Title 6, Commerce and Trade

§ 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…

§ 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…

§ 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…

§ 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…

§ 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…

§ 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…

§ 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 …

§ 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…

§ 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…

§ 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…

§ 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 …

§ 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…

§ 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…

§ 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…

§ 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…

§ 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…

§ 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 …

§ 9-324. Priority of purchase-money security interests. (a) General rule: purchase-money priority. — Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock that are farm products has priority over a …

§ 9-325. Priority of security interests in transferred collateral. (a) Subordination of security interest in transferred collateral. — Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collate…

§ 9-326. Priority of security interests created by new debtor. (a) Subordination of security interest created by new debtor. — Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfec…

§ 9-326A. Priority of security interest in controllable account, controllable electronic record, and controllable payment intangible. A security interest in a controllable account, controllable electronic record, or controllable payment intangible held by a secured party having c…

§ 9-327. Priority of security interests in deposit account. 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 9-104 has priority…

§ 9-328. Priority of security interests in investment property. 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 9-106 has …

§ 9-329. Priority of security interests in letter-of-credit right. 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 Secti…

§ 9-330. Priority of purchaser of chattel paper or instrument. (a) Purchaser’s priority: security interest claimed merely as proceeds. — A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subjec…

§ 9-331. Priority of rights of purchasers of controllable accounts, controllable electronic records, controllable payment intangibles, documents, instruments, and securities under other articles; priority of interests in financial assets and security entitlements and protection a…

§ 9-332. Transfer of money; transfer of funds from deposit account. (a) Transferee of tangible money. — A transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in vio…

§ 9-333. Priority of certain liens arising by operation of law. (a) “Possessory lien.” — In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien: (1) which secures payment or performance of an obligation for services or materia…

§ 9-334. Priority of security interests in fixtures and crops. (a) Security interest in fixtures under this Article. — A security interest under this Article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exis…

§ 9-335. Accessions. (a) Creation of security interest in accession. — A security interest may be created in an accession and continues in collateral that becomes an accession. (b) Perfection of security interest. — If a security interest is perfected when the collateral becomes …

§ 9-336. Commingled goods. (a) “Commingled goods.” — 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) No security interest in commingled goods as such. — A security i…

§ 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 to the…

§ 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 Section 9-516(b)(…

§ 9-339. Priority subject to subordination. This Article does not preclude subordination by agreement by a person entitled to priority.72 Del. Laws, c. 401, § 1;

§ 9-340. Effectiveness of right of recoupment or set-off against deposit account. (a) Exercise of recoupment or set-off. — 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 the…

§ 9-341. Bank’s rights and duties with respect to deposit account. Except as otherwise provided in Section 9-340(c), and unless the bank otherwise agrees in a signed record, a bank’s rights and duties with respect to a deposit account maintained with the bank are not terminated, …

§ 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 Section 9-104(a)(2), even if its customer so requests or directs. A bank that has entered into such a…

§ 9-401. Alienability of debtor’s rights. (a) Other law governs alienability; exceptions. — Except as otherwise provided in subsection (b) and Sections 9-406, 9-407, 9-408, and 9-409, whether a debtor’s rights in collateral may be voluntarily or involuntarily transferred is gover…

§ 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, tort or otherwi…

§ 9-403. Agreement not to assert defenses against assignee. (a) “Value.” — In this section, “value” has the meaning provided in Section 3-303(a). (b) Agreement not to assert claim or defense. — Except as otherwise provided in this section, an agreement between an account debtor a…

§ 9-404. Rights acquired by assignee; claims and defenses against assignee. (a) Assignee’s rights subject to terms, claims, and defenses; exceptions. — Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) thro…

§ 9-405. Modification of assigned contract. (a) Effect of modification on assignee. — 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 co…

§ 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) Discharge of account debtor; effect of notification. — Subje…

§ 9-407. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor’s residual interest. (a) Term restricting assignment generally ineffective. — Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the…

§ 9-408. Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective. (a) Term restricting assignment generally ineffective. — Except as otherwise provided in subsection (b), a term in a promissory note or in an a…

§ 9-409. Restrictions on assignment of letter-of-credit rights ineffective. (a) Term or law restricting assignment generally ineffective. — 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, …