Title 13, Title 13. Commercial Transactions

A security interest arising under sections 1302.42 and 1302.49, division (C) of section 1302.85, or division (E) of section 1310.54 of the Revised Code is subject to this chapter. However, until the debtor obtains possession of the goods:(A) The security interest is enforceable e…

Control of electronic money [UCC 9-105A] (A) A person has control of electronic money if both of the following apply: (1) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded gives the …

Control of controllable electronic record, controllable account, or controllable payment intangible [UCC 9-107A] (A) A secured party has control of a controllable electronic record as provided in section 1314.105 of the Revised Code. (B) A secured party has control of a controlla…

No requirement to acknowledge or confirm; no duties [UCC 9-107B] (A) A person that has control under section 1309.104 or 1309.105 of the Revised Code is not required to acknowledge that it has control on behalf of another person. (B) If a person acknowledges that it has or will o…

(A) Except as otherwise provided in Chapters 1301., 1302., 1303., 1304., 1305., 1307., 1308., 1309., and 1310. of the Revised Code, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.(B) A tran…

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this chapter with regard to rights and obligations apply whether title to collateral is in the secured party or in the debtor…

(A) 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. (B) Except as otherwise provided in divisions (C) to (I) of this section, a security inter…

(A) Except as provided in division (B) of this section, a security agreement may create or provide for a security interest in after-acquired collateral.(B) A security interest does not attach under a term constituting an after-acquired property clause to:(1) Consumer goods other …

(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 repossessed goods;(b) Collect, compromise, enforce, or otherwise…

(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 a securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities inter…

(A) Except as otherwise provided in division (D) of this section, a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of an instrument or chattel paper, reasonable care includes taking necessary st…

(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 days after receiving an authenticated demand by the debtor:(1) A secured party…

(A) Except as otherwise provided in division (C) of this section, this section applies if:(1) There is no outstanding secured obligation; and(2) The secured party is not committed to make advances, incur obligations, or otherwise give value.(B) Within ten days after receiving an …

(A) As used in this section:(1) "Request" means a record of a type described in division (A)(2), (3), or (4) of this section.(2) "Request for an accounting" means a record authenticated by a debtor requesting that the recipient provide an accounting of the unpaid obligations secu…

Except as otherwise provided in sections 1309.303 to 1309.306 of the Revised Code, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral: (A) Except as otherwise provided in thi…

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.

(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 the goods are covered and the goods or the debtor.(B) Goods become covered by a certificate of title when a valid …

(A) 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.(B) The following rules determine a bank's jurisdiction for purposes of this section:(1…

(A) Except as otherwise provided in division (C) of this section, the following rules apply:(1) 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 secur…

(A) Subject to division (C) of this section, 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 jurisdic…

(A) As used in this section, "place of business" means a place where a debtor conducts the debtor's 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 individual's princi…

(A) Except as otherwise provided in this section and section 1309.309 of the Revised Code, a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 1309.310 to 1309.316 of the Revised Code have been satisfied. A securit…

The following security interests are perfected when they attach:(A) A purchase money security interest in consumer goods, except as otherwise provided in division (B) of section 1309.311 of the Revised Code with respect to consumer goods that are subject to a statute or treaty de…

(A) Except as otherwise provided in division (B) of this section and division (B) of section 1309.312 of the Revised Code, a financing statement must be filed to perfect all security interests and agricultural liens. (B) The filing of a financing statement is not necessary to per…

(A) Except as otherwise provided in division (D) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to: (1) A statute, regulation, or treaty of the United States whose requirements for a security i…

(A) A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing. (B) Except as otherwise provided in divisions (C) and (D) of section 1309.315 of the Revised Code for proceeds:(1) A security interest in a deposit acco…

(A) Except as otherwise provided in division (B) of this section, a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security …

(A) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under section 1307.106, 1309.104, 1309.105, 1309.106, or 1309.107 of the Revised Code. (B) A …

(A) Except as otherwise provided in this chapter and in division (B) of section 1302.44 of the Revised Code:(1) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party a…

(A) A security interest perfected pursuant to the law of the jurisdiction designated in division (A) of section 1309.301 or division (C) of section 1309.305 of the Revised Code remains perfected until the earliest of: (1) The time perfection would have ceased under the law of tha…

(A) A security interest or agricultural lien is subordinate to the rights of: (1) A person entitled to priority under section 1309.322 of the Revised Code; and(2) Except as otherwise provided in division (E) of this section, a person who becomes a lien creditor before the earlier…

(A) 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.(B) For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper fr…

(A) Except as otherwise provided in division (B) of this section, 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 …

(A) Except as otherwise provided in division (E) of this section, a buyer in the 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…

(A) As used in this section, "licensee in the 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 …

(A) Except as otherwise provided in this section, priority between conflicting security interests and agricultural liens in the same collateral shall be determined according to the following rules:(1) Conflicting perfected security interests and agricultural liens rank according …

(A) Except as otherwise provided in division (C) of this section, for purposes of determining the priority of a perfected security interest under division (A)(1) of section 1309.322 of the Revised Code, perfection of the security interest dates from the time an advance is made to…

(A) Except as otherwise provided in division (G) of this section, 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 1309.327 of …

(A) Except as otherwise provided in division (B) of this section, 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 collateral subject to the security interest created by t…

(A) Subject to division (B) of this section, 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 ineffective to perfect the security interest but for …

The following rules govern priority among conflicting security interests in the same deposit account:(A) A security interest held by a secured party having control of the deposit account under section 1309.104 of the Revised Code has priority over a conflicting security interest …

The following rules govern priority among conflicting security interests in the same investment property:(A) A security interest held by a secured party having control of investment property under section 1309.106 of the Revised Code has priority of a security interest held by a …

The following govern priority among conflicting security interests in the same letter-of-credit right:(A) A security interest held by a secured party having control of the letter-of-credit right under section 1309.107 of the Revised Code has priority to the extent of its control …

(A) 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:(1) In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value an…

(A) This chapter does not limit the rights of a holder in due course of a negotiable instrument, as defined in section 1303.32 of the Revised Code, or a holder to whom a negotiable document of title has been duly negotiated under section 1307.501 of the Revised Code, or a protect…

(A) A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party.(B) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit a…