DIVISION 9. SECURED TRANSACTIONS [9101. - 9907.]

Division 9 repealed and added by Stats. 1999, Ch. 991, Sec. 35.

§§ 9101–9907 · 161 sections

1. CHAPTER 1. General Provisions §§ 9101–9110 · 13 sections

   • § 9101 This division may be cited as the Uniform Commercial Code-Secured Transactions.
   • § 9102 (a) In this division: (1) “Accession” means goods that are physically united with other goods in such a manner that the identity of the original goods is not…
   • § 9103 (a) In this section: (1) “Purchase money collateral” means goods or software that secures a purchase money obligation incurred with respect to that collateral.…
   • § 9104 (a) A secured party has control of a deposit account if any of the following conditions is satisfied: (1) The secured party is the bank with which the deposit…
   • § 9105 (a) A purchaser has control of an authoritative electronic copy of a record evidencing chattel paper if a system employed for evidencing the assignment of…
   • § 9105.1 (a) A person has control of electronic money if each of the following conditions is satisfied: (1) The electronic money, a record attached to or logically…
   • § 9106 (a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in Section 8106. (b) A secured party has…
   • § 9107 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…
   • § 9107.1 (a) A secured party has control of a controllable electronic record as provided in Section 12105. (b) A secured party has control of a controllable account or…
   • § 9107.2 (a) A person that has control under Section 9104, 9105, or 9105.1 is not required to acknowledge that it has control on behalf of another person. (b) If a…
   • § 9108 (a) Except as otherwise provided in subdivisions (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if…
   • § 9109 (a) Except as otherwise provided in subdivisions (c) and (d), this division applies to each of the following: (1) A transaction, regardless of its form, that…
   • § 9110 A security interest arising under Section 2401 or 2505, or under subdivision (3) of Section 2711, or subdivision (e) of Section 10508 is subject to this…
2. CHAPTER 2. Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement §§ 9201–9210 · 10 sections

   • § 9201 (a) Except as otherwise provided in this code, a security agreement is effective according to its terms between the parties, against purchasers of the…
   • § 9202 Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this…
   • § 9203 (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly…
   • § 9204 (a) Except as otherwise provided in subdivision (b), a security agreement may create or provide for a security interest in after-acquired collateral. (b)…
   • § 9205 (a) A security interest is not invalid or fraudulent against creditors solely because either of the following applies: (1) The debtor has the right or ability…
   • § 9206 (a) A security interest in favor of a securities intermediary attaches to a person’s security entitlement if both of the following conditions are satisfied:…
   • § 9207 (a) Except as otherwise provided in subdivision (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured…
   • § 9208 (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…
   • § 9209 (a) Except as otherwise provided in subdivision (c), this section applies if both of the following conditions are satisfied: (1) There is no outstanding…
   • § 9210 (a) In this section: (1) “Request” means a record of a type described in paragraph (2), (3), or (4). (2) “Request for an accounting” means a record signed by a…
3. CHAPTER 3. Perfection and Priority §§ 9301–9342 · 47 sections

   • § 9301 Except as otherwise provided in Sections 9303 to 9306.2, inclusive, the following rules determine the law governing perfection, the effect of perfection or…
   • § 9302 While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the…
   • § 9303 (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…
   • § 9304 (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…
   • § 9305 (a) Except as otherwise provided in subdivision (c), the following rules apply: (1) While a security certificate is located in a jurisdiction, the local law of…
   • § 9306 (a) Subject to subdivision (c), the local law of the issuer’s jurisdiction or a nominated person’s jurisdiction governs perfection, the effect of perfection or…
   • § 9306.1 (a) Except as provided in subdivision (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an…
   • § 9306.2 (a) Except as provided in subdivision (b), the local law of the controllable electronic record’s jurisdiction specified in subdivisions (c) and (d) of Section…
   • § 9307 (a) In this section, “place of business” means a place where a debtor conducts its affairs. (b) Except as otherwise provided in this section, the following…
   • § 9308 (a) Except as otherwise provided in this section and in Section 9309, a security interest is perfected if it has attached and all of the applicable…
   • § 9309 The following security interests are perfected when they attach: (1) A purchase money security interest in consumer goods, except as otherwise provided in…
   • § 9310 (a) Except as otherwise provided in subdivision (b) and in subdivision (b) of Section 9312, a financing statement must be filed to perfect all security…
   • § 9311 (a) Except as otherwise provided in subdivision (d), the filing of a financing statement is not necessary or effective to perfect a security interest in…
   • § 9312 (a) A security interest in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, instruments, investment…
   • § 9313 (a) Except as otherwise provided in subdivision (b), a secured party may perfect a security interest in goods, instruments, negotiable tangible documents, or…
   • § 9314 (a) A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents,…
   • § 9314.1 (a) A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the…
   • § 9315 (a) Except as otherwise provided in this division and in subdivision (2) of Section 2403, both of the following apply: (1) A security interest or agricultural…
   • § 9316 (a) A security interest perfected pursuant to the law of the jurisdiction designated in subdivision (1) of Section 9301, subdivision (c) of Section 9305,…
   • § 9317 (a) A security interest or agricultural lien is subordinate to the rights of both of the following: (1) A person entitled to priority under Section 9322. (2)…
   • § 9318 (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…
   • § 9319 (a) Except as otherwise provided in subdivision (b), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a…
   • § 9320 (a) Except as otherwise provided in subdivision (e), a buyer in ordinary course of business takes free of a security interest created by the buyer’s seller,…
   • § 9321 (a) 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…
   • § 9321.1 A licensee of nonexclusive rights in a motion picture that is produced pursuant to one or more collective bargaining agreements governed by the laws of the…
   • § 9322 (a) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined…
   • § 9323 (a) Except as otherwise provided in subdivision (c), for purposes of determining the priority of a perfected security interest under paragraph (1) of…
   • § 9324 (a) Except as otherwise provided in subdivision (g), a perfected purchase money security interest in goods other than inventory or livestock has priority over…
   • § 9325 (a) Except as otherwise provided in subdivision (b), a security interest created by a debtor is subordinate to a security interest in the same collateral…
   • § 9326 (a) Subject to subdivision (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is…
   • § 9326.1 A security interest in a controllable account, controllable electronic record, or controllable payment intangible held by a secured party having control of the…
   • § 9327 The following rules govern priority among conflicting security interests in the same deposit account: (1) A security interest held by a secured party having…
   • § 9328 The following rules govern priority among conflicting security interests in the same investment property: (1) A security interest held by a secured party…
   • § 9329 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…
   • § 9330 (a) 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…
   • § 9331 (a) This division 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…
   • § 9332 (a) A transferee of tangible money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion…
   • § 9333 (a) In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien which satisfies all of the following…
   • § 9334 (a) A security interest under this division may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does…
   • § 9335 (a) A security interest may be created in an accession and continues in collateral that becomes an accession. (b) If a security interest is perfected when the…
   • § 9336 (a) 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…
   • § 9337 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…
   • § 9338 If a security interest or agricultural lien is perfected by a filed financing statement providing information described in paragraph (5) of subdivision (b) of…
   • § 9339 This division does not preclude subordination by agreement by a person entitled to priority.
   • § 9340 (a) Except as otherwise provided in subdivision (c), a bank with which a deposit account is maintained may exercise any right of recoupment or setoff against a…
   • § 9341 Except as otherwise provided in subdivision (c) of Section 9340, and unless the bank otherwise agrees in a signed record, a bank’s rights and duties with…
   • § 9342 This division does not require a bank to enter into an agreement of the kind described in paragraph (2) of subdivision (a) of Section 9104, even if its…
4. CHAPTER 4. Rights of Third Parties §§ 9401–9409 · 9 sections

   • § 9401 (a) Except as otherwise provided in subdivision (b) and in Sections 9406, 9407, 9408, and 9409, whether a debtor’s rights in collateral may be voluntarily or…
   • § 9402 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…
   • § 9403 (a) In this section, “value” has the meaning provided in subdivision (a) of Section 3303. (b) Except as otherwise provided in this section, an agreement…
   • § 9404 (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subdivisions (b) to (e), inclusive, the rights…
   • § 9405 (a) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding…
   • § 9406 (a) Subject to subdivisions (b) to (i), inclusive, and (l), an account debtor on an account, chattel paper, or a payment intangible may discharge its…
   • § 9407 (a) Except as otherwise provided in subdivision (b), a term in a lease agreement is ineffective to the extent that it does either of the following: (1)…
   • § 9408 (a) Except as otherwise provided in subdivisions (b) and (f), a term in a promissory note or in an agreement between an account debtor and a debtor that…
   • § 9409 (a) 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…
5. CHAPTER 5. Filing §§ 9501–9528 · 28 sections

   • § 9501 (a) Except as otherwise provided in subdivision (b), if the local law of this state governs perfection of a security interest or agricultural lien, the office…
   • § 9502 (a) Subject to subdivision (b), a financing statement is sufficient only if it satisfies all of the following conditions: (1) It provides the name of the…
   • § 9503 (a) A financing statement sufficiently provides the name of the debtor only if it does so in accordance with the following rules: (1) Except as otherwise…
   • § 9504 A financing statement sufficiently indicates the collateral that it covers if the financing statement provides either of the following: (1) A description of…
   • § 9505 (a) 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…
   • § 9506 (a) A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or…
   • § 9507 (a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a…
   • § 9508 (a) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in…
   • § 9509 (a) A person may file an initial financing statement, an amendment that adds collateral covered by a financing statement, or an amendment that adds a debtor to…
   • § 9510 (a) A filed record is effective only to the extent that it was filed by a person that may file it under Section 9509. (b) A record authorized by one secured…
   • § 9511 (a) 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…
   • § 9512 (a) Subject to Section 9509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subdivision (e),…
   • § 9513 (a) 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…
   • § 9514 (a) Except as otherwise provided in subdivision (c), an initial financing statement may reflect an assignment of all of the secured party’s power to authorize…
   • § 9515 (a) Except as otherwise provided in subdivisions (b), (e), (f), and (g), a filed financing statement is effective for a period of five years after the date of…
   • § 9516 (a) Except as otherwise provided in subdivision (b), communication of a record to a filing office and tender of the filing fee or acceptance of the record by…
   • § 9517 The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.
   • § 9518 (a) 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…
   • § 9519 (a) For each record filed in a filing office, the filing office shall do all of the following: (1) Assign a unique number to the filed record. (2) Create a…
   • § 9520 (a) A filing office shall refuse to accept a record for filing for a reason set forth in subdivision (b) of Section 9516 and may refuse to accept a record for…
   • § 9521 (a) 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…
   • § 9522 (a) 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…
   • § 9523 (a) 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…
   • § 9524 Delay by the filing office beyond a time limit prescribed by this chapter is excused if both of the following conditions are satisfied: (1) The delay is caused…
   • § 9525 (a) Except as otherwise provided in subdivision (d), the fee for filing and indexing a record under this chapter is set forth in subdivisions (a), (b), and (c)…
   • § 9526 (a) The Secretary of State shall adopt and publish rules to implement this division. The filing-office rules shall be consistent with this division. (b) To…
   • § 9526.5 (a) For purposes of this section, the following terms have the following meanings: (1) “Official filing” means the permanent archival filing of all…
   • § 9528 Upon the request of any person, the Secretary of State shall issue a combined certificate showing the information as to financing statements as specified in…
6. CHAPTER 6. Default §§ 9601–9629 · 29 sections

   • § 9601 (a) After default, a secured party has the rights provided in this chapter and, except as otherwise provided in Section 9602, those rights provided by…
   • § 9602 Except as otherwise provided in Section 9624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or…
   • § 9603 (a) 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…
   • § 9604 (a) If an obligation secured by a security interest in personal property or fixtures is also secured by an interest in real property or an estate therein: (1)…
   • § 9605 (a) Except as provided in subdivision (b), a secured party does not owe a duty based on its status as secured party to either of the following persons: (1) To…
   • § 9606 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…
   • § 9607 (a) If so agreed, and in any event after default, a secured party may do all of the following: (1) Notify an account debtor or other person obligated on…
   • § 9608 (a) 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…
   • § 9609 (a) After default, a secured party may do both of the following: (1) Take possession of the collateral. (2) Without removal, render equipment unusable and…
   • § 9610 (a) 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…
   • § 9611 (a) 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…
   • § 9612 (a) Except as otherwise provided in subdivision (b), whether a notification is sent within a reasonable time is a question of fact. (b) In a transaction other…
   • § 9613 (a) Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification…
   • § 9614 (a) In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide all of the following information: (A) The…
   • § 9615 (a) A secured party shall apply or pay over for application the cash proceeds of disposition under Section 9610 in the following order to each of the…
   • § 9616 (a) In this section: (1) “Explanation” means a record that contains all of the following: (A) States the amount of the surplus or deficiency. (B) Provides an…
   • § 9617 (a) A secured party’s disposition of collateral after default does all of the following: (1) Transfers to a transferee for value all of the debtor’s rights in…
   • § 9618 (a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after any of the following occurs: (1) The…
   • § 9619 (a) In this section, “transfer statement” means a record signed by a secured party stating all of the following: (1) That the debtor has defaulted in…
   • § 9620 (a) Except as otherwise provided in subdivision (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if…
   • § 9621 (a) 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…
   • § 9622 (a) A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures does all of the following: (1) It discharges the…
   • § 9623 (a) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. (b) To redeem collateral, a person shall tender both of…
   • § 9624 (a) A debtor or secondary obligor may waive the right to notification of disposition of collateral under Section 9611 only by an agreement to that effect…
   • § 9625 (a) 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…
   • § 9626 (a) 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…
   • § 9627 (a) 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…
   • § 9628 (a) Subject to subdivision (e), unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to…
   • § 9629 No renunciation or modification by the debtor of any of his or her rights under this chapter as to consumer goods shall be valid or enforceable unless the…
7. CHAPTER 7. Transition §§ 9701–9709 · 9 sections

   • § 9701 This division shall become operative on July 1, 2001.
   • § 9702 (a) Except as otherwise provided in this chapter, this division applies to a transaction or lien within its scope, even if the transaction or lien was entered…
   • § 9703 (a) A security interest that is enforceable immediately before July 1, 2001, and would have priority over the rights of a person that becomes a lien creditor…
   • § 9704 All of the following rules apply with respect to a security interest that is enforceable immediately before July 1, 2001, but which would be subordinate to the…
   • § 9705 (a) 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…
   • § 9706 (a) The filing of an initial financing statement in the office specified in Section 9501 continues the effectiveness of a financing statement filed before July…
   • § 9707 (a) In this section, “pre-effective-date financing statement” means a financing statement filed before the date that this section becomes operative. (b) After…
   • § 9708 A person may file an initial financing statement or a continuation statement under this chapter if both of the following conditions are satisfied: (1) The…
   • § 9709 (a) This division determines priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1,…
8. CHAPTER 8. Transition Provisions for 2010 Amendments §§ 9801–9809 · 9 sections

   • § 9801 The changes to this division made by the act adding this chapter shall become operative on July 1, 2014.
   • § 9802 (a) Except as otherwise provided in this chapter, the changes to this division made by the act adding this chapter apply to a transaction or lien within its…
   • § 9803 (a) A security interest that is a perfected security interest immediately before July 1, 2014, is a perfected security interest under this division as amended…
   • § 9804 A security interest that is an unperfected security interest immediately before July 1, 2014, becomes a perfected security interest as follows: (a) Without…
   • § 9805 (a) The filing of a financing statement before July 1, 2014, is effective to perfect a security interest to the extent the filing would satisfy the applicable…
   • § 9806 (a) The filing of an initial financing statement in the office specified in Section 9501 continues the effectiveness of a financing statement filed before July…
   • § 9807 (a) In this section, “preeffective-date financing statement” means a financing statement filed before July 1, 2014. (b) After July 1, 2014, a person may add or…
   • § 9808 A person may file an initial financing statement or a continuation statement under this chapter if the following conditions are satisfied: (a) The secured…
   • § 9809 The changes to this division made by the act adding this chapter determine the priority of conflicting claims to collateral. However, if the relative…
9. CHAPTER 9. Transition Provisions for 2014 Amendments §§ 9901–9907 · 7 sections

   • § 9901 (a) The changes to this division made by the act adding this chapter become operative on January 1, 2015. (b) This chapter applies to a security interest only…
   • § 9902 (a) Except as otherwise provided in this chapter, the changes to this division made by the act adding this chapter apply to a transaction or lien within its…
   • § 9903 A security interest that is a perfected security interest immediately before January 1, 2015, is a perfected security interest under this division as amended…
   • § 9904 A security interest that is an unperfected security interest immediately before January 1, 2015, becomes a perfected security interest as follows: (a) Without…
   • § 9905 (a) The filing of a financing statement before January 1, 2015, is effective to perfect a security interest to the extent the filing would satisfy the…
   • § 9906 A person may file an initial financing statement or a continuation statement under this chapter if the following conditions are satisfied: (a) The secured…
   • § 9907 The changes to this division made by the act adding this chapter determine the priority of conflicting claims to the collateral. However, if the relative…