Title 11A — Uniform Commercial Code
0 chapters · 598 sections in this title.
11A V.I.C. § 9-318 No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchases
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(a) Seller retains no interest. 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) Deemed rights of debtor if buyer's security interest unperfected. For purposes of det…
11A V.I.C. § 9-319 Rights and title of consignee with respect to creditors and purchases
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(a) Consignee has consignor's rights. Except as otherwise provided in subsection (b), 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 ha…
11A V.I.C. § 9-320 Buyer of goods
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(a) Buyer in ordinary course of business. Except as otherwise provided in subsection (e), 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,…
11A V.I.C. § 9-321 Licensee of general intangible and lessee of goods in ordinary course of business
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(a) “Licensee in ordinary course of business.” 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 intangib…
11A V.I.C. § 9-322 Priorities among conflicting security interests in and agricultural liens on same collateral
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(a) General priority rules. 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:(1) Conflicting perfected security interests and agricultural liens…
11A V.I.C. § 9-323 Future advances
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(a) When priority based on time of advance. Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under § 9–322(a)(1), perfection of the security interest dates from the time an advance is made to the extent that…
11A V.I.C. § 9-324 Priority of purchase-money security interests
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(a) General rule: purchase-money priority. Except as otherwise provided in subsection (g), 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 provide…
11A V.I.C. § 9-325 Priority of security interests in transferred collateral
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(a) Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b), 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 collater…
11A V.I.C. § 9-326 Priority of security interests created by new debtor
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(a) Subordination of security interest created by new debtor. Subject to subsection (b), a security interest created by a new debtor which is perfected by a filed financing statement that is effective solely under § 9–508 in collateral in which a new debtor has or acquires rights…
11A V.I.C. § 9-327 Priority of security interests in deposit account
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(1) The following rules govern priority among conflicting security interests in the same deposit account:(1) A security interest held by a secured party having control of the deposit account under § 9–104 has priority over a conflicting security interest held by a secured party t…
11A V.I.C. § 9-328 Priority of security interests in investment property
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(1) The following rules govern priority among conflicting security interests in the same investment property:(1) A security interest held by a secured party having control of investment property under § 9–106 has priority over a security interest held by a secured party that does…
11A V.I.C. § 9-329 Priority of security interests in letter-of-credit right
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(1) The following rules govern priority among conflicting security interests in the same letter-of-credit right:(1) A security interest held by a secured party having control of the letter-of-credit right under § 9–107 has priority to the extent of its control over a conflicting …
11A V.I.C. § 9-330 Priority of purchases of chattel paper or instrument
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(a) Purchaser's priority: security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:(1) in good faith and in the ordinary…
11A V.I.C. § 9-331 Priority of rights of purchases of instruments, documents and securities under other articles; priority of interests in financial assets and security entitlements under Article 8
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(a) Rights under Articles 3, 7, and 8 not limited. 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, or a protected purchaser of a security. These holders or purc…
11A V.I.C. § 9-332 Transfer of money; transfer of funds from deposit account
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(a) Transferee of money. 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) Transferee of funds from deposit account. A transferee of funds from a deposit acco…
11A V.I.C. § 9-333 Priority of certain liens arising by operating of law
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(a) “Possessory lien.” In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien:(1) which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary cour…
11A V.I.C. § 9-334 Priority of security interests in fixtures and crops
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(a) Security interest in fixtures under this article. 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 …
11A V.I.C. § 9-335 Accessions
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(a) Creation of security interest in accession. A security interest may be created in an accession and continues in collateral that becomes an accession. (b) Perfection of security interest. If a security interest is perfected when the collateral becomes an accession, the securit…
11A V.I.C. § 9-336 Commingled goods
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(a) “Commingled goods.” 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. (b) No security interest in commingled goods as such. A security interest does not exist in commi…
11A V.I.C. § 9-337 Priority of security interests in goods covered by certificate of title
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(1) 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…
11A V.I.C. § 9-338 Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
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(1) If a security interest or agricultural lien is perfected by a filed financing statement providing information described in § 9–516(b)(5) which is incorrect at the time the financing statement is filed:(1) the security interest or agricultural lien is subordinate to a conflict…
11A V.I.C. § 9-339 Priority subiect to subordination
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This article does not preclude subordination by agreement by a person entitled to priority.
11A V.I.C. § 9-340 Effectiveness of right of recoupment or set-off against deposit account
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(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account. (b) Recoupment o…
11A V.I.C. § 9-341 Bank's rights and duties with respect to deposit account
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(1) Except as otherwise provided in § 9–340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:(1) the creation, attachment, or pe…
11A V.I.C. § 9-342 Bank's right to refuse to enter into or disclose existence of control agreement
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This article does not require a bank to enter into an agreement of the kind described in § 9–104(a)(2), 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 agreement to another person unless r…
11A V.I.C. § 9-401 Alienability of debtor's rights
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(a) Other law governs alienability; exceptions. Except as otherwise provided in subsection (b) and Sections 9–406, 9–407, 9–408, and 9–409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this article. (b) Agre…
11A V.I.C. § 9-402 Secured party not obligated on contract of debtor or in tort
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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.
11A V.I.C. § 9-403 Agreement not to assert defenses against assignee
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(a) “Value.” In this section, “value” has the meaning provided in § 3–303(a). (b) Agreement not to assert claim or defense. 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 …
11A V.I.C. § 9-404 Rights acquired by assignee; claims and defenses against assignee
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(a) Assignee's rights subject to terms, claims, and defenses; exceptions. Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:(1) all terms of the agreeme…
11A V.I.C. § 9-405 Modification of assigned contract
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(a) Effect of modification on assignee. 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 mo…
11A V.I.C. § 9-406 Discharge of account debtor; notification of assignment identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective
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(a) Discharge of account debtor; effect of notification. Subject to subsections (b) through (i), 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 notific…
11A V.I.C. § 9-407 Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest
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(a) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:(1) prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or t…
11A V.I.C. § 9-408 Restrictions on assignment of promissory notes, health-care insurance receivables and certain general intangibles ineffective
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(a) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (b), a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a co…
11A V.I.C. § 9-409 Restrictions on assignment of letter-of-credit rights ineffective
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(a) Term or law restricting assignment generally ineffective. A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated perso…
11A V.I.C. § 9-501 Filing office
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(a) Filing offices. Except as otherwise provided in subsection (b), 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:(1) the of…
11A V.I.C. § 9-502 Contents of financing statement; record of mortgage as financing statement; time of filing financing statement
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(a) Sufficiency of financing statement. Subject to subsection (b), a financing statement is sufficient only if it:(1) provides the name of the debtor;(2) provides the name of the secured party or a representative of the secured party; and(3) indicates the collateral covered by th…
11A V.I.C. § 9-503 Name of debtor and secured party
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(a) Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:(1) if the debtor is a registered organization, only if the financing statement provides the name of the debtor indicated on the public record of the debtor's jurisdiction of orga…
11A V.I.C. § 9-504 Indication of collateral
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(1) A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:(1) a description of the collateral pursuant to § 9–108; or(2) an indication that the financing statement covers all assets or all personal property. (1) a descripti…
11A V.I.C. § 9-505 Filing and compliance with other statutes and treaties for consignments, leases, other bailments and other transactions
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(a) Use of terms other than “debtor” and “secured party.” A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in § 9–311(a), using the ter…
11A V.I.C. § 9-506 Effect of errors or omissions
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(a) Minor errors and omissions. A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading. (b) Financing statement seriously…
11A V.I.C. § 9-507 Effect of certain events on effectiveness of financing statement
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(a) Disposition. 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 continues, even if the secured party knows of or consents to the dis…
11A V.I.C. § 9-508 Effectiveness of financing statement if new debtor becomes bound by security agreement
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(a) Financing statement naming original debtor. 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 debtor has or acquires rights to the extent that the financ…
11A V.I.C. § 9-509 Persons entitled to file a record
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(a) Person entitled to file record. 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 authenticated record …
11A V.I.C. § 9-510 Effectiveness of filed record
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(a) Filed record effective if authorized. A filed record is effective only to the extent that it was filed by a person that may file it under § 9–509. (b) Authorization by one secured party of record. A record authorized by one secured party of record does not affect the financin…
11A V.I.C. § 9-511 Secured party of record
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(a) Secured party of record. 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 initial financing…
11A V.I.C. § 9-512 Amendment of financing statement
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(a) Amendment of information in financing statement. Subject to § 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 filing an am…
11A V.I.C. § 9-513 Termination statement
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(a) Consumer goods. 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 collateral covered by t…
11A V.I.C. § 9-514 Assignment of powers of secured party of record
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(a) Assignment reflected on initial financing statement. 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 name and mai…
11A V.I.C. § 9-515 Duration and effectiveness of financing statement; effect of lapsed financing statement
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(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 subs…
11A V.I.C. § 9-516 What constitutes filing; effectiveness of filing
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(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. Filing …