Title 27, Uniform Commercial Code

§490:9-104 Control of deposit account. (a) A secured party shall be deemed to have 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 the bank…

§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 …

[§490:9-105.5] Control of electronic money. (a) A person shall be deemed to have control of electronic money if the electronic money; a record attached to, or logically associated with, the electronic money; or a system in which the electronic money is recorded: (1) Gives the per…

§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: (1) The secured party is the commodity in…

§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…

[§490:9-107.5] Control of controllable electronic record, controllable account, or controllable payment intangible. (a) A secured party shall be deemed to have control of a controllable electronic record as provided in section 490:12-105. (b) A secured party shall be deemed to ha…

[§490:9-107.6] No requirement to acknowledge or confirm; no duties. (a) A person having control under section 490:9-104, 490:9-105, or 490:9-105.5 shall not be required to acknowledge that it has control on behalf of another person. (b) If a person acknowledges that it has or wil…

§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: (1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (2) An agricultura…

§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: (1) The security interest is enforcea…

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: (1) The debtor has the right or ability to: (A) Use, commingle, or dispose of all or part of the collateral, including returned or repos…

§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: (1) The person buys a financial asset through the securities intermediary in a transactio…

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: (1) There is no outstanding secured obligation; and (2) The secured party is not committed to make advances, incur ob…

§490:9-210 Request for accounting; request regarding list of collateral or statement of account. (a) 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 requesting that …

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: (1) While a security certificate is located in a jurisdiction, the local law of that jurisdiction shall go…

§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…

[§490:9-306.5] Law governing perfection and priority of security interests in chattel paper. (a) Except as provided in subsection (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy a…

[§490:9-306.6] Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles. (a) Except as provided in subsection (b), the local law of the controllable electronic record's jurisdiction…

§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: (1) A debtor who is an individual is located at the indi…

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: (1) A purchase-money security interest in consumer goods, except as otherwise provided in section 490:9-311(b) with respect to consumer goods that are subject …

§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…

[§490:9-314.5] Perfection by possession and control of chattel paper. (a) 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 obtaining control of each authoritati…

§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): (1) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or ot…

§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: (1) The time perf…

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: (1) A person entitled to priority under section 490:9-322; and (2) Except a…

§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…

§490:9-322 Priorities among conflicting security interests in and agricultural liens on same collateral. (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 fo…

§490:9-323 Future advances. (a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under section 490:9-322(a)(1), perfection of the security interest dates from the time an advance is made to the extent that t…

§490:9-324 Priority of purchase-money security interests. (a) Except as otherwise provided in subsection (g), 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 a…

§490:9-325 Priority of security interests in transferred collateral. (a) Except as otherwise provided in subsection (b), 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 …

§490:9-326 Priority of security interests created by new debtor. (a) 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 perfected solely by a filed financing statement that would be in…

[§490:9-326.5] 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 hav…