Section 400.9-109

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 2002, 3 histories, see footnote   (history) 

  400.9-109.  Scope. — (a)  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;

  (5)  A security interest arising under section 400.2-401, 400.2-505, 400.2-711(3) or 400.2A-508(5), as provided in section 400.9-110; and

  (6)  A security interest arising under section 400.4-210 or 400.5-118.

  (b)  The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.

  (c)  This article does not apply to the extent that:

  (1)  A statute, regulation, or treaty of the United States preempts this article;

  (2)  Another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state;

  (3)  A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

  (4)  The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 400.5-114.

  (d)  This article does not apply to:

  (1)  A landlord's lien, other than an agricultural lien;

  (2)  A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 400.9-333 applies with respect to priority of the lien;

  (3)  An assignment of a claim for wages, salary, or other compensation of an employee;

  (4)  A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

  (5)  An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;

  (6)  An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

  (7)  An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

  (8)  A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but sections 400.9-315 and 400.9-322 apply with respect to proceeds and priorities in proceeds;

  (9)  An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

  (10)  A right of recoupment or set-off, but:

  (A)  Section 400.9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

  (B)  Section 400.9-404 applies with respect to defenses or claims of an account debtor;

  (11)  The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

  (A)  Liens on real property in sections 400.9-203 and 400.9-308;

  (B)  Fixtures in section 400.9-334;

  (C)  Fixture filings in sections 400.9-501, 400.9-502, 400.9-512, 400.9-516 and 400.9-519; and

  (D)  Security agreements covering personal and real property in section 400.9-604;

  (12)  An assignment of a claim arising in tort, other than a commercial tort claim, but sections 400.9-315 and 400.9-322 apply with respect to proceeds and priorities in proceeds; or

  (13)  An assignment of a deposit account in a consumer transaction, but sections 400.9-315 and 400.9-322 apply with respect to proceeds and priorities in proceeds; or

  (14)  An assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. Section 104(a)(1) or (2), as amended from time to time; or

  (15)  An assignment of a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. Section 1396p(d)(4), as amended from time to time; or

  (16)  A transfer by a government or governmental subdivision or agency.

­­--------

(L. 1963 p. 503 § 9-109, A.L. 2001 S.B. 288, A.L. 2002 S.B. 895)