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Repossessions: Listing of Provisions

Listing of 2002 UCC Article 3 Sections Reprinted

[Note: Only sections of the 2002 revised version of Article 3 which are reproduced herein are listed below.]

Article 3. Negotiable Instruments [2002]

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Part 4. Liability of Parties

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3-419. Instruments Signed for Accommodation

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Repossessions: Section 3-419. Instruments Signed for Accommodation.

(a) If an instrument is issued for value given for the benefit of a party to the instrument (“accommodated party”) and another party to the instrument (“accommodation party”) signs the instrument for the purpose of incurring liability on the instrument without being a direct beneficiary of the value given for the instrument, the instrument is signed by the accommodation party “for accommodation.”

Repossessions: Section 3-605. Discharge of Secondary Obligors.

(a) If a person entitled to enforce an instrument releases the obligation of a principal obligor in whole or in part, and another party to the instrument is a secondary obligor with respect to the obligation of that principal obligor, the following rules apply:

Repossessions: Listing of Provisions

Listing of UCC Article 9 Sections

[Note: Sections listed in bold type are reproduced herein; sections listed in roman type are not. All sections of revised Article 9 are listed below.]

Article 9. Secured Transactions

Part 1. General Provisions

Subpart 1. Short Title, Definitions, and General Concepts

Repossessions: Section 9-103. Purchase-Money Security Interest; Application of Payments; Burden of Establishing.

(a) [Definitions.] 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 given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.

Repossessions: Section 9-108. Sufficiency of Description.

(a) [Sufficiency of description.] Except as otherwise provided in subsections (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

(b) [Examples of reasonable identification.] Except as otherwise provided in subsection (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by:

(1) specific listing;

Repossessions: Section 9-109. Scope.

(a) [General scope of article.] Except as otherwise provided in subsections (c) and (d), 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;

(4) a consignment;

Repossessions: Section 9-110. Security Interests Arising Under Article 2 or 2a.

A security interest arising under Section 2-401, 2-505, 2-711(3), or 2A-508(5) is subject to this article. However, until the debtor obtains possession of the goods:

(1) the security interest is enforceable, even if Section 9-203(b)(3) has not been satisfied;

(2) filing is not required to perfect the security interest;

(3) the rights of the secured party after default by the debtor are governed by Article 2 or 2A; and

Repossessions: Section 9-202. 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.

Official Comment

1. Source. Former Section 9-202.

Repossessions: Section 9-203. Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites.

(a) [Attachment.] 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) [Enforceability.] Except as otherwise provided in subsections (c) through (i), a security interest is enforceable against the debtor and third parties with respect to the collateral only if:

(1) value has been given;

Repossessions: Section 9-204. After-Acquired Property; Future Advances.

(a) [After-acquired collateral.] Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.

(b) [When after-acquired property clause not effective.] A security interest does not attach under a term constituting an after-acquired property clause to:

Repossessions: Section 9-205. Use or Disposition of Collateral Permissible.

(a) [When security interest not invalid or fraudulent.] 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;

Repossessions: Section 9-210. Request for Accounting; Request Regarding List of Collateral or Statement of Account.

(a) [Definitions.] 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 authenticated by a debtor requesting that the recipient provide an accounting of the unpaid obligations secured by collateral and reasonably identifying the transaction or relationship that is the subject of the request.

Repossessions: Section 9-301. Law Governing Perfection and Priority of Security Interests.

Except as otherwise provided in Sections 9-303 through 9-306, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:

(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.

Repossessions: Section 9-333. Priority of Certain Liens Arising by Operation of Law.

(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 course of the person’s business;

(2) which is created by statute or rule of law in favor of the person; and

Repossessions: Section 9-335. Accessions.

(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 security interest remains perfected in the collateral.

Repossessions: Section 9-336. Commingled Goods.

(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 commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.

Repossessions: Section 9-403. Agreement Not to Assert Defenses Against Assignee.

(a) [“Value.”] In this section, “value” has the meaning provided in Section 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 that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:

(1) for value;

(2) in good faith;