Title 13, COMMERCIAL CODE

(a) Five-year effectiveness.--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) Public-finance or manufactured-home transaction.--Except as otherwise provided in sub…

(a) What constitutes filing.--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) Refusal to accept record; filing does not occur.--Filin…

The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.

(a) Statement with respect to record indexed under person's name.--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) Cont…

(a) Filing office duties.--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 which bears the number assigned to the filed record and the date and time of filing; (3) maintain the filed record for…

(a) Mandatory refusal to accept record.--A filing office shall refuse to accept a record for filing for a reason set forth in section 9516(b) (relating to refusal to accept record; filing does not occur) and may refuse to accept a record for filing only for a reason set forth in …

(a) Initial financing statement form.--A filing office which accepts written records may not refuse to accept a written initial financing statement in the form and format set forth in the final official text of the 1999 revisions to Article 9 of the Uniform Commercial Code promul…

(a) Post-lapse maintenance and retrieval of information.--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 9515 (relating to durat…

(a) Acknowledgment of filing written record.--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 section 9519(a)(1) (relating to …

Delay by the filing office beyond a time limit prescribed by this chapter is excused if: (1) the delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment or other circumstances beyond control of the filing office; an…

(a) Initial financing statement or other record.--Except as otherwise provided in subsections (c) and (d): (1) The fee for filing and indexing a record under this chapter shall be as follows: (i) For a record communicated to a filing office described in section 9501(a)(1) (relati…

(a) Adoption of filing-office rules.--The Department of State shall promulgate rules to implement this division. The filing-office rules must be consistent with this division. (b) Harmonization of rules.--To keep the filing-office rules and practices of the filing office in harmo…

The Department of State shall report by October 31 of every even-numbered year to the Governor and the General Assembly on the operation of the filing office. The report must contain a statement of the extent to which: (1) the filing-office rules are not in harmony with the rules…

(a) Rights of secured party after default.--After default, a secured party has the rights provided in this chapter and, except as otherwise provided in section 9602 (relating to waiver and variance of rights and duties), those provided by agreement of the parties. A secured party…

Except as otherwise provided in section 9624 (relating to waiver), 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: (1) section 9207(b)(4)(iii) (relating to expenses, …

(a) Agreed standards.--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 9602 (relating to waiver and variance of rights and duties) if the standards…

(a) Enforcement: personal and real property.--If a security agreement covers both personal and real property, a secured party may proceed: (1) under this chapter as to the personal property without prejudicing any rights with respect to the real property; or (2) as to both the pe…

(a) In general: no duty owed by secured party.--Except as provided in subsection (b), a secured party does not owe a duty based on its status as secured party to any of the following: (1) A person that is a debtor or obligor unless the secured party knows: (i) that the person is …

For purposes of this chapter, 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.

(a) Collection and enforcement generally.--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 secured party; (2) may t…

(a) Application of proceeds, surplus and deficiency if obligation secured.--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 over for application the cash proceeds of col…

(a) Possession; rendering equipment unusable; disposition on debtor's premises.--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 9610 (…

(a) Disposition after default.--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) Commercially reasonable disposition.--Ever…

(a) Notification date.--As used in this section, the term "notification date" means the earlier of the date on which: (1) a secured party sends to the debtor and any secondary obligor a signed notification of disposition; or (2) the debtor and any secondary obligor waive the righ…

(a) Reasonable time is question of fact.--Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact. (b) Ten-day period sufficient in nonconsumer transaction.--In a transaction other than a consumer transaction, …

(a) Contents and form of notification.--Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification: (i) describes the debtor and the secured party; (ii) describes the collateral which is …

(a) Contents and form of notification.--In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide the following information: (i) the information specified in section 9613(a)(1) (relating to contents and form of notification before …

(a) Application of proceeds.--A secured party shall apply or pay over for application the cash proceeds of disposition under section 9610 (relating to disposition of collateral after default) in the following order to: (1) The reasonable expenses of retaking, holding, preparing f…

(a) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection: "Explanation." A record which: (1) states the amount of the surplus or deficiency; (2) provides an explanation in accordance with subsection (c) of…

(a) Effects of disposition.--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) discharges any subordina…

(a) Rights and duties of secondary obligor.--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) receives a transfer of…

(a) Transfer statement.--As used in this section, the term "transfer statement" means a record signed 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 exercised its postd…

(a) Conditions to acceptance in satisfaction.--Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if all of the following paragraphs apply: (1) The debtor consents to the acceptan…

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

(a) Effect of acceptance.--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's rights in the collatera…

(a) Persons that may redeem.--A debtor, any secondary obligor or any other secured party or lienholder may redeem collateral. (b) Requirements for redemption.--To redeem collateral, a person shall tender: (1) fulfillment of all obligations secured by the collateral; and (2) the r…

(a) Waiver of disposition notification.--A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 9611 (relating to notification before disposition of collateral) only by an agreement to that effect entered into and signed after…

(a) Judicial orders concerning noncompliance.--If it is established that a secured party is not proceeding in accordance with this division, a court may order or restrain collection, enforcement or disposition of collateral on appropriate terms and conditions. (b) Damages for non…

(a) Applicable rules if amount of deficiency or surplus in issue.--In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply: (1) A secured party need not prove compliance with…

(a) Greater amount obtainable under other circumstances; no preclusion of commercial reasonableness.--The fact that a greater amount could have been obtained by a collection, enforcement, disposition or acceptance at a different time or in a different method from that selected by…

(a) Limitation of liability of secured party for noncompliance with division.--Subject to subsection (f), unless a secured party knows that a person is a debtor or obligor, knows the identity of the person and knows how to communicate with the person: (1) the secured party is not…

The following words and terms when used in this chapter shall have the meanings given to them in this section: "Former Division 9." The provisions of this title, other than Division 5 (relating to letters of credit), as in effect before the effective date of Revised Division 9. "…

Revised Division 9 takes effect on July 1, 2001.

(a) Pre-effective-date transactions or liens.--Except as otherwise provided in this chapter, Revised Division 9 applies to a transaction or lien within its scope even if the transaction or lien was entered into or created before the effective date of Revised Division 9. (b) Conti…

(a) Continuing priority over lien creditor: perfection requirements satisfied.--A security interest which is enforceable immediately before the effective date of Revised Division 9 and would have priority over the rights of a person that becomes a lien creditor at that time is a …

A security interest which is enforceable immediately before Revised Division 9 takes effect but which would be subordinate to the rights of a person that becomes a lien creditor at that time: (1) Remains an enforceable security interest for one year after Revised Division 9 takes…