Title 11, Title 11

(1). Except as otherwise provided in subsection (2), a secured party may perfect a security interest in goods, instruments, negotiable tangible documents or money by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by…

(1). A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, investment property or letter‑of‑credit rights may be perfected by control of the collateral under section 7‑1106, 9‑1104,…

(1). 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 authoritative electronic copy of the electronic record evidencing the chattel pa…

(1). Except as otherwise provided in this Article and in section 2‑403, subsection (2): (a). A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange or other disposition thereof unless the secured party authorized the dispos…

(1). A security interest perfected pursuant to the law of the jurisdiction designated in section 9‑1301, subsection (1), section 9‑1305, subsection (3), section 9‑1306‑A, subsection (4) or section 9‑1306‑B, subsection (2) remains perfected until the earliest of: (a). The time per…

(1). A security interest or agricultural lien is subordinate to the rights of: (a). A person entitled to priority under section 9‑1322; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (b). Except as otherwise provided in subsection (5), a person that bec…

(1). A debtor that has sold an account, chattel paper, payment intangible or promissory note does not retain a legal or equitable interest in the collateral sold. (2). For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper …

(1). Except as otherwise provided in subsection (2), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods …

(1). Except as otherwise provided in subsection (5), 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 the security interest is per…

(1). 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 the rights of another person in the general intangible and in the ordinary course from a perso…

(1). Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules. (a). Conflicting perfected security interests and agricultural liens rank according to pr…

(1). Except as otherwise provided in subsection (3), for purposes of determining the priority of a perfected security interest under section 9‑1322, subsection (1), paragraph (a), perfection of the security interest dates from the time an advance is made to the extent that the se…

(1). Except as otherwise provided in subsection (7), 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 as otherwise provided in section 9‑1327, a perfected secur…

(1). Except as otherwise provided in subsections (3), (4) and (5), if the requirements of subsection (2) are satisfied, a perfected production-money security interest in production-money crops has priority over a conflicting security interest in the same crops and, except as othe…

(1). Except as otherwise provided in subsection (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if: (a). The debtor acquired the collateral subject to the security interest created by the other pe…

(1). Subject to subsection (2), a security interest that is created by a new debtor is collateral in which the new debtor has or acquires rights and would be ineffective to perfect the security interest but for the application of section 9‑1316, subsection (9), paragraph (a) or s…

A security interest in a controllable account, controllable electronic record or controllable payment intangible held by a secured party having control of the account, electronic record or payment intangible has priority over a conflicting security interest held by a secured part…

The following rules govern priority among conflicting security interests in the same deposit account. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). A security interest held by a secured party having control of the deposit account under section 9‑1104 …

The following rules govern priority among conflicting security interests in the same investment property. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). A security interest held by a secured party having control of investment property under section 9‑1…

The following rules govern priority among conflicting security interests in the same letter-of-credit right. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). A security interest held by a secured party having control of the letter-of-credit right under s…

(1). A purchaser of chattel paper has priority over a security interest in the chattel paper that is claimed merely as proceeds of inventory subject to a security interest if: (a). In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value…

(1). This Article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, a protected purchaser of a security or a qualifying purchaser of a controllable account, controllable elect…

(1). A transferee of 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 violating the rights of the secured party. (2). A transferee of funds from a deposit account takes the funds fr…

(1). In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien: (a). That secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person'…

(1). 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 exist under this Article in ordinary building materials incorporated into an improvement on land. (2). This Article do…

(1). A security interest may be created in an accession and continues in collateral that becomes an accession. (2). If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. (3). Except as otherwise pr…

(1). 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. (2). A security interest does not exist in commingled goods as such. However, a security interest may attach to a pr…

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 security interest or contain a statement that they may be subject to security int…

If a security interest or agricultural lien is perfected by a filed financing statement providing information described in section 9‑1516, subsection (2), paragraph (e) that is incorrect at the time the financing statement is filed: [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. …

This Article does not preclude subordination by agreement by a person entitled to priority.

(1). Except as otherwise provided in subsection (3), a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a secured party that holds a security interest in the deposit account. (2). Except as otherwise provided in subsection (3)…

Except as otherwise provided in section 9‑1340, subsection (3), 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, suspended or modified by: [PL 2023, c. 669, Pt. A, §1…

This Article does not require a bank to enter into an agreement of the kind described in section 9‑1104, subsection (1), paragraph (b), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agre…

(1). Except as otherwise provided in subsection (2) and sections 9‑1406, 9‑1407, 9‑1408 and 9‑1409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this Article. (2). An agreement between the debtor and secured…

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 the debtor's acts or omissions.

(1). In this section, "value" has the meaning provided in section 3‑1303, subsection (1). (2). Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may h…

(1). Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (2) through (5), the rights of an assignee are subject to: (a). All terms of the agreement between the account debtor and assignor and any defense or claim…

(1). 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 that the modification or substitution is a bre…

(1). Subject to subsections (2) to (10), an account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, signed by the assignor or the assignee, that the a…

(1). Except as otherwise provided in subsection (2), a term in a lease agreement is ineffective to the extent that it: (a). Prohibits, restricts or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection or enforcemen…

(1). Except as otherwise provided in subsection (2), a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license or franchise, and which ter…

(1). A term in a letter of credit or a rule of law, statute, regulation, custom or practice applicable to the letter of credit that prohibits, restricts or requires the consent of an applicant, issuer or nominated person to a beneficiary's assignment of or creation of a security …

(1). Except as otherwise provided in subsection (2), if the local law of this State governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is: (a). The registry of dee…

(1). Subject to subsection (2), a financing statement is sufficient only if it: (a). Provides the name of the debtor; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (b). Provides the name of the secured party or a representative of the secured party; and [P…

(1). A financing statement sufficiently provides the name of the debtor: (a). Except as otherwise provided in paragraph (c), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides…

A financing statement sufficiently indicates the collateral that it covers if the financing statement provides: [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).] (1). A description of the collateral pursuant to section 9‑1108; (2). An indication that the finan…