Title 47, Commercial Instruments And Transactions

(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 that bears the number assigned to the filed record and the date and time of filing;(3) Maintain the filed record for publ…

(a) Mandatory refusal to accept record. A filing office described in § 47-9-501(a)(2) shall refuse to accept a record for filing for a reason set forth in § 47-9-516(b), and a filing office may refuse to accept a record for filing only for a reason set forth in § 47-9-516(b). (b)…

(a) Initial Financing Statement Form. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in § 47-9-516(b):Click here to view image.Click here to view image. Cli…

(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 (1) year after the effectiveness of the financing statement has lapsed under § 47-9-515 with respect to a…

(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 § 47-9-519(a)(1) and the date and…

(1) 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 beyond control of the filing office; a…

(a) Initial financing statement. Except as otherwise provided in subsection (d), the uniform fee for filing and indexing a record under this part is:(1) fifteen dollars ($15.00) if the record is communicated in writing and consists of ten (10) or fewer pages; or(2) fifteen dollar…

(a) Adoption of filing-office rules. The secretary of state shall adopt and publish rules to implement this chapter. The filing-office rules must be:(1) consistent with this chapter; and(2) adopted and published in accordance with the Uniform Administrative Procedures Act, compil…

(1) The secretary of state shall report annually on or before February 1 to the governor and 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 of filing …

(a) Rights of secured party after default. After default, a secured party has the rights provided in this part and, except as otherwise provided in § 47-9-602, those provided by agreement of the parties. A secured party:(1) May reduce a claim to judgment, foreclose, or otherwise …

(1) Except as otherwise provided in § 47-9-624, 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 listed sections:(1) Section 47-9-207(b)(4)(C), which deal…

(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 § 47-9-602 if the standards are not manifestly unreasonable. (b) Agreed standards ina…

(a) Enforcement: personal and real property. 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 property; or(2) as to both the personal…

(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 a 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;(…

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.

(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 take…

(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 coll…

(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 § 47-9-610. (1) m…

(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. Every…

(a) “Notification date”. 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 a signed notification of disposition; or(2) The debtor and any secondary obligor waive the right to notification.…

(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) 10-day period sufficient. A notification of disposition sent after default and ten (10) days or more before …

(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:(A) Describes the debtor and the secured party;(B) Describes the collateral that is the su…

(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:(A) The information specified in § 47-9-613(a)(1);(B) A description of any liability for a deficiency of the …

(a) Application of proceeds. A secured party shall apply or pay over for application the cash proceeds of disposition under § 47-9-610 in the following order to:(1) The reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the ext…

(a) Definitions. In this section:(1) “Explanation” means a record 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 surplus or deficiency;(C) States, if applicable, that fu…

(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 subordinate s…

(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 co…

(a) “Transfer statement”. In this section, “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 post-default remedies w…

(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:(1) The debtor consents to the acceptance under subsection (c);(2) The secured …

(a) Persons to whom 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:(1) Any person from whom the secured party has received, before the debtor consented to the acceptanc…

(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 collateral;(…

(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 reas…

(a) Waiver of disposition notification. A debtor or secondary obligor may waive the right to notification of disposition of collateral under § 47-9-611 only by an agreement to that effect entered into and signed after default. (b) Waiver of mandatory disposition. A debtor may wai…

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

(1) In an action arising from a 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 the provisions of this part relating to collection, enforcement, disposition, or acceptance unless …

(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 chapter. 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 l…

This act takes effect on July 1, 2001. References in this part to “this act” refer to the legislative enactment by which this chapter is added to Tennessee Code Annotated, Title 47. References in this part to “former Chapter 9” are to Tennessee Code Annotated, Title 47, Chapter 9…

(a) Pre-effective-date transactions or liens. Except as otherwise provided in this part, this act applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before this act takes effect. (b) Continuing validity. Except as otherw…

(a) Continuing priority over lien creditor: perfection requirements satisfied. A security interest that is enforceable immediately before this act takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security in…

(1) A security interest that is enforceable immediately before this act 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 (1) year after this act takes effect;(2) re…

(a) Pre-effective-date action; one-year perfection period unless reperfected. If action, other than the filing of a financing statement, is taken before July 1, 2001 and the action would have resulted in priority of a security interest over the rights of a person that becomes a l…

(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in § 47-9-501 continues the effectiveness of a financing statement filed before July 1, 2001, if:(1) the filing of an initial financing statemen…

(a) Pre-effective date financing statement. In this section, “pre-effective-date financing statement” means a financing statement filed before July 1, 2001. (b) Applicable law. After July 1, 2001, a person may add or delete collateral covered by, continue or terminate the effecti…

(1) A person may file an initial financing statement or a continuation statement under this part if:(1) the secured party of record authorizes the filing; and(2) the filing is necessary under this part:(A) to continue the effectiveness of a financing statement filed before July 1…

(a) Law governing priority. This act determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2001, former Chapter 9 determines priority. (b) Priority if security interest becomes enforceable un…