Title 27, Uniform Commercial Code

§490:9-339 Priority subject to subordination. This article does not preclude subordination by agreement by a person entitled to priority. [L 2000, c 241, pt of §1]

Subpart 4. Rights of Bank §490:9-340 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 pa…

§490:9-341 Bank's rights and duties with respect to deposit account. Except as otherwise provided in section 490:9-340(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 term…

§490:9-342 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 490:9-104(a)(2), even if its customer so requests or directs. A bank that has entered into …

PART 4. RIGHTS OF THIRD PARTIES §490:9-401 Alienability of debtor's rights. (a) Except as otherwise provided in subsection (b) and sections 490:9-406, 490:9-407, 490:9-408, and 490:9-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is g…

§490:9-402 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 for th…

§490:9-403 Agreement not to assert defenses against assignee. (a) In this section, "value" has the meaning provided in section 490:3-303(a). (b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee …

§490:9-404 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) through (e), the rights of an assignee are subject to: (b) Subject to subs…

§490:9-405 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 provide t…

§490:9-406 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) through (j), an account debtor …

§490:9-407 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: (b) Except as otherwise provided i…

§490:9-408 Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective. (a) Except as otherwise provided in subsection (b), a term in a promissory note or in an agreement between an account debtor and a debtor tha…

§490:9-409 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, issuer…

PART 5. FILING Subpart 1. Filing Office; Contents and Effectiveness of Financing Statement §490:9-501 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 wh…

§490:9-502 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: (b) Except as otherwise provided in section 490:9-501(b), to be sufficient, a …

§490:9-503 Name of debtor and secured party. (a) A financing statement sufficiently provides the name of the debtor: (b) A financing statement that provides the name of the debtor in accordance with subsection (a) is not rendered ineffective by the absence of: (c) A financing sta…

§490:9-504 Indication of collateral. A financing statement sufficiently indicates the collateral that it covers only if the financing statement provides:

§490:9-505 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 statement…

§490:9-506 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 other…

§490:9-507 Effect of certain events on effectiveness of financing statement. (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 cont…

§490:9-508 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 debt…

§490:9-509 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: (b) By signing or becoming bound as debtor by a s…

§490:9-510 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 490:9-509. (b) A record authorized by one secured party of record does not affect the financing statement with respect to anot…

§490:9-511 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 initia…

§490:9-512 Amendment of financing statement. (a) Subject to section 490:9-509, 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 filing…

§490:9-513 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: (b) To comply with subsection (a), a secured p…

§490:9-514 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 name …

§490:9-515 Duration and effectiveness of financing statement; effect of lapsed financing statement. (a) Except as otherwise provided in subsections (b), (e), (f), and (g), a filed financing statement is effective for a period of five years after the date of filing. (b) Except as …

§490:9-516 What constitutes filing; effectiveness of filing. (a) Except as otherwise provided in subsection (b), 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. (b) Filing does not occu…

§490:9-517 Effect of indexing errors. The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record. [L 2000, c 241, pt of §1]

§490:9-518 Claim concerning inaccurate or wrongfully filed record. (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 person believes that the record is inaccurate or was wrongfully filed. (b) …

Subpart 2. Duties and Operation of Filing Office §490:9-519 Numbering, maintaining, and indexing records; communicating information provided in records. (a) For each record filed in a filing office, the filing office shall: (b) A file number must include a digit that: (c) Except …

§490:9-520 Acceptance and refusal to accept record. (a) A filing office shall refuse to accept a record for filing for a reason set forth in section 490:9-516(b) and may refuse to accept a record for filing only for a reason set forth in section 490:9-516(b). (b) If a filing offi…

§490:9-521 Uniform form of written financing statement and amendment. (a) A filing office that accepts written records for filing may not refuse to accept a written initial financing statement in the following form, except for a reason set forth in section 490:9-516(b): (b) A fil…

§490:9-522 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 490:9-515 with respect to …

§490:9-523 Information from filing office; sale or license of records. (a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to sec…

§490:9-524 Delay by filing office. Delay by the filing office beyond a time limit prescribed by this part is excused if:

§490:9-525 Fees. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under this part, other than an initial financing statement of the kind described in section 490:9-502(c), shall be as specified by rules adopted under section 502-25 by t…

§490:9-526 Filing-office rules. (a) The department of land and natural resources shall adopt and publish rules to implement this article. The filing-office rules must be: (b) To keep the filing-office rules and practices of the filing office in harmony with the rules and practice…

§490:9-527 Duty to report. The department of land and natural resources shall report annually, twenty days before the convening of each regular session of the legislature, to the governor and the legislature on the operation of the filing office. The report must contain a stateme…

PART 6. DEFAULT Subpart 1. Default and Enforcement of Security Interest §490:9-601 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 th…

§490:9-602 Waiver and variance of rights and duties. Except as otherwise provided in section 490:9-624, 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 following l…

§490:9-603 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 490:9-602 if the standards are …

§490:9-604 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: (b) Subject to subsection (c), if a security agreement covers goods that are or become fixtures, a secured…

§490:9-605 Unknown debtor or secondary obligor. (a) Except as provided in subsection (b), a secured party shall not owe a duty based on its status as secured party: (b) A secured party shall be deemed to owe a duty based on its status as a secured party to a person if, at the tim…

§490:9-606 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. [L 2000, c 241, pt o…

§490:9-607 Collection and enforcement by secured party. (a) If so agreed, and in any event after default, a secured party: (b) If necessary to enable a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage nonjudicially, the secured party m…

§490:9-608 Application of proceeds of collection or enforcement; liability for deficiency and right to surplus. (a) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (b) If the underlying transaction is a sale …

§490:9-609 Secured party's right to take possession after default. (a) After default, a secured party: (b) A secured party may proceed under subsection (a): (c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and mak…

§490:9-610 Disposition of collateral after default. (a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. (b) Every aspect of a…