Performance or Acceptance Under Reservation of Rights. (a) A party that with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved. Such words as “without prejudice”, “under protest” or the like are sufficient. (b) Subsection […]
Option to Accelerate at Will. A term providing that one party or that party’s successor in interest may accelerate payment or performance or require collateral or additional collateral “at will” or when the party “deems itself insecure”, or in words of similar import, means that the party shall have power to do so only if […]
Subordination of obligations. An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to performance of an obligation by agreement with either the person obligated or another creditor of the person obligated. Such a subordination does not create a security interest as […]
SHORT TITLE This article, Sections 1 through 144 of this act, may be cited as Uniform Commercial Code – Secured Transactions. Added by Laws 2000, c. 371, § 1, eff. July 1, 2001.
DEFINITIONS AND INDEX OF DEFINITIONS (a) In this article: (1) “Accession” means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. (2)(A)“Account”, except as used in “account for”, means a right to payment of a monetary obligation, whether or not earned by […]
PURCHASE-MONEY SECURITY INTEREST; APPLICATION OF PAYMENTS; BURDEN OF ESTABLISHING (a) In this section: (1) “purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and (2) “purchase-money obligation” means an obligation of an obligor incurred as all or part of the price of the collateral or for value […]
CONTROL OF DEPOSIT ACCOUNT (a) A secured party has control of a deposit account if: (1) the secured party is the bank with which the deposit account is maintained; (2) the debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing […]
CONTROL OF ELECTRONIC CHATTEL PAPER (a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned. (b) A system satisfies subsection (a) of this section, and a […]
CONTROL OF INVESTMENT PROPERTY (a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in Section 8-106 of this title. (b) A secured party has control of a commodity contract if: (1) the secured party is the commodity intermediary with which the commodity contract is carried; or (2) the […]
CONTROL OF LETTER-OF-CREDIT RIGHT A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under subsection (c) of Section 5-114 of […]
SUFFICIENCY OF DESCRIPTION (a) Except as otherwise provided in subsections (c), (d), and (e) of this section, a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. (b) Except as otherwise provided in subsection (d) of this section, a description of collateral reasonably […]
SCOPE OF ARTICLE (a) Except as otherwise provided in subsections (c) and (d) of this section, this article applies to: (1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; (2) an agricultural lien; (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes; […]
SECURITY INTERESTS ARISING UNDER ARTICLE 2 OR 2A A security interest arising under Section 2-401, 2-505, paragraph (3) of Section 2-711, or paragraph (5) of Section 2A-508 of this title is subject to this article. However, until the debtor obtains possession of the goods: (1) the security interest is enforceable, even if paragraph (3) of […]
GENERAL EFFECTIVENESS OF SECURITY AGREEMENT (a) Except as otherwise provided in this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors. (b) A transaction subject to this article is subject to any applicable rule of law which establishes a different rule for consumers, […]
TITLE TO COLLATERAL IMMATERIAL Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this article with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor. Added by Laws 2000, c. 371, § 12, […]
ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS; SUPPORTING OBLIGATIONS; FORMAL REQUISITES (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 subsections (c) through (i) of this section, a security interest […]
AFTER-ACQUIRED PROPERTY; FUTURE ADVANCES (a) Except as otherwise provided in subsection (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 than an accession when given as […]
USE OR DISPOSITION OF COLLATERAL PERMISSIBLE (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 deal with collateral; (C)accept the return […]
SECURITY INTEREST ARISING IN PURCHASE OR DELIVERY OF FINANCIAL ASSET (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 the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities […]
RIGHTS AND DUTIES OF SECURED PARTY HAVING POSSESSION OR CONTROL OF COLLATERAL (a) Except as otherwise provided in subsection (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 chattel paper or an instrument, reasonable care includes taking […]
