6 Del. C. § 9-107. Control of letter-of-credit right.

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§ 9-107. Control of letter-of-credit right. 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 lette…

6 Del. C. § 9-107A. Control of controllable electronic record, controllable account, or controllable payment intangible.

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§ 9-107A. Control of controllable electronic record, controllable account, or controllable payment intangible. (a) Control under Section 12-105. — A secured party has control of a controllable electronic record as provided in Section 12-105. (b) Control of controllable account an…

6 Del. C. § 9-107B. No requirement to acknowledge or confirm; no duties.

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§ 9-107B. No requirement to acknowledge or confirm; no duties. (a) No requirement to acknowledge. — A person that has control under Section 9-104, 9-105, or 9-105A is not required to acknowledge that it has control on behalf of another person. (b) No duties or confirmation. — If …

6 Del. C. § 9-108. Sufficiency of description.

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§ 9-108. Sufficiency of description. (a) Sufficiency of description. — 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) Exampl…

6 Del. C. § 9-109. Scope.

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§ 9-109. Scope. (a) General scope of Article. — Except as otherwise provided in subsections (c) and (d), this Article 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…

6 Del. C. § 9-110. Security interests arising under Article 2 or 2A.

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§ 9-110. Security interests arising under Article 2 or 2A. A security interest arising under Section 2-401, 2-505, 2-711(3), or 2A-508(5) is subject to this Article. However, until the debtor obtains possession of the goods: (1) the security interest is enforceable, even if Secti…

6 Del. C. § 9-111. Law governing creation, attachment and enforcement of security interests; characterizations; and certain other rights.

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§ 9-111. Law governing creation, attachment and enforcement of security interests; characterizations; and certain other rights. (a) Law governing classification of collateral and creation, attachment and enforcement of security interests. — If a security agreement is governed by …

6 Del. C. § 9-201. General effectiveness of security agreement.

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§ 9-201. General effectiveness of security agreement. (a) General effectiveness. — Except as otherwise provided in the Uniform Commercial Code, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditor…

6 Del. C. § 9-202. Title to collateral immaterial.

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§ 9-202. Title to collateral immaterial. Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this Article with regard to rights and obligations apply whether title to collateral…

6 Del. C. § 9-203. Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites.

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§ 9-203. Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites. (a) Attachment. — A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expres…

6 Del. C. § 9-204. After-acquired property; future advances.

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§ 9-204. After-acquired property; future advances. (a) After-acquired collateral. — Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b) When after-acquired property clause not effecti…

6 Del. C. § 9-205. Use or disposition of collateral permissible.

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§ 9-205. Use or disposition of collateral permissible. (a) When security interest not invalid or fraudulent. — 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 p…

6 Del. C. § 9-206. Security interest arising in purchase or delivery of financial asset.

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§ 9-206. Security interest arising in purchase or delivery of financial asset. (a) Security interest when person buys through securities intermediary. — A security interest in favor of a securities intermediary attaches to a person’s security entitlement if: (1) the person buys a…

6 Del. C. § 9-207. Rights and duties of secured party having possession or control of collateral.

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§ 9-207. Rights and duties of secured party having possession or control of collateral. (a) Duty of care when secured party in possession. — Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in …

6 Del. C. § 9-208. Additional duties of secured party having control of collateral.

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§ 9-208. Additional duties of secured party having control of collateral. (a) Applicability of section. — 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 giv…

6 Del. C. § 9-209. Duties of secured party if account debtor has been notified of assignment.

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§ 9-209. Duties of secured party if account debtor has been notified of assignment. (a) Applicability of section. — Except as otherwise provided in subsection (c), this section applies if: (1) there is no outstanding secured obligation; and (2) the secured party is not committed …

6 Del. C. § 9-210. Request for accounting; request regarding list of collateral or statement of account.

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§ 9-210. Request for accounting; request regarding list of collateral or statement of account. (a) Definitions. — In this section: (1) “Request” means a record of a type described in paragraph (2), (3), or (4). (2) “Request for an accounting” means a record signed by a debtor req…

6 Del. C. § 9-301. Law governing perfection and priority of security interests.

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§ 9-301. Law governing perfection and priority of security interests. Except as otherwise provided in Sections 9-303 through 9-306B, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in c…

6 Del. C. § 9-302. Law governing perfection and priority of agricultural liens.

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§ 9-302. Law governing perfection and priority of agricultural liens. 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…

6 Del. C. § 9-303. Law governing perfection and priority of security interests in goods covered by a certificate of title.

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§ 9-303. Law governing perfection and priority of security interests in goods covered by a certificate of title. (a) Applicability of section. — This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under …

6 Del. C. § 9-304. Law governing perfection and priority of security interests in deposit accounts.

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§ 9-304. Law governing perfection and priority of security interests in deposit accounts. (a) Law of bank’s jurisdiction governs. — 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 d…

6 Del. C. § 9-305. Law governing perfection and priority of security interests in investment property.

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§ 9-305. Law governing perfection and priority of security interests in investment property. (a) Governing law: general rules. — Except as otherwise provided in subsection (c), the following rules apply: (1) While a security certificate is located in a jurisdiction, the local law…

6 Del. C. § 9-306. Law governing perfection and priority of security interests in letter-of-credit rights.

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§ 9-306. Law governing perfection and priority of security interests in letter-of-credit rights. (a) Governing law: issuer’s or nominated person’s jurisdiction. — Subject to subsection (c), the local law of the issuer’s jurisdiction or a nominated person’s jurisdiction governs pe…

6 Del. C. § 9-306A. Law governing perfection and priority of security interests in chattel paper.

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§ 9-306A. Law governing perfection and priority of security interests in chattel paper. (a) Chattel paper evidenced by authoritative electronic copy. — Except as provided in subsection (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel pape…

6 Del. C. § 9-306B. Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles.

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§ 9-306B. Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles. (a) Governing law: general rules. — Except as provided in subsection (b), the local law of the controllable elect…

6 Del. C. § 9-307. Location of debtor.

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§ 9-307. Location of debtor. (a) “Place of business.” — In this section, “place of business” means a place where a debtor conducts its affairs. (b) Debtor’s location: general rules. — Except as otherwise provided in this section, the following rules determine a debtor’s location:…

6 Del. C. § 9-308. When security interest or agricultural lien is perfected; continuity of perfection.

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§ 9-308. When security interest or agricultural lien is perfected; continuity of perfection. (a) Perfection of security interest. — Except as otherwise provided in this section and Section 9-309, a security interest is perfected if it has attached and all of the applicable requir…

6 Del. C. § 9-309. Security interest perfected upon attachment.

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§ 9-309. Security interest perfected upon attachment. The following security interests are perfected when they attach: (1) a purchase-money security interest in consumer goods, except as otherwise provided in Section 9-311(b) with respect to consumer goods that are subject to a s…

6 Del. C. § 9-310. When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.

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§ 9-310. When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply. (a) General rule: perfection by filing. — Except as otherwise provided in subsection (b) and Section 9-312(b), a fin…

6 Del. C. § 9-311. Perfection of security interests in property subject to certain statutes, regulations, and treaties.

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§ 9-311. Perfection of security interests in property subject to certain statutes, regulations, and treaties. (a) Security interest subject to other law. — Except as otherwise provided in subsection (d), the filing of a financing statement is not necessary or effective to perfect…

6 Del. C. § 9-312. Perfection of security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, negotiable documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer of possession.

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§ 9-312. Perfection of security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, negotiable documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and…

6 Del. C. § 9-313. When possession by or delivery to secured party perfects security interest without filing.

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§ 9-313. When possession by or delivery to secured party perfects security interest without filing. (a) Perfection by possession or delivery. — Except as otherwise provided in subsection (b), a secured party may perfect a security interest in goods, instruments, negotiable tangib…

6 Del. C. § 9-314. Perfection by control.

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§ 9-314. Perfection by control. (a) Perfection by control. — A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights …

6 Del. C. § 9-314A. Perfection by possession and control of chattel paper.

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§ 9-314A. Perfection by possession and control of chattel paper. (a) Perfection by possession and control. — A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and ob…

6 Del. C. § 9-315. Secured party’s rights on disposition of collateral and in proceeds.

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§ 9-315. Secured party’s rights on disposition of collateral and in proceeds. (a) Disposition of collateral: continuation of security interest or agricultural lien; proceeds. — Except as otherwise provided in this Article and in Section 2-403(2): (1) a security interest or agricu…

6 Del. C. § 9-316. Effect of change in governing law.

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§ 9-316. Effect of change in governing law. (a) General rule: effect on perfection of change in governing law. — A security interest perfected pursuant to the law of the jurisdiction designated in Section 9-301(1), 9-305(c), 9-306A(d), or 9-306B(b) remains perfected until the ear…

6 Del. C. § 9-317. Interests that take priority over or take free of security interest or agricultural lien.

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§ 9-317. Interests that take priority over or take free of security interest or agricultural lien. (a) Conflicting security interests and rights of lien creditors. — A security interest or agricultural lien is subordinate to the rights of: (1) a person entitled to priority under …

6 Del. C. § 9-318. No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.

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§ 9-318. No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers. (a) Seller retains no interest. — A debtor that has sold an account, chattel paper, payment intangible, or promissory n…

6 Del. C. § 9-319. Rights and title of consignee with respect to creditors and purchasers.

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§ 9-319. Rights and title of consignee with respect to creditors and purchasers. (a) Consignee has consignor’s rights. — 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, wh…

6 Del. C. § 9-320. Buyer of goods.

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§ 9-320. Buyer of goods. (a) Buyer in ordinary course of business. — Except as otherwise provided in subsection (e), 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 cre…

6 Del. C. § 9-321. Licensee of general intangible and lessee of goods in ordinary course of business.

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§ 9-321. Licensee of general intangible and lessee of goods in ordinary course of business. (a) “Licensee in ordinary course of business.” — In this section, “licensee in ordinary course of business” means a person that becomes a licensee of a general intangible in good faith, wi…

6 Del. C. § 9-322. Priorities among conflicting security interests in and agricultural liens on same collateral.

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§ 9-322. Priorities among conflicting security interests in and agricultural liens on same collateral. (a) General priority rules. — Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determ…

6 Del. C. § 9-323. Future advances.

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§ 9-323. Future advances. (a) When priority based on time of advance. — Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under Section 9-322(a)(1), perfection of the security interest dates from the time an …