Title XXVI, TRADE AND COMMERCE

400.9-507. 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 co…

*400.9-508. 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 d…

400.9-509. 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: (1) The debtor authorizes the filing in an auth…

400.9-510. 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 400.9-509. (b) A record authorized by one secured party of record does not affect the financing statement with respect to an…

400.9-511. 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 init…

400.9-512. Amendment of financing statement. — (a) Subject to section 400.9-509, 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 fili…

400.9-513. 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: (1) There is no obligation secured by the co…

400.9-514. 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 nam…

400.9-515. 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 …

400.9-516. 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 o…

400.9-517. 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. 2001 S.B. 288) Effective 7-01-01

400.9-518. 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…

400.9-519. Numbering, maintaining, and indexing records — communicating information provided in records. — (a) For each record filed in a filing office, the filing office shall: (1) Assign a unique number to the filed record; (2) Create a record that bears the number assigned to …

400.9-520. 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 400.9-516(b) and may refuse to accept a record for filing only for a reason set forth in section 400.9-516(b). (b) If a filing of…

400.9-521. Uniform form of written financing statement and amendment. — Except for a reason set forth in section 400.9-516(b), a filing office that accepts written records may not refuse to accept a written document for a filing authorized by this chapter, provided that the docum…

400.9-522. 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 400.9-515 with respect t…

400.9-523. 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 …

400.9-524. Delay by filing office. — Delay by the filing office beyond a time limit prescribed by this part is excused if: (1) The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyo…

400.9-525. 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 400.9-502(c), is: (1) If the filing office is the secretary of state's offic…

400.9-526. Filing office rules. — (a) The secretary of state shall have the authority to promulgate all rules necessary to the administration and enforcement of the provisions of this chapter. All rules shall be promulgated pursuant to the provisions of this section and chapter 5…

400.9-527. Duty to report. — The secretary of state shall report annually on or before February first to the governor, the president pro tempore of the senate and the speaker of the house of representatives on the operation of the filing office. The report must contain a statemen…

400.9-528. Additional fee — expiration date. — The secretary of state may collect an additional fee of five dollars on each and every fee paid to the secretary of state as required in chapter 400.9. All fees collected as provided in this section shall be deposited in the state tr…

400.9-601. 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 this part and, except as otherwise provided in section 400.9-602, thos…

400.9-602. Waiver of variance of rights and duties. — Except as otherwise provided in section 400.9-624, 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 …

400.9-603. 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 400.9-602 if the standards ar…

400.9-604. 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: (1) Under this part as to the personal property without prejudicing any rights with respect to the real …

400.9-605. Unknown debtor or secondary obligor. — A secured party does not owe a duty based on its status as secured party: (1) To a person that is a debtor or obligor, unless the secured party knows: (A) That the person is a debtor or obligor; (B) The identity of the person; and…

400.9-606. 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. 200…

400.9-607. Collection and enforcement by secured party. — (a) If so agreed, and in any event after default, a secured party: (1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secur…

400.9-608. 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: (1) A secured party shall apply or pay ov…

400.9-609. Secured party's right to take possession after default. — (a) After default, a secured party: (1) May take possession of the collateral; and (2) Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under section 400.9-610. (b)…

400.9-610. 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…

400.9-611. Notification before disposition of collateral. — (a) In this section, "notification date" means the earlier of the date on which: (1) A secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or (2) The debtor and any s…

400.9-612. Timeliness of notification before disposition of collateral. — (a) Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact. (b) In a transaction other than a consumer transaction, a notification of d…

400.9-613. Contents and form of notification before disposition of collateral: general. — Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification: (A) Describes the debtor and the secu…

400.9-614. Contents and form of notification before disposition of collateral: consumer goods transaction. — In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide the following information: (A) The information specified in sect…

400.9-615. Application of proceeds of disposition — liability for deficiency and right to surplus. — (a) A secured party shall apply or pay over for application the cash proceeds of disposition under section 400.9-610 in the following order to: (1) The reasonable expenses of reta…

400.9-616. Explanation of calculation of surplus or deficiency. — (a) In this section: (1) "Explanation" means a writing that: (A) States the amount of the surplus or deficiency; (B) Provides an explanation in accordance with subsection (c) of how the secured party calculated the…

400.9-617. Rights of transferee of collateral. — (a) A secured party's disposition of collateral after default: (1) Transfers to a transferee for value all of the debtor's rights in the collateral; (2) Discharges the security interest under which the disposition is made; and (3) …

400.9-618. Rights and duties of certain secondary obligors. — (a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor: (1) Receives an assignment of a secured obligation from the secured party; (2) R…

400.9-619. Transfer of record or legal title. — (a) In this section, "transfer statement" means a record authenticated by a secured party stating: (1) That the debtor has defaulted in connection with an obligation secured by specified collateral; (2) That the secured party has ex…

400.9-620. Acceptance of collateral in full or partial satisfaction of obligation — compulsory disposition of collateral. — (a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only …

400.9-621. Notification of proposal to accept collateral. — (a) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to: (1) Any person from which the secured party has received, before the debtor c…

400.9-622. Effect of acceptance of collateral. — (a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures: (1) Discharges the obligation to the extent consented to by the debtor; (2) Transfers to the secured party all of a debtor…

400.9-623. Right to redeem collateral. — (a) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (b) To redeem collateral, a person shall tender: (1) Fulfillment of all obligations secured by the collateral; and (2) The reasonable expe…

400.9-624. Waiver. — (a) A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 400.9-611 only by an agreement to that effect entered into and authenticated after default. (b) A debtor may waive the right to require dispositio…