Chapter 490 — Chapter 490

§490:8-503 Property interest of entitlement holder in financial asset held by securities intermediary. (a) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asse…

§490:8-504 Duty of securities intermediary to maintain financial asset. (a) A securities intermediary shall promptly obtain and thereafter maintain a financial asset in a quantity corresponding to the aggregate of all security entitlements it has established in favor of its entit…

§490:8-505 Duty of securities intermediary with respect to payments and distributions. (a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if: (b) A securities in…

§490:8-506 Duty of securities intermediary to exercise rights as directed by entitlement holder. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:

§490:8-507 Duty of securities intermediary to comply with entitlement order. (a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure…

§490:8-508 Duty of securities intermediary to change entitlement holder's position to other form of security holding. A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which th…

§490:8-509 Specification of duties of securities intermediary by other statute or regulation; manner of performance of duties of securities intermediary and exercise of rights of entitlement holder. (a) If the substance of a duty imposed upon a securities intermediary by sections…

§490:8-510 Rights of purchaser of security entitlement from entitlement holder. (a) In a case not covered by the priority rules in article 9 or the rules stated in subsection (c), an action based on an adverse claim to a financial asset or security entitlement, whether framed in …

§490:8-511 Priority among security interests and entitlement holders. (a) Except as otherwise provided in subsections (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holder…

ARTICLE 9. [OLD] SECURED TRANSACTIONS; SALES OF ACCOUNTS, CONTRACT RIGHTS AND CHATTEL PAPER §§490:9-101 to 490:9-507 REPEALED. L 2000, c 241, §30. ARTICLE 9. SECURED TRANSACTIONS PART 1. GENERAL PROVISIONS Subpart 1. Short Title, Definitions, and General Concepts §490:9-101 Short…

§490:9-102 Definitions and index of definitions. (a) In this article: "Accession" means goods that are physically united with other goods in a manner in which the identity of the original goods is not lost. "Account", except as used in "account for", "account statement", "account…

§490:9-103 Purchase-money security interest; application of payments; burden of establishing. (a) In this section: (b) A security interest in goods is a purchase-money security interest: (c) A security interest in software is a purchase-money security interest to the extent that …

§490:9-104 Control of deposit account. (a) A secured party shall be deemed to have control of a deposit account if: (b) A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.…

§490:9-105 Control of electronic copy of record evidencing chattel paper. (a) A purchaser shall be deemed to have control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of interests in the chattel paper …

§490:9-106 Control of investment property. (a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in section 490:8-106. (b) A secured party has control of a commodity contract if: (c) A secured party having control of all…

§490:9-107 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 let…

§490:9-108 Sufficiency of description. (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 su…

Subpart 2. Applicability of Article §490:9-109 Scope. (a) Except as otherwise provided in subsections (c) and (d), this article applies to: (b) The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself…

§490:9-110 Security interests arising under article 2 or 2A. A security interest arising under section 490:2-401, 490:2-505, 490:2-711(3), or 490:2A-508(e) is subject to this article. However, until the debtor obtains possession of the goods:

PART 2. EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT Subpart 1. Effectiveness and Attachment §490:9-201 General effectiveness of security agreement. (a) Except as otherwise provided in this chapter, a security agree…

§490:9-202 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 collater…

§490:9-203 Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites. (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpone…

§490:9-204 After-acquired property; future advances. (a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b) Subject to subsection (d), a security interest does not attach under a ter…

§490:9-205 Use or disposition of collateral permissible. (a) A security interest is not invalid or fraudulent against creditors solely because: (b) This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends …

§490:9-206 Security interest arising in purchase or delivery of financial asset. (a) A security interest in favor of a securities intermediary attaches to a person's security entitlement if: (b) The security interest described in subsection (a) secures the person's obligation to …

Subpart 2. Rights and Duties §490:9-207 Rights and duties of secured party having possession or control of collateral. (a) Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party'…

§490:9-208 Additional duties of secured party having control of collateral. (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 da…

§490:9-209 Duties of secured party if account debtor has been notified of assignment. (a) Except as otherwise provided in subsection (c), this section applies if: (b) Within ten days after receiving a signed demand by the debtor, a secured party shall send to an account debtor th…

§490:9-210 Request for accounting; request regarding list of collateral or statement of account. (a) In this section: (b) Subject to subsections (c), (d), (e), and (f), a secured party, other than a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a c…

PART 3. PERFECTION AND PRIORITY Subpart 1. Law Governing Perfection and Priority §490:9-301 Law governing perfection and priority of security interests. Except as otherwise provided in sections 490:9-303 through 490:9-306.6, the following rules shall determine the law governing p…

§490:9-302 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 produc…

§490:9-303 Law governing perfection and priority of security interests in goods covered by a certificate of title. (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…

§490:9-304 Law governing perfection and priority of security interests in deposit accounts. (a) The local law of a bank's jurisdiction shall govern perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with …

§490:9-305 Law governing perfection and priority of security interests in investment property. (a) Except as otherwise provided in subsection (c), the following rules apply: (b) The following rules determine a commodity intermediary's jurisdiction for purposes of this part: (c) T…

§490:9-306 Law governing perfection and priority of security interests in letter-of-credit rights. (a) Subject to subsection (c), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the…

§490:9-307 Location of debtor. (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: (c) Subsection (b) applies only if a debtor's residence,…

Subpart 2. Perfection §490:9-308 When security interest or agricultural lien is perfected; continuity of perfection. (a) Except as otherwise provided in this section and section 490:9-309, a security interest is perfected if it has attached and all of the applicable requirements …

§490:9-309 Security interest perfected upon attachment. The following security interests are perfected when they attach:

§490:9-310 When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply. (a) Except as otherwise provided in subsection (b) and section 490:9-312(b), a financing statement must be filed t…

§490:9-311 Perfection of security interests in property subject to certain statutes, regulations, and treaties. (a) Except as otherwise provided in subsection (d), the filing of a financing statement is not necessary or effective to perfect a security interest in property subject…

§490:9-312 Perfection of security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; p…

§490:9-313 When possession by or delivery to secured party perfects security interest without filing. (a) Except as otherwise provided in subsection (b), a secured party may perfect a security interest in goods, instruments, negotiable tangible documents, or tangible money by tak…

§490:9-314 Perfection by control. (a) 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 may be perfected by con…

§490:9-315 Secured party's rights on disposition of collateral and in proceeds. (a) Except as otherwise provided in this article and in section 490:2-403(2): (b) Proceeds that are commingled with other property are identifiable proceeds: (c) A security interest in proceeds is a p…

§490:9-316 Effect of change in governing law. (a) A security interest perfected pursuant to the law of the jurisdiction designated in section 490:9-301(1), 490:9-305(c), 490:9-306.5(d), or 490:9-306.6(b) shall be deemed to remain perfected until the earliest of: (b) If a security…

Subpart 3. Priority §490:9-317 Interests that take priority over or take free of security interest or agricultural lien. (a) A security interest or agricultural lien shall be subordinate to the rights of: (b) Except as otherwise provided in subsection (e), a buyer, other than a s…

§490:9-318 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) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal …

§490:9-319 Rights and title of consignee with respect to creditors and purchasers. (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 possessio…

§490:9-320 Buyer of goods. (a) 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 created by the buyer's seller, even if th…

§490:9-321 Licensee of general intangible and lessee of goods in ordinary course of business. (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 t…