Title 11, Title 11

If a security certificate has been lost, apparently destroyed or wrongfully taken, and the owner fails to notify the issuer of that fact within a reasonable time after the owner has notice of it and the issuer registers a transfer of the security before receiving notification, th…

A person acting as authenticating trustee, transfer agent, registrar or other agent for an issuer in the registration of a transfer of its securities, in the issue of new security certificates or uncertificated securities or in the cancellation of surrendered security certificate…

(1). "Securities account" means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that com…

An action based on an adverse claim to a financial asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against a person who acquires a security entitlement under section 8‑1501 for value and without notice of the …

(1). 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 asset held by the securities intermediary are held by the securities intermediary for the entitlement hold…

(1). 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 entitlement holders with respect to that financial asset. The securities int…

(1). 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: (a). The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder a…

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: [PL 1997, c. 429, Pt. B, §2 (NEW).] (1). The securities intermediary acts with respect to the duty as …

(1). 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 itself that the entitlement order is genuine and authorized and the securit…

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 the entitlement holder is eligible or to cause the financial asset to be transferred to a securities account of the enti…

(1). If the substance of a duty imposed upon a securities intermediary by sections 8‑1504 to 8‑1508 is the subject of other statute, regulation or rule, compliance with that statute, regulation or rule satisfies the duty. (2). To the extent that specific standards for the perform…

(1). In a case not covered by the priority rules in Article 9‑A or the rules stated in subsection (3), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may…

(1). Except as otherwise provided in subsections (2) and (3), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obli…

This Article may be cited as "Uniform Commercial Code-Secured Transactions."

As used in this Article, unless the context otherwise indicates, the following terms have the following meanings. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). "Accession" means goods that are physically united with other goods in such a manner that t…

(1). As used in this section, unless the context otherwise indicates, the following terms have the following meanings. (a). "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and [PL 1999, c. 699,…

(1). A security interest in crops is a production-money security interest to the extent that the crops are production-money crops. (2). If the extent to which a security interest is a production-money security interest depends on the application of a payment to a particular oblig…

(1). A secured party has control of a deposit account if: (a). The secured party is the bank with which the deposit account is maintained; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (b). The debtor, secured party and bank have agreed in a signed record …

(1). A purchaser has 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 reliably establishes the purchaser as the person to which the authoritative electronic copy w…

(1). A person has control of a certificated security, uncertificated security or security entitlement as provided in section 8‑1106. (2). A secured party has control of a commodity contract if: (a). The secured party is the commodity intermediary with which the commodity contract…

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 letter of credit under section 5‑1114, subsection…

(1). A secured party has control of a controllable electronic record as provided in section 12‑105. (2). A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the controllable electronic record that evidences …

(1). A person that has control under section 9‑1104 or 9‑1105‑A is not required to acknowledge that it has control on behalf of another person. (2). If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law …

(1). Except as otherwise provided in subsections (3), (4) and (5), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. (2). Except as otherwise provided in subsection (4), a description of collate…

(1). Except as otherwise provided in subsections (3) and (4), this Article applies to: (a). A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] …

A security interest arising under section 2‑401, 2‑505, 2‑711, subsection (3), or 2‑1508, subsection (5) is subject to this Article. However, until the debtor obtains possession of the goods: [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). The security …

(1). Except as otherwise provided in this Title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. (2). A transaction subject to this Article is subject to any applicable rule of law that esta…

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 is in the secured party or the debtor.

(1). A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. (2). Except as otherwise provided in subsections (3) through (9), a security interest is …

(1). Except as otherwise provided in subsection (2), a security agreement may create or provide for a security interest in after-acquired collateral. (2). Subject to subsection (2‑A), a security interest does not attach under a term constituting an after-acquired property clause …

(1). A security interest is not invalid or fraudulent against creditors solely because: (a). The debtor has the right or ability to: (i) Use, commingle or dispose of all or part of the collateral, including returned or repossessed goods; (ii) Collect, compromise, enforce or other…

(1). A security interest in favor of a securities intermediary attaches to a person's security entitlement if: (a). The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities …

(1). Except as otherwise provided in subsection (4), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preser…

(1). 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. (2). Within 20 days after receiving a signed demand by the debtor: (a). A secured party havin…

(1). Except as otherwise provided in subsection (3), this section applies if: (a). There is no outstanding secured obligation; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (b). The secured party is not committed to make advances, incur obligations or …

(1). In this section: (a). "Request" means a record of a type described in paragraph (b), (c) or (d); [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (b). "Request for an accounting" means a record signed by a debtor requesting that the recipient provide an …

Except as otherwise provided in sections 9‑1303 to 9‑1306‑B, the following rules determine the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in collateral. [PL 2023, c. 669, Pt. A, §96 (AMD); PL 2023, c. 669, Pt. E, §1…

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.

(1). 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 the goods are covered and the goods or the debtor. (2). Goods become covered by a certificate of title when a val…

(1). 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 deposit account maintained with that bank even if the transaction does not bear any relation to the bank's jurisdiction. (2). The…

(1). Except as otherwise provided in subsection (3), the following rules apply. (a). While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest…

(1). Subject to subsection (3), the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a letter-of-credit right if the issuer's jurisdiction or nomina…

(1). Except as provided in subsection (4), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law of the chattel paper's jurisdiction governs…

(1). Except as provided in subsection (2), the local law of the controllable electronic record's jurisdiction specified in section 12‑107, subsection (3), paragraphs (c) and (d) governs perfection, the effect of perfection or nonperfection and the priority of a security interest …

(1). In this section, "place of business" means a place where a debtor conducts its affairs. (2). Except as otherwise provided in this section, the following rules determine a debtor's location. (a). A debtor who is an individual is located at the individual's principal residence…

(1). Except as otherwise provided in this section and section 9‑1309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 9‑1310 to 9‑1316 have been satisfied. A security interest is perfected when it attaches if t…