Revised New Article 9

Part 1 - General Provisions Subpart 1 - Short Title, Definitions, and General Section 9-101 - Short Title Section 9-102 - Definitions and Index of Definitions Article 9 definitions Section 9-103 - Purchase-Money Security Interest; A #sta$lishin% Section 9-10& - 'ontrol of De osit Account Section 9-10( - 'ontrol of #lectronic 'hattel Pa er Section 9-10) - 'ontrol of In*est!ent Pro erty Section 9-10+ - 'ontrol of ,etter-of-'redit -i%ht Section 9-10. - Sufficiency of Descri tion Subpart ! - Applicabilit" of Article Section 9-109 - Sco e Section 9-110 - Security Interests Arisin% /nder Article 2 or 2A Part ! - #ffectiveness of Securit" A$ree%ent& Attach%ent of Securit" 'nterest& Ri$hts of Parties to Securit" A$ree%ent Subpart 1 - #ffectiveness and Attach%ent Section 9-201 - 0eneral #ffecti*eness of Security A%ree!ent Section 9-202 - Ttitle to 'ollateral I!!aterial Section 9-203 - Attach!ent and #nforcea$ility of Security Interest; Proceeds; Su ortin% 1$li%ations; 2or!al -e3uisites Section 9-20& - After-Ac3uired Pro erty; 2uture Ad*ances Section 9-20( - /se or Dis osition of 'ollateral Per!issi$le Section 9-20) - Security Interest Arisin% in Purchase or Deli*ery of 2inancial Asset Subpart ! - Ri$hts and Duties Section 9-20+ - -i%hts and Duties of Secured Party 4a*in% Possession or 'ontrol of 'ollateral Section 9-20. - Additional Duties of Secured Party 4a*in% 'ontrol of 'ollateral Section 9-209 - Duties of Secured Party if Account De$tor has $een 5otified of Assi%n!ent Section 9-210 - -e3uest for Accountin%; -e3uest -e%ardin% ,ist of 'ollateral or State!ent of Account Part ( - Perfection and Priorit" Subpart 1 - )aw Governin$ Perfection and Priorit" Section 9-301 - ,a6 0o*ernin% Perfection and Priority of Security Interests Section 9-302 - ,a6 0o*ernin% Perfection and Priority of A%ricultural ,iens Section 9-303 - ,a6 0o*ernin% Perfection and Priority of Security Interest in 0ood 'o*ered $y a 'ertificate of Title Section 9-30& - ,a6 0o*ernin% Perfection and Priority of Security Interests in De osit Accounts Section 9-30( - ,a6 0o*ernin% Perfection and Priority of Security Interests in In*est!ent Pro erty oncepts

lication of Pay!ents; "urden of

Section 9-30) - ,a6 0o*ernin% Perfection and Priority of Security Interests in ,etter-of-'redit -i%hts Section 9-30+ - ,ocation of De$tor Subpart ! - Perfection Section 9-30. - 7hen Security Interest or A%ricultual ,ien is Perfected; 'ontinuity of Perfection Section 9-309 - Security Interest Perfected / on Attach!ent Section 9-310 - 7hen 2ilin% -e3uired to Perfect Security Interest or A%ricultural ,ien; Security Interests and A%ricultual ,iens to 7hich 2ilin% Pro*isions Do 5ot A ly Section 9-311 - Perfection of Security Interests in Pro erty Su$8ect to 'ertain Statutes9 -e%ulations9 and Treaties Section 9-312 - Perfection of Security Interests in 'hattel Pa er9 De osit Accounts9 Docu!ents9 0ood 'o*ered $y Docu!ents9 Instru!ents9 In*est!ent Pro erty9 ,etter-of-'redit -i%hts9 and Money; Perfection $y Per!issi*e 2ilin%; Te! orary Perfection 6ithout 2ilin% or Transfer of Possession Section 9-313 - 7hen Possession $y or Deli*ery to Secured Party Perfects Security Interest 7ithout 2ilin% Section 9-31& - Perfection $y 'ontrol Section 9-31( - Secured Party:s -i%hts on Dis osition of 'ollateral and in Proceeds Section 9-31) - 'ontinued Perfection of Security Interest 2ollo6in% 'han%e in 0o*ernin% ,a6 Subpart ( - Priorit" Section 9-31+ - Interests that Ta;e Priority 1*er or Ta;e 2ree of Security Interest or A%ricultual ,ien Section 9-31. - -i%hts and Title of Seller of Account or 'hattel Pa er 6ith -es ec to 'reditors and Purchasers Section 9-319 - -i%hts and Title of 'onsi%nee 6ith -es ect to 'reditors and Purchasers Section 9-320 - "uyer of 0oods Section 9-321 - ,icensee of 0eneral Intan%i$le and ,essee of 0oods in 1rdinary 'ourse of "usiness Section 9-322 - Priorities A!on% 'onflictin% Security Interests in and A%ricultural ,iens on Sa!e 'ollateral Section 9-323 - 2uture Ad*ances Section 9-32& - Priority of Purchase-Money Security Interests Section 9-32( - Priority of Security Interests in Transferred 'ollateral Section 9-32) - Priority of Security Interests 'reated $y 5e6 De$tor Section 9-32+ - Priority of Security Interests in De osit Account Section 9-32. - Priority of Security Interests in In*est!ent Pro erty Section 9-329 - Priority of Security Interests in ,etter-of-'redit -i%ht Section 9-330 - Priority of Purchasers of 'hattel Pa er or Instru!ent Section 9-331 - Priority of -i%hts of Purchasers of Instru!ents9 Docu!ents9 and Securities /nder 1ther Articles; Priority of Interests in 2inancial Assets and Security #ntitle!ents under Article . Section 9-332 - Transfer of Money< Transfer of 2unds 2ro! De osit Account Section 9-333 - Priority of 'ertain ,iens Arisin% $y 1 eration of ,a6 Section 9-33& - Priority of Security Interests in 2ixtures and 'ro s Section 9-33( - Accessions Section 9-33) - 'o!!in%led 0oods Section 9-33+ - Priority of Security Interests in 0oods 'o*ered $y 'ertificate of Title Section 9-33. - Priority of Security Interests or A%ricultural ,ien Perfected $y 2iled 2inancin% State!ent Pro*idin% 'ertain Incorrect Infor!ation Section 9-339 - Priority Su$8ect to Su$ordination

Subpart * - Ri$hts of +an, Section 9-3&0 - #ffecti*eness of -i%ht of -ecou !ent or Set-off A%ainst De osit Account Section 9-3&1 - "an;:s -i%hts and Duties 6ith -es ect to De osit Account Section 9-3&2 - "an;:s -i%ht to -efuse to #nter into or Disclosure existence of 'ontrol A%ree!ent Part * - Ri$hts of Third Parties Section 9-&01 - Aliena$ility of De$tor:s -i%hts Section 9-&02 - Secured Party 5ot 1$li%ated on 'ontract of De$tor or in Tort Section 9-&03 - A%ree!ent not to Assert Defenses A%ainst Assi%nee Section 9-&0& - -i%hts Ac3uired $y Assi%nee; 'lai!s and Defenses A%ainst Assi%nee Section 9-&0( - Modification of Assi%ned 'ontract Section 9-&0) - Dischar%e of Account De$tor; 5otification of Assi%n!ent; Identification and Proof of Assi%n!ent; -estrictions on Assi%n!ent of Accounts9 'hattel Pa er9 Pay!ent Intan%i$les9 and Pro!issory 5otes Ineffecti*e Section 9-&0+ - -estrictions on 'reation or #nforce!ent of Security Interest in ,easehold Interest or in ,essor:s -esidual Interest Section 9-&0. - -estrictions on Assi%n!ent of Pro!issory 5otes9 5otes9 4ealth-'are-Insurance -ecei*a$les9 and 'ertain 0eneral Intan%i$les Ineffecti*e Section 9-&09 - -estrictions on Assi%n!ent of ,etter-of-'redit -i%hts Ineffecti*e Part - - .ilin$ Subpart 1 - .ilin$ /ffice0 ontents and #ffectiveness of .inancin$ State%ent Section 9-(01 - 2ilin% 1ffice Section 9-(02 - 'ontents of 2inancin% State!ent; -ecord of Mort%a%e as 2inancin% State!ent; Ti!e of 2ilin% 2inancin% State!ent Section 9-(03 - 5a!e of De$tor and Secured Party Section 9-(0& - Indication of 'ollateral Section 9-(0( - 2ilin% and 'o! liance 6ith other Statutes and Treaties for 'onsi%n!ents9 ,eases9 other "ail!ents9 and other Transactions Section 9-(0) - #ffect of #rrors or 1!issions Section 9-(0+ - #ffect of 'ertain #*ents on #ffecti*eness of 2inancin% State!ent Section 9-(0. - #ffecti*eness of 2inancin% State!ent if 5e6 De$tor "eco!es "ound $y Security A%ree!ent Section 9-(09 - Persons #ntitled to 2ile a -ecord Section 9-(10 - #ffecti*eness of 2iled -ecord Section 9-(11 - Secured Party of -ecord Section 9-(12 - A!end!ent of 2inancin% State!ent Section 9-(13 - Ter!ination State!ent Section 9-(1& - Assi%n!ent of Po6ers of Secured Party of -ecord Section 9-(1( - Duration and #ffecti*eness of 2inancin% State!ent; #ffect of ,a sed 2inancin% State!ent Section 9-(1) - 7hat 'onstitutes 2ilin%< #ffecti*eness of 2ilin% Section 9-(1+ - #ffect of Indexin% #rrors Section 9-(1. - 'lai! 'oncernin% Inaccurate or 7ron%fully 2iled -ecord Subpart ! - Duties and /peration of .ilin$ /ffice Section 9-(19 - 5u!$erin%9 Maintainin%9 and Indexin% -ecords; 'o!!unicatin% Infor!ation Pro*ided in -ecords Section 9-(20 - Acce tance and -efusal to Acce t -ecord Section 9-(21 - /nifor! 2or! of 7ritten 2inancin% State!ent and A!end!ent Section 9-(22 - Maintenance and Destruction of -ecords

Section 9-(23 - Infor!ation 2ro! 2ilin% 1ffice; Sale or ,icense of -ecords Section 9-(2& - Delay $y 2ilin% 1ffice Section 9-(2( - 2ees Section 9-(2) - 2ilin% 1ffice -ules Section 9-(2+ - Duty to -e ort Part 1 - Default Subpart 1 - Default and #nforce%ent of Securit" 'nterest Section 9-)01 - -i%hts After Default; =udicial #nforce!ent; 'onsi%nor or "uyer of Accounts9 'hattel Pa er9 Pay!ent Intan%i$les9 or Pro!issory 5otes Section 9-)02 - 7ai*er and >ariance of -i%hts and Duties Section 9-)03 - A%ree!ent on Standards 'oncernin% -i%hts and Duties Section 9-)0& - Procedure if Security A%ree!ent 'o*ers -eal Pro erty or 2ixtures Section 9-)0( - /n;no6n De$tor or Secondary 1$li%or Section 9-)0) - Ti!e of Default for A%ricultural ,ien Section 9-)0+ - 'ollection and #nforce!ent $y Secured Party Section 9-)0. - A lication of Proceeds of 'ollection or #nforce!ent; ,ia$ility for Deficiency and -i%ht to Sur lus Section 9-)09 - Secured Party:s -i%ht to Ta;e Possession After Default Section 9-)10 - Dis osition of 'ollateral After Default Section 9-)11 - 5otification "efore Dis osition of 'ollateral Section 9-)12 - Ti!eliness of 5otification "efore Dis osition of 'ollateral Section 9-)13 - 'ontents and 2or! of 5otification "efore Dis ositioin of 'ollateral; 0eneral Section 9-)1& - 'ontents and 2or! of 5otification "efore Dis osition of 'ollateral; 'onsu!er0oods Transaction Section 9-)1( - A lication of Proceeds of Dis osition; ,ia$ility for Deficiency and -i%ht to Sur lus Section 9-)1) - #x lanation of 'alculation of Sur lus or Deficiency Section 9-)1+ - -i%hts of Transferee of 'ollateral Section 9-)1. - -i%hts and Duties of 'ertain Secondary 1$li%ors Section 9-)19 - Transfer of -ecord or ,e%al Title Section 9-)20 - Acce tance of 'ollateral in 2ull or Partial Satisfaction of 1$li%ation; 'o! ulsory Dis osition of 'ollateral Section 9-)21 - 5otification of Pro osal to Acce t 'ollateral Section 9-)22 - #ffect of Acce tance of 'ollateral Section 9-)23 - -i%ht to -edee! 'ollateral Section 9-)2& - 7ai*er Section 9-)2( - -e!edies for Secured Party:s 2ailure to 'o! ly 6ith Article Subpart ! - Nonco%pliance with Article Section 9-)2) - Action in 7hich Deficiency or Sur lus is in Issue Section 9-)2+ - Deter!ination of 7hether 'onduct 6as 'o!!ercially -easona$le Section 9-)2. - 5onlia$ility and ,i!itation on ,ia$ility of Secured Party; ,ia$ility of Secondary 1$li%or Part 2 - Transition Section 9-+01 - #ffecti*e Date Section 9-+02 - Sa*in%s 'lause Section 9-+03 - Security Interest Perfected "efore #ffecti*e Date Section 9-+0& - Security Interest /n erfected "efore #ffecti*e Date Section 9-+0( - #ffecti*eness of Action Ta;en "efore #ffecti*e Date of Act Section 9-+0) - 7hen Initial 2inancin% State!ent Suffices to 'ontinue #ffecti*eness of 2inancin%

State!ent Section 9-+0+ - Persons #ntitled to 2ile Initial 2inancin% State!ent Section 9-+0. - Persons #ntitled to 2ile Initial 2inancin% State!ent or 'ontinuation State!ent Section 9-+09 - Priority PART 1 - G#N#RA) PR/3'S'/NS

Section 9-101 S41-T TIT,# This article !ay $e cited as /nifor! 'o!!ercial 'ode ? Secured Transactions@

Section 9-102 D#2I5ITI15S A5D I5D#A 12 D#2I5ITI15S BaC Article 9 definitions0 In this article< B1C DAccessionD !eans %oods that are hysically united 6ith other %oods in such a !anner that the identity of the ori%inal %oods is not lost@ B2C BAC DAccountD9 exce t as used in Daccount forD9 !eans a ri%ht to ay!ent of a !onetary o$li%ation9 6hether or not earned $y erfor!ance< BiC for ro erty that has $een or is to $e sold9 leased9 licensed9 assi%ned9 or other6ise dis osed of; BiiC for ser*ices rendered or to $e rendered; BiiiC for a olicy of insurance issued or to $e issued; Bi*C for a secondary o$li%ation incurred or to $e incurred; B*C for ener%y ro*ided or to $e ro*ided; B*iC for the use or hire of a *essel under a charter or other contract; B*iiC arisin% out of the use of a credit or char%e card or infor!ation contained on or for use 6ith the card; or B*iiiC as 6innin%s in a lottery or other %a!e of chance o erated or s onsored $y a state9 %o*ern!ental unit of a state9 or a erson licensed or authoriEed to o erate the %a!e $y a state or %o*ern!ental unit of a state@ B"C The ter! includes health-care-insurance recei*a$les@ B'C The ter! does not include<

BiC ri%hts to ay!ent e*idenced $y chattel a er or an instru!ent; BiiC co!!ercial tort clai!s; BiiiC de osit accounts; Bi*C in*est!ent ro erty; B*C letter-of-credit ri%hts or letters of credit; or B*iC ri%hts to ay!ent for !oney or funds ad*anced or sold9 other than ri%hts arisin% out of the use of a credit or char%e card or infor!ation contained on or for use 6ith the card@ B3C DAccount debtorD !eans a erson o$li%ated on an account9 chattel a er9 or %eneral intan%i$le@ The ter! does not include ersons o$li%ated to ay a ne%otia$le instru!ent9 e*en if the instru!ent constitutes art of chattel a er@ B&C DAccountin$D9 exce t as used in Daccountin% forD9 !eans a record< BAC authenticated $y a secured arty; B"C indicatin% the a%%re%ate un aid secured o$li%ations as of a date not !ore than thirty-fi*e B3(C days earlier or thirty-fi*e B3(C days later than the date of the record; and B'C identifyin% the co! onents of the o$li%ations in reasona$le detail@ B(C DA$ricultural lienD !eans an interest9 other than a security interest9 in far! roducts< BAC 6hich secures ay!ent or erfor!ance of an o$li%ation for< BiC %oods or ser*ices furnished in connection 6ith a de$torFs far!in% o eration; or BiiC rent on real ro erty leased $y a de$tor in connection 6ith its far!in% o eration; B"C 6hich is created $y statute in fa*or of a erson that< BiC in the ordinary course of its $usiness furnished %oods or ser*ices to a de$tor in connection 6ith a de$torFs far!in% o eration; or BiiC leased real ro erty to a de$tor in connection 6ith the de$torFs far!in% o eration; and B'C 6hose effecti*eness does not de end on the ersonFs ossession of the ersonal ro erty@ B)C DAs-e4tracted collateralD !eans< BAC oil9 %as9 or other !inerals that are su$8ect to a security interest that< BiC is created $y a de$tor ha*in% an interest in the !inerals $efore extraction; and BiiC attaches to the !inerals as extracted; or

B"C accounts arisin% out of the sale at the 6ellhead or !inehead of oil9 %as9 or other !inerals in 6hich the de$tor had an interest $efore extraction@ B+C DAuthenticateD !eans< BAC to si%n; or B"C to execute or other6ise ado t a sy!$ol9 or encry t or si!ilarly rocess a record in 6hole or in art9 6ith the resent intent of the authenticatin% erson to identify the erson and ado t or acce t a record@ B.C D+an,D !eans an or%aniEation that is en%a%ed in the $usiness of $an;in%@ The ter! includes sa*in%s $an;s9 sa*in%s and loan associations9 credit unions9 and trust co! anies@ B9C D ash proceedsD !eans roceeds that are !oney9 chec;s9 de osit accounts9 or the li;e@ B10C D ertificate of titleD !eans a certificate of title 6ith res ect to 6hich a statute ro*ides for the security interest in 3uestion to $e indicated on the certificate as a condition or result of the security interestFs o$tainin% riority o*er the ri%hts of a lien creditor 6ith res ect to the collateral@ B11C D hattel paperD !eans a record or records that e*idence $oth a !onetary o$li%ation and a security interest in s ecific %oods9 a security interest in s ecific %oods and soft6are used in the %oods9 a security interest in s ecific %oods and license of soft6are used in the %oods9 a lease of s ecific %oods9 or a lease of s ecific %oods and license of soft6are used in the %oods@ In this ara%ra h9 D!onetary o$li%ationD !eans a !onetary o$li%ation secured $y the %oods or o6ed under a lease of %oods and includes a !onetary o$li%ation 6ith res ect to soft6are used in the %oods@ The ter! does not include charters or other contracts in*ol*in% the use or hire of a *essel@ If a transaction is e*idenced $y records that include an instru!ent or series of instru!ents9 the %rou of records ta;en to%ether constitutes chattel a er@ B12C D ollateralD !eans the ro erty su$8ect to a security interest or a%ricultural lien@ The ter! includes< BAC roceeds to 6hich a security interest attaches; B"C accounts9 chattel a er9 ay!ent intan%i$les9 and ro!issory notes that ha*e $een sold; and B'C %oods that are the su$8ect of a consi%n!ent@ B13C D o%%ercial tort clai%D !eans a clai! arisin% in tort 6ith res ect to 6hich< BAC the clai!ant is an or%aniEation; or B"C the clai!ant is an indi*idual and the clai!< BiC arose in the course of the clai!antFs $usiness or rofession; and BiiC does not include da!a%es arisin% out of ersonal in8ury to or the death of an indi*idual@ B1&C D o%%odit" accountD !eans an account !aintained $y a co!!odity inter!ediary in 6hich a co!!odity contract is carried for a co!!odity custo!er@

B1(C D o%%odit" contractD !eans a co!!odity futures contract9 an o tion on a co!!odity futures contract9 a co!!odity o tion9 or another contract if the contract or o tion is< BAC traded on or su$8ect to the rules of a $oard of trade that has $een desi%nated as a contract !ar;et for such a contract ursuant to federal co!!odities la6s; or B"C traded on a forei%n co!!odity $oard of trade9 exchan%e9 or !ar;et9 and is carried on the $oo;s of a co!!odity inter!ediary for a co!!odity custo!er@ B1)C D o%%odit" custo%erD !eans a erson for 6hich a co!!odity inter!ediary carries a co!!odity contract on its $oo;s@ B1+C D o%%odit" inter%ediar"D !eans a erson that< BAC is re%istered as a futures co!!ission !erchant under federal co!!odities la6; or B"C in the ordinary course of its $usiness ro*ides clearance or settle!ent ser*ices for a $oard of trade that has $een desi%nated as a contract !ar;et ursuant to federal co!!odities la6@ B1.C D o%%unicateD !eans< BAC to send a 6ritten or other tan%i$le record; B"C to trans!it a record $y any !eans a%reed u on $y the ersons sendin% and recei*in% the record; or B'C in the case of trans!ission of a record to or $y a filin% office9 to trans!it a record $y any !eans rescri$ed $y filin%-office rule@ B19C D onsi$neeD !eans a !erchant to 6hich %oods are deli*ered in a consi%n!ent@ B20C D onsi$n%entD !eans a transaction9 re%ardless of its for!9 in 6hich a erson deli*ers %oods to a !erchant for the ur ose of sale and< BAC the !erchant< BiC deals in %oods of that ;ind under a na!e other than the na!e of the erson !a;in% deli*ery; BiiC is not an auctioneer; and BiiiC is not %enerally ;no6n $y its creditors to $e su$stantially en%a%ed in sellin% the %oods of others; B"C 6ith res ect to each deli*ery9 the a%%re%ate *alue of the %oods is 1ne Thousand Dollars BG19000@00C or !ore at the ti!e of deli*ery; B'C the %oods are not consu!er %oods i!!ediately $efore deli*ery; and BDC the transaction does not create a security interest that secures an o$li%ation@ B21C D onsi$norD !eans a erson that deli*ers %oods to a consi%nee in a consi%n!ent@

B22C D onsu%er debtorD !eans a de$tor in a consu!er transaction@ B23C D onsu%er $oodsD !eans %oods that are used or $ou%ht for use ri!arily for ersonal9 fa!ily9 or household ur oses@ B2&C D onsu%er-$oods transactionD !eans a consu!er transaction in 6hich< BAC an indi*idual incurs an o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses; and B"C a security interest in consu!er %oods secures the o$li%ation@ B2(C D onsu%er obli$orD !eans an o$li%or 6ho is an indi*idual and 6ho incurred the o$li%ation as art of a transaction entered into ri!arily for ersonal9 fa!ily9 or household ur oses@ B2)C D onsu%er transactionD !eans a transaction in 6hich BiC an indi*idual incurs an o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses9 BiiC a security interest secures the o$li%ation9 and BiiiC the collateral is held or ac3uired ri!arily for ersonal9 fa!ily9 or household ur oses@ The ter! includes consu!er-%oods transactions@ B2+C D ontinuation state%entD !eans an a!end!ent of a financin% state!ent 6hich< BAC identifies9 $y its file nu!$er9 the initial financin% state!ent to 6hich it relates; and B"C indicates that it is a continuation state!ent for9 or that it is filed to continue the effecti*eness of9 the identified financin% state!ent@ B2.C DDebtorD !eans< BAC a erson ha*in% an interest9 other than a security interest or other lien9 in the collateral9 6hether or not the erson is an o$li%or; B"C a seller of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes; or B'C a consi%nee@ B29C DDeposit accountD !eans a de!and9 ti!e9 sa*in%s9 ass$oo;9 or si!ilar account !aintained 6ith a $an;@ The ter! does not include in*est!ent ro erty or accounts e*idenced $y an instru!ent@ B30C DDocu%entD !eans a docu!ent of title or a recei t of the ty e descri$ed in ara%ra h B2C of Section +-201@ B31C D#lectronic chattel paperD !eans chattel a er e*idenced $y a record or records consistin% of infor!ation stored in an electronic !ediu!@ B32C D#ncu%branceD !eans a ri%ht9 other than an o6nershi interest9 in real ro erty@ The ter! includes !ort%a%es and other liens on real ro erty@ B33C D#5uip%entD !eans %oods other than in*entory9 far! roducts9 or consu!er %oods@ B3&C D.ar% productsD !eans %oods9 other than standin% ti!$er9 6ith res ect to 6hich the de$tor is en%a%ed in a far!in% o eration and 6hich are<

BAC cro s %ro6n9 %ro6in%9 or to $e %ro6n9 includin%< BiC cro s roduced on trees9 *ines9 and $ushes; and BiiC a3uatic %oods roduced in a3uacultural o erations; B"C li*estoc;9 $orn or un$orn9 includin% a3uatic %oods roduced in a3uacultural o erations; B'C su lies used or roduced in a far!in% o eration; or

BDC roducts of cro s or li*estoc; in their un!anufactured states@ B3(C D.ar%in$ operationD !eans raisin%9 culti*atin%9 ro a%atin%9 fattenin%9 %raEin%9 or any other far!in%9 li*estoc;9 or a3uacultural o eration@ B3)C D.ile nu%berD !eans the nu!$er assi%ned to an initial financin% state!ent ursuant to su$section BaC of Section 9-(19@ B3+C D.ilin$ officeD !eans an office desi%nated in Section 9-(01 as the lace to file a financin% state!ent@ B3.C D.ilin$-office ruleD !eans a rule ado ted ursuant to Section 9-(2)@ B39C D.inancin$ state%entD !eans a record or records co! osed of an initial financin% state!ent and any filed record relatin% to the initial financin% state!ent@ B&0C D.i4ture filin$D !eans the filin% of a financin% state!ent co*erin% %oods that are or are to $eco!e fixtures and satisfyin% su$sections BaC and B$C of Section 9-(02@ The ter! includes the filin% of a financin% state!ent co*erin% %oods of a trans!ittin% utility 6hich are or are to $eco!e fixtures@ B&1C D.i4turesD !eans %oods that ha*e $eco!e so related to articular real ro erty that an interest in the! arises under real ro erty la6@ B&2C DGeneral intan$ibleD !eans any ersonal ro erty9 includin% thin%s in action9 other than accounts9 chattel a er9 co!!ercial tort clai!s9 de osit accounts9 docu!ents9 %oods9 instru!ents9 in*est!ent ro erty9 letter-of-credit ri%hts9 letters of credit9 !oney9 and oil9 %as9 or other !inerals $efore extraction@ The ter! includes ay!ent intan%i$les and soft6are@ B&3C DGood faithD !eans honesty in fact and the o$ser*ance of reasona$le co!!ercial standards of fair dealin%@ B&&C BAC DGoodsD !eans all thin%s that are !o*a$le 6hen a security interest attaches@ B"C The ter! includes< BiC fixtures; BiiC standin% ti!$er that is to $e cut and re!o*ed under a con*eyance or contract for sale; BiiiC the un$orn youn% of ani!als

10

Bi*C cro s %ro6n9 %ro6in%9 or to $e %ro6n9 e*en if the cro s are roduced on trees9 *ines9 or $ushes; and B*C !anufactured ho!es@ B'C The ter! also includes a co! uter ro%ra! e!$edded in %oods and any su infor!ation ro*ided in connection 6ith a transaction relatin% to the ro%ra! if< ortin%

BiC the ro%ra! is associated 6ith the %oods in such a !anner that it custo!arily is considered art of the %oods; or BiiC $y $eco!in% the o6ner of the %oods9 a erson ac3uires a ri%ht to use the ro%ra! in connection 6ith the %oods@ BDC The ter! does not include a co! uter ro%ra! 6hich is e!$edded in %oods and that consist solely of the !ediu! in 6hich the ro%ra! is e!$edded@ B#C The ter! also does not include accounts9 chattel a er9 co!!ercial tort clai!s9 de osit accounts9 docu!ents9 %eneral intan%i$les9 instru!ents9 in*est!ent ro erty9 letter-of-credit ri%hts9 letters of credit9 !oney9 or oil9 %as9 or other !inerals $efore extraction@ B&(C DGovern%ental unitD !eans a su$di*ision9 a%ency9 de art!ent9 county9 arish9 !unici ality9 or other unit of the %o*ern!ent of the /nited States9 a state9 or a forei%n country@ The ter! includes an or%aniEation ha*in% a se arate cor orate existence if the or%aniEation is eli%i$le to issue de$t on 6hich interest is exe! t fro! inco!e taxation under the la6s of the /nited States@ B&)C D6ealth-care-insurance receivableD !eans an interest in or clai! under a olicy of insurance 6hich is a ri%ht to ay!ent of a !onetary o$li%ation for health-care %oods or ser*ices ro*ided@ B&+C BAC D'nstru%entD !eans a ne%otia$le instru!ent or any other 6ritin% that e*idences a ri%ht to the ay!ent of a !onetary o$li%ation9 is not itself a security a%ree!ent or lease9 and is of a ty e that in ordinary course of $usiness is transferred $y deli*ery 6ith any necessary endorse!ent or assi%n!ent@ B"C The ter! does not include< BiC in*est!ent ro erty; BiiC letters of credit; or BiiiC 6ritin%s that e*idence a ri%ht to ay!ent arisin% out of the use of a credit or char%e card or infor!ation contained on or for use 6ith the card@ B&.C D'nventor"D !eans %oods9 other than far! roducts9 6hich< BAC are leased $y a erson as lessor; B"C are held $y a erson for sale or lease or to $e furnished under a contract of ser*ice; B'C are furnished $y a erson under a contract of ser*ice; or

11

BDC consist of ra6 !aterials9 6or; in rocess9 or !aterials used or consu!ed in a $usiness@ B&9C D'nvest%ent propert"D !eans a security9 6hether certificated or uncertificated9 security entitle!ent9 securities account9 co!!odity contract9 or co!!odity account@ B(0C D7urisdiction of or$ani8ationD9 6ith res ect to a re%istered or%aniEation9 !eans the 8urisdiction under 6hose la6 the or%aniEation is or%aniEed@ B(1C D)etter-of-credit ri$htD !eans a ri%ht to ay!ent or erfor!ance under a letter of credit9 6hether or not the $eneficiary has de!anded or is at the ti!e entitled to de!and ay!ent or erfor!ance@ The ter! does not include the ri%ht of a $eneficiary to de!and ay!ent or erfor!ance under a letter of credit@ B(2C D)ien creditorD !eans< BAC a creditor that has ac3uired a lien on the ro erty in*ol*ed $y attach!ent9 le*y9 or the li;e; B"C an assi%nee for $enefit of creditors fro! the ti!e of assi%n!ent; B'C a trustee in $an;ru tcy fro! the date of the filin% of the etition; or BDC a recei*er in e3uity fro! the ti!e of a oint!ent@

B(3C BAC D9anufactured ho%eD !eans a structure9 trans orta$le in one or !ore sections9 6hich< BiC in the tra*elin% !ode9 is ei%ht $ody feet or !ore in 6idth or forty B&0C $ody feet or !ore in len%th9 or9 6hen erected on site9 is three hundred t6enty B320C or !ore s3uare feet9 BiiC is $uilt on a er!anent chassis9 BiiiC is desi%ned to $e used as a d6ellin% 6ith or 6ithout a er!anent foundation 6hen connected to the re3uired utilities9 and Bi*C includes the lu!$in%9 heatin%9 air-conditionin%9 and electrical syste!s contained therein@ B"C The ter! includes any structure that !eets all of the re3uire!ents of this ara%ra h exce t the siEe re3uire!ents and 6ith res ect to 6hich the !anufacturer *oluntarily files a certification re3uired $y the /nited States Secretary of 4ousin% and /r$an De*elo !ent and co! lies 6ith the standards esta$lished under Title &2 of the /nited States 'ode@ B(&C D9anufactured-ho%e transactionD !eans a secured transaction< BAC that creates a urchase-!oney security interest in a !anufactured ho!e9 other than a !anufactured ho!e held as in*entory; or B"C in 6hich a !anufactured ho!e9 other than a !anufactured ho!e held as in*entory9 is the ri!ary collateral@ B((C D9ort$a$eD !eans a consensual interest in real ro erty9 includin% fixtures9 6hich secures ay!ent or erfor!ance of an o$li%ation@

12

B()C DNew debtorD !eans a erson that $eco!es $ound as a de$tor under su$section BdC of Section 9-203 $y a security a%ree!ent re*iously entered into $y another erson@ B(+C BAC DNew valueD !eans< BiC !oney; BiiC !oneyFs 6orth in ro erty9 ser*ices9 or ne6 credit; or BiiiC release $y a transferee of an interest in ro erty re*iously transferred to the transferee@ B"C The ter! does not include an o$li%ation su$stituted for another o$li%ation@ B(.C DNoncash proceedsD !eans roceeds other than cash roceeds@ B(9C BAC D/bli$orD !eans a erson that9 6ith res ect to an o$li%ation secured $y a security interest in or an a%ricultural lien on the collateral< BiC o6es ay!ent or other erfor!ance of the o$li%ation; BiiC has ro*ided ro erty other than the collateral to secure ay!ent or other erfor!ance of the o$li%ation; or BiiiC is other6ise accounta$le in 6hole or in art for ay!ent or other erfor!ance of the o$li%ation@ B"C The ter! does not include issuers or no!inated ersons under a letter of credit@ B)0C D/ri$inal debtorD !eans a erson that9 as de$tor9 entered into a security a%ree!ent to 6hich a ne6 de$tor has $eco!e $ound under su$section BdC of Section 9-203@ B)1C DPa"%ent intan$ibleD !eans a %eneral intan%i$le under 6hich the account de$torFs rinci al o$li%ation is a !onetary o$li%ation@ B)2C DPerson related toD9 6ith res ect to an indi*idual9 !eans< BAC the s ouse of the indi*idual; B"C a $rother9 $rother-in-la69 sister9 or sister-in-la6 of the indi*idual; B'C an ancestor or lineal descendant of the indi*idual or the indi*idualFs s ouse; or BDC any other relati*e9 $y $lood or !arria%e9 of the indi*idual or the indi*idualFs s ouse 6ho shares the sa!e ho!e 6ith the indi*idual@ B)3C DPerson related toD9 6ith res ect to an or%aniEation9 !eans< BAC a erson directly or indirectly controllin%9 controlled $y9 or under co!!on control 6ith the or%aniEation;

13

B"C an officer or director of9 or a erson erfor!in% si!ilar functions 6ith res ect to9 the or%aniEation; B'C an officer or director of9 or a erson erfor!in% si!ilar functions 6ith res ect to9 a erson descri$ed in su$ ara%ra h BAC; BDC the s ouse of an indi*idual descri$ed in su$ ara%ra h BAC9 B"C9 or B'C of this ara%ra h; or B#C an indi*idual 6ho is related $y $lood or !arria%e to an indi*idual descri$ed in su$ ara%ra h BAC9 B"C9 B'C9 or BDC of this ara%ra h and 6ho shares the sa!e ho!e 6ith the indi*idual@ B)&C DProceedsD !eans the follo6in% ro erty< BAC 6hate*er is ac3uired u on the sale9 lease9 license9 exchan%e9 or other dis osition of collateral; B"C 6hate*er is collected on9 or distri$uted on account of9 collateral; B'C ri%hts arisin% out of collateral; BDC to the extent of the *alue of collateral9 clai!s arisin% out of the loss9 nonconfor!ity9 or interference 6ith the use of9 defects or infrin%e!ent of ri%hts in9 or da!a%e to9 the collateral; or B#C to the extent of the *alue of collateral and to the extent aya$le to the de$tor or the secured arty9 insurance aya$le $y reason of the loss or nonconfor!ity of9 defects or infrin%e!ent of ri%hts in9 or da!a%e to9 the collateral@ B)(C DPro%issor" noteD !eans an instru!ent that e*idences a ro!ise to ay a !onetary o$li%ation9 does not e*idence an order to ay9 and does not contain an ac;no6led%!ent $y a $an; that the $an; has recei*ed for de osit a su! of !oney or funds@ B))C DProposalD !eans a record authenticated $y a secured arty 6hich includes the ter!s on 6hich the secured arty is 6illin% to acce t collateral in full or artial satisfaction of the o$li%ation it secures ursuant to Sections 9-)209 9-)219 and 9-)22@ B)+C DPublic-finance transactionD !eans a secured transaction in connection 6ith 6hich< BAC de$t securities are issued; B"C all or a ortion of the securities issued ha*e an initial stated !aturity of at least t6enty B20C years; and B'C the de$tor9 o$li%or9 secured arty9 account de$tor or other erson o$li%ated on collateral9 assi%nor or assi%nee of a secured o$li%ation9 or assi%nor or assi%nee of a security interest is a state or a %o*ern!ental unit of a state@ B).C DPursuant to co%%it%entD9 6ith res ect to an ad*ance !ade or other *alue %i*en $y a secured arty9 !eans ursuant to the secured artyFs o$li%ation9 6hether or not a su$se3uent e*ent of default or other e*ent not 6ithin the secured artyFs control has relie*ed or !ay relie*e the secured arty fro! its o$li%ation@

14

B)9C DRecordD9 exce t as used in Dfor recordD9 Dof recordD9 Drecord or le%al titleD9 and Drecord o6nerD9 !eans infor!ation that is inscri$ed on a tan%i$le !ediu! or 6hich is stored in an electronic or other !ediu! and is retrie*a$le in ercei*a$le for!@ B+0C DRe$istered or$ani8ationD !eans an or%aniEation or%aniEed solely under the la6 of a sin%le state or the /nited States and as to 6hich the state or the /nited States !ust !aintain a u$lic record sho6in% the or%aniEation to ha*e $een or%aniEed@ B+1C DSecondar" obli$orD !eans an o$li%or to the extent that< BAC the o$li%orFs o$li%ation is secondary; or B"C the o$li%or has a ri%ht of recourse 6ith res ect to an o$li%ation secured $y collateral a%ainst the de$tor9 another o$li%or9 or ro erty of either@ B+2C DSecured part"D !eans< BAC a erson in 6hose fa*or a security interest is created or ro*ided for under a security a%ree!ent9 6hether or not any o$li%ation to $e secured is outstandin%; B"C a erson that holds an a%ricultural lien; B'C a consi%nor; BDC a erson to 6hich accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes ha*e $een sold; B#C a trustee9 indenture trustee9 a%ent9 collateral a%ent9 or other re resentati*e in 6hose fa*or a security interest or a%ricultural lien is created or ro*ided for; or B2C a erson that holds a security interest arisin% under Section 2-&019 2-(0(9 ara%ra h B3C of Section 2-+119 ara%ra h B(C of Section 2A-(0.9 &-2109 or (-11.@ B+3C DSecurit" a$ree%entD !eans an a%ree!ent that creates or ro*ides for a security interest@ B+&C DSendD9 in connection 6ith a record or notification9 !eans< BAC to de osit in the !ail9 deli*er for trans!ission9 or trans!it $y any other usual !eans of co!!unication9 6ith osta%e or cost of trans!ission ro*ided for9 addressed to any address reasona$le under the circu!stances; or B"C to cause the record or notification to $e recei*ed 6ithin the ti!e that it 6ould ha*e $een recei*ed if ro erly sent under su$ ara%ra h BAC of this ara%ra h@ B+(C DSoftwareD !eans a co! uter ro%ra! and any su ortin% infor!ation ro*ided in connection 6ith a transaction relatin% to the ro%ra!@ The ter! does not include a co! uter ro%ra! that is included in the definition of %oods@ B+)C DStateD !eans a state of the /nited States9 the District of 'olu!$ia9 Puerto -ico9 the /nited States >ir%in Islands9 or any territory or insular ossession su$8ect to the 8urisdiction of the /nited States@

15

B++C DSupportin$ obli$ationD !eans a letter-of-credit ri%ht or secondary o$li%ation that su orts the ay!ent or erfor!ance of an account9 chattel a er9 a docu!ent9 a %eneral intan%i$le9 an instru!ent9 or in*est!ent ro erty@ B+.C DTan$ible chattel paperD !eans chattel a er e*idenced $y a record or records consistin% of infor!ation that is inscri$ed on a tan%i$le !ediu!@ B+9C DTer%ination state%entD !eans an a!end!ent of a financin% state!ent 6hich< BAC identifies9 $y its file nu!$er9 the initial financin% state!ent to 6hich it relates; and B"C indicates either that it is a ter!ination state!ent or that the identified financin% state!ent is no lon%er effecti*e@ B.0C DTrans%ittin$ utilit"D !eans a erson ri!arily en%a%ed in the $usiness of< BAC o eratin% a railroad9 su$6ay9 street rail6ay9 or trolley $us; B"C trans!ittin% co!!unications electrically9 electro!a%netically9 or $y li%ht; B'C trans!ittin% %oods $y i eline or se6er; or BDC trans!ittin% or roducin% and trans!ittin% electricity9 stea!9 %as9 or 6ater@ B$C Definitions in other articles0 The follo6in% definitions in other articles a DA licantD - Section (-102@ ly to this article<

D"eneficiaryD - Section (-102@ D"ro;erD - Section .-102@ D'ertificated securityD - Section .-102@ D'hec;D - Section 3-10&@ D'learin% cor orationD - Section .-102@ D'ontract for saleD - Section 2-10)@ D'usto!erD - Section &-10&@ D#ntitle!ent holderD - Section .-102@ D2inancial assetD - Section .-102@ D4older in due courseD - Section 3-302@ DIssuerD B6ith res ect to a letter of credit or letter-of-credit ri%htC- Section (-102@ DIssuerD ? B6ith res ect to a securityC ? Section .-201@

16

D,easeD - Section 2A-103@ D,ease a%ree!entD - Section 2A-103@ D,ease contractD - Section 2A-103@ D,easehold interestD - Section 2A-103@ D,esseeD - Section 2A-103@ D,essee in ordinary course of $usinessD - Section 2A-103@ D,essorD - Section 2A-103@ D,essorFs residual interestD - Section 2A-103@ D,etter of creditD - Section (-102@ DMerchantD - Section 2-10&@ D5e%otia$le instru!entD - Section 3-10&@ D5o!inated ersonD - Section (-102@ D5oteD - Section 3-10&@ DProceeds of a letter of creditD - Section (-11&@ DPro*eD - Section 3-103@ DSaleD - Section 2-10)@ DSecurities accountD - Section .-(01@ DSecurities inter!ediaryD - Section .-102@ DSecurityD - Section .-102@ DSecurity certificateD - Section .-102@ DSecurity entitle!entD - Section .-102@ D/ncertificated securityD - Section .-102@ BcC Article 1 contains %eneral definitions and rinci les of construction and inter retation a lica$le throu%hout this article@ Section 9-103 P/-'4AS#-M15#H S#'/-ITH I5T#-#ST; APP,I'ATI15 12 PAHM#5TS;

17

"/-D#5 12 #STA",IS4I50 BaC Definitions0 In this section< B1C Dpurchase-%one" collateralD !eans %oods or soft6are that secures a urchase-!oney o$li%ation incurred 6ith res ect to that collateral; and B2C Dpurchase-%one" obli$ationD !eans an o$li%ation of an o$li%or incurred as all or art of the rice of the collateral or for *alue %i*en to ena$le the de$tor to ac3uire ri%hts in or the use of the collateral if the *alue is in fact so used@ B$C Purchase-%one" securit" interest in $oods0 A security interest in %oods is a urchase!oney security interest< B1C to the extent that the %oods are urchase-!oney collateral 6ith res ect to that security interest; B2C if the security interest is in in*entory that is or 6as urchase-!oney collateral9 to the extent that the security interest secures a urchase-!oney o$li%ation incurred 6ith res ect to other in*entory in 6hich the secured arty holds or held a urchase-!oney security interest; and B3C to the extent that the security interest secures a urchase-!oney o$li%ation incurred 6ith res ect to soft6are in 6hich the secured arty holds or held a urchase-!oney security interest@ BcC Purchase-%one" securit" interest in software0 A security interest in soft6are is a urchase-!oney security interest to the extent that the security interest also secures a urchase!oney o$li%ation incurred 6ith res ect to %oods in 6hich the secured arty holds or held a urchase-!oney security interest if< B1C the de$tor ac3uired its interest in the soft6are in an inte%rated transaction in 6hich it ac3uired an interest in the %oods; and B2C the de$tor ac3uired its interest in the soft6are for the rinci al ur ose of usin% the soft6are in the %oods@ BdC onsi$nor:s inventor" purchase-%one" securit" interest0 The security interest of a consi%nor in %oods that are the su$8ect of a consi%n!ent is a urchase-!oney security interest in in*entory@ BeC Application of pa"%ent in non-consu%er-$oods transaction0 In a transaction other than a consu!er-%oods transaction9 if the extent to 6hich a security interest is a urchase-!oney security interest de ends on the a lication of a ay!ent to a articular o$li%ation9 the ay!ent !ust $e a lied< B1C in accordance 6ith any reasona$le !ethod of a lication to 6hich the arties a%ree;

B2C in the a$sence of the artiesF a%ree!ent to a reasona$le !ethod9 in accordance 6ith any intention of the o$li%or !anifested at or $efore the ti!e of ay!ent; or B3C in the a$sence of an a%ree!ent to a reasona$le !ethod and a ti!ely !anifestation of the o$li%orFs intention9 in the follo6in% order<

18

BAC to o$li%ations that are not secured; and B"C if !ore than one o$li%ation is secured9 to o$li%ations secured $y urchase-!oney security interests in the order in 6hich those o$li%ations 6ere incurred@ BfC No loss of status of purchase-%one" securit" interest in non-consu%er-$oods transaction0 In a transaction other than a consu!er-%oods transaction9 a urchase-!oney security interest does not lose its status as such9 e*en if< B1C the urchase-!oney collateral also secures an o$li%ation that is not a urchase-!oney o$li%ation; B2C collateral that is not urchase-!oney collateral also secures the urchase-!oney o$li%ation; or B3C the urchase-!oney o$li%ation has $een rene6ed9 refinanced9 consolidated9 or restructured@ B%C +urden of proof in non-consu%er-$oods transaction0 In a transaction other than a consu!er-%oods transaction9 a secured arty clai!in% a urchase-!oney security interest has the $urden of esta$lishin% the extent to 6hich the security interest is a urchase-!oney security interest@ BhC Non-consu%er $oods transactions& no inference0 The li!itation of the rules in su$sections BeC9 BfC9 and B%C of this section to transactions other than consu!er-%oods transactions is intended to lea*e to the court the deter!ination of the ro er rules in consu!er-%oods transactions@ The court !ay not infer fro! that li!itation the nature of the ro er rule in consu!er-%oods transactions and !ay continue to a ly esta$lished a roaches@ Section 9-10& '15T-1, 12 D#P1SIT A''1/5T BaC Re5uire%ents for control0 A secured arty has control of a de osit account if< B1C the secured arty is the $an; 6ith 6hich the de osit account is !aintained; B2C the de$tor9 secured arty9 and $an; ha*e a%reed in an authenticated record that the $an; 6ill co! ly 6ith instructions ori%inated $y the secured arty directin% dis osition of the funds in the de osit account 6ithout further consent $y the de$tor; or B3C the secured arty $eco!es the $an;Fs custo!er 6ith res ect to the de osit account@ B$C Debtor:s ri$ht to direct disposition0 A secured arty that has satisfied su$section BaC of this section has control9 e*en if the de$tor retains the ri%ht to direct the dis osition of funds fro! the de osit account@ Section 9-10( '15T-1, 12 #,#'T-15I' '4ATT#, PAP#A secured arty has control of electronic chattel a er if the record or records co! risin% the chattel a er are created9 stored9 and assi%ned in such a !anner that<

19

B1C a sin%le authoritati*e co y of the record or records exists 6hich is uni3ue9 identifia$le and9 exce t as other6ise ro*ided in ara%ra hs B&C9 B(C9 and B)C of this section9 unaltera$le; B2C the authoritati*e co y identifies the secured arty as the assi%nee of the record or records; B3C the authoritati*e co y is co!!unicated to and !aintained $y the secured arty or its desi%nated custodian; B&C co ies or re*isions that add or chan%e an identified assi%nee of the authoritati*e co y can $e !ade only 6ith the artici ation of the secured arty; B(C each co y of the authoritati*e co y and any co y of a co y is readily identifia$le as a co y that is not the authoritati*e co y; and B)C any re*ision of the authoritati*e co y is readily identifia$le as an authoriEed or unauthoriEed re*ision@ Section 9-10) '15T-1, 12 I5>#STM#5T P-1P#-TH BaC ontrol under Section ;-1<10 A erson has control of a certificated security9 uncertificated security9 or security entitle!ent as ro*ided in Section .-10)@ B$C ontrol of co%%odit" contract0 A secured arty has control of a co!!odity contract if< B1C the secured arty is the co!!odity inter!ediary 6ith 6hich the co!!odity contract is carried; or B2C the co!!odity custo!er9 secured arty9 and co!!odity inter!ediary ha*e a%reed that the co!!odity inter!ediary 6ill a ly any *alue distri$uted on account of the co!!odity contract as directed $y the secured arty 6ithout further consent $y the co!!odity custo!er@ BcC #ffect of control of securities account or co%%odit" account0 A secured arty ha*in% control of all security entitle!ents or co!!odity contracts carried in a securities account or co!!odity account has control o*er the securities account or co!!odity account@ Section 9-10+ '15T-1, 12 ,#TT#--12-'-#DIT -I04T A secured arty has control of a letter-of-credit ri%ht to the extent of any ri%ht to ay!ent or erfor!ance $y the issuer or any no!inated erson if the issuer or no!inated erson has consented to an assi%n!ent of roceeds of the letter of credit under su$section BcC of Section (11& or other6ise a lica$le la6 or ractice@ Section 9-10. S/22I'I#5'H 12 D#S'-IPTI15

20

BaC Sufficienc" of description0 #xce t as other6ise ro*ided in su$sections BcC9 BdC9 and BeC of this section9 a descri tion of ersonal or real ro erty is sufficient9 6hether or not it is s ecific9 if it reasona$ly identifies 6hat is descri$ed@ B$C #4a%ples of reasonable identification0 #xce t as other6ise ro*ided in su$section BdC of this section9 a descri tion of collateral reasona$ly identifies the collateral if it identifies the collateral $y< B1C s ecific listin%; B2C cate%ory; B3C exce t as other6ise ro*ided in su$section BeC of this section9 a ty e of collateral defined in this title; B&C 3uantity; B(C co! utational or allocational for!ula or rocedure; or B)C exce t as other6ise ro*ided in su$section BcC of this section9 any other !ethod9 if the identity of the collateral is o$8ecti*ely deter!ina$le@ BcC Super$eneric description not sufficient0 A descri tion of collateral as Dall the de$torFs assetsD or Dall the de$torFs ersonal ro ertyD or usin% 6ords of si!ilar i! ort does not reasona$ly identify the collateral@ BdC 'nvest%ent propert"0 #xce t as other6ise ro*ided in su$section BeC of this section9 a descri tion of a security entitle!ent9 securities account9 or co!!odity account is sufficient if it descri$es< B1C the collateral $y those ter!s or as in*est!ent ro erty; or B2C the underlyin% financial asset or co!!odity contract@ BeC =hen description b" t"pe insufficient0 A descri tion only $y ty e of collateral defined in this title is an insufficient descri tion of< B1C a co!!ercial tort clai!; or B2C in a consu!er transaction9 consu!er %oods9 a security entitle!ent9 a securities account9 or a co!!odity account@ Subpart ! - APP)' A+')'T> /. ART' )#

Section 9-109 S'1P# BaC General scope of article0 #xce t as other6ise ro*ided in su$sections BcC and BdC of this section9 this article a lies to<

21

B1C a transaction9 re%ardless of its for!9 that creates a security interest in ersonal ro erty or fixtures $y contract; B2C an a%ricultural lien; B3C a sale of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes; B&C a consi%n!ent; B(C a security interest arisin% under Section 2-&019 Section 2-(0(9 ara%ra h B3C of Section 2+119 or ara%ra h B(C of Section 2A-(0.9 as ro*ided in Section 9-110; and B)C a security interest arisin% under Section &-210 or (-11.@ B$C Securit" interest in secured obli$ation0 The a lication of this article to a security interest in a secured o$li%ation is not affected $y the fact that the o$li%ation is itself secured $y a transaction or interest to 6hich this article does not a ly@ BcC #4tent to which article does not appl"0 This article does not a ly to the extent that<

B1C a statute9 re%ulation9 or treaty of the /nited States ree! ts this article; B2C another statute of this state ex ressly %o*erns the creation9 erfection9 riority9 or enforce!ent of a security interest created $y this state or a %o*ern!ental unit of this state; B3C a statute of another state9 a forei%n country9 or a %o*ern!ental unit of another state or a forei%n country9 other than a statute %enerally a lica$le to security interests9 ex ressly %o*erns creation9 erfection9 riority9 or enforce!ent of a security interest created $y the state9 country9 or %o*ern!ental unit; or B&C the ri%hts of a transferee $eneficiary or no!inated erson under a letter of credit are inde endent and su erior under Section (-11&@ BdC 'napplicabilit" of article0 This article does not a B1C a landlordFs lien9 other than an a%ricultural lien; B2C a lien9 other than an a%ricultural lien9 %i*en $y statute or other rule of la6 for ser*ices or !aterials9 $ut Section 9-333 a lies 6ith res ect to riority of the lien; B3C an assi%n!ent of a clai! for 6a%es9 salary9 or other co! ensation of an e! loyee; B&C a sale of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes as art of a sale of the $usiness out of 6hich they arose; B(C an assi%n!ent of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes 6hich is for the ur ose of collection only; B)C an assi%n!ent of a ri%ht to ay!ent under a contract to an assi%nee that is also o$li%ated to erfor! under the contract; ly to<

22

B+C an assi%n!ent of a sin%le account9 ay!ent intan%i$le9 or ro!issory note to an assi%nee in full or artial satisfaction of a reexistin% inde$tedness; B.C a transfer of an interest in or an assi%n!ent of a clai! under a olicy of insurance9 other than an assi%n!ent $y or to a health-care ro*ider of a health-care-insurance recei*a$le and any su$se3uent assi%n!ent of the ri%ht to ay!ent9 $ut Sections 9-31( and 9-322 a ly 6ith res ect to roceeds and riorities in roceeds; B9C an assi%n!ent of a ri%ht re resented $y a 8ud%!ent9 other than a 8ud%!ent ta;en on a ri%ht to ay!ent that 6as collateral; B10C a ri%ht of recou !ent or set-off9 $ut< BAC Section 9-3&0 a lies 6ith res ect to the effecti*eness of ri%hts of recou !ent or set-off a%ainst de osit accounts; and B"C Section 9-&0& a lies 6ith res ect to defenses or clai!s of an account de$tor;

B11C the creation or transfer of an interest in or lien on real ro erty9 includin% a lease or rents thereunder9 exce t to the extent that ro*ision is !ade for< BAC liens on real ro erty in Sections 9-203 and 9-30.; B"C fixtures in Section 9-33&; B'C fixture filin%s in Sections 9-(019 9-(029 9-(129 9-(1)9 and 9-(19; and BDC security a%ree!ents co*erin% ersonal and real ro erty in Section 9-)0&; B12C an assi%n!ent of a clai! arisin% in tort9 other than a co!!ercial tort clai!9 $ut Sections 9-31( and 9-322 a ly 6ith res ect to roceeds and riorities in roceeds; or B13C an assi%n!ent of a de osit account in a consu!er transaction9 $ut Sections 9-31( and 9322 a ly 6ith res ect to roceeds and riorities in roceeds@ Section 9-110 S#'/-ITH I5T#-#STS A-ISI50 /5D#- A-TI',# 2 1- 2A A security interest arisin% under Section 2-&019 2-(0(9 ara%ra h B3C of Section 2-+119 or ara%ra h B(C of Section 2A-(0. is su$8ect to this article@ 4o6e*er9 until the de$tor o$tains ossession of the %oods< B1C the security interest is enforcea$le9 e*en if ara%ra h B3C of su$section B$C of Section 9-203 has not $een satisfied; B2C filin% is not re3uired to erfect the security interest; B3C the ri%hts of the secured arty after default $y the de$tor are %o*erned $y Article 2 or 2A; and B&C the security interest has riority o*er a conflictin% security interest created $y the de$tor@

23

PART ! #..# T'3#N#SS /. S# ?R'T> AGR##9#NT& ATTA 69#NT /. S# ?R'T> 'NT#R#ST& R'G6TS /. PART'#S T/ S# ?R'T> AGR##9#NT S?+PART 10 #..# T'3#N#SS AND ATTA 69#NT

Section 9-201 0#5#-A, #22#'TI>#5#SS 12 S#'/-ITH A0-##M#5T BaC General effectiveness0 #xce t as other6ise ro*ided in this title9 a security a%ree!ent is effecti*e accordin% to its ter!s $et6een the arties9 a%ainst urchasers of the collateral9 and a%ainst creditors@ B$C Applicable consu%er laws and other law0 A transaction su$8ect to this article is su$8ect to any a lica$le rule of la6 6hich esta$lishes a different rule for consu!ers9 and any other statute or re%ulation that re%ulates the rates9 char%es9 a%ree!ents and ractices for loans9 credit sales or other extensions of credit@ BcC /ther applicable law controls0 In case of conflict $et6een this article and a rule of la69 statute9 or re%ulation descri$ed in su$section B$C of this section9 the rule of la69 statute9 or re%ulation controls@ 2ailure to co! ly 6ith a statute or re%ulation descri$ed in su$section B$C of this section has only the effect the statute or re%ulation s ecifies@ BdC .urther deference to other applicable law0 This article does not< B1C *alidate any rate9 char%e9 a%ree!ent9 or ractice that *iolates a rule of la69 statute9 or re%ulation descri$ed in su$section B$C of this section; or B2C extend the a lication of the rule of la69 statute9 or re%ulation to a transaction not other6ise su$8ect to it@ Section 9-202 TIT,# T1 '1,,AT#-A, IMMAT#-IA, #xce t as other6ise ro*ided 6ith res ect to consi%n!ents or sales of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes9 the ro*isions of this article 6ith re%ard to ri%hts and o$li%ations a ly 6hether title to collateral is in the secured arty or the de$tor@ Section 9-203 ATTA'4M#5T A5D #521-'#A"I,ITH 12 S#'/-ITH I5T#-#ST; P-1'##DS; S/PP1-TI50 1",I0ATI15S; 21-MA, -#I/ISIT#S BaC Attach%ent0 A security interest attaches to collateral 6hen it $eco!es enforcea$le a%ainst the de$tor 6ith res ect to the collateral9 unless an a%ree!ent ex ressly ost ones the ti!e of attach!ent@

24

B$C #nforceabilit"0 #xce t as other6ise ro*ided in su$sections BcC throu%h BiC of this section9 a security interest is enforcea$le a%ainst the de$tor and third arties 6ith res ect to the collateral only if< B1C *alue has $een %i*en; B2C the de$tor has ri%hts in the collateral or the o6er to transfer ri%hts in the collateral to a secured arty; and B3C one of the follo6in% conditions is !et< BAC the de$tor has authenticated a security a%ree!ent that ro*ides a descri tion of the collateral and9 if the security interest co*ers ti!$er to $e cut9 a descri tion of the land concerned; B"C the collateral is not a certificated security and is in the ossession of the secured arty under Section 9-313 ursuant to the de$torFs security a%ree!ent; B'C the collateral is a certificated security in re%istered for! and the security certificate has $een deli*ered to the secured arty under Section .-301 ursuant to the de$torFs security a%ree!ent; or BDC the collateral is de osit accounts9 electronic chattel a er9 in*est!ent ro erty9 or letterof-credit ri%hts9 and the secured arty has control under Section 9-10&9 9-10(9 9-10)9 or 9-10+ ursuant to the de$torFs security a%ree!ent@ BcC /ther ? provisions0 Su$section B$C of this section is su$8ect to Section &-210 on the security interest of a collectin% $an;9 Section (-11. on the security interest of a letter-of-credit issuer or no!inated erson9 Section 9-110 on a security interest arisin% under Article 2 or 2A9 and Section 9-20) on security interests in in*est!ent ro erty@ BdC =hen person beco%es bound b" another person:s securit" a$ree%ent0 A erson $eco!es $ound as de$tor $y a security a%ree!ent entered into $y another erson if9 $y o eration of la6 other than this article or $y contract< B1C the security a%ree!ent $eco!es effecti*e to create a security interest in the ersonFs ro erty; or B2C the erson $eco!es %enerally o$li%ated for the o$li%ations of the other erson9 includin% the o$li%ation secured under the security a%ree!ent9 and ac3uires or succeeds to all or su$stantially all of the assets of the other erson@ BeC #ffect of new debtor beco%in$ bound0 If a ne6 de$tor $eco!es $ound as de$tor $y a security a%ree!ent entered into $y another erson< B1C the a%ree!ent satisfies ara%ra h B3C of su$section B$C of this section 6ith res ect to existin% or after-ac3uired ro erty of the ne6 de$tor to the extent the ro erty is descri$ed in the a%ree!ent; and B2C another a%ree!ent is not necessary to !a;e a security interest in the ro erty enforcea$le@

25

BfC Proceeds and supportin$ obli$ations0 The attach!ent of a security interest in collateral %i*es the secured arty the ri%hts to roceeds ro*ided $y Section 9-31( and is also attach!ent of a security interest in a su ortin% o$li%ation for the collateral@ B%C )ien securin$ ri$ht to pa"%ent0 The attach!ent of a security interest in a ri%ht to ay!ent or erfor!ance secured $y a security interest or other lien on ersonal or real ro erty is also attach!ent of a security interest in the security interest9 !ort%a%e9 or other lien@ BhC Securit" entitle%ent carried in securities account0 The attach!ent of a security interest in a securities account is also attach!ent of a security interest in the security entitle!ents carried in the securities account@ BiC o%%odit" contracts carried in co%%odit" account0 The attach!ent of a security interest in a co!!odity account is also attach!ent of a security interest in the co!!odity contracts carried in the co!!odity account@ Section 9-20& A2T#--A'I/I-#D P-1P#-TH; 2/T/-# AD>A5'#S BaC After-ac5uired collateral0 #xce t as other6ise ro*ided in su$section B$C of this section9 a security a%ree!ent !ay create or ro*ide for a security interest in after-ac3uired collateral@ B$C =hen after-ac5uired propert" clause not effective0 A security interest does not attach under a ter! constitutin% an after-ac3uired ro erty clause to< B1C consu!er %oods9 other than an accession 6hen %i*en as additional security9 unless the de$tor ac3uires ri%hts in the! 6ithin ten B10C days after the secured arty %i*es *alue; or B2C a co!!ercial tort clai!@ BcC .uture advances and other value0 A security a%ree!ent !ay ro*ide that collateral secures9 or that accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes are sold in connection 6ith9 future ad*ances or other *alue9 6hether or not the ad*ances or *alue are %i*en ursuant to co!!it!ent@ Section 9-20( /S# 1- DISP1SITI15 12 '1,,AT#-A, P#-MISSI",# BaC =hen securit" interest not valid or fraudulent0 A security interest is not in*alid or fraudulent a%ainst creditors solely $ecause< B1C the de$tor has the ri%ht or a$ility to< BAC use9 co!!in%le9 or dis ose of all or art of the collateral9 includin% returned or re ossessed %oods; B"C collect9 co! ro!ise9 enforce9 or other6ise deal 6ith collateral; B'C acce t the return of collateral or !a;e re ossessions; or

26

BDC use9 co!!in%le9 or dis ose of roceeds; or B2C the secured arty fails to re3uire the de$tor to account for roceeds or re lace collateral@ B$C Re5uire%ents of possession not rela4ed0 This section does not relax the re3uire!ents of ossession if attach!ent9 erfection9 or enforce!ent of a security interest de ends u on ossession of the collateral $y the secured arty@ Section 9-20) S#'/-ITH I5T#-#ST A-ISI50 I5 P/-'4AS# 1- D#,I>#-H 12 2I5A5'IA, ASS#T BaC Securit" interest when person bu"s throu$h securities inter%ediar"0 A security interest in fa*or of a securities inter!ediary attaches to a ersonFs security entitle!ent if< B1C the erson $uys a financial asset throu%h the securities inter!ediary in a transaction in 6hich the erson is o$li%ated to ay the urchase rice to the securities inter!ediary at the ti!e of the urchase; and B2C the securities inter!ediary credits the financial asset to the $uyerFs securities account $efore the $uyer ays the securities inter!ediary@ B$C Securit" interest secures obli$ation to pa" for financial asset0 The security interest descri$ed in su$section BaC of this section secures the ersonFs o$li%ation to ay for the financial asset@ BcC Securit" interest in pa"%ent a$ainst deliver" transaction0 A security interest in fa*or of a erson that deli*ers a certificated security or other financial asset re resented $y a 6ritin% attaches to the security or other financial asset if< B1C the security or other financial asset< BAC in the ordinary course of $usiness is transferred $y deli*ery 6ith any necessary endorse!ent or assi%n!ent; and B"C is deli*ered under an a%ree!ent $et6een ersons in the $usiness of dealin% 6ith such securities or financial assets; and B2C the a%ree!ent calls for deli*ery a%ainst ay!ent@ BdC Securit" interest secures obli$ation to pa" for deliver"0 The security interest descri$ed in su$section BcC of this section secures the o$li%ation to !a;e ay!ent for the deli*ery@ Subpart !0 R'G6TS AND D?T'#S Section 9-20+ -I04TS A5D D/TI#S 12 S#'/-#D PA-TH 4A>I50 P1SS#SSI15 1- '15T-1, 12 '1,,AT#-A,

27

BaC Dut" of care when secured part" in possession0 #xce t as other6ise ro*ided in su$section BdC of this section9 a secured arty shall use reasona$le care in the custody and reser*ation of collateral in the secured artyFs ossession@ In the case of chattel a er or an instru!ent9 reasona$le care includes ta;in% necessary ste s to reser*e ri%hts a%ainst rior arties unless other6ise a%reed@ B$C #4penses, ris,s, duties and ri$hts of secured part" in possession0 #xce t as other6ise ro*ided in su$section BdC of this section9 if a secured arty has ossession of collateral< B1C reasona$le ex enses9 includin% the cost of insurance and ay!ent of taxes or other char%es9 incurred in the custody9 reser*ation9 use9 or o eration of the collateral are char%ea$le to the de$tor and are secured $y the collateral; B2C the ris; of accidental loss or da!a%e is on the de$tor to the extent of a deficiency in any effecti*e insurance co*era%e; B3C the secured arty shall ;ee the collateral identifia$le9 $ut fun%i$le collateral !ay $e co!!in%led; and B&C the secured arty !ay use or o erate the collateral< BAC for the ur ose of reser*in% the collateral or its *alue; B"C as er!itted $y an order of a court ha*in% co! etent 8urisdiction; or B'C exce t in the case of consu!er %oods9 in the !anner and to the extent a%reed $y the de$tor@ BcC Duties and ri$hts when secured part" in possession or control0 #xce t as other6ise ro*ided in su$section BdC of this section9 a secured arty ha*in% ossession of collateral or control of collateral under Section 9-10&9 9-10(9 9-10)9 or 9-10+< B1C !ay hold as additional security any roceeds9 exce t !oney or funds9 recei*ed fro! the collateral; B2C shall a ly !oney or funds recei*ed fro! the collateral to reduce the secured o$li%ation9 unless re!itted to the de$tor; and B3C !ay create a security interest in the collateral@ BdC +u"er of certain ri$hts to pa"%ent0 If the secured arty is a $uyer of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes or a consi%nor< B1C su$section BaC of this section does not a a%ree!ent< BAC to char%e $ac; uncollected collateral; or B"C other6ise to full or li!ited recourse a%ainst the de$tor or a secondary o$li%or $ased on the non ay!ent or other default of an account de$tor or other o$li%or on the collateral; and B2C su$sections B$C and BcC of this section do not a ly@ ly unless the secured arty is entitled under an

28

Section 9-20. ADDITI15A, D/TI#S 12 S#'/-#D PA-TH 4A>I50 '15T-1, 12 '1,,AT#-A, BaC Applicabilit" of section0 This section a lies to cases in 6hich there is no outstandin% secured o$li%ation and the secured arty is not co!!itted to !a;e ad*ances9 incur o$li%ations9 or other6ise %i*e *alue@ B$C Duties of secured part" after receivin$ de%and fro% debtor0 7ithin ten B10C days after recei*in% an authenticated de!and $y the de$tor< B1C a secured arty ha*in% control of a de osit account under ara%ra h B2C of su$section BaC of Section 9-10& shall send to the $an; 6ith 6hich the de osit account is !aintained an authenticated state!ent that releases the $an; fro! any further o$li%ation to co! ly 6ith instructions ori%inated $y the secured arty; B2C a secured arty ha*in% control of a de osit account under ara%ra h B3C of su$section BaC of Section 9-10& shall< BAC ay the de$tor the $alance on de osit in the de osit account; or B"C transfer the $alance on de osit into a de osit account in the de$torFs na!e; B3C a secured arty9 other than a $uyer9 ha*in% control of electronic chattel a er under Section 9-10( shall< BAC co!!unicate the authoritati*e co y of the electronic chattel a er to the de$tor or its desi%nated custodian; B"C if the de$tor desi%nates a custodian that is the desi%nated custodian 6ith 6hich the authoritati*e co y of the electronic chattel a er is !aintained for the secured arty9 co!!unicate to the custodian an authenticated record releasin% the desi%nated custodian fro! any further o$li%ation to co! ly 6ith instructions ori%inated $y the secured arty and instructin% the custodian to co! ly 6ith instructions ori%inated $y the de$tor; and B'C ta;e a ro riate action to ena$le the de$tor or its desi%nated custodian to !a;e co ies of or re*isions to the authoritati*e co y 6hich add or chan%e an identified assi%nee of the authoritati*e co y 6ithout the consent of the secured arty; B&C a secured arty ha*in% control of in*est!ent ro erty under ara%ra h B2C of su$section BdC of Section .-10) or su$section B$C of Section 9-10) shall send to the securities inter!ediary or co!!odity inter!ediary 6ith 6hich the security entitle!ent or co!!odity contract is !aintained an authenticated record that releases the securities inter!ediary or co!!odity inter!ediary fro! any further o$li%ation to co! ly 6ith entitle!ent orders or directions ori%inated $y the secured arty; and B(C a secured arty ha*in% control of a letter-of-credit ri%ht under Section 9-10+ shall send to each erson ha*in% an unfulfilled o$li%ation to ay or deli*er roceeds of the letter of credit to the secured arty an authenticated release fro! any further o$li%ation to ay or deli*er roceeds of the letter of credit to the secured arty@ Section 9-209

29

D/TI#S 12 S#'/-#D PA-TH I2 A''1/5T D#"T1- 4AS "##5 51TI2I#D 12 ASSI05M#5T BaC Applicabilit" of section0 #xce t as other6ise ro*ided in su$section BcC of this section9 this section a lies if< B1C there is no outstandin% secured o$li%ation; and B2C the secured arty is not co!!itted to !a;e ad*ances9 incur o$li%ations9 or other6ise %i*e *alue@ B$C Duties of secured part" after receivin$ de%and fro% debtor0 7ithin ten B10C days after recei*in% an authenticated de!and $y the de$tor9 a secured arty shall send to an account de$tor that has recei*ed notification of an assi%n!ent to the secured arty as assi%nee under su$section BaC of Section 9-&0) an authenticated record that releases the account de$tor fro! any further o$li%ation to the secured arty@ BcC 'napplicabilit" to sales0 This section does not a an account9 chattel a er9 or ay!ent intan%i$le@ Section 9-210 -#I/#ST 21- A''1/5TI50; -#I/#ST -#0A-DI50 ,IST 12 '1,,AT#-A, 1- STAT#M#5T 12 A''1/5T BaC Definitions0 In this section< B1C D-e3uestD !eans a record of a ty e descri$ed in ara%ra h B2C9 B3C9 or B&C of this su$section@ B2C D-e3uest for an accountin%D !eans a record authenticated $y a de$tor re3uestin% that the reci ient ro*ide an accountin% of the un aid o$li%ations secured $y collateral and reasona$ly identifyin% the transaction or relationshi that is the su$8ect of the re3uest@ B3C D-e3uest re%ardin% a list of collateralD !eans a record authenticated $y a de$tor re3uestin% that the reci ient a ro*e or correct a list of 6hat the de$tor $elie*es to $e the collateral securin% an o$li%ation and reasona$ly identifyin% the transaction or relationshi that is the su$8ect of the re3uest@ B&C D-e3uest re%ardin% a state!ent of accountD !eans a record authenticated $y a de$tor re3uestin% that the reci ient a ro*e or correct a state!ent indicatin% 6hat the de$tor $elie*es to $e the a%%re%ate a!ount of un aid o$li%ations secured $y collateral as of a s ecified date and reasona$ly identifyin% the transaction or relationshi that is the su$8ect of the re3uest@ B$C Dut" to respond to re5uests0 Su$8ect to su$sections BcC9 BdC9 BeC9 and BfC of this section9 a secured arty9 other than a $uyer of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes or a consi%nor9 shall co! ly 6ith a re3uest 6ithin fourteen B1&C days after recei t< B1C in the case of a re3uest for an accountin%9 $y authenticatin% and sendin% to the de$tor an accountin%; and ly to an assi%n!ent constitutin% the sale of

30

B2C in the case of a re3uest re%ardin% a list of collateral or a re3uest re%ardin% a state!ent of account9 $y authenticatin% and sendin% to the de$tor an a ro*al or correction@ BcC Re5uest re$ardin$ lists of collateral& state%ent concernin$ t"pe of collateral0 A secured arty that clai!s a security interest in all of a articular ty e of collateral o6ned $y the de$tor !ay co! ly 6ith a re3uest re%ardin% a list of collateral $y sendin% to the de$tor an authenticated record includin% a state!ent to that effect 6ithin fourteen B1&C days after recei t@ BdC Re5uest re$ardin$ list of collateral& no interest clai%ed0 A erson that recei*es a re3uest re%ardin% a list of collateral9 clai!s no interest in the collateral 6hen it recei*es the re3uest9 and clai!ed an interest in the collateral at an earlier ti!e shall co! ly 6ith the re3uest 6ithin fourteen B1&C days after recei t $y sendin% to the de$tor an authenticated record< B1C disclai!in% any interest in the collateral; and B2C if ;no6n to the reci ient9 ro*idin% the na!e and !ailin% address of any assi%nee of or successor to the reci ientFs interest in the collateral@ BeC Re5uest for accountin$ or re$ardin$ state%ent of account& no interest in obli$ation clai%ed0 A erson that recei*es a re3uest for an accountin% or a re3uest re%ardin% a state!ent of account9 clai!s no interest in the o$li%ations 6hen it recei*es the re3uest9 and clai!ed an interest in the o$li%ations at an earlier ti!e shall co! ly 6ith the re3uest 6ithin fourteen B1&C days after recei t $y sendin% to the de$tor an authenticated record< B1C disclai!in% any interest in the o$li%ations; and B2C if ;no6n to the reci ient9 ro*idin% the na!e and !ailin% address of any assi%nee of or successor to the reci ientFs interest in the o$li%ations@ BfC har$es for responses0 A de$tor is entitled 6ithout char%e to one res onse to a re3uest under this section durin% any six-!onth eriod@ The secured arty !ay re3uire ay!ent of a char%e not exceedin% T6enty-fi*e Dollars BG2(@00C for each additional res onse@ PART ( P#R.# T'/N AND PR'/R'T> S?+PART 10 )A= G/3#RN'NG P#R.# T'/N AND PR'/R'T>

Section 9-301 ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 S#'/-ITH I5T#-#STS #xce t as other6ise ro*ided in Sections 9-303 throu%h 9-30)9 the follo6in% rules deter!ine the la6 %o*ernin% erfection9 the effect of erfection or non erfection9 and the riority of a security interest in collateral< B1C #xce t as other6ise ro*ided in this section9 6hile a de$tor is located in a 8urisdiction9 the local la6 of that 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in collateral@ B2C 7hile collateral is located in a 8urisdiction9 the local la6 of that 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a ossessory security interest in that collateral@

31

B3C #xce t as other6ise ro*ided in ara%ra h B&C of this section9 6hile ne%otia$le docu!ents9 %oods9 instru!ents9 !oney9 or tan%i$le chattel a er is located in a 8urisdiction9 the local la6 of that 8urisdiction %o*erns< BAC erfection of a security interest in the %oods $y filin% a fixture filin%; B"C erfection of a security interest in ti!$er to $e cut; and B'C the effect of erfection or non erfection and the riority of a non ossessory security interest in the collateral@ B&C The local la6 of the 8urisdiction in 6hich the 6ellhead or !inehead is located %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in asextracted collateral@ Section 9-302 ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 A0-I'/,T/-A, ,I#5S 7hile far! roducts are located in a 8urisdiction9 the local la6 of that 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of an a%ricultural lien on the far! roducts@ Section 9-303 ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 011DS '1>#-#D "H A '#-TI2I'AT# 12 TIT,# BaC Applicabilit" of section0 This section a lies to %oods co*ered $y a certificate of title9 e*en if there is no other relationshi $et6een the 8urisdiction under 6hose certificate of title the %oods are co*ered and the %oods or the de$tor@ B$C =hen $oods covered b" certificate of title0 0oods $eco!e co*ered $y a certificate of title 6hen a *alid a lication for the certificate of title and the a lica$le fee are deli*ered to the a ro riate authority@ 0oods cease to $e co*ered $y a certificate of title at the earlier of the ti!e the certificate of title ceases to $e effecti*e under the la6 of the issuin% 8urisdiction or the ti!e the %oods $eco!e co*ered su$se3uently $y a certificate of title issued $y another 8urisdiction@ BcC Applicable law0 The local la6 of the 8urisdiction under 6hose certificate of title the %oods are co*ered %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in %oods co*ered $y a certificate of title fro! the ti!e the %oods $eco!e co*ered $y the certificate of title until the %oods cease to $e co*ered $y the certificate of title@ Section 9-30& ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 D#P1SIT A''1/5TS

32

BaC )aw of ban,:s @urisdiction $overns0 The local la6 of a $an;Fs 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in a de osit account !aintained 6ith that $an;@ B$C +an,:s @urisdiction0 The follo6in% rules deter!ine a $an;Fs 8urisdiction for ur oses of this art< B1C If an a%ree!ent $et6een the $an; and the de$tor %o*ernin% the de osit account ex ressly ro*ides that a articular 8urisdiction is the $an;Fs 8urisdiction for ur oses of this art9 this article9 or this title9 that 8urisdiction is the $an;Fs 8urisdiction@ B2C If ara%ra h B1C of this su$section does not a ly and an a%ree!ent $et6een the $an; and its custo!er %o*ernin% the de osit account ex ressly ro*ides that the a%ree!ent is %o*erned $y the la6 of a articular 8urisdiction9 that 8urisdiction is the $an;Fs 8urisdiction@ B3C If neither ara%ra h B1C nor ara%ra h B2C of this su$section a lies and an a%ree!ent $et6een the $an; and its custo!er %o*ernin% the de osit account ex ressly ro*ides that the de osit account is !aintained at an office in a articular 8urisdiction9 that 8urisdiction is the $an;Fs 8urisdiction@ B&C If none of the recedin% ara%ra hs of this su$section a lies9 the $an;Fs 8urisdiction is the 8urisdiction in 6hich the office identified in an account state!ent as the office ser*in% the custo!erFs account is located@ B(C If none of the recedin% ara%ra hs a lies9 the $an;Fs 8urisdiction is the 8urisdiction in 6hich the chief executi*e office of the $an; is located@ Section 9-30( ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 I5>#STM#5T P-1P#-TH BaC Governin$ lawsA $eneral rules0 #xce t as other6ise ro*ided in su$section BcC of this section9 the follo6in% rules a ly< B1C 7hile a security certificate is located in a 8urisdiction9 the local la6 of that 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in the certificated security re resented there$y@ B2C The local la6 of the issuerFs 8urisdiction as s ecified in su$section BdC of Section .-110 %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in an uncertificated security@ B3C The local la6 of the securities inter!ediaryFs 8urisdiction as s ecified in su$section BeC of Section .-110 %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in a security entitle!ent or securities account@ B&C The local la6 of the co!!odity inter!ediaryFs 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in a co!!odity contract or co!!odity account@

33

B$C o%%odit" inter%ediar":s @urisdiction0 The follo6in% rules deter!ine a co!!odity inter!ediaryFs 8urisdiction for ur oses of this art< B1C If an a%ree!ent $et6een the co!!odity inter!ediary and co!!odity custo!er %o*ernin% the co!!odity account ex ressly ro*ides that a articular 8urisdiction is the co!!odity inter!ediaryFs 8urisdiction for ur oses of this art9 this article9 or this title9 that 8urisdiction is the co!!odity inter!ediaryFs 8urisdiction@ B2C If ara%ra h B1C of this su$section does not a ly and an a%ree!ent $et6een the co!!odity inter!ediary and co!!odity custo!er %o*ernin% the co!!odity account ex ressly ro*ides that the a%ree!ent is %o*erned $y the la6 of a articular 8urisdiction9 that 8urisdiction is the co!!odity inter!ediaryFs 8urisdiction@ B3C If neither ara%ra h B1C nor ara%ra h B2C of this su$section a lies and an a%ree!ent $et6een the co!!odity inter!ediary and co!!odity custo!er %o*ernin% the co!!odity account ex ressly ro*ides that the co!!odity account is !aintained at an office in a articular 8urisdiction9 that 8urisdiction is the co!!odity inter!ediaryFs 8urisdiction@ B&C If none of the recedin% ara%ra hs of this section a lies9 the co!!odity inter!ediaryFs 8urisdiction is the 8urisdiction in 6hich the office identified in an account state!ent as the office ser*in% the co!!odity custo!erFs account is located@ B(C If none of the recedin% ara%ra hs of this section a lies9 the co!!odity inter!ediaryFs 8urisdiction is the 8urisdiction in 6hich the chief executi*e office of the co!!odity inter!ediary is located@ BcC The local la6 of the 8urisdiction in 6hich the de$tor is located %o*erns< B1C erfection of a security interest in in*est!ent ro erty $y filin%; B2C auto!atic erfection of a security interest in in*est!ent ro erty created $y a $ro;er or securities inter!ediary; and B3C auto!atic erfection of a security interest in a co!!odity contract or co!!odity account created $y a co!!odity inter!ediary@ Section 9-30) ,A7 01>#-5I50 P#-2#'TI15 A5D P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 ,#TT#--12-'-#DIT -I04TS BaC Governin$ lawA& issuer:s or no%inated person:s @urisdiction0 Su$8ect to su$section BcC of this section9 the local la6 of the issuerFs 8urisdiction or a no!inated ersonFs 8urisdiction %o*erns erfection9 the effect of erfection or non erfection9 and the riority of a security interest in a letter-of-credit ri%ht if the issuerFs 8urisdiction or no!inated ersonFs 8urisdiction is a state@ B$C 'ssuer:s or no%inated person:s @urisdiction0 2or ur oses of this art9 an issuerFs 8urisdiction or no!inated ersonFs 8urisdiction is the 8urisdiction 6hose la6 %o*erns the lia$ility of the issuer or no!inated erson 6ith res ect to the letter-of-credit ri%ht as ro*ided in Section (11)@

34

BcC =hen section not applicable0 This section does not a erfected only under su$section BdC of Section 9-30.@ 9-30+

ly to a security interest that is

,1'ATI15 12 D#"T1BaC BPlace of businessB0 In this section9 D lace of $usinessD !eans a lace 6here a de$tor conducts its affairs@ B$C Debtor:s locationA $eneral rules0 #xce t as other6ise ro*ided in this section9 the follo6in% rules deter!ine a de$torFs location< B1C A de$tor 6ho is an indi*idual is located at the indi*idualFs rinci al residence; B2C A de$tor that is an or%aniEation and has only one lace of $usiness is located at its lace of $usiness; and B3C A de$tor that is an or%aniEation and has !ore than one lace of $usiness is located at its chief executi*e office@ BcC )i%itation of applicabilit" of subsection CbD0 Su$section B$C of this section of this section a lies only if a de$torFs residence9 lace of $usiness9 or chief executi*e office9 as a lica$le9 is located in a 8urisdiction 6hose la6 %enerally re3uires infor!ation concernin% the existence of a non ossessory security interest to $e !ade %enerally a*aila$le in a filin%9 recordin%9 or re%istration syste! as a condition or result of the security interestFs o$tainin% riority o*er the ri%hts of a lien creditor 6ith res ect to the collateral@ If su$section B$C of this section does not a ly9 the de$tor is located in the District of 'olu!$ia@ BdC ontinuation of locationA cessation of e4istence, etc0 A erson that ceases to exist9 ha*e a residence9 or ha*e a lace of $usiness continues to $e located in the 8urisdiction s ecified $y su$sections B$C and BcC of this section@ BeC )ocation of re$istered or$ani8ation or$ani8ed under State law0 A re%istered or%aniEation that is or%aniEed under the la6 of a state is located in that state@ BfC )ocation of re$istered or$ani8ation or$ani8ed under federal law& ban, branches and a$encies0 #xce t as other6ise ro*ided in su$section BiC of this section9 a re%istered or%aniEation that is or%aniEed under the la6 of the /nited States and a $ranch or a%ency of a $an; that is not or%aniEed under the la6 of the /nited States or a state are located< B1C in the state that the la6 of the /nited States desi%nates9 if the la6 desi%nates a state of location; B2C in the state that the re%istered or%aniEation9 $ranch9 or a%ency desi%nates9 if the la6 of the /nited States authoriEes the re%istered or%aniEation9 $ranch9 or a%ency to desi%nate its state of location; or B3C in the District of 'olu!$ia9 if neither ara%ra h B1C nor ara%ra h B2C of this su$section lies@

35

B%C ontinuation of locationA chan$e in status of re$istered or$ani8ation0 A re%istered or%aniEation continues to $e located in the 8urisdiction s ecified $y su$section BeC or BfC of this section not6ithstandin%< B1C the sus ension9 re*ocation9 forfeiture9 or la se of the re%istered or%aniEationFs status as such in its 8urisdiction of or%aniEation; or B2C the dissolution9 6indin% u 9 or cancellation of the existence of the re%istered or%aniEation@ BhC )ocation of ?nited States0 The /nited States is located in the District of 'olu!$ia@ BiC )ocation of forei$n ban, branch or a$enc" if licensed in onl" one state0 A $ranch or a%ency of a $an; that is not or%aniEed under the la6 of the /nited States or a state is located in the state in 6hich the $ranch or a%ency is licensed9 if all $ranches and a%encies of the $an; are licensed in only one state@ B8C )ocation of forei$n air carrier0 A forei%n air carrier under the 2ederal A*iation Act of 19(.9 as a!ended9 is located at the desi%nated office of the a%ent u on 6hich ser*ice of rocess !ay $e !ade on $ehalf of the carrier@ B;C Section applies onl" to this part0 This section a lies only for ur oses of this art@

Subpart !0 P#R.# T'/N

9-30. 74#5 S#'/-ITH I5T#-#ST 1- A0-I'/,T/-A, ,I#5 IS P#-2#'T#D; '15TI5/ITH 12 P#-2#'TI15 BaC Perfection of securit" interest0 #xce t as other6ise ro*ided in this section and Section 93099 a security interest is erfected if it has attached and all of the a lica$le re3uire!ents for erfection in Sections 9-310 throu%h 9-31) ha*e $een satisfied@ A security interest is erfected 6hen it attaches if the a lica$le re3uire!ents are satisfied $efore the security interest attaches@ B$C Perfection of a$ricultural lien0 An a%ricultural lien is erfected if it has $eco!e effecti*e and all of the a lica$le re3uire!ents for erfection in Section 9-310 ha*e $een satisfied@ An a%ricultural lien is erfected 6hen it $eco!es effecti*e if the a lica$le re3uire!ents are satisfied $efore the a%ricultural lien $eco!es effecti*e@ BcC ontinuous perfection&p perfection b" different %ethods0 A security interest or a%ricultural lien is erfected continuously if it is ori%inally erfected $y one !ethod under this article and is later erfected $y another !ethod under this article9 6ithout an inter!ediate eriod 6hen it 6as un erfected@ BdC Supportin$ obli$ation0 Perfection of a security interest in collateral also erfects a security interest in a su ortin% o$li%ation for the collateral@ BeC )ien securin$ ri$ht to pa"%ent0 Perfection of a security interest in a ri%ht to ay!ent or erfor!ance also erfects a security interest in a security interest9 !ort%a%e9 or other lien on ersonal or real ro erty securin% the ri%ht@

36

BfC Securit" entitle%ent carried in securities account0 Perfection of a security interest in a securities account also erfects a security interest in the security entitle!ents carried in the securities account@ B%C o%%odit" contract carried in co%%odit" account0 Perfection of a security interest in a co!!odity account also erfects a security interest in the co!!odity contracts carried in the co!!odity account@ 9-309 S#'/-ITH I5T#-#ST P#-2#'T#D /P15 ATTA'4M#5T The follo6in% security interests are erfected 6hen they attach< B1C a urchase-!oney security interest in consu!er %oods9 exce t as other6ise ro*ided in su$section B$C of Section 9-311 6ith res ect to consu!er %oods that are su$8ect to a statute or treaty descri$ed in su$section BaC of Section 9-311; B2C an assi%n!ent of accounts or ay!ent intan%i$les 6hich does not $y itself or in con8unction 6ith other assi%n!ents to the sa!e assi%nee transfer a si%nificant art of the assi%norFs outstandin% accounts or ay!ent intan%i$les; B3C a sale of a ay!ent intan%i$le; B&C a sale of a ro!issory note; B(C a security interest created $y the assi%n!ent of a health-care-insurance recei*a$le to the ro*ider of the health-care %oods or ser*ices; B)C a security interest arisin% under Section 2-&019 2-(0(9 ara%ra h B3C of Section 2-+119 or ara%ra h B(C of Section 2A-(0.9 until the de$tor o$tains ossession of the collateral; B+C a security interest of a collectin% $an; arisin% under Section &-210; B.C a security interest of an issuer or no!inated erson arisin% under Section (-11.; B9C a security interest arisin% in the deli*ery of a financial asset under su$section BcC of Section 920); B10C a security interest in in*est!ent ro erty created $y a $ro;er or securities inter!ediary; B11C a security interest in a co!!odity contract or a co!!odity account created $y a co!!odity inter!ediary; B12C an assi%n!ent for the $enefit of all creditors of the transferor and su$se3uent transfers $y the assi%nee thereunder; and B13C a security interest created $y an assi%n!ent of a $eneficial interest in a decedentFs estate@ 9-310 74#5 2I,I50 -#I/I-#D T1 P#-2#'T S#'/-ITH I5T#-#ST 1-

37

A0-I'/,T/-A, ,I#5; S#'/-ITH I5T#-#STS A5D A0-I'/,T/-A, ,I#5S T1 74I'4 2I,I50 P-1>ISI15S D1 51T APP,H BaC General ruleA perfection b" filin$A #xce t as other6ise ro*ided in su$section B$C of this section and Section 9-3129 a financin% state!ent !ust $e filed to erfect all security interests and a%ricultural liens@ B$C #4ceptionsA filin$ not necessar"0 The filin% of a financin% state!ent is not necessary to erfect a security interest< B1C that is erfected under su$section BdC9 BeC9 BfC9 or B%C of Section 9-30.; B2C that is erfected under Section 9-309 6hen it attaches; B3C in ro erty su$8ect to a statute9 re%ulation9 or treaty descri$ed in su$section BaC of Section 9-311; B&C in %oods in ossession of a $ailee 6hich is erfected under ara%ra h B1C or B2C of su$section BdC of Section 9-312; B(C in certificated securities9 docu!ents9 %oods9 or instru!ents 6hich is erfected 6ithout filin% or ossession under su$section BeC9 BfC9 or B%C of Section 9-312; B)C in collateral in the secured artyFs ossession under Section 9-313; B+C in a certificated security 6hich is erfected $y deli*ery of the security certificate to the secured arty under Section 9-313; B.C in de osit accounts9 electronic chattel a er9 in*est!ent ro erty9 or letter-of-credit ri%hts 6hich is erfected $y control under Section 9-31&; B9C in roceeds 6hich is erfected under Section 9-31(; or B10C that is erfected under Section 9-31)@ BcC Assi$n%ent of perfected securit" interest0 If a secured arty assi%ns a erfected security interest or a%ricultural lien9 a filin% under this article is not re3uired to continue the erfected status of the security interest a%ainst creditors of and transferees fro! the ori%inal de$tor@ 9-311 P#-2#'TI15 12 S#'/-ITH I5T#-#STS I5 P-1P#-TH S/"=#'T T1 '#-TAI5 STAT/T#S9 -#0/,ATI15S9 A5D T-#ATI#S BaC Securit" interest sub@ect to other laws0 #xce t as other6ise ro*ided in su$section BdC of this section9 the filin% of a financin% state!ent is not necessary or effecti*e to erfect a security interest in ro erty su$8ect to<

38

B1C a statute9 re%ulation9 or treaty of the /nited States 6hose re3uire!ents for a security interestFs o$tainin% riority o*er the ri%hts of a lien creditor 6ith res ect to the ro erty ree! t su$section BaC of Section 9-310; B2C Jlist any certificate-of-title statute co*ernin% auto!o$iles9 trailers9 !o$ile ho!es9 $oats9 far! tractors9 or the li;e9 6hich ro*ides for a security interest to $e indicated on the certificate as a condition or result of erfection9 and any non-/nifor! 'o!!ercial 'ode central filin% statuteK; or B3C a certificate-of-title statute of another 8urisdiction 6hich ro*ides for a security interest to $e indicated on the certificate as a condition or result of the security interestFs o$tainin% riority o*er the ri%hts of a lien creditor 6ith res ect to the ro erty@ B$C o%pliance with other law0 'o! liance 6ith the re3uire!ents of a statute9 re%ulation9 or treaty descri$ed in su$section BaC of this section for o$tainin% riority o*er the ri%hts of a lien creditor is e3ui*alent to the filin% of a financin% state!ent under this article@ #xce t as other6ise ro*ided in su$section BdC of this section and Section 9-313 and su$sections BdC and BeC of Section 9-31) for %oods co*ered $y a certificate of title9 a security interest in ro erty su$8ect to a statute9 re%ulation9 or treaty descri$ed in su$section BaC of this section !ay $e erfected only $y co! liance 6ith those re3uire!ents9 and a security interest so erfected re!ains erfected not6ithstandin% a chan%e in the use or transfer of ossession of the collateral@ BcC Duration and renewal of perfection0 #xce t as other6ise ro*ided in su$section BdC of this section and su$sections BdC and BeC of Section 9-31)9 duration and rene6al of erfection of a security interest erfected $y co! liance 6ith the re3uire!ents rescri$ed $y a statute9 re%ulation9 or treaty descri$ed in su$section BaC of this section are %o*erned $y the statute9 re%ulation9 or treaty@ In other res ects9 the security interest is su$8ect to this article@ BdC 'napplicabilit" to certain inventor"0 Durin% any eriod in 6hich collateral is in*entory held for sale or lease $y a erson or leased $y that erson as lessor and that erson is in the $usiness of sellin% %oods of that ;ind9 this section does not a ly to a security interest in that collateral created $y that erson as de$tor@ 9-312 P#-2#'TI15 12 S#'/-ITH I5T#-#STS I5 '4ATT#, PAP#-9 D#P1SIT A''1/5TS9 D1'/M#5TS9 011DS '1>#-#D "H D1'/M#5TS9 I5ST-/M#5TS9 I5>#STM#5T P-1P#-TH9 ,#TT#--12-'-#DIT -I04TS9 A5D M15#H; P#-2#'TI15 "H P#-MISSI># 2I,I50; T#MP1-A-H P#-2#'TI15 7IT41/T 2I,I50 1- T-A5S2#- 12 P1SS#SSI15 BaC Perfection b" filin$ per%itted0 A security interest in chattel a er9 ne%otia$le docu!ents9 instru!ents9 or in*est!ent ro erty !ay $e erfected $y filin%@ B$C ontrol or possession of certain collateral0 #xce t as other6ise ro*ided in su$sections BcC and BdC of Section 9-31( for roceeds< B1C a security interest in a de osit account !ay $e erfected only $y control under Section 931&;

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B2C and exce t as other6ise ro*ided in su$section BdC of Section 9-30.9 a security interest in a letter-of-credit ri%ht !ay $e erfected only $y control under Section 9-31&; and B3C a security interest in !oney !ay $e erfected only $y the secured artyFs ta;in% ossession under Section 9-313@ BcC Goods covered b" ne$otiable docu%ent0 7hile %oods are in the ossession of a $ailee that has issued a ne%otia$le docu!ent co*erin% the %oods< B1C a security interest in the %oods !ay $e erfected $y erfectin% a security interest in the docu!ent; and B2C a security interest erfected in the docu!ent has riority o*er any security interest that $eco!es erfected in the %oods $y another !ethod durin% that ti!e@ BdC Goods covered b" nonne$otiable docu%ent0 7hile %oods are in the ossession of a $ailee that has issued a nonne%otia$le docu!ent co*erin% the %oods9 a security interest in the %oods !ay $e erfected $y< B1C issuance of a docu!ent in the na!e of the secured arty; B2C the $aileeFs recei t of notification of the secured artyFs interest; or B3C filin% as to the %oods@ BeC Te%porar" perfectionA new value0 A security interest in certificated securities9 ne%otia$le docu!ents9 or instru!ents is erfected 6ithout filin% or the ta;in% of ossession for a eriod of t6enty B20C days fro! the ti!e it attaches to the extent that it arises for ne6 *alue %i*en under an authenticated security a%ree!ent@ BfC Te%porar" perfectionA $oods or docu%ents %ade available to debtor0 A erfected security interest in a ne%otia$le docu!ent or %oods in ossession of a $ailee9 other than one that has issued a ne%otia$le docu!ent for the %oods9 re!ains erfected for t6enty B20C days 6ithout filin% if the secured arty !a;es a*aila$le to the de$tor the %oods or docu!ents re resentin% the %oods for the ur ose of< B1C ulti!ate sale or exchan%e; or B2C loadin%9 unloadin%9 storin%9 shi in%9 transshi in%9 !anufacturin%9 rocessin%9 or other6ise dealin% 6ith the! in a !anner reli!inary to their sale or exchan%e@ B%C Te%porar" perfectionA deliver" of securit" certificate or instru%ent to debtor0 A erfected security interest in a certificated security or instru!ent re!ains erfected for t6enty B20C days 6ithout filin% if the secured arty deli*ers the security certificate or instru!ent to the de$tor for the ur ose of< B1C ulti!ate sale or exchan%e; or B2C resentation9 collection9 enforce!ent9 rene6al9 or re%istration of transfer@ BhC #4piration of te%porar" perfection0 After the t6enty-day eriod s ecified in su$section BeC9 BfC9 or B%C of this section ex ires9 erfection de ends u on co! liance 6ith this article@

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9-313 74#5 P1SS#SSI15 "H 1- D#,I>#-H T1 S#'/-#D PA-TH P#-2#'TS S#'/-ITH I5T#-#ST 7IT41/T 2I,I50 BaC Perfection b" possession or deliver"0 #xce t as other6ise ro*ided in su$section B$C of this section9 a secured arty !ay erfect a security interest in ne%otia$le docu!ents9 %oods9 instru!ents9 !oney9 or tan%i$le chattel a er $y ta;in% ossession of the collateral@ A secured arty !ay erfect a security interest in certificated securities $y ta;in% deli*ery of the certificated securities under Section .-301@ B$C Goods covered b" certificate of title0 7ith res ect to %oods co*ered $y a certificate of title issued $y this state9 a secured arty !ay erfect a security interest in the %oods $y ta;in% ossession of the %oods only in the circu!stances descri$ed in su$section BdC of Section 9-31)@ BcC ollateral in possession of person other than debtor0 7ith res ect to collateral other than certificated securities and %oods co*ered $y a docu!ent9 a secured arty ta;es ossession of collateral in the ossession of a erson other than the de$tor9 the secured arty9 or a lessee of the collateral fro! the de$tor in the ordinary course of the de$torFs $usiness9 6hen< B1C the erson in ossession authenticates a record ac;no6led%in% that it holds ossession of the collateral for the secured artyFs $enefit; or B2C the erson ta;es ossession of the collateral after ha*in% authenticated a record ac;no6led%in% that it 6ill hold ossession of collateral for the secured artyFs $enefit@ BdC Ti%e of perfection b" possessionA continuation of perfection0 If erfection of a security interest de ends u on ossession of the collateral $y a secured arty9 erfection occurs no earlier than the ti!e the secured arty ta;es ossession and continues only 6hile the secured arty retains ossession@ BeC Ti%e of perfection b" deliver"& continuation of perfection0 A security interest in a certificated security in re%istered for! is erfected $y deli*ery 6hen deli*ery of the certificated security occurs under Section .-301 and re!ains erfected $y deli*ery until the de$tor o$tains ossession of the security certificate@ BfC Ac,nowled$%ent not re5uired0 A erson in ossession of collateral is not re3uired to ac;no6led%e that it holds ossession for a secured artyFs $enefit@ B%C #ffectiveness of ac,nowled$%ent& no duties or confir%ation0 If a erson ac;no6led%es that it holds ossession for the secured artyFs $enefit< B1C the ac;no6led%!ent is effecti*e under su$section BcC of this section or su$section BaC of Section .-3019 e*en if the ac;no6led%!ent *iolates the ri%hts of a de$tor; and B2C unless the erson other6ise a%rees or la6 other than this article other6ise ro*ides9 the erson does not o6e any duty to the secured arty and is not re3uired to confir! the ac;no6led%!ent to another erson@ BhC Secured part":s deliver" to person other than debtor0 A secured arty ha*in% ossession of collateral does not relin3uish ossession $y deli*erin% the collateral to a erson other than the de$tor or a lessee of the collateral fro! the de$tor in the ordinary course of the de$torFs $usiness

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if the erson 6as instructed $efore the deli*ery or is instructed conte! oraneously 6ith the deli*ery< B1C to hold ossession of the collateral for the secured artyFs $enefit; or B2C to redeli*er the collateral to the secured arty@ BiC #ffect of deliver" under subsection ChD& no duties or confir%ation0 A secured arty does not relin3uish ossession9 e*en if a deli*ery under su$section BhC of this section *iolates the ri%hts of a de$tor@ A erson to 6hich collateral is deli*ered under su$section BhC of this section does not o6e any duty to the secured arty and is not re3uired to confir! the deli*ery to another erson unless the erson other6ise a%rees or la6 other than this article other6ise ro*ides@ 9-31& P#-2#'TI15 "H '15T-1, BaC Perfection b" control0 A security interest in in*est!ent ro erty9 de osit accounts9 letter-ofcredit ri%hts9 or electronic chattel a er !ay $e erfected $y control of the collateral under Section 9-10&9 9-10(9 9-10)9 or 9-10+@ B$C Specified collateralA ti%e of perfection b" control& continuation of perfection0 A security interest in de osit accounts9 electronic chattel a er9 or letter-of-credit ri%hts is erfected $y control under Section 9-10&9 9-10(9 or 9-10+ 6hen the secured arty o$tains control and re!ains erfected $y control only 6hile the secured arty retains control@ BcC 'nvest%ent propert"A ti%e of perfection b" control& continuation of perfection0 A security interest in in*est!ent ro erty is erfected $y control under Section 9-10) fro! the ti!e the secured arty o$tains control and re!ains erfected $y control until< B1C the secured arty does not ha*e control; and B2C one of the follo6in% occurs< BAC if the collateral is a certificated security9 the de$tor has or ac3uires ossession of the security certificate; B"C if the collateral is an uncertificated security9 the issuer has re%istered or re%isters the de$tor as the re%istered o6ner; or B'C if the collateral is a security entitle!ent9 the de$tor is or $eco!es the entitle!ent holder@ 9-31( S#'/-#D PA-THFS -I04TS 15 DISP1SITI15 12 '1,,AT#-A, A5D I5 P-1'##DS BaC Disposition of collateralA continuation of securit" interest or a$ricultural lien& proceeds0 #xce t as other6ise ro*ided in this article and in ara%ra h B2C of Section 2-&03<

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B1C a security interest or a%ricultural lien continues in collateral not6ithstandin% sale9 lease9 license9 exchan%e9 or other dis osition thereof unless the secured arty authoriEed the dis osition free of the security interest or a%ricultural lien; and B2C a security interest attaches to any identifia$le roceeds of collateral@ B$C =hen co%%in$led proceeds identifiable0 Proceeds that are co!!in%led 6ith other ro erty are identifia$le roceeds< B1C if the roceeds are %oods9 to the extent ro*ided $y Section 9-33); and B2C if the roceeds are not %oods9 to the extent that the secured arty identifies the roceeds $y a !ethod of tracin%9 includin% a lication of e3uita$le rinci les9 that is er!itted under la6 other than this article 6ith res ect to co!!in%led ro erty of the ty e in*ol*ed@ BcC Perfection of securit" interest in proceeds0 A security interest in roceeds is a erfected security interest if the security interest in the ori%inal collateral 6as erfected@ BdC ontinuation of perfection0 A erfected security interest in roceeds $eco!es un erfected on the t6enty-first day after the security interest attaches to the roceeds unless< B1C the follo6in% conditions are satisfied< BAC a filed financin% state!ent co*ers the ori%inal collateral; B"C the roceeds are collateral in 6hich a security interest !ay $e erfected $y filin% in the office in 6hich the financin% state!ent has $een filed; and B'C the roceeds are not ac3uired 6ith cash roceeds; B2C the roceeds are identifia$le cash roceeds; or B3C the security interest in the roceeds is erfected other than under su$section BcC of this section 6hen the security interest attaches to the roceeds or 6ithin t6enty B20C days thereafter@ BeC =hen perfected securit" interest in proceeds beco%es unperfected0 If a filed financin% state!ent co*ers the ori%inal collateral9 a security interest in roceeds 6hich re!ains erfected under ara%ra h B1C of su$section BdC of this section $eco!es un erfected at the later of< B1C 6hen the effecti*eness of the filed financin% state!ent la ses under Section 9-(1( or is ter!inated under Section 9-(13; or B2C the t6enty-first day after the security interest attaches to the roceeds@ 9-31) '15TI5/#D P#-2#'TI15 12 S#'/-ITH I5T#-#ST 21,,17I50 '4A50# I5 01>#-5I50 ,A7

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BaC General ruleA effect on perfection of chan$e in $overnin$ laws0 A security interest erfected ursuant to the la6 of the 8urisdiction desi%nated in ara%ra h B1C of Section 9-301 or su$section BcC of Section 9-30( re!ains erfected until the earliest of< B1C the ti!e erfection 6ould ha*e ceased under the la6 of that 8urisdiction; B2C the ex iration of four B&C !onths after a chan%e of the de$torFs location to another 8urisdiction; or B3C the ex iration of one B1C year after a transfer of collateral to a erson that there$y $eco!es a de$tor and is located in another 8urisdiction@ B$C Securit" interest perfected or unperfected under law of new @urisdiction0 If a security interest descri$ed in su$section BaC of this section $eco!es erfected under the la6 of the other 8urisdiction $efore the earliest ti!e or e*ent descri$ed in that su$section9 it re!ains erfected thereafter@ If the security interest does not $eco!e erfected under the la6 of the other 8urisdiction $efore the earliest ti!e or e*ent9 it $eco!es un erfected and is dee!ed ne*er to ha*e $een erfected as a%ainst a urchaser of the collateral for *alue@ BcC Possessor" securit" interest in collateral %oved to new @urisdiction0 A ossessory security interest in collateral9 other than %oods co*ered $y a certificate of title and as-extracted collateral consistin% of %oods9 re!ains continuously erfected if< B1C the collateral is located in one 8urisdiction and su$8ect to a security interest erfected under the la6 of that 8urisdiction; B2C thereafter the collateral is $rou%ht into another 8urisdiction; and B3C u on entry into the other 8urisdiction9 the security interest is erfected under the la6 of the other 8urisdiction@ BdC Goods covered b" certificate of title fro% this state0 #xce t as other6ise ro*ided in su$section BeC of this section9 a security interest in %oods co*ered $y a certificate of title 6hich is erfected $y any !ethod under the la6 of another 8urisdiction 6hen the %oods $eco!e co*ered $y a certificate of title fro! this state re!ains erfected until the security interest 6ould ha*e $eco!e un erfected under the la6 of the other 8urisdiction had the %oods not $eco!e so co*ered@ BeC =hen subsection CdD securit" interest beco%es unperfected a$ainst purchasers0 A security interest descri$ed in su$section BdC of this section $eco!es un erfected as a%ainst a urchaser of the %oods for *alue and is dee!ed ne*er to ha*e $een erfected as a%ainst a urchaser of the %oods for *alue if the a lica$le re3uire!ents for erfection under su$section B$C of Section 9-311 or Section 9-313 are not satisfied $efore the earlier of< B1C the ti!e the security interest 6ould ha*e $eco!e un erfected under the la6 of the other 8urisdiction had the %oods not $eco!e co*ered $y a certificate of title fro! this state; or B2C the ex iration of four B&C !onths after the %oods had $eco!e so co*ered@ BfC han$e in @urisdiction of ban,, issuer, no%inated person, securities inter%ediar", or co%%odit" inter%ediar"0 A security interest in de osit accounts9 letter-of-credit ri%hts9 or in*est!ent ro erty 6hich is erfected under the la6 of the $an;Fs 8urisdiction9 the issuerFs

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8urisdiction9 a no!inated ersonFs 8urisdiction9 the securities inter!ediaryFs 8urisdiction9 or the co!!odity inter!ediaryFs 8urisdiction9 as a lica$le9 re!ains erfected until the earlier of< B1C the ti!e the security interest 6ould ha*e $eco!e un erfected under the la6 of that 8urisdiction; or B2C the ex iration of four B&C !onths after a chan%e of the a 8urisdiction@ lica$le 8urisdiction to another

B%C Subsection CfD securit" interest perfected or unperfected under law of new @urisdiction0 If a security interest descri$ed in su$section BfC of this section $eco!es erfected under the la6 of the other 8urisdiction $efore the earlier of the ti!e or the end of the eriod descri$ed in that su$section9 it re!ains erfected thereafter@ If the security interest does not $eco!e erfected under the la6 of the other 8urisdiction $efore the earlier of that ti!e or the end of that eriod9 it $eco!es un erfected and is dee!ed ne*er to ha*e $een erfected as a%ainst a urchaser of the collateral for *alue@ Subpart (0 Priorit" 9-31+ I5T#-#STS T4AT TAL# P-I1-ITH 1>#- 1- TAL# 2-## 12 S#'/-ITH I5T#-#ST 1- A0-I'/,T/-A, ,I#5 BaC onflictin$ securit" interests and ri$hts of lien creditors0 A security interest or a%ricultural lien is su$ordinate to the ri%hts of< B1C a erson entitled to riority under Section 9-322; and B2C exce t as other6ise ro*ided in su$section BeC of this section9 a erson that $eco!es a lien creditor $efore the earlier of the ti!e< BAC the security interest or a%ricultural lien is erfected; or B"C one of the conditions s ecified in ara%ra h B3C of su$section B$C of Section 9-203 is !et and a financin% state!ent co*erin% the collateral is filed@ B$C +u"ers that receive deliver"0 #xce t as other6ise ro*ided in su$section BeC of this section9 a $uyer9 other than a secured arty9 of chattel a er9 docu!ents9 %oods9 instru!ents9 or a security certificate ta;es free of a security interest or a%ricultural lien if the $uyer %i*es *alue and recei*es deli*ery of the collateral 6ithout ;no6led%e of the security interest or a%ricultural lien and $efore it is erfected@ BcC )essees that receive deliver"0 #xce t as other6ise ro*ided in su$section BeC of this section9 a lessee of %oods ta;es free of a security interest or a%ricultural lien if the lessee %i*es *alue and recei*es deli*ery of the collateral 6ithout ;no6led%e of the security interest or a%ricultural lien and $efore it is erfected@ BdC )icensees and bu"ers of certain collateral0 A licensee of a %eneral intan%i$le or a $uyer9 other than a secured arty9 of accounts9 electronic chattel a er9 %eneral intan%i$les9 or in*est!ent ro erty other than a certificated security ta;es free of a security interest if the licensee or $uyer %i*es *alue 6ithout ;no6led%e of the security interest and $efore it is erfected@

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BeC Purchase-%one" securit" interest0 #xce t as other6ise ro*ided in Sections 9-320 and 93219 if a erson files a financin% state!ent 6ith res ect to a urchase-!oney security interest $efore or 6ithin t6enty B20C days after the de$tor recei*es deli*ery of the collateral9 the security interest ta;es riority o*er the ri%hts of a $uyer9 lessee9 or lien creditor 6hich arise $et6een the ti!e the security interest attaches and the ti!e of filin%@ 9-31. -I04TS A5D TIT,# 12 S#,,#- 12 A''1/5T 1- '4ATT#, PAP#- 7IT4 -#SP#'T T1 '-#DIT1-S A5D P/-'4AS#-S BaC Seller retains no interest0 A de$tor that has sold an account9 chattel a er9 ay!ent intan%i$le9 or ro!issory note does not retain a le%al or e3uita$le interest in the collateral sold@ B$C Dee%ed ri$hts of debtor if bu"er:s securit" interest unperfected0 2or ur oses of deter!inin% the ri%hts of creditors of9 and urchasers for *alue of an account or chattel a er fro!9 a de$tor that has sold an account or chattel a er9 6hile the $uyerFs security interest is un erfected9 the de$tor is dee!ed to ha*e ri%hts and title to the account or chattel a er identical to those the de$tor sold@ 9-319 -I04TS A5D TIT,# 12 '15SI05## 7IT4 -#SP#'T T1 '-#DIT1-S A5D P/-'4AS#-S BaC onsi$nee has consi$nor:s ri$hts0 #xce t as other6ise ro*ided in su$section B$C of this section9 for ur oses of deter!inin% the ri%hts of creditors of9 and urchasers for *alue of %oods fro!9 a consi%nee9 6hile the %oods are in the ossession of the consi%nee9 the consi%nee is dee!ed to ha*e ri%hts and title to the %oods identical to those the consi%nor had or had o6er to transfer@ B$C Applicabilit" of other law0 2or ur oses of deter!inin% the ri%hts of a creditor of a consi%nee9 la6 other than this article deter!ines the ri%hts and title of a consi%nee 6hile %oods are in the consi%neeFs ossession if9 under this art9 a erfected security interest held $y the consi%nor 6ould ha*e riority o*er the ri%hts of the creditor@ 9-320 "/H#- 12 011DS BaC +u"er in ordinar" course of business0 #xce t as other6ise ro*ided in su$section BeC of this section9 a $uyer in ordinary course of $usiness9 other than a erson $uyin% far! roducts fro! a erson en%a%ed in far!in% o erations9 ta;es free of a security interest created $y the $uyerFs seller9 e*en if the security interest is erfected and the $uyer ;no6s of its existence@ B$C +u"er of consu%er $oods0 #xce t as other6ise ro*ided in su$section BeC of this section9 a $uyer of %oods fro! a erson 6ho used or $ou%ht the %oods for use ri!arily for ersonal9 fa!ily9 or household ur oses ta;es free of a security interest9 e*en if erfected9 if the $uyer $uys< B1C 6ithout ;no6led%e of the security interest;

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B2C for *alue; B3C ri!arily for the $uyerFs ersonal9 fa!ily9 or household ur oses; and B&C $efore the filin% of a financin% state!ent co*erin% the %oods@ BcC #ffectiveness of filin$ for subsection CbD To the extent that it affects the riority of a security interest o*er a $uyer of %oods under su$section B$C of this section9 the eriod of effecti*eness of a filin% !ade in the 8urisdiction in 6hich the seller is located is %o*erned $y su$sections BaC and B$C of Section 9-31)@ BdC +u"er in ordinar" course of business at wellhead or %inehead0 A $uyer in ordinary course of $usiness $uyin% oil9 %as9 or other !inerals at the 6ellhead or !inehead or after extraction ta;es free of an interest arisin% out of an encu!$rance@ BeC Possessor" securit" interest not affected0 Su$sections BaC and B$C of this section do not affect a security interest in %oods in the ossession of the secured arty under Section 9-313@ 9-321 ,I'#5S## 12 0#5#-A, I5TA50I",# A5D ,#SS## 12 011DS I5 1-DI5A-H '1/-S# 12 "/SI5#SS BaC B)icensee in ordinar" course of business0B In this section9 Dlicensee in ordinary course of $usinessD !eans a erson that $eco!es a licensee of a %eneral intan%i$le in %ood faith9 6ithout ;no6led%e that the license *iolates the ri%hts of another erson in the %eneral intan%i$le9 and in the ordinary course fro! a erson in the $usiness of licensin% %eneral intan%i$les of that ;ind@ A erson $eco!es a licensee in the ordinary course if the license to the erson co! orts 6ith the usual or custo!ary ractices in the ;ind of $usiness in 6hich the licensor is en%a%ed or 6ith the licensorFs o6n usual or custo!ary ractices@ B$C Ri$hts of licensee in ordinar" course of business0 A licensee in ordinary course of $usiness ta;es its ri%hts under a nonexclusi*e license free of a security interest in the %eneral intan%i$le created $y the licensor9 e*en if the security interest is erfected and the licensee ;no6s of its existence@ BcC Ri$hts of lessee in ordinar" course of business0 A lessee in ordinary course of $usiness ta;es its leasehold interest free of a security interest in the %oods created $y the lessor9 e*en if the security interest is erfected and the lessee ;no6s of its existence@ 9-322 P-I1-ITI#S AM150 '152,I'TI50 S#'/-ITH I5T#-#STS I5 A5D A0-I'/,T/-A, ,I#5S 15 SAM# '1,,AT#-A, BaC General priorit" rules0 #xce t as other6ise ro*ided in this section9 riority a!on% conflictin% security interests and a%ricultural liens in the sa!e collateral is deter!ined accordin% to the follo6in% rules<

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B1C 'onflictin% erfected security interests and a%ricultural liens ran; accordin% to riority in ti!e of filin% or erfection@ Priority dates fro! the earlier of the ti!e a filin% co*erin% the collateral is first !ade or the security interest or a%ricultural lien is first erfected9 if there is no eriod thereafter 6hen there is neither filin% nor erfection; B2C A erfected security interest or a%ricultural lien has riority o*er a conflictin% un erfected security interest or a%ricultural lien; and B3C The first security interest or a%ricultural lien to attach or $eco!e effecti*e has riority if conflictin% security interests and a%ricultural liens are un erfected@ B$C Ti%e of perfectionA proceeds and supportin$ obli$ations0 2or the ur oses of ara%ra h B1C of su$section BaC of this section< B1C The ti!e of filin% or erfection as to a security interest in collateral is also the ti!e of filin% or erfection as to a security interest in roceeds; and B2C The ti!e of filin% or erfection as to a security interest in collateral su orted $y a ortin% o$li%ation is also the ti!e of filin% or erfection as to a security interest in the ortin% o$li%ation@

su su

BcC Special priorit" rulesA proceeds and supportin$ obli$ations0 #xce t as other6ise ro*ided in su$section BfC of this section9 a security interest in collateral 6hich 3ualifies for riority o*er a conflictin% security interest under Sections 9-32+9 9-32.9 9-3299 9-3309 or 9-331 also has riority o*er a conflictin% security interest in< B1C Any su ortin% o$li%ation for the collateral; and

B2C Proceeds of the collateral if< BAC the security interest in roceeds is erfected; B"C the roceeds are cash roceeds or of the sa!e ty e as the collateral; and B'C in the case of roceeds that are roceeds of roceeds9 all inter*enin% roceeds are cash roceeds9 roceeds of the sa!e ty e as the collateral9 or an account relatin% to the collateral@ BdC .irst-to-file priorit" rule for certain collateral0 Su$8ect to su$section BeC of this section and exce t as other6ise ro*ided in su$section BfC of this section9 if a security interest in chattel a er9 de osit accounts9 ne%otia$le docu!ents9 instru!ents9 in*est!ent ro erty9 or letter-ofcredit ri%hts is erfected $y a !ethod other than filin%9 conflictin% erfected security interests in roceeds of the collateral ran; accordin% to riority in ti!e of filin%@ BeC Applicabilit" of subsection CdD0 Su$section BdC of this section a lies only if the roceeds of the collateral are not cash roceeds9 chattel a er9 ne%otia$le docu!ents9 instru!ents9 in*est!ent ro erty9 or letter-of-credit ri%hts@ BfC )i%itations on subsections CaD throu$h CeD0 Su$sections BaC throu%h BeC of this section are su$8ect to< B1C su$section B%C of this section and the other ro*isions of this art;

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B2C Section &-210 6ith res ect to a security interest of a collectin% $an;; B3C Section (-11. 6ith res ect to a security interest of an issuer or no!inated erson; and B&C Section 9-110 6ith res ect to a security interest arisin% under Article 2 or 2A@ B%C Priorit" under a$ricultural lien statute0 A erfected a%ricultural lien on collateral has riority o*er a conflictin% security interest in or a%ricultural lien on the sa!e collateral if the statute creatin% the a%ricultural lien so ro*ides@ 9-323 2/T/-# AD>A5'#S BaC =hen priorit" based on ti%e of advance0 #xce t as other6ise ro*ided in su$section BcC of this section9 for ur oses of deter!inin% the riority of a erfected security interest under ara%ra h B1C of su$section BaC of Section 9-3229 erfection of the security interest dates fro! the ti!e an ad*ance is !ade to the extent that the security interest secures an ad*ance that< B1C is !ade 6hile the security interest is erfected only< BAC under Section 9-309 6hen it attaches; or B"C te! orarily under su$section BeC9 BfC9 or B%C of Section 9-312; and B2C is not !ade ursuant to a co!!it!ent entered into $efore or 6hile the security interest is erfected $y a !ethod other than under Section 9-309 or su$section BeC9 BfC9 or B%C of Section 9312@ B$C )ien creditor0 #xce t as other6ise ro*ided in su$section BcC of this section9 a security interest is su$ordinate to the ri%hts of a erson that $eco!es a lien creditor to the extent that the security interest secures an ad*ance !ade !ore than forty-fi*e B&(C days after the erson $eco!es a lien creditor unless the ad*ance is !ade< B1C 6ithout ;no6led%e of the lien; or B2C ursuant to a co!!it!ent entered into 6ithout ;no6led%e of the lien@ BcC +uer of receivables0 Su$sections BaC and B$C of this section do not a ly to a security interest held $y a secured arty that is a $uyer of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes or a consi%nor@ BdC +u"er of $oods0 #xce t as other6ise ro*ided in su$section BeC of this section9 a $uyer of %oods other than a $uyer in ordinary course of $usiness ta;es free of a security interest to the extent that it secures ad*ances !ade after the earlier of< B1C the ti!e the secured arty ac3uires ;no6led%e of the $uyerFs urchase; or B2C forty-fi*e B&(C days after the urchase@

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BeC Advances %ade pursuant to co%%it%entA priorit" of bu"er of $oods0 Su$section BdC of this section does not a ly if the ad*ance is !ade ursuant to a co!!it!ent entered into 6ithout ;no6led%e of the $uyerFs urchase and $efore the ex iration of the forty-fi*e-day eriod@ BfC )essee of $oods0 #xce t as other6ise ro*ided in su$section B%C of this section9 a lessee of %oods9 other than a lessee in ordinary course of $usiness9 ta;es the leasehold interest free of a security interest to the extent that it secures ad*ances !ade after the earlier of< B1C the ti!e the secured arty ac3uires ;no6led%e of the lease; or B2C 2orty-fi*e B&(C days after the lease contract $eco!es enforcea$le@ B%C Advances %ade pursuant to co%%it%entA priorit" of lessee of $oods0 Su$section BfC of this section does not a ly if the ad*ance is !ade ursuant to a co!!it!ent entered into 6ithout ;no6led%e of the lease and $efore the ex iration of the forty-fi*e-day eriod@ 9-32& P-I1-ITH 12 P/-'4AS#-M15#H S#'/-ITH I5T#-#STS BaC General ruleA purchase-%one" priorit"0 #xce t as other6ise ro*ided in su$section B%C of this section9 a erfected urchase-!oney security interest in %oods other than in*entory or li*estoc; has riority o*er a conflictin% security interest in the sa!e %oods9 and9 exce t as other6ise ro*ided in Section 9-32+9 a erfected security interest in its identifia$le roceeds also has riority9 if the urchase-!oney security interest is erfected 6hen the de$tor recei*es ossession of the collateral or 6ithin t6enty B20C days thereafter@ B$C 'nventor" purchase-%one" priorit"0 Su$8ect to su$section BcC of this section and exce t as other6ise ro*ided in su$section B%C of this section9 a erfected urchase-!oney security interest in in*entory has riority o*er a conflictin% security interest in the sa!e in*entory9 has riority o*er a conflictin% security interest in chattel a er or an instru!ent constitutin% roceeds of the in*entory and in roceeds of the chattel a er9 if so ro*ided in Section 9-3309 and9 exce t as other6ise ro*ided in Section 9-32+9 also has riority in identifia$le cash roceeds of the in*entory to the extent the identifia$le cash roceeds are recei*ed on or $efore the deli*ery of the in*entory to a $uyer9 if< B1C the urchase-!oney security interest is erfected 6hen the de$tor recei*es ossession of the in*entory; B2C the urchase-!oney secured arty sends an authenticated notification to the holder of the conflictin% security interest; B3C the holder of the conflictin% security interest recei*es the notification 6ithin fi*e B(C years $efore the de$tor recei*es ossession of the in*entory; and B&C the notification states that the erson sendin% the notification has or ex ects to ac3uire a urchase-!oney security interest in in*entory of the de$tor and descri$es the in*entory@ BcC 6olders of conflictin$ inventor" securit" interests to be notified0 Para%ra hs B2C throu%h B&C of su$section B$C of this section a ly only if the holder of the conflictin% security interest had filed a financin% state!ent co*erin% the sa!e ty es of in*entory< B1C if the urchase-!oney security interest is erfected $y filin%9 $efore the date of the filin%; or

50

B2C if the urchase-!oney security interest is te! orarily erfected 6ithout filin% or ossession under su$section BfC of Section 9-3129 $efore the $e%innin% of the t6enty-day eriod thereunder@ BdC )ivestoc, purchase-%one" priorit"0 Su$8ect to su$section BeC of this section and exce t as other6ise ro*ided in su$section B%C of this section9 a erfected urchase-!oney security interest in li*estoc; that are far! roducts has riority o*er a conflictin% security interest in the sa!e li*estoc;9 and9 exce t as other6ise ro*ided in Section 9-32+9 a erfected security interest in their identifia$le roceeds and identifia$le roducts in their un!anufactured states also has riority9 if< B1C the urchase-!oney security interest is erfected 6hen the de$tor recei*es ossession of the li*estoc;; B2C the urchase-!oney secured arty sends an authenticated notification to the holder of the conflictin% security interest; B3C the holder of the conflictin% security interest recei*es the notification 6ithin six B)C !onths $efore the de$tor recei*es ossession of the li*estoc;; and B&C the notification states that the erson sendin% the notification has or ex ects to ac3uire a urchase-!oney security interest in li*estoc; of the de$tor and descri$es the li*estoc;@ BeC 6olders of conflictin$ livestoc, securit" interests to be notified0 Para%ra hs B2C throu%h B&C of su$section BdC of this section a lies only if the holder of the conflictin% security interest had filed a financin% state!ent co*erin% the sa!e ty es of li*estoc;< B1C if the urchase-!oney security interest is erfected $y filin%9 $efore the date of the filin%; or B2C if the urchase-!oney security interest is te! orarily erfected 6ithout filin% or ossession under su$section BfC of Section 9-3129 $efore the $e%innin% of the t6enty-day eriod thereunder@ BfC Software purchase-%one" priorit"0 #xce t as other6ise ro*ided in su$section B%C of this section9 a erfected urchase-!oney security interest in soft6are has riority o*er a conflictin% security interest in the sa!e collateral9 and9 exce t as other6ise ro*ided in Section 9-32+9 a erfected security interest in its identifia$le roceeds also has riority9 to the extent that the urchase-!oney security interest in the %oods in 6hich the soft6are 6as ac3uired for use has riority in the %oods and roceeds of the %oods under this section@ B%C onflictin$ purchase-%one" securit" interests0 If !ore than one security interest 3ualifies for riority in the sa!e collateral under su$section BaC9 B$C9 BdC9 or BfC of this section< B1C a security interest securin% an o$li%ation incurred as all or art of the rice of the collateral has riority o*er a security interest securin% an o$li%ation incurred for *alue %i*en to ena$le the de$tor to ac3uire ri%hts in or the use of collateral; and B2C in all other cases9 su$section BaC of Section 9-322 a interests@ 9-32( P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 T-A5S2#--#D '1,,AT#-A, lies to the 3ualifyin% security

51

BaC Subordination of securit" interest in transferred collateral0 #xce t as other6ise ro*ided in su$section B$C of this section9 a security interest created $y a de$tor is su$ordinate to a security interest in the sa!e collateral created $y another erson if< B1C the de$tor ac3uired the collateral su$8ect to the security interest created $y the other erson; B2C the security interest created $y the other erson 6as erfected 6hen the de$tor ac3uired the collateral; and B3C there is no eriod thereafter 6hen the security interest is un erfected@ B$C Su$section BaC of this section su$ordinates a security interest only if the security interest< B1C other6ise 6ould ha*e riority solely under su$section BaC of Section 9-322 or Section 932&; or B2C arose solely under ara%ra h B3C of Section 2-+11 or ara%ra h B(C of Section 2A-(0.@ 9-32) P-I1-ITH 12 S#'/-ITH I5T#-#STS '-#AT#D "H 5#7 D#"T1BaC Subordination of securit" interest created b" new debtor0 Su$8ect to su$section B$C of this section9 a security interest created $y a ne6 de$tor 6hich is erfected $y a filed financin% state!ent that is effecti*e solely under Section 9-(0. in collateral in 6hich a ne6 de$tor has or ac3uires ri%hts is su$ordinate to a security interest in the sa!e collateral 6hich is erfected other than $y a filed financin% state!ent that is effecti*e solely under Section 9-(0.@ B$C Priorit" under other provisions& %ultiple ori$inal debtors0 The other ro*isions of this art deter!ine the riority a!on% conflictin% security interests in the sa!e collateral erfected $y filed financin% state!ents that are effecti*e solely under Section 9-(0.@ 4o6e*er9 if the security a%ree!ents to 6hich a ne6 de$tor $eca!e $ound as de$tor 6ere not entered into $y the sa!e ori%inal de$tor9 the conflictin% security interests ran; accordin% to riority in ti!e of the ne6 de$torFs ha*in% $eco!e $ound@ 9-32+ P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 D#P1SIT A''1/5T The follo6in% rules %o*ern riority a!on% conflictin% security interests in the sa!e de osit account< B1C A security interest held $y a secured arty ha*in% control of the de osit account under Section 9-10& has riority o*er a conflictin% security interest held $y a secured arty that does not ha*e control@ B2C #xce t as other6ise ro*ided in ara%ra hs B3C and B&C of this section9 security interests erfected $y control under Section 9-31& ran; accordin% to riority in ti!e of o$tainin% control@

52

B3C #xce t as other6ise ro*ided in ara%ra h B&C of this section9 a security interest held $y the $an; 6ith 6hich the de osit account is !aintained has riority o*er a conflictin% security interest held $y another secured arty@ B&C A security interest erfected $y control under ara%ra h B3C of su$section BaC of Section 910& has riority o*er a security interest held $y the $an; 6ith 6hich the de osit account is !aintained@ 9-32. P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 I5>#STM#5T P-1P#-TH The follo6in% rules %o*ern riority a!on% conflictin% security interests in the sa!e in*est!ent ro erty< ;B1C A security interest held $y a secured arty ha*in% control of in*est!ent ro erty under Section 9-10) has riority o*er a security interest held $y a secured arty that does not ha*e control of the in*est!ent ro erty@ B2C #xce t as other6ise ro*ided in ara%ra hs B3C and B&C of this section9 conflictin% security interests held $y secured arties each of 6hich has control under Section 9-10) ran; accordin% to riority in ti!e of< BAC if the collateral is a security9 o$tainin% control; B"C if the collateral is a security entitle!ent carried in a securities account and< BiC if the secured arty o$tained control under ara%ra h B1C of su$section BdC of Section .10)9 the secured artyFs $eco!in% the erson for 6hich the securities account is !aintained; BiiC if the secured arty o$tained control under ara%ra h B2C of su$section BdC of Section .10)9 the securities inter!ediaryFs a%ree!ent to co! ly 6ith the secured artyFs entitle!ent orders 6ith res ect to security entitle!ents carried or to $e carried in the securities account; or BiiiC if the secured arty o$tained control throu%h another erson under ara%ra h B3C of su$section BdC of Section .-10)9 the ti!e on 6hich riority 6ould $e $ased under this ara%ra h if the other erson 6ere the secured arty; or B'C if the collateral is a co!!odity contract carried 6ith a co!!odity inter!ediary9 the satisfaction of the re3uire!ent for control s ecified in ara%ra h B2C of su$section B$C of Section 9-10) 6ith res ect to co!!odity contracts carried or to $e carried 6ith the co!!odity inter!ediary@ B3C A security interest held $y a securities inter!ediary in a security entitle!ent or a securities account !aintained 6ith the securities inter!ediary has riority o*er a conflictin% security interest held $y another secured arty@ B&C A security interest held $y a co!!odity inter!ediary in a co!!odity contract or a co!!odity account !aintained 6ith the co!!odity inter!ediary has riority o*er a conflictin% security interest held $y another secured arty@

53

B(C A security interest in a certificated security in re%istered for! 6hich is erfected $y ta;in% deli*ery under su$section BaC of Section 9-313 and not $y control under Section 9-31& has riority o*er a conflictin% security interest erfected $y a !ethod other than control@ B)C 'onflictin% security interests created $y a $ro;er9 securities inter!ediary9 or co!!odity inter!ediary 6hich are erfected 6ithout control under Section 9-10) ran; e3ually@ B+C In all other cases9 riority a!on% conflictin% security interests in in*est!ent ro erty is %o*erned $y Sections 9-322 and 9-323@ 9-329 P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 ,#TT#--12-'-#DIT -I04T The follo6in% rules %o*ern riority a!on% conflictin% security interests in the sa!e letter-of-credit ri%ht< B1C A security interest held $y a secured arty ha*in% control of the letter-of-credit ri%ht under Section 9-10+ has riority to the extent of its control o*er a conflictin% security interest held $y a secured arty that does not ha*e control@ B2C Security interests erfected $y control under Section 9- 31& ran; accordin% to riority in ti!e of o$tainin% control@ 9-330 P-I1-ITH 12 P/-'4AS#- 12 '4ATT#, PAP#- 1- I5ST-/M#5T BaC Purchaser:s priorit"A securit" interest clai%ed %erel" as proceeds0 A urchaser of chattel a er has riority o*er a security interest in the chattel a er 6hich is clai!ed !erely as roceeds of in*entory su$8ect to a security interest if< B1C in %ood faith and in the ordinary course of the urchaserFs $usiness9 the urchaser %i*es ne6 *alue and ta;es ossession of the chattel a er or o$tains control of the chattel a er under Section 9-10(; and B2C the chattel a er does not indicate that it has $een assi%ned to an identified assi%nee other than the urchaser@ B$C Purchaser:s priorit"A other securit" interests0 A urchaser of chattel a er has riority o*er a security interest in the chattel a er 6hich is clai!ed other than !erely as roceeds of in*entory su$8ect to a security interest if the urchaser %i*es ne6 *alue and ta;es ossession of the chattel a er or o$tains control of the chattel a er under Section 9-10( in %ood faith9 in the ordinary course of the urchaserFs $usiness9 and 6ithout ;no6led%e that the urchase *iolates the ri%hts of the secured arty@ BcC hattel paper purchaser:s priorit" in proceeds0 #xce t as other6ise ro*ided in Section 932+9 a urchaser ha*in% riority in chattel a er under su$section BaC or B$C of this section also has riority in roceeds of the chattel a er to the extent that< B1C Section 9-322 ro*ides for riority in the roceeds; or

54

B2C the roceeds consist of the s ecific %oods co*ered $y the chattel a er or cash roceeds of the s ecific %oods9 e*en if the urchaserFs security interest in the roceeds is un erfected@ BdC 'nstru%ent purchaser:s priorit"0 #xce t as other6ise ro*ided in su$section BaC of Section 9-3319 a urchaser of an instru!ent has riority o*er a security interest in the instru!ent erfected $y a !ethod other than ossession if the urchaser %i*es *alue and ta;es ossession of the instru!ent in %ood faith and 6ithout ;no6led%e that the urchase *iolates the ri%hts of the secured arty@ BeC 6older of purchase-%one" securit" interest $ives new value0 2or ur oses of su$sections BaC and B$C of this section9 the holder of a urchase-!oney security interest in in*entory %i*es ne6 *alue for chattel a er constitutin% roceeds of the in*entory@ BfC 'ndication of assi$n%ent $ives ,nowled$e0 2or ur oses of su$sections B$C and BdC of this section9 if chattel a er or an instru!ent indicates that it has $een assi%ned to an identified secured arty other than the urchaser9 a urchaser of the chattel a er or instru!ent has ;no6led%e that the urchase *iolates the ri%hts of the secured arty@ 9-331 P-I1-ITH 12 -I04TS 12 P/-'4AS#-S 12 I5ST-/M#5TS9 D1'/M#5TS9 A5D S#'/-ITI#S /5D#- 1T4#- A-TI',#S; P-I1-ITH 12 I5T#-#STS I5 2I5A5'IA, ASS#TS A5D S#'/-ITH #5TIT,#M#5TS /5D#- A-TI',# . BaC Ri$hts under Articles (, 2, and ; not li%ited0 This article does not li!it the ri%hts of a holder in due course of a ne%otia$le instru!ent9 a holder to 6hich a ne%otia$le docu!ent of title has $een duly ne%otiated9 or a rotected urchaser of a security@ These holders or urchasers ta;e riority o*er an earlier security interest9 e*en if erfected9 to the extent ro*ided in Articles 39 +9 and .@ B$C Protection under Article ;0 This article does not li!it the ri%hts of or i! ose lia$ility on a erson to the extent that the erson is rotected a%ainst the assertion of a clai! under Article .@ BcC .ilin$ not notice0 2ilin% under this article does not constitute notice of a clai! or defense to the holders9 or urchasers9 or ersons descri$ed in su$sections BaC and B$C of this section@ 9-332 T-A5S2#- 12 M15#H; T-A5S2#- 12 2/5DS 2-1M D#P1SIT A''1/5T BaC Transferee of %one"0 A transferee of !oney ta;es the !oney free of a security interest unless the transferee acts in collusion 6ith the de$tor in *iolatin% the ri%hts of the secured arty@ B$C Transferee of funds fro% deposit account0 A transferee of funds fro! a de osit account ta;es the funds free of a security interest in the de osit account unless the transferee acts in collusion 6ith the de$tor in *iolatin% the ri%hts of the secured arty@ 9-333 P-I1-ITH 12 '#-TAI5 ,I#5S A-ISI50 "H 1P#-ATI15 12 ,A7

55

BaC BPossessor" lien0B In this section9 D ossessory lienD !eans an interest9 other than a security interest or an a%ricultural lien< B1C 6hich secures ay!ent or erfor!ance of an o$li%ation for ser*ices or !aterials furnished 6ith res ect to %oods $y a erson in the ordinary course of the ersonFs $usiness; B2C 6hich is created $y statute or rule of la6 in fa*or of the erson; and B3C 6hose effecti*eness de ends on the ersonFs ossession of the %oods@ B$C Priorit" of possessor" lien0 A ossessory lien on %oods has riority o*er a security interest in the %oods unless the lien is created $y a statute that ex ressly ro*ides other6ise@ 9-33& P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 2IAT/-#S A5D '-1PS BaC Securit" interest in fi4tures under this article0 A security interest under this article !ay $e created in %oods that are fixtures or !ay continue in %oods that $eco!e fixtures@ A security interest does not exist under this article in ordinary $uildin% !aterials incor orated into an i! ro*e!ent on land@ B$C Securit" interest in fi4tures under real-propert" law0 This article does not re*ent creation of an encu!$rance u on fixtures under real ro erty la6@ BcC General ruleA subordination of securit" interest in fi4tures0 In cases not %o*erned $y su$sections BdC throu%h BhC of this section9 a security interest in fixtures is su$ordinate to a conflictin% interest of an encu!$rancer or o6ner of the related real ro erty other than the de$tor@ BdC .i4tures purchase-%one" priorit"0 #xce t as other6ise ro*ided in su$section BhC of this section9 a erfected security interest in fixtures has riority o*er a conflictin% interest of an encu!$rancer or o6ner of the real ro erty if the de$tor has an interest of record in or is in ossession of the real ro erty and< B1C the security interest is a urchase-!oney security interest; B2C the interest of the encu!$rancer or o6ner arises $efore the %oods $eco!e fixtures; and B3C the security interest is erfected $y a fixture filin% $efore the %oods $eco!e fixtures or 6ithin t6enty B20C days thereafter@ BeC Priorit" of securit" interest in fi4tures over interests in real propert"0 A erfected security interest in fixtures has riority o*er a conflictin% interest of an encu!$rancer or o6ner of the real ro erty if< B1C the de$tor has an interest of record in the real ro erty or is in ossession of the real ro erty and the security interest< BAC is erfected $y a fixture filin% $efore the interest of the encu!$rancer or o6ner is of record; and

56

B"C has riority o*er any conflictin% interest of a redecessor in title of the encu!$rancer or o6ner; B2C $efore the %oods $eco!e fixtures9 the security interest is erfected $y any !ethod er!itted $y this article and the fixtures are readily re!o*a$le< BAC factory or office !achines; B"C e3ui !ent that is not ri!arily used or leased for use in the o eration of the real ro erty; or B'C re lace!ents of do!estic a liances that are consu!er %oods;

B3C the conflictin% interest is a lien on the real ro erty o$tained $y le%al or e3uita$le roceedin%s after the security interest 6as erfected $y any !ethod er!itted $y this article; or B&C the security interest is< BAC created in a !anufactured ho!e in a !anufactured-ho!e transaction; and B"C erfected ursuant to a statute descri$ed in ara%ra h B2C of su$section BaC of Section 9-311@ BfC Priorit" based on consent, disclai%er, or ri$ht to re%ove0 A security interest in fixtures9 6hether or not erfected9 has riority o*er a conflictin% interest of an encu!$rancer or o6ner of the real ro erty if< B1C the encu!$rancer or o6ner has9 in an authenticated record9 consented to the security interest or disclai!ed an interest in the %oods as fixtures; or B2C the de$tor has a ri%ht to re!o*e the %oods as a%ainst the encu!$rancer or o6ner@ B%C ontinuation of para$raph CfDC!D priorit"0 The riority of the security interest under ara%ra h B2C of su$section BfC of this section continues for a reasona$le ti!e if the de$torFs ri%ht to re!o*e the %oods as a%ainst the encu!$rancer or o6ner ter!inates@ BhC Priorit" of construction %ort$a$e0 A !ort%a%e is a construction !ort%a%e to the extent that it secures an o$li%ation incurred for the construction of an i! ro*e!ent on land9 includin% the ac3uisition cost of the land9 if a recorded record of the !ort%a%e so indicates@ #xce t as other6ise ro*ided in su$sections BeC and BfC of this section9 a security interest in fixtures is su$ordinate to a construction !ort%a%e if a record of the !ort%a%e is recorded $efore the %oods $eco!e fixtures and the %oods $eco!e fixtures $efore the co! letion of the construction@ A !ort%a%e has this riority to the sa!e extent as a construction !ort%a%e to the extent that it is %i*en to refinance a construction !ort%a%e@ BiC Priorit" of securit" interest in crops0 A erfected security interest in cro s %ro6in% on real ro erty has riority o*er a conflictin% interest of an encu!$rancer or o6ner of the real ro erty if the de$tor has an interest of record in or is in ossession of the real ro erty@

57

B8C Subsection CiD prevails0 Su$section BiC of this section re*ails o*er any inconsistent ro*isions of other statutes of this state@ 9-33( A''#SSI15S BaC reation of securit" interest in accession0 A security interest !ay $e created in an accession and continues in collateral that $eco!es an accession@ B$C Perfection of securit" interest0 If a security interest is erfected 6hen the collateral $eco!es an accession9 the security interest re!ains erfected in the collateral@ BcC #xce t as other6ise ro*ided in su$section BdC of this section9 the other ro*isions of this art deter!ine the riority of a security interest in an accession@ BdC o%pliance with certificate-of-title statute0 A security interest in an accession is su$ordinate to a security interest in the 6hole 6hich is erfected $y co! liance 6ith the re3uire!ents of a certificate-of-title statute under su$section B$C of Section 9-311@ BeC Re%oval of accession after default0 After default9 su$8ect to Part ) of this article9 a secured arty !ay re!o*e an accession fro! other %oods if the security interest in the accession has riority o*er the clai!s of e*ery erson ha*in% an interest in the 6hole@ BfC Rei%burse%ent followin$ re%oval0 A secured arty that re!o*es an accession fro! other %oods under su$section BeC of this section shall ro! tly rei!$urse any holder of a security interest or other lien on9 or o6ner of9 the 6hole or of the other %oods9 other than the de$tor9 for the cost of re air of any hysical in8ury to the 6hole or the other %oods@ The secured arty need not rei!$urse the holder or o6ner for any di!inution in *alue of the 6hole or the other %oods caused $y the a$sence of the accession re!o*ed or $y any necessity for re lacin% it@ A erson entitled to rei!$urse!ent !ay refuse er!ission to re!o*e until the secured arty %i*es ade3uate assurance for the erfor!ance of the o$li%ation to rei!$urse@ 9-33) '1MMI50,#D 011DS BaC B o%%in$led $oods0B In this section9 Dco!!in%led %oodsD !eans %oods that are hysically united 6ith other %oods in such a !anner that their identity is lost in a roduct or !ass@ B$C No securit" interest in co%%in$led $oods as such0 A security interest does not exist in co!!in%led %oods as such@ 4o6e*er9 a security interest !ay attach to a roduct or !ass that results 6hen %oods $eco!e co!!in%led %oods@ BcC Attach%ent of securit" interest to product or %ass0 If collateral $eco!es co!!in%led %oods9 a security interest attaches to the roduct or !ass@ BdC Perfection of securit" interest0 If a security interest in collateral is erfected $efore the collateral $eco!es co!!in%led %oods9 the security interest that attaches to the roduct or !ass under su$section BcC of this section is erfected@

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BeC Priorit" of securit" interest0 #xce t as other6ise ro*ided in su$section BfC of this section9 the other ro*isions of this art deter!ine the riority of a security interest that attaches to the roduct or !ass under su$section BcC of this section@ BfC onflictin$ securit" interests in product or %ass0 If !ore than one security interest attaches to the roduct or !ass under su$section BcC of this section9 the follo6in% rules deter!ine riority< B1C A security interest that is erfected under su$section BdC of this section has riority o*er a security interest that is un erfected at the ti!e the collateral $eco!es co!!in%led %oods@ B2C If !ore than one security interest is erfected under su$section BdC of this section9 the security interests ran; e3ually in ro ortion to *alue of the collateral at the ti!e it $eca!e co!!in%led %oods@ 9-33+ P-I1-ITH 12 S#'/-ITH I5T#-#STS I5 011DS '1>#-#D "H '#-TI2I'AT# 12 TIT,# If9 6hile a security interest in %oods is erfected $y any !ethod under the la6 of another 8urisdiction9 this state issues a certificate of title that does not sho6 that the %oods are su$8ect to the security interest or does not contain a state!ent that they !ay $e su$8ect to security interests not sho6n on the certificate< B1C a $uyer of the %oods9 other than a erson in the $usiness of sellin% %oods of that ;ind9 ta;es free of the security interest if the $uyer %i*es *alue and recei*es deli*ery of the %oods after issuance of the certificate and 6ithout ;no6led%e of the security interest; and B2C the security interest is su$ordinate to a conflictin% security interest in the %oods that attaches9 and is erfected under su$section B$C of Section 9-3119 after issuance of the certificate and 6ithout the conflictin% secured artyFs ;no6led%e of the security interest@ 9-33. P-I1-ITH 12 S#'/-ITH I5T#-#ST 1A0-I'/,T/-A, ,I#5 P#-2#'T#D "H 2I,#D 2I5A5'I50 STAT#M#5T P-1>IDI50 '#-TAI5 I5'1--#'T I521-MATI15 If a security interest or a%ricultural lien is erfected $y a filed financin% state!ent ro*idin% infor!ation descri$ed in ara%ra h B(C of su$section B$C of Section 9- (1) 6hich is incorrect at the ti!e the financin% state!ent is filed< B1C the security interest or a%ricultural lien is su$ordinate to a conflictin% erfected security interest in the collateral to the extent that the holder of the conflictin% security interest %i*es *alue in reasona$le reliance u on the incorrect infor!ation; and

59

B2C a urchaser9 other than a secured arty9 of the collateral ta;es free of the security interest or a%ricultural lien to the extent that9 in reasona$le reliance u on the incorrect infor!ation9 the urchaser %i*es *alue and9 in the case of chattel a er9 docu!ents9 %oods9 instru!ents9 or a security certificate9 recei*es deli*ery of the collateral@ 9-339 P-I1-ITH S/"=#'T T1 S/"1-DI5ATI15 This article does not reclude su$ordination $y a%ree!ent $y a erson entitled to riority@ S?+PART *0 R'G6TS /. +ANE

9-3&0 #22#'TI>#5#SS 12 -I04T 12 -#'1/PM#5T 1S#T-122 A0AI5ST D#P1SIT A''1/5T BaC #4ercise of recoup%ent or set-off0 #xce t as other6ise ro*ided in su$section BcC of this section9 a $an; 6ith 6hich a de osit account is !aintained !ay exercise any ri%ht of recou !ent or set-off a%ainst a secured arty that holds a security interest in the de osit account@ B$C Recoup%ent or set-off not affected b" securit" interest0 #xce t as other6ise ro*ided in su$section BcC of this section9 the a lication of this article to a security interest in a de osit account does not affect a ri%ht of recou !ent or set-off of the secured arty as to a de osit account !aintained 6ith the secured arty@ BcC =hen set-off ineffective0 The exercise $y a $an; of a set-off a%ainst a de osit account is ineffecti*e a%ainst a secured arty that holds a security interest in the de osit account 6hich is erfected $y control under ara%ra h B3C of su$section BaC of Section 910&9 if the set-off is $ased on a clai! a%ainst the de$tor@ 9-3&1 "A5LFS -I04TS A5D D/TI#S 7IT4 -#SP#'T T1 D#P1SIT A''1/5T #xce t as other6ise ro*ided in su$section BcC of Section 9-3&09 and unless the $an; other6ise a%rees in an authenticated record9 a $an;Fs ri%hts and duties 6ith res ect to a de osit account !aintained 6ith the $an; are not ter!inated9 sus ended9 or !odified $y< B1C the creation9 attach!ent9 or erfection of a security interest in the de osit account; B2C the $an;Fs ;no6led%e of the security interest; or B3C the $an;Fs recei t of instructions fro! the secured arty@ 9-3&2 "A5LFS -I04T T1 -#2/S# T1 #5T#- I5T1

60

1- DIS',1S# #AIST#5'# 12 '15T-1, A0-##M#5T This article does not re3uire a $an; to enter into an a%ree!ent of the ;ind descri$ed in ara%ra h B2C of su$section BaC of Section 9-10&9 e*en if its custo!er so re3uests or directs@ A $an; that has entered into such an a%ree!ent is not re3uired to confir! the existence of the a%ree!ent to another erson unless re3uested to do so $y its custo!er@ PART * R'G6TS /. T6'RD PART'#S

9-&01 A,I#5A"I,ITH 12 D#"T1-FS -I04TS BaC /ther law $overns alienabilit"& e4ceptions0 #xce t as other6ise ro*ided in su$section B$C of this section and Sections 9-&0)9 9-&0+9 9-&0.9 and 9-&099 6hether a de$torFs ri%hts in collateral !ay $e *oluntarily or in*oluntarily transferred is %o*erned $y la6 other than this article@ B$C A$ree%ent does not prevent transfer0 An a%ree!ent $et6een the de$tor and secured arty 6hich rohi$its a transfer of the de$torFs ri%hts in collateral or !a;es the transfer a default does not re*ent the transfer fro! ta;in% effect@ 9-&02 S#'/-#D PA-TH 51T 1",I0AT#D 15 '15T-A'T 12 D#"T1- 1- I5 T1-T The existence of a security interest9 a%ricultural lien9 or authority %i*en to a de$tor to dis ose of or use collateral9 6ithout !ore9 does not su$8ect a secured arty to lia$ility in contract or tort for the de$torFs acts or o!issions@ 9-&03 A0-##M#5T 51T T1 ASS#-T D#2#5S#S A0AI5ST ASSI05## BaC B3alueB In this section9 D*alueD has the !eanin% ro*ided in su$section BaC of Section 3-303@ B$C A$ree%ent not to assert clai% or defense0 #xce t as other6ise ro*ided in this section9 an a%ree!ent $et6een an account de$tor and an assi%nor not to assert a%ainst an assi%nee any clai! or defense that the account de$tor !ay ha*e a%ainst the assi%nor is enforcea$le $y an assi%nee that ta;es an assi%n!ent< B1C for *alue; B2C in %ood faith; B3C 6ithout notice of a clai! of a ro erty or ossessory ri%ht to the ro erty assi%ned; and

61

B&C 6ithout notice of a defense or clai! in recou !ent of the ty e that !ay $e asserted a%ainst a erson entitled to enforce a ne%otia$le instru!ent under su$section BaC Section 3-30(@ BcC =hen subsection CbD not applicable0 Su$section B$C of this section does not a ly to defenses of a ty e that !ay $e asserted a%ainst a holder in due course of a ne%otia$le instru!ent under su$section B$C of Section 3-30(@ BdC /%ission of re5uired state%ent in consu%er transaction0 In a consu!er transaction9 if a record e*idences the account de$torFs o$li%ation9 la6 other than this article re3uires that the record include a state!ent to the effect that the ri%hts of an assi%nee are su$8ect to clai!s or defenses that the account de$tor could assert a%ainst the ori%inal o$li%ee9 and the record does not include such a state!ent< B1C the record has the sa!e effect as if the record included such a state!ent; and B2C the account de$tor !ay assert a%ainst an assi%nee those clai!s and defenses that 6ould ha*e $een a*aila$le if the record included such a state!ent@ BeC Rule for individual under other law0 This section is su$8ect to la6 other than this article 6hich esta$lishes a different rule for an account de$tor 6ho is an indi*idual and 6ho incurred the o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses@ BfC /ther law not displaced0 #xce t as other6ise ro*ided in su$section BdC of this section9 this section does not dis lace la6 other than this article 6hich %i*es effect to an a%ree!ent $y an account de$tor not to assert a clai! or defense a%ainst an assi%nee@ 9-&0& -I04TS A'I/I-#D "H ASSI05##; ',AIMS A5D D#2#5S#S A0AI5ST ASSI05## BaC Assi$nee:s ri$hts sub@ect to ter%s, clai%s, and defenses& e4ceptions0 /nless an account de$tor has !ade an enforcea$le a%ree!ent not to assert defenses or clai!s9 and su$8ect to su$sections B$C throu%h BeC of this section9 the ri%hts of an assi%nee are su$8ect to< B1C all ter!s of the a%ree!ent $et6een the account de$tor and assi%nor and any defense or clai! in recou !ent arisin% fro! the transaction that %a*e rise to the contract; and B2C any other defense or clai! of the account de$tor a%ainst the assi%nor 6hich accrues $efore the account de$tor recei*es a notification of the assi%n!ent authenticated $y the assi%nor or the assi%nee@ B$C Account debtor:s clai% reduces a%ount owed to assi$nee0 Su$8ect to su$section BcC of this section and exce t as other6ise ro*ided in su$section BdC of this section9 the clai! of an account de$tor a%ainst an assi%nor !ay $e asserted a%ainst an assi%nee under su$section BaC of this section only to reduce the a!ount the account de$tor o6es@

62

BcC Rule for individual under other law0 This section is su$8ect to la6 other than this article 6hich esta$lishes a different rule for an account de$tor 6ho is an indi*idual and 6ho incurred the o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses@ BdC /%ission of re5uired state%ent in consu%er transaction0 In a consu!er transaction9 if a record e*idences the account de$torFs o$li%ation9 la6 other than this article re3uires that the record include a state!ent to the effect that the account de$torFs reco*ery a%ainst an assi%nee 6ith res ect to clai!s and defenses a%ainst the assi%nor !ay not exceed a!ounts aid $y the account de$tor under the record9 and the record does not include such a state!ent9 the extent to 6hich a clai! of an account de$tor a%ainst the assi%nor !ay $e asserted a%ainst an assi%nee is deter!ined as if the record included such a state!ent@ BeC 'napplicabilit" to health-care insurance receivable0 This section does not a an assi%n!ent of a health-care-insurance recei*a$le@ 9-&0( M1DI2I'ATI15 12 ASSI05#D '15T-A'T BaC #ffect of %odification on assi$nee0 A !odification of or su$stitution for an assi%ned contract is effecti*e a%ainst an assi%nee if !ade in %ood faith@ The assi%nee ac3uires corres ondin% ri%hts under the !odified or su$stituted contract@ The assi%n!ent !ay ro*ide that the !odification or su$stitution is a $reach of contract $y the assi%nor@ This su$section is su$8ect to su$sections B$C throu%h BdC of this section@ B$C Applicabilit" of subsection CaD0 Su$section BaC of this section a that< lies to the extent ly to

B1C the ri%ht to ay!ent or a art thereof under an assi%ned contract has not $een fully earned $y erfor!ance; or B2C the ri%ht to ay!ent or a art thereof has $een fully earned $y erfor!ance and the account de$tor has not recei*ed notification of the assi%n!ent under su$section BaC of Section 9-&0)@ BcC Rule for individual under other law0 This section is su$8ect to la6 other than this article 6hich esta$lishes a different rule for an account de$tor 6ho is an indi*idual and 6ho incurred the o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses@ BdC 'napplicabilit" to health-care insurance receivable0 This section does not a an assi%n!ent of a health-care-insurance recei*a$le@ 9-&0) DIS'4A-0# 12 A''1/5T D#"T1-; 51TI2I'ATI15 12 ASSI05M#5T; ID#5TI2I'ATI15 A5D P-112 12 ASSI05M#5T; -#ST-I'TI15S 15 ASSI05M#5T 12 A''1/5TS9 '4ATT#, PAP#-9 PAHM#5T I5TA50I",#S9 A5D P-1MISS1-H 51T#S I5#22#'TI># ly to

63

BaC Dischar$e of account debtor& effect of notification0 Su$8ect to su$sections B$C throu%h BiC of this section9 an account de$tor on an account9 chattel a er9 or a ay!ent intan%i$le !ay dischar%e its o$li%ation $y ayin% the assi%nor until9 $ut not after9 the account de$tor recei*es a notification9 authenticated $y the assi%nor or the assi%nee9 that the a!ount due or to $eco!e due has $een assi%ned and that ay!ent is to $e !ade to the assi%nee@ After recei t of the notification9 the account de$tor !ay dischar%e its o$li%ation $y ayin% the assi%nee and !ay not dischar%e the o$li%ation $y ayin% the assi%nor@ B$C =hen notification ineffective0 Su$8ect to su$section BhC of this section9 notification is ineffecti*e under su$section BaC of this section< B1C if it does not reasona$ly identify the ri%hts assi%ned; B2C to the extent that an a%ree!ent $et6een an account de$tor and a seller of a ay!ent intan%i$le li!its the account de$torFs duty to ay a erson other than the seller and the li!itation is effecti*e under la6 other than this article; or B3C at the o tion of an account de$tor9 if the notification notifies the account de$tor to !a;e less than the full a!ount of any install!ent or other eriodic ay!ent to the assi%nee9 e*en if< BAC only a ortion of the account9 chattel a er9 or %eneral intan%i$le has $een assi%ned to that assi%nee; B"C a ortion has $een assi%ned to another assi%nee; or B'C the account de$tor ;no6s that the assi%n!ent to that assi%nee is li!ited@ BcC Proof of assi$n%ent0 Su$8ect to su$section BhC of this section9 if re3uested $y the account de$tor9 an assi%nee shall seasona$ly furnish reasona$le roof that the assi%n!ent has $een !ade@ /nless the assi%nee co! lies9 the account de$tor !ay dischar%e its o$li%ation $y ayin% the assi%nor9 e*en if the account de$tor has recei*ed a notification under su$section BaC of this section@ BdC Ter% restrictin$ assi$n%ent $enerall" ineffective0 B1C #xce t as other6ise ro*ided in ara%ra h B2C of this su$section and su$section BeC of this section and Sections 2A-303 and 9-&0+9 and su$8ect to su$section BhC of this section9 a ter! in an a%ree!ent $et6een an account de$tor and an assi%nor or in a ro!issory note is ineffecti*e to the extent that it< BAC rohi$its9 restricts9 or re3uires the consent of the account de$tor or erson o$li%ated on the ro!issory note to the assi%n!ent or transfer of9 or the creation9 attach!ent9 erfection9 or enforce!ent of a security interest in9 the account9 chattel a er9 ay!ent intan%i$le9 or ro!issory note; or B"C ro*ides that the assi%n!ent or transfer or the creation9 attach!ent9 erfection9 or enforce!ent of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9 defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the account9 chattel a er9 ay!ent intan%i$le9 or ro!issory note@ B2C This su$section does not a security interest in the follo6in%< ly to the assi%n!ent or transfer of or creation of a

64

BiC a clai! or ri%ht to recei*e co! ensation for in8uries or sic;ness as descri$ed in 2) /@S@'@9 Section 10& BaCB1C or B2C9 as a!ended fro! ti!e to ti!e; or BiiC a clai! or ri%ht to recei*e $enefits under a s ecial needs trust as descri$ed in &2 /@S@'@9 Section 139) BdCB&C9 as a!ended fro! ti!e to ti!e@ BeC 'napplicabilit" of subsection CdD to certain sales0 Su$section BdC of this section does not a ly to the sale of a ay!ent intan%i$le or ro!issory note@ BfC )e$al restrictions on assi$n%ent $enerall" ineffective0 #xce t as other6ise ro*ided in Sections 2A-303 and 9-&0+ and su$8ect to su$sections BhC and BiC of this section9 a rule of la69 statute9 or re%ulation9 that rohi$its9 restricts9 or re3uires the consent of a %o*ern!ent9 %o*ern!ental $ody or official9 or account de$tor to the assi%n!ent or transfer of9 or creation of a security interest in9 an account or chattel a er is ineffecti*e to the extent that the rule of la69 statute9 or re%ulation< B1C rohi$its9 restricts9 or re3uires the consent of the %o*ern!ent9 %o*ern!ental $ody or official9 or account de$tor to the assi%n!ent or transfer of9 or the creation9 attach!ent9 erfection9 or enforce!ent of a security interest in9 the account or chattel a er; or B2C ro*ides that the assi%n!ent or transfer or the creation9 attach!ent9 erfection9 or enforce!ent of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9 defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the account or chattel a er@ B%C Subsection CbDC(D not waivable0 Su$8ect to su$section BhC of this section9 an account de$tor !ay not 6ai*e or *ary its o tion under ara%ra h B3C of su$section B$C of this section@ BhC Rule for individual under other law0 This section is su$8ect to la6 other than this article 6hich esta$lishes a different rule for an account de$tor 6ho is an indi*idual and 6ho incurred the o$li%ation ri!arily for ersonal9 fa!ily9 or household ur oses@ BiC 'napplicabilit" to health-care-insurance receivable0 This section does not a an assi%n!ent of a health-care-insurance recei*a$le@ ly to

B8C Section prevails over specified inconsistent law0 This section re*ails o*er any inconsistent ro*isions of the follo6in% statutes9 rules9 and re%ulations< J,ist here any statutes9 rules9 and re%ulations containin% ro*isions inconsistent 6ith this section@K Legislative Note: States that amend statutes, rules, and regulations to remove provisions inconsistent with this section need not enact subsection (j). 9-&0+ -#ST-I'TI15S 15 '-#ATI15 1- #521-'#M#5T 12 S#'/-ITH I5T#-#ST I5 ,#AS#41,D I5T#-#ST 1- I5 ,#SS1-FS -#SID/A, I5T#-#ST

65

BaC Ter% restrictin$ assi$n%ent $enerall" ineffective0 #xce t as other6ise ro*ided in su$section B$C of this section9 a ter! in a lease a%ree!ent is ineffecti*e to the extent that it< B1C rohi$its9 restricts9 or re3uires the consent of a arty to the lease to the assi%n!ent or transfer of or the creation9 attach!ent9 erfection9 or enforce!ent of a security interest in9 an interest of a arty under the lease contract or in the lessorFs residual interest in the %oods; or B2C ro*ides that the assi%n!ent or transfer or the creation9 attach!ent9 erfection9 or enforce!ent of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9 defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the lease@ B$C #ffectiveness of certain ter%s0 #xce t as other6ise ro*ided in ara%ra h B+C of Section 2A-3039 a ter! descri$ed in ara%ra h B2C of su$section BaC of this section is effecti*e to the extent that there is< B1C a transfer $y the lessee of the lesseeFs ri%ht of ossession or use of the %oods in *iolation of the ter!; or B2C a dele%ation of a !aterial erfor!ance of either arty to the lease contract in *iolation of the ter!@ BcC Securit" 'nterest not %aterial i%pair%ent0 The creation9 attach!ent9 erfection9 or enforce!ent of a security interest in the lessorFs interest under the lease contract or the lessorFs residual interest in the %oods is not a transfer that !aterially i! airs the lesseeFs ros ect of o$tainin% return erfor!ance or !aterially chan%es the duty of or !aterially increases the $urden or ris; i! osed on the lessee 6ithin the ur*ie6 of ara%ra h B&C of Section 2A-303 unless9 and then only to the extent that9 enforce!ent actually results in dele%ation of !aterial erfor!ance of the lessor@ 9-&0. -#ST-I'TI15S 15 ASSI05M#5T 12 P-1MISS1-H 51T#S9 4#A,T4-'A-#-I5S/-A5'# -#'#I>A",#S9 A5D '#-TAI5 0#5#-A, I5TA50I",#S I5#22#'TI># BaC Ter% restrictin$ assi$n%ent $enerall" ineffective0 #xce t as other6ise ro*ided in su$section B$C of this section9 a ter! in a ro!issory note or in an a%ree!ent $et6een an account de$tor and a de$tor 6hich relates to a health-care-insurance recei*a$le or a %eneral intan%i$le9 includin% a contract9 er!it9 license9 or franchise9 and 6hich ter! rohi$its9 restricts9 or re3uires the consent of the erson o$li%ated on the ro!issory note or the account de$tor to9 the assi%n!ent or transfer of9 or creation9 attach!ent9 or erfection of a security interest in9 the ro!issory note9 health-care-insurance recei*a$le9 or %eneral intan%i$le9 is ineffecti*e to the extent that the ter!< B1C 6ould i! air the creation9 attach!ent9 or erfection of a security interest; or B2C ro*ides that the assi%n!ent or transfer or the creation9 attach!ent9 or erfection of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9

66

defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the ro!issory note9 healthcare-insurance recei*a$le9 or %eneral intan%i$le@ B$C Applicabilit" of subsection CaD to sales of certain ri$hts to pa"%ent0 Su$section BaC of this section a lies to a security interest in a ay!ent intan%i$le or ro!issory note only if the security interest arises out of a sale of the ay!ent intan%i$le or ro!issory note@ BcC )e$al restrictions on assi$n%ent $enerall" ineffective0 A rule of la69 statute9 or re%ulation9 that rohi$its9 restricts9 or re3uires the consent of a %o*ern!ent9 %o*ern!ental $ody or official9 erson o$li%ated on a ro!issory note9 or account de$tor to the assi%n!ent or transfer of9 or creation of a security interest in9 a ro!issory note9 health-care-insurance recei*a$le9 or %eneral intan%i$le9 includin% a contract9 er!it9 license9 or franchise $et6een an account de$tor and a de$tor9 is ineffecti*e to the extent that the rule of la69 statute9 or re%ulation< B1C 6ould i! air the creation9 attach!ent9 or erfection of a security interest; or B2C ro*ides that the assi%n!ent or transfer or the creation9 attach!ent9 or erfection of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9 defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the ro!issory note9 healthcare-insurance recei*a$le9 or %eneral intan%i$le@ BdC )i%itation on ineffectiveness under subsections CaD and CcD0 To the extent that a ter! in a ro!issory note or in an a%ree!ent $et6een an account de$tor and a de$tor 6hich relates to a health-care-insurance recei*a$le or %eneral intan%i$le or a rule of la69 statute9 or re%ulation descri$ed in su$section BcC of this section 6ould $e effecti*e under la6 other than this article $ut is ineffecti*e under su$section BaC or BcC of this section9 the creation9 attach!ent9 or erfection of a security interest in the ro!issory note9 healthcare-insurance recei*a$le9 or %eneral intan%i$le< B1C is not enforcea$le a%ainst the erson o$li%ated on the ro!issory note or the account de$tor; B2C does not i! ose a duty or o$li%ation on the erson o$li%ated on the ro!issory note or the account de$tor; B3C does not re3uire the erson o$li%ated on the ro!issory note or the account de$tor to reco%niEe the security interest9 ay or render erfor!ance to the secured arty9 or acce t ay!ent or erfor!ance fro! the secured arty; B&C does not entitle the secured arty to use or assi%n the de$torFs ri%hts under the ro!issory note9 health-care-insurance recei*a$le9 or %eneral intan%i$le9 includin% any related infor!ation or !aterials furnished to the de$tor in the transaction %i*in% rise to the ro!issory note9 health-care-insurance recei*a$le9 or %eneral intan%i$le; B(C does not entitle the secured arty to use9 assi%n9 ossess9 or ha*e access to any trade secrets or confidential infor!ation of the erson o$li%ated on the ro!issory note or the account de$tor; and B)C does not entitle the secured arty to enforce the security interest in the ro!issory note9 health-care-insurance recei*a$le9 or %eneral intan%i$le@

67

BeC Section prevails over specified inconsistent law0 This section re*ails o*er any inconsistent ro*isions of the follo6in% statutes9 rules9 and re%ulations< J,ist here any statutes9 rules9 and re%ulations containin% ro*isions inconsistent 6ith this section@K Legislative Note: States that amend statutes, rules, and regulations to remove provisions inconsistent with this section need not enact subsection (e). 9-&09 -#ST-I'TI15S 15 ASSI05M#5T 12 ,#TT#--12-'-#DIT -I04TS I5#22#'TI># BaC Ter% or law restrictin$ assi$n%ent $enerall" ineffective0 A ter! in a letter of credit or a rule of la69 statute9 re%ulation9 custo!9 or ractice a lica$le to the letter of credit 6hich rohi$its9 restricts9 or re3uires the consent of an a licant9 issuer9 or no!inated erson to a $eneficiaryFs assi%n!ent of or creation of a security interest in a letter-of-credit ri%ht is ineffecti*e to the extent that the ter! or rule of la69 statute9 re%ulation9 custo!9 or ractice< B1C 6ould i! air the creation9 attach!ent9 or erfection of a security interest in the letter-of-credit ri%ht; or B2C ro*ides that the assi%n!ent or the creation9 attach!ent9 or erfection of the security interest !ay %i*e rise to a default9 $reach9 ri%ht of recou !ent9 clai!9 defense9 ter!ination9 ri%ht of ter!ination9 or re!edy under the letter-of-credit ri%ht@ B$C )i%itation on ineffectiveness under subsection CaD To the extent that a ter! in a letter of credit is ineffecti*e under su$section BaC of this section $ut 6ould $e effecti*e under la6 other than this article or a custo! or ractice a lica$le to the letter of credit9 to the transfer of a ri%ht to dra6 or other6ise de!and erfor!ance under the letter of credit9 or to the assi%n!ent of a ri%ht to roceeds of the letter of credit9 the creation9 attach!ent9 or erfection of a security interest in the letter-of-credit ri%ht< B1C is not enforcea$le a%ainst the a $eneficiary; licant9 issuer9 no!inated erson9 or transferee

B2C i! oses no duties or o$li%ations on the a transferee $eneficiary; and

licant9 issuer9 no!inated erson9 or

B3C does not re3uire the a licant9 issuer9 no!inated erson9 or transferee $eneficiary to reco%niEe the security interest9 ay or render erfor!ance to the secured arty9 or acce t ay!ent or other erfor!ance fro! the secured arty@ PART - .')'NG /NT#NTS AND #..# T'3#N#SS /. .'NAN 'NG STAT#9#NT

S?+PART 10 .')'NG /..' #A

9-(01

68

2I,I50 122I'# BaC .ilin$ offices0 #xce t as other6ise ro*ided in su$section B$C of this section9 if the local la6 of this state %o*erns erfection of a security interest or a%ricultural lien9 the office in 6hich to file a financin% state!ent to erfect the security interest or a%ricultural lien is< B1C the office desi%nated for the filin% or recordin% of a record of a !ort%a%e on the related real ro erty9 if< BAC the collateral is as-extracted collateral or ti!$er to $e cut; or B"C the financin% state!ent is filed as a fixture filin% and the collateral is %oods that are or are to $eco!e fixtures; or B2C the office of J K Jor any office duly authoriEed $y JKK9 in all other cases9 includin% a case in 6hich the collateral is %oods that are or are to $eco!e fixtures and the financin% state!ent is not filed as a fixture filin%@ B$C .ilin$ office for trans%ittin$ utilities0 The office in 6hich to file a financin% state!ent to erfect a security interest in collateral9 includin% fixtures9 of a trans!ittin% utility is the J K@ The financin% state!ent also constitutes a fixture filin% as to the collateral indicated in the financin% state!ent 6hich is or is to $eco!e fixtures@ Legislative Note: The State should designate the filing office where the brac ets appear. The filing office ma! be that of a governmental official (e.g., the Secretar! of State) or a private part! that maintains the State"s filing s!stem. 9-(02 '15T#5TS 12 2I5A5'I50 STAT#M#5T; -#'1-D 12 M1-T0A0# AS 2I5A5'I50 STAT#M#5T; TIM# 12 2I,I50 2I5A5'I50 STAT#M#5T BaC Sufficienc" of financin$ state%ent0 Su$8ect to su$section B$C of this section9 a financin% state!ent is sufficient only if it< B1C ro*ides the na!e of the de$tor; B2C ro*ides the na!e of the secured arty or a re resentati*e of the secured arty; and B3C indicates the collateral co*ered $y the financin% state!ent@ B$C Real-propert"-related financin$ state%ents0 #xce t as other6ise ro*ided in su$section B$C of Section 9-(019 to $e sufficient9 a financin% state!ent that co*ers asextracted collateral or ti!$er to $e cut9 or 6hich is filed as a fixture filin% and co*ers %oods that are or are to $eco!e fixtures9 !ust satisfy su$section BaC of this section and also< B1C indicate that it co*ers this ty e of collateral;

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B2C indicate that it is to $e filed Jfor recordK in the real ro erty records; B3C ro*ide a descri tion of the real ro erty to 6hich the collateral is related Jsufficient to %i*e constructi*e notice of a !ort%a%e under the la6 of this State if the descri tion 6ere contained in a record of the !ort%a%e of the real ro ertyK; and B&C if the de$tor does not ha*e an interest of record in the real ro erty9 ro*ide the na!e of a record o6ner@ BcC Record of %ort$a$e as financin$ state%ent0 A record of a !ort%a%e is effecti*e9 fro! the date of recordin% as a financin% state!ent filed as a fixture filin% or as a financin% state!ent co*erin% as-extracted collateral or ti!$er to $e cut only if< B1C the record indicates the %oods or accounts that it co*ers; B2C the %oods are or are to $eco!e fixtures related to the real ro erty descri$ed in the record or the collateral is related to the real ro erty descri$ed in the record and is as-extracted collateral or ti!$er to $e cut; B3C the record satisfies the re3uire!ents for a financin% state!ent in this section other than an indication that it is to $e filed in the real ro erty records; and B&C the record is JdulyK recorded@ BdC .ilin$ before securit" a$ree%ent or attach%ent0 A financin% state!ent !ay $e filed $efore a security a%ree!ent is !ade or a security interest other6ise attaches@ 9-(03 5AM# 12 D#"T1- A5D S#'/-#D PA-TH BaC Sufficienc" of debtor:s na%e0 A financin% state!ent sufficiently ro*ides the na!e of the de$tor< B1C if the de$tor is a re%istered or%aniEation9 only if the financin% state!ent ro*ides the na!e of the de$tor indicated on the u$lic record of the de$torFs 8urisdiction of or%aniEation 6hich sho6s the de$tor to ha*e $een or%aniEed; B2C if the de$tor is a decedentFs estate9 only if the financin% state!ent ro*ides the na!e of the decedent and indicates that the de$tor is an estate; B3C if the de$tor is a trust or a trustee actin% 6ith res ect to ro erty held in trust9 only if the financin% state!ent< BAC ro*ides the na!e s ecified for the trust in its or%anic docu!ents or9 if no na!e is s ecified9 ro*ides the na!e of the settlor and additional infor!ation sufficient to distin%uish the de$tor fro! other trusts ha*in% one or !ore of the sa!e settlors; and B"C indicates9 in the de$torFs na!e or other6ise9 that the de$tor is a trust or is a trustee actin% 6ith res ect to ro erty held in trust; and B&C in other cases<

70

BAC if the de$tor has a na!e9 only if it ro*ides the indi*idual or or%aniEational na!e of the de$tor; and B"C if the de$tor does not ha*e a na!e9 only if it ro*ides the na!es of the artners9 !e!$ers9 associates9 or other ersons co! risin% the de$tor@ B$C Additional debtor-related infor%ation0 A financin% state!ent that ro*ides the na!e of the de$tor in accordance 6ith su$section BaC of this section is not rendered ineffecti*e $y the a$sence of< B1C a trade na!e or other na!e of the de$tor; or B2C unless re3uired under su$ ara%ra h B"C of ara%ra h B&C of su$section BaC of this section9 na!es of artners9 !e!$ers9 associates9 or other ersons co! risin% the de$tor@ BcC Debtor:s trade na%e insufficient0 A financin% state!ent that ro*ides only the de$torFs trade na!e does not sufficiently ro*ide the na!e of the de$tor@ BdC Representative capacit"0 2ailure to indicate the re resentati*e ca acity of a secured arty or re resentati*e of a secured arty does not affect the sufficiency of a financin% state!ent@ BeC 9ultiple debtors and secured parties0 A financin% state!ent !ay ro*ide the na!e of !ore than one de$tor and the na!e of !ore than one secured arty@ 9-(0& I5DI'ATI15 12 '1,,AT#-A, A financin% state!ent sufficiently indicates the collateral that it co*ers if the financin% state!ent ro*ides< B1C a descri tion of the collateral ursuant to Section 9- 10.; or B2C an indication that the financin% state!ent co*ers all assets or all ersonal ro erty@ 9-(0( 2I,I50 A5D '1MP,IA5'# 7IT4 1T4#- STAT/T#S A5D T-#ATI#S 21'15SI05M#5TS9 ,#AS#S9 1T4#- "AI,M#5TS9 A5D 1T4#- T-A5SA'TI15S BaC ?se of ter%s other than BdebtorB and Bsecured part"0B A consi%nor9 lessor9 or other $ailor of %oods9 a licensor9 or a $uyer of a ay!ent intan%i$le or ro!issory note !ay file a financin% state!ent9 or !ay co! ly 6ith a statute or treaty descri$ed in su$section BaC of Section 9-3119 usin% the ter!s Dconsi%norD9 Dconsi%neeD9 DlessorD9 DlesseeD9 D$ailorD9 D$aileeD9 DlicensorD9 DlicenseeD9 Do6nerD9 Dre%istered o6nerD9 D$uyerD9 DsellerD9 or 6ords of si!ilar i! ort9 instead of the ter!s Dsecured artyD and Dde$torD@ B$C #ffect of financin$ state%ent under subsection CaD0 This art a lies to the filin% of a financin% state!ent under su$section BaC of this section and9 as a ro riate9 to

71

co! liance that is e3ui*alent to filin% a financin% state!ent under su$section B$C of Section 9-3119 $ut the filin% or co! liance is not of itself a factor in deter!inin% 6hether the collateral secures an o$li%ation@ If it is deter!ined for another reason that the collateral secures an o$li%ation9 a security interest held $y the consi%nor9 lessor9 $ailor9 licensor9 o6ner9 or $uyer 6hich attaches to the collateral is erfected $y the filin% or co! liance@ 9-(0) #22#'T 12 #--1-S 1- 1MISSI15S BaC 9inor errors and o%issions0 A financin% state!ent su$stantially satisfyin% the re3uire!ents of this art is effecti*e9 e*en if it has !inor errors or o!issions9 unless the errors or o!issions !a;e the financin% state!ent seriously !isleadin%@ B$C .inancin$ state%ent seriousl" %isleadin$0 #xce t as other6ise ro*ided in su$section BcC of this section9 a financin% state!ent that fails sufficiently to ro*ide the na!e of the de$tor in accordance 6ith su$section BaC of Section 9-(03 is seriously !isleadin%@ BcC .inancin$ state%ent not seriousl" %isleadin$0 If a search of the records of the filin% office under the de$torFs correct na!e9 usin% the filin% officeFs standard search lo%ic9 if any9 6ould disclose a financin% state!ent that fails sufficiently to ro*ide the na!e of the de$tor in accordance 6ith su$section BaC of Section 9-(039 the na!e ro*ided does not !a;e the financin% state!ent seriously !isleadin%@ BdC BDebtor:s correct na%e0B 2or ur oses of su$section B$C of Section 9-(0.9 the Dde$torFs correct na!eD in su$section BcC of this section !eans the correct na!e of the ne6 de$tor@ 9-(0+ #22#'T 12 '#-TAI5 #>#5TS 15 #22#'TI>#5#SS 12 2I5A5'I50 STAT#M#5T BaC Disposition0 A filed financin% state!ent re!ains effecti*e 6ith res ect to collateral that is sold9 exchan%ed9 leased9 licensed9 or other6ise dis osed of and in 6hich a security interest or a%ricultural lien continues9 e*en if the secured arty ;no6s of or consents to the dis osition@ B$C 'nfor%ation beco%in$ seriousl" %isleadin$0 #xce t as other6ise ro*ided in su$section BcC of this section and Section 9-(0.9 a financin% state!ent is not rendered ineffecti*e if9 after the financin% state!ent is filed9 the infor!ation ro*ided in the financin% state!ent $eco!es seriously !isleadin% under Section 9-(0)@ BcC han$e in debtor:s na%e0 If a de$tor so chan%es its na!e that a filed financin% state!ent $eco!es seriously !isleadin% under Section 9-(0)< B1C the financin% state!ent is effecti*e to erfect a security interest in collateral ac3uired $y the de$tor $efore9 or 6ithin four B&C !onths after9 the chan%e; and

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B2C the financin% state!ent is not effecti*e to erfect a security interest in collateral ac3uired $y the de$tor !ore than four B&C !onths after the chan%e9 unless an a!end!ent to the financin% state!ent 6hich renders the financin% state!ent not seriously !isleadin% is filed 6ithin four B&C !onths after the chan%e@ 9-(0. #22#'TI>#5#SS 12 2I5A5'I50 STAT#M#5T I2 5#7 D#"T1- "#'1M#S "1/5D "H S#'/-ITH A0-##M#5T BaC .inancin$ state%ent na%in$ ori$inal debtor0 #xce t as other6ise ro*ided in this section9 a filed financin% state!ent na!in% an ori%inal de$tor is effecti*e to erfect a security interest in collateral in 6hich a ne6 de$tor has or ac3uires ri%hts to the extent that the financin% state!ent 6ould ha*e $een effecti*e had the ori%inal de$tor ac3uired ri%hts in the collateral@ B$C .inancin$ state%ent beco%in$ seriousl" %isleadin$0 If the difference $et6een the na!e of the ori%inal de$tor and that of the ne6 de$tor causes a filed financin% state!ent that is effecti*e under su$section BaC of this section to $e seriously !isleadin% under Section 9-(0)< B1C the financin% state!ent is effecti*e to erfect a security interest in collateral ac3uired $y the ne6 de$tor $efore9 and 6ithin four B&C !onths after9 the ne6 de$tor $eco!es $ound under su$section BdC of Section 9-203; and B2C the financin% state!ent is not effecti*e to erfect a security interest in collateral ac3uired $y the ne6 de$tor !ore than four B&C !onths after the ne6 de$tor $eco!es $ound under su$section BdC of Section 9-203 unless an initial financin% state!ent ro*idin% the na!e of the ne6 de$tor if filed $efore the ex iration of that ti!e@ BcC =hen section not applicable0 This section does not a ly to collateral for 6hich a filed financin% state!ent re!ains effecti*e a%ainst the ne6 de$tor under su$section BaC of Section 9-(0+@ 9-(09 P#-S15S #5TIT,#D T1 2I,# A -#'1-D BaC Person entitled to file record0 A erson !ay file an initial financin% state!ent9 a!end!ent that adds collateral co*ered $y a financin% state!ent9 or a!end!ent that adds a de$tor to a financin% state!ent only if< B1C the de$tor authoriEes the filin% in an authenticated record or ursuant to su$section B$C or BcC; or MM #ditorial Note: This section includes a technical amendment approved after the formal promulgation of the $fficial Te%t of &evised 'rticle (. )or the date of the change, see 'ppendi% ***. B2C the erson holds an a%ricultural lien that has $eco!e effecti*e at the ti!e of filin% and the financin% state!ent co*ers only collateral in 6hich the erson holds an a%ricultural lien@

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B$C Securit" a$ree%ent as authori8ation0 "y authenticatin% or $eco!in% $ound as a de$tor $y a security a%ree!ent9 a de$tor or ne6 de$tor authoriEes the filin% of an initial financin% state!ent9 and an a!end!ent9 co*erin%< B1C the collateral descri$ed in the security a%ree!ent; and B2C ro erty that $eco!es collateral under ara%ra h B2C of su$section BaC of Section 9-31(9 6hether or not the security a%ree!ent ex ressly co*ers roceeds@ BcC Ac5uisition of collateral as authori8ation0 "y ac3uirin% collateral in 6hich a security interest or a%ricultural lien continues under ara%ra h B1C of su$section BaC of Section 931(9 a de$tor authoriEes the filin% of an initial financin% state!ent9 and an a!end!ent9 co*erin% the collateral and ro erty that $eco!es collateral under ara%ra h B2C of su$section BaC of Section 9-31(@ BdC Person entitled to file certain a%end%ents0 A erson !ay file an a!end!ent other than an a!end!ent that adds collateral co*ered $y a financin% state!ent or an a!end!ent that adds a de$tor to a financin% state!ent only if< B1C the secured arty of record authoriEes the filin%; or B2C the a!end!ent is a ter!ination state!ent for a financin% state!ent for 6hich the secured arty of record has failed to file or send a ter!ination state!ent as re3uired $y su$section BaC or BcC of Section 9-(139 the de$tor authoriEes the filin%9 and the ter!ination state!ent indicates that the de$tor authoriEed it to $e filed@ BeC 9ultiple secured parties of record0 If there is !ore than one secured arty of record for a financin% state!ent9 each secured arty of record !ay authoriEe the filin% of an a!end!ent under su$section BdC of this section@ 9-(10 #22#'TI>#5#SS 12 2I,#D -#'1-D BaC .iled record effective if authori8ed0 A filed record is effecti*e only to the extent that it 6as filed $y a erson that !ay file it under Section 9-(09@ B$C Authori8ation b" one secured part" of record0 A record authoriEed $y one secured arty of record does not affect the financin% state!ent 6ith res ect to another secured arty of record@ BcC ontinuation state%ent not ti%el" filed0 A continuation state!ent that is not filed 6ithin the six-!onth eriod rescri$ed $y su$section BdC of Section 9-(1( is ineffecti*e@ 9-(11 S#'/-#D PA-TH 12 -#'1-D BaC Secured part" of record0 A secured arty of record 6ith res ect to a financin% state!ent is a erson 6hose na!e is ro*ided as the na!e of the secured arty or a re resentati*e of the secured arty in an initial financin% state!ent that has $een filed@ If an initial financin% state!ent is filed under su$section BaC of Section 9-(1&9 the assi%nee

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na!ed in the initial financin% state!ent is the secured arty of record 6ith res ect to the financin% state!ent@ B$C A%end%ent na%in$ secured part of record If an a!end!ent of a financin% state!ent 6hich ro*ides the na!e of a erson as a secured arty or a re resentati*e of a secured arty is filed9 the erson na!ed in the a!end!ent is a secured arty of record@ If an a!end!ent is filed under su$section B$C of Section 9-(1&9 the assi%nee na!ed in the a!end!ent is a secured arty of record@ BcC A%end%ent deletin$ secured part" of record0 A erson re!ains a secured arty of record until the filin% of an a!end!ent of the financin% state!ent 6hich deletes the erson@ 9-(12 AM#5DM#5T 12 2I5A5'I50 STAT#M#5T Alternati*e A BaC A%end%ent of infor%ation in financin$ state%ent0 Su$8ect to Section 9-(099 a erson !ay add or delete collateral co*ered $y9 continue or ter!inate the effecti*eness of9 or9 su$8ect to su$section BeC of this section9 other6ise a!end the infor!ation ro*ided in9 a financin% state!ent $y filin% an a!end!ent that< B1C identifies9 $y its file nu!$er9 the initial financin% state!ent to 6hich the a!end!ent relates; and B2C if the a!end!ent relates to an initial financin% state!ent filed Jor recordedK in a filin% office descri$ed in Section 9-(01BaCB1C9 ro*ides the infor!ation s ecified in Section 9-(02B$C@

Alternati*e " BaC A%end%ent of infor%ation in financin$ state%ent0 Su$8ect to Section 9-(099 a erson !ay add or delete collateral co*ered $y9 continue or ter!inate the effecti*eness of9 or9 su$8ect to su$section BeC of this section9 other6ise a!end the infor!ation ro*ided in9 a financin% state!ent $y filin% an a!end!ent that< B1C identifies9 $y its file nu!$er9 the initial financin% state!ent to 6hich the a!end!ent relates; and B2C if the a!end!ent relates to an initial financin% state!ent filed Jor recordedK in a filin% office descri$ed in Section 9-(01BaCB1C9 ro*ides the date Jand ti!eK that the initial financin% state!ent 6as filed Jor recordedK and the infor!ation s ecified in Section 9(02B$C@

J#nd of Alternati*esK B$C Period of effectiveness not affected0 #xce t as other6ise ro*ided in Section 9(1(9 the filin% of an a!end!ent does not extend the eriod of effecti*eness of the financin% state!ent@

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BcC #ffectiveness of a%end%ent addin$ collateral0 A financin% state!ent that is a!ended $y an a!end!ent that adds collateral is effecti*e as to the added collateral only fro! the date of the filin% of the a!end!ent@ BdC #ffectiveness of a%end%ent addin$ debtor0 A financin% state!ent that is a!ended $y an a!end!ent that adds a de$tor is effecti*e as to the added de$tor only fro! the date of the filin% of the a!end!ent@ BeC ertain a%end%ents ineffective0 An a!end!ent is ineffecti*e to the extent it< B1C ur orts to delete all de$tors and fails to ro*ide the na!e of a de$tor to $e co*ered $y the financin% state!ent; or B2C ur orts to delete all secured arties of record and fails to ro*ide the na!e of a ne6 secured arty of record@ Legislative Note: States whose real+estate filing offices re,uire additional information in amendments and cannot search their records b! both the name of the debtor and the file number should enact 'lternative - to Sections (+./0(a), (+./1(b), (+./((f), and (+ .00(a). 9-(13 T#-MI5ATI15 STAT#M#5T BaC onsu%er $oods0 A secured arty shall cause the secured arty of record for a financin% state!ent to file a ter!ination state!ent for the financin% state!ent if the financin% state!ent co*ers consu!er %oods and< B1C there is no o$li%ation secured $y the collateral co*ered $y the financin% state!ent and no co!!it!ent to !a;e an ad*ance9 incur an o$li%ation9 or other6ise %i*e *alue; or B2C the de$tor did not authoriEe the filin% of the initial financin% state!ent@ B$C Ti%e for co%pliance with subsection CaD0 To co! ly 6ith su$section BaC of this section9 a secured arty shall cause the secured arty of record to file the ter!ination state!ent< B1C 6ithin one B1C !onth after there is no o$li%ation secured $y the collateral co*ered $y the financin% state!ent and no co!!it!ent to !a;e an ad*ance9 incur an o$li%ation9 or other6ise %i*e *alue; or B2C if earlier9 6ithin t6enty B20C days after the secured arty recei*es an authenticated de!and fro! a de$tor@ BcC /ther collateral0 In cases not %o*erned $y su$section BaC of this section9 6ithin t6enty B20C days after a secured arty recei*es an authenticated de!and fro! a de$tor9 the secured arty shall cause the secured arty of record for a financin% state!ent to send to the de$tor a ter!ination state!ent for the financin% state!ent or file the ter!ination state!ent in the filin% office if< B1C exce t in the case of a financin% state!ent co*erin% accounts or chattel a er that has $een sold or %oods that are the su$8ect of a consi%n!ent9 there is no o$li%ation

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secured $y the collateral co*ered $y the financin% state!ent and no co!!it!ent to !a;e an ad*ance9 incur an o$li%ation9 or other6ise %i*e *alue; B2C the financin% state!ent co*ers accounts or chattel a er that has $een sold $ut as to 6hich the account de$tor or other erson o$li%ated has dischar%ed its o$li%ation; B3C the financin% state!ent co*ers %oods that 6ere the su$8ect of a consi%n!ent to the de$tor $ut are not in the de$torFs ossession; or B&C the de$tor did not authoriEe the filin% of the initial financin% state!ent@ BdC #ffect of filin$ ter%ination state%ent0 #xce t as other6ise ro*ided in Section 9(109 u on the filin% of a ter!ination state!ent 6ith the filin% office9 the financin% state!ent to 6hich the ter!ination state!ent relates ceases to $e effecti*e@ #xce t as other6ise ro*ided in Section 9-(109 for ur oses of su$section B%C of Section 9-(199 su$section BaC of Section 9-(229 and su$section BcC of Section 9-(239 the filin% 6ith the filin% office of a ter!ination state!ent relatin% to a financin% state!ent that indicates that the de$tor is a trans!ittin% utility also causes the effecti*eness of the financin% state!ent to la se@ 9-(1& ASSI05M#5T 12 P17#-S 12 S#'/-#D PA-TH 12 -#'1-D BaC Assi$n%ent reflected on initial financin$ state%ent0 #xce t as other6ise ro*ided in su$section BcC of this section9 an initial financin% state!ent !ay reflect an assi%n!ent of all of the secured artyFs o6er to authoriEe an a!end!ent to the financin% state!ent $y ro*idin% the na!e and !ailin% address of the assi%nee as the na!e and address of the secured arty@ B$C Assi$n%ent of filed financin$ state%ent0 #xce t as other6ise ro*ided in su$section BcC of this section9 a secured arty of record !ay assi%n of record all or art of its o6er to authoriEe an a!end!ent to a financin% state!ent $y filin% in the filin% office an a!end!ent of the financin% state!ent 6hich< B1C identifies9 $y its file nu!$er9 the initial financin% state!ent to 6hich it relates; B2C ro*ides the na!e of the assi%nor; and B3C ro*ides the na!e and !ailin% address of the assi%nee@ BcC Assi$n%ent of record of %ort$a$e0 An assi%n!ent of record of a security interest in a fixture co*ered $y a record of a !ort%a%e 6hich is effecti*e as a fixture filin% under su$section BcC of Section 9-(02 !ay $e !ade only $y an assi%n!ent of record of the !ort%a%e in the !anner ro*ided $y la6 of this state other than the /nifor! 'o!!ercial 'ode@ 9-(1( D/-ATI15 A5D #22#'TI>#5#SS 12 2I5A5'I50 STAT#M#5T; #22#'T 12 ,APS#D 2I5A5'I50 STAT#M#5T

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BaC .ive-"ear effectiveness0 #xce t as other6ise ro*ided in su$sections B$C9 BeC9 BfC9 and B%C of this section9 a filed financin% state!ent is effecti*e for a eriod of fi*e B(C years after the date of filin%@ B$C Public-finance or %anufactured-ho%e transaction0 #xce t as other6ise ro*ided in su$sections BeC9 BfC9 and B%C of this section9 an initial financin% state!ent filed in connection 6ith a u$lic-finance transaction or !anufactured-ho!e transaction is effecti*e for a eriod of thirty B30C years after the date of filin% if it indicates that it is filed in connection 6ith a u$lic-finance transaction or !anufactured-ho!e transaction@ BcC )apse and continuation of financin$ state%ent0 The effecti*eness of a filed financin% state!ent la ses on the ex iration of the eriod of its effecti*eness unless $efore the la se a continuation state!ent is filed ursuant to su$section BdC of this section@ / on la se9 a financin% state!ent ceases to $e effecti*e and any security interest or a%ricultural lien that 6as erfected $y the financin% state!ent $eco!es un erfected9 unless the security interest is erfected other6ise@ If the security interest or a%ricultural lien $eco!es un erfected u on la se9 it is dee!ed ne*er to ha*e $een erfected as a%ainst a urchaser of the collateral for *alue@ BdC =hen continuation state%ent %a" be filed0 A continuation state!ent !ay $e filed only 6ithin six B)C !onths $efore the ex iration of the fi*e-year eriod s ecified in su$section BaC of this section or the thirty-year eriod s ecified in su$section B$C of this section9 6hiche*er is a lica$le@ BeC #ffect of filin$ continuation state%ent0 #xce t as other6ise ro*ided in Section 9(109 u on ti!ely filin% of a continuation state!ent9 the effecti*eness of the initial financin% state!ent continues for a eriod of fi*e B(C years co!!encin% on the day on 6hich the financin% state!ent 6ould ha*e $eco!e ineffecti*e in the a$sence of the filin%@ / on the ex iration of the fi*e-year eriod9 the financin% state!ent la ses in the sa!e !anner as ro*ided in su$section BcC of this section9 unless9 $efore the la se9 another continuation state!ent is filed ursuant to su$section BdC of this section@ Succeedin% continuation state!ents !ay $e filed in the sa!e !anner to continue the effecti*eness of the initial financin% state!ent@ BfC Trans%ittin$ utilit" financin$ state%ent0 If a de$tor is a trans!ittin% utility and a filed financin% state!ent so indicates9 the financin% state!ent is effecti*e until a ter!ination state!ent is filed@ B%C Record of %ort$a$e as financin$ state%ent0 A record of a !ort%a%e that is effecti*e as a financin% state!ent filed as a fixture filin% under su$section BcC of Section 9-(02 re!ains effecti*e as a financin% state!ent filed as a fixture filin% until the !ort%a%e is released or satisfied of record or its effecti*eness other6ise ter!inates as to the real ro erty@ 9-(1) 74AT '15STIT/T#S 2I,I50; #22#'TI>#5#SS 12 2I,I50 BaC =hat constitutes filin$0 #xce t as other6ise ro*ided in su$section B$C of this section9 co!!unication of a record to a filin% office and tender of the filin% fee or acce tance of the record $y the filin% office constitutes filin%@ B$C Refusal to accept record& filin$ does not occur0 2ilin% does not occur 6ith res ect to a record that a filin% office refuses to acce t $ecause<

78

B1C the record is not co!!unicated $y a !ethod or !ediu! of co!!unication authoriEed $y the filin% office; B2C an a!ount e3ual to or %reater than the a lica$le filin% fee is not tendered;

B3C the filin% office is una$le to index the record $ecause< BAC in the case of an initial financin% state!ent9 the record does not ro*ide a na!e for the de$tor; B"C in the case of an a!end!ent or correction state!ent9 the record< BiC does not identify the initial financin% state!ent as re3uired $y Section 9-(12 or 9(1.9 as a lica$le; or BiiC identifies an initial financin% state!ent 6hose effecti*eness has la sed under Section 9-(1(; B'C in the case of an initial financin% state!ent that ro*ides the na!e of a de$tor identified as an indi*idual or an a!end!ent that ro*ides a na!e of a de$tor identified as an indi*idual 6hich 6as not re*iously ro*ided in the financin% state!ent to 6hich the record relates9 the record does not identify the de$torFs last na!e; or BDC in the case of a record filed or recorded in the filin% office descri$ed in ara%ra h B1C of su$section BaC of Section 9-(019 the record does not ro*ide a sufficient descri tion of the real ro erty to 6hich it relates; B&C in the case of an initial financin% state!ent or an a!end!ent that adds a secured arty of record9 the record does not ro*ide a na!e and !ailin% address for the secured arty of record; B(C in the case of an initial financin% state!ent or an a!end!ent that ro*ides a na!e of a de$tor 6hich 6as not re*iously ro*ided in the financin% state!ent to 6hich the a!end!ent relates9 the record does not< BAC ro*ide a !ailin% address for the de$tor; B"C indicate 6hether the de$tor is an indi*idual or an or%aniEation; or B'C if the financin% state!ent indicates that the de$tor is an or%aniEation9 ro*ide< BiC a ty e of or%aniEation for the de$tor; BiiC a 8urisdiction of or%aniEation for the de$tor; or BiiiC an or%aniEational identification nu!$er for the de$tor or indicate that the de$tor has none; B)C in the case of an assi%n!ent reflected in an initial financin% state!ent under ara%ra h BaC of Section 9-(1& or an a!end!ent filed under su$section B$C of Section 9(1&9 the record does not ro*ide a na!e and !ailin% address for the assi%nee; or

79

B+C in the case of a continuation state!ent9 the record is not filed 6ithin the six-!onth eriod rescri$ed $y su$section BdC of Section 9-(1(@ BcC Rules applicable to subsection CbD0 2or ur oses of su$section B$C of this section< B1C a record does not ro*ide infor!ation if the filin% office is una$le to read or deci her the infor!ation; and B2C a record that does not indicate that it is an a!end!ent or identify an initial financin% state!ent to 6hich it relates9 as re3uired $y Section 9-(129 9-(1&9 or 9-(1.9 is an initial financin% state!ent@ BdC Refusal to accept record& record effective as filed record0 A record that is co!!unicated to the filin% office 6ith tender of the filin% fee9 $ut 6hich the filin% office refuses to acce t for a reason other than one set forth in su$section B$C of this section9 is effecti*e as a filed record exce t as a%ainst a urchaser of the collateral 6hich %i*es *alue in reasona$le reliance u on the a$sence of the record fro! the files@ 9-(1+ #22#'T 12 I5D#AI50 #--1-S The failure of the filin% office to index a record correctly does not affect the effecti*eness of the filed record@ 9-(1. ',AIM '15'#-5I50 I5A''/-AT# 1- 7-1502/,,H 2I,#D -#'1-D BaC orrection state%ent0A erson !ay file in the filin% office a correction state!ent 6ith res ect to a record indexed there under the ersonFs na!e if the erson $elie*es that the record is inaccurate or 6as 6ron%fully filed@ Alternati*e A B$C Sufficienc" of correction state%ent0 A correction state!ent !ust< B1C identify the record to 6hich it relates $y the file nu!$er assi%ned to the initial financin% state!ent to 6hich the record relates; B2C indicate that it is a correction state!ent; and B3C ro*ide the $asis for the ersonFs $elief that the record is inaccurate and indicate the !anner in 6hich the erson $elie*es the record should $e a!ended to cure any inaccuracy or ro*ide the $asis for the ersonFs $elief that the record 6as 6ron%fully filed@ Alternati*e " B$C Sufficienc" of correction state%ent0 A correction state!ent !ust<

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B1C identify the record to 6hich it relates $y< BAC the file nu!$er assi%ned to the initial financin% state!ent to 6hich the record relates; B"C if the correction state!ent relates to a record filed Jor recordedK in a filin% office descri$ed in Section 9-(01BaCB1C9 the date Jand ti!eK that the initial financin% state!ent 6as filed Jor recordedK9 and the infor!ation s ecified in Section 9-(02B$C; B2C indicate that it is a correction state!ent; and B3C ro*ide the $asis for the ersonFs $elief that the record is inaccurate and indicate the !anner in 6hich the erson $elie*es the record should $e a!ended to cure any inaccuracy or ro*ide the $asis for the ersonFs $elief that the record 6as 6ron%fully filed@ N#nd of Alternati*esO BcC Record not affect b" correction state%ent0 The filin% of a correction state!ent does not affect the effecti*eness of an initial financin% state!ent or other filed record@ Legislative Note: States whose real+estate filing offices re,uire additional information in amendments and cannot search their records b! both the name of the debtor and the file number should enact 'lternative - to Sections (+./0(a), (+./0(b), (+./((f), and (+ .00(a). S/"PA-T 2@ D/TI#S A5D 1P#-ATI15 12 2I,I50 122I'# 9-(19 5/M"#-I509 MAI5TAI5I509 A5D I5D#AI50 -#'1-DS; '1MM/5I'ATI50 I521-MATI15 P-1>ID#D I5 -#'1-DS BaC .ilin$ office duties0 2or each record filed in a filin% office9 the filin% office shall< B1C assi%n a uni3ue nu!$er to the filed record; B2C create a record that $ears the nu!$er assi%ned to the filed record and the date and ti!e of filin%; B3C !aintain the filed record for u$lic ins ection; and B&C index the filed record in accordance 6ith su$sections BcC9 BdC9 and BeC of this section@ B$C .ile nu%ber0 A file nu!$er Jassi%ned after =anuary 19 2002K9 !ust include a di%it that< B1C is !athe!atically deri*ed fro! or related to the other di%its of the file nu!$er; and B2C aids the filin% office in deter!inin% 6hether a nu!$er co!!unicated as the file nu!$er includes a sin%le-di%it or trans ositional error@

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BcC 'nde4in$A $eneral0 #xce t as other6ise ro*ided in su$sections BdC and BeC of this section9 the filin% office shall< B1C index an initial financin% state!ent accordin% to the na!e of the de$tor and shall index all filed records relatin% to the initial financin% state!ent in a !anner that associates 6ith one another an initial financin% state!ent and all filed records relatin% to the initial financin% state!ent; and B2C index a record that ro*ides a na!e of a de$tor 6hich 6as not re*iously ro*ided in the financin% state!ent to 6hich the record relates also accordin% to the na!e that 6as not re*iously ro*ided@ BdC 'nde4in$A real-propert"-relatin$ financin$ state%ent0 If a financin% state!ent is filed as a fixture filin% or co*ers as-extracted collateral or ti!$er to $e cut9 it !ust $e filed for record and the filin% office shall index it< B1C under the na!es of the de$tor and of each o6ner of record sho6n on the financin% state!ent as if they 6ere the !ort%a%ors under a !ort%a%e of the real ro erty descri$ed; and B2C to the extent that the la6 of this state ro*ides for indexin% of records of !ort%a%es under the na!e of the !ort%a%ee9 under the na!e of the secured arty as if the secured arty 6ere the !ort%a%ee thereunder9 or9 if indexin% is $y descri tion9 as if the financin% state!ent 6ere a record of a !ort%a%e of the real ro erty descri$ed@ BeC 'nde4in$A real-propert"-related assi$n%ent0 If a financin% state!ent is filed as a fixture filin% or co*ers as-extracted collateral or ti!$er to $e cut9 the filin% office shall index an assi%n!ent filed under Section 9-(1&BaC or an a!end!ent filed under su$section B$C of Section 9-(1&< B1C under the na!e of the assi%nor as %rantor; and B2C to the extent that the la6 of this state ro*ides for indexin% a record of the assi%n!ent of a !ort%a%e under the na!e of the assi%nee9 under the na!e of the assi%nee@ Alternati*e A BfC Retrieval and association capabilit"0 The filin% office shall !aintain a ca a$ility< B1C to retrie*e a record $y the na!e of the de$tor and $y the file nu!$er assi%ned to the initial financin% state!ent to 6hich the record relates; and B2C to associate and retrie*e 6ith one another an initial financin% state!ent and each filed record relatin% to the initial financin% state!ent@ Alternati*e " BfC Retrieval and association capabilit"0 The filin% office shall !aintain a ca a$ility< B1C to retrie*e a record $y the na!e of the de$tor and<

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BAC if the filin% office is descri$ed in ara%ra h B1C of su$section BaC of Section 9-(019 $y the file nu!$er assi%ned to the initial financin% state!ent to 6hich the record relates and the date Jand ti!eK that the record 6as filed Jor recordedK; or B"C if the filin% office is descri$ed in ara%ra h B2C of su$section BaC of Section 9-(019 $y the file nu!$er assi%ned to the initial financin% state!ent to 6hich the record relates; and B2C to associate and retrie*e 6ith one another an initial financin% state!ent and each filed record relatin% to the initial financin% state!ent@ J#nd of Alternati*esK B%C Re%oval of debtor:s na%e0 The filin% office !ay not re!o*e a de$torFs na!e fro! the index until one B1C year after the effecti*eness of a financin% state!ent na!in% the de$tor la ses under Section 9-(1( 6ith res ect to all secured arties of record@ BhC Ti%eliness of filin$ office perfor%ance0 The filin% office shall erfor! the acts re3uired $y su$sections BaC throu%h BeC of this section at the ti!e and in the !anner rescri$ed $y filin%-office rule9 $ut not later than t6o B2C $usiness days after the filin% office recei*es the record in 3uestion@ J BiC 'napplicabilit" to real-propert"-related filin$ office0 Su$sectionJsK JB$K JandK JBhCKC doJesK not a ly to a filin% office descri$ed in Section 9-(01BaCB1C@K Legislative Notes: /. States whose filing offices currentl! assign file members that include a verification number, commonl! nown as a 2chec digit,2 or can implement this re,uirement before the effective date of this 'rticle should omit the brac eted language in subsection (b). 0. *n States in which writings will not appear in the real propert! records and indices unless actuall! recorded, the brac eted language in subsection (d) should be used. 3. States whose real+estate filing offices re,uire additional information in amendments and cannot search their records b! both the name of the debtor and the file number should enact 'lternative - to Sections (+./0(a), (+./1(b), (+./((f), and (+.00(a). 4. ' State that elects not to re,uire real+estate filing offices to compl! with either or both of subsections (b) and (h) ma! adopt an applicable variation of subsection (i) and add 2#%cept as otherwise provided in subsection (i),2 to the appropriate subsection or subsections. 9-(20 A''#PTA5'# A5D -#2/SA, T1 A''#PT -#'1-D BaC 9andator" refusal to accept record0 A filin% office shall refuse to acce t a record for filin% for a reason set forth in su$section B$C of Section 9-(1) and !ay refuse to acce t a record for filin% only for a reason set forth in su$section B$C of Section 9-(1)@ B$C o%%unication concernin$ refusal0 If a filin% office refuses to acce t a record for filin%9 it shall co!!unicate to the erson that resented the record the fact of and reason for the refusal and the date and ti!e the record 6ould ha*e $een filed had the filin% office acce ted it@ The co!!unication !ust $e !ade at the ti!e and in the !anner rescri$ed $y filin%-office rule9 $ut9 in the case of a filin% office descri$ed in ara%ra h B2C of

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su$section BaC of Section 9-(019 in no e*ent !ore than t6o B2C $usiness days after the filin% office recei*es the record@ BcC =hen filed financin$ state%ent effective0 A filed financin% state!ent satisfyin% su$sections BaC and B$C of Section 9-(02 is effecti*e9 e*en if the filin% office is re3uired to refuse to acce t it for filin% under su$section BaC@ 4o6e*er9 Section 9-33. a lies to a filed financin% state!ent ro*idin% infor!ation descri$ed in ara%ra h B(C of su$section B$C of Section 9-(1) 6hich is incorrect at the ti!e the financin% state!ent is filed@ BdC Separate application to %ultiple debtors0 If a record co!!unicated to a filin% office ro*ides infor!ation that relates to !ore than one de$tor9 this art a lies to each de$tor se arately@ 9-(21 /5I21-M 21-M 12 7-ITT#5 2I5A5'I50 STAT#M#5T A5D AM#5DM#5T BaC 'nitial financin$ state%ent for%0 A filin% office that acce ts 6ritten records !ay not refuse to acce t a 6ritten initial financin% state!ent in the follo6in% for! and for!at9 exce t for a reason set forth in su$section B$C of Section 9-(1)< /'' 2I5A5'I50 STAT#M#5T 21,,17 I5ST-/'TI15S Bfront and $ac;C 'A-#2/,,H A@ 5AM# A5D P415# 12 '15TA'T AT 2I,#- Jo tionalK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP "@ S#5D A'L517,#D0M#5T T1< B5a!e and AddressC PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP T4# A"1># SPA'# IS 21PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2I,I50 122I'# /S# 15,H 1@ D#"T1-:S #AA'T 2/,, ,#0A, 5AM# - insert only one de$tor na!e B1a or 1$C - Do not a$$re*iate or co!$ine na!es 1a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 1$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

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1d@ TAA ID@ 51@ ADD:, I521@ -# 1e@ THP# 12 1-0A5IQATI15 SS5 1- #I5 1-0A5IQATI15 D#"T1PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1f@ =/-ISDI'TI15 12 1-0A5IQATI15 1%@ 1-0A5IQATI15A, ID 5o@9 if any PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPJ K 515# 2@ ADDITI15A, D#"T1-:S #AA'T 2/,, ,#0A, 5AM# - insert only one de$tor na!e B2a or 2$C - do not a$$re*iate or co!$ine na!es 2a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 2$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2d@ TAA ID@ 51@ ADD:, I521@ -# 2e@ THP# 12 1-0A5IQATI15 SS5 1- #I5 1-0A5IQATI15 D#"T1PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2f@ =/-ISDI'TI15 12 1-0A5IQATI15 2%@ 1-0A5IQATI15A, ID 5o@9 if any PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPJ K 515# 3@ S#'/-#D PA-TH:S 5AM# Bor na!e of total assi%nee of assi%nor SRPC - insert only one secured arty na!e B3a or 3$C 3a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 3$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 3c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H

85

PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP &@ This 2I5A5'I50 STAT#M#5T co*ers the follo6in% collateral< PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (@ A,T#-5ATI># D#SI05ATI15 Jif a lica$leK< J K ,#SS##R,#SS1-

J K '15SI05##R'15SI051- J K "AI,##R"AI,1- J K S#,,#-R"/H#J K A0@ ,I#5 J K 515-/'' 2I,I50 )@ J K This 2I5A5'I50 STAT#M#5T is to $e filed a%ainst the tract index in the -#A, #STAT# -#'1-DS@ Attach Addendu! Jif a lica$leK

+@ 'hec; to -#I/#ST S#A-'4 -#P1-TBSC on De$torBsC J K All De$tors J K De$tor 1 J K De$tor 2 JADDITI15A, 2##K Jo tionalK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP .@ 1PTI15A, 2I,#- -#2#-#5'# DATA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2I,I50 122I'# '1PH - 5ATI15A, /'' 2I,I50 STAT#M#5T B21-M /'' 1CC J"A'L 12 21-MK /'' 2I5A5'I50 STAT#M#5T ADD#5D/M 21,,17 I5ST-/'TI15S Bfront and $ac;C 'A-#2/,,H@ 9@ 5AM# 12 2I-ST D#"T1- B1a or 1$C 15 -#,AT#D 2I5A5'I50 STAT#M#5T PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 9a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 9$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFF PPPPPPPPP 10@ MIS'#,,A5#1/S<

86

PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP T4# A"1># SPA'# IS 21PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2I,I50 122I'# /S# 15,H 11@ ADDITI15A, D#"T1-:S #AA'T 2/,, ,#0A, 5AM# - insert only one na!e B11a or 11$C - do not a$$re*iate or co!$ine na!es 11a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 11$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11d@ TAA ID@ 51@ ADD:, I521@ -# 11e@ THP# 12 1-0A5IQATI15 SS5 1- #I5 1-0A5IQATI15 D#"T1PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 11f@ =/-ISDI'TI15 12 1-0A5IQATI15 11%@ 1-0A5IQATI15A, ID 5o@9 if any PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPJ K 515# 12@ J K ADDITI15A, S#'/-#D PA-TH:S or J K ASSI051- SRP:S 5AM# - insert only one na!e B12a or 12$C@ 12a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 12$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13@ This 2I5A5'I50 STAT#M#5T co*ers J K ti!$er to $e cut or J K asextracted collateral9 or is filed as a J K fixture filin%@

87

1&@ Descri tion of real estate< PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1(@ 5a!e and address of a -#'1-D 175#- of the a$o*e-descri$ed real estate Bif De$tor does not ha*e record interestC< PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1)@ Additional collateral descri tion< PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1+@ 'hec; only if a lica$le and chec; only one $ox<

De$tor is a J K Trust or J K Trustee actin% 6ith res ect to ro erty held in trust or J K Decedent:s #state 1.@ 'hec; only if a lica$le and chec; only one $ox<

J K De$tor is a T-A5SMITTI50 /TI,ITH J K 2iled in connection 6ith a Manufactured-4o!e Transaction - effecti*e 30 years J K 2iled in connection 6ith a Pu$lic-2inance Transaction - effecti*e 30 years 2I,I50 122I'# '1PH - 5ATI15A, /'' 2I,I50 STAT#M#5T B21-M /'' 1AdC B$C A%end%ent for%0 A filin% office that acce ts 6ritten records for filin% !ay not refuse to acce t a 6ritten financin% state!ent a!end!ent in the follo6in% for!9 exce t for a reason set forth in su$section B$C of Section 9-(1)< /'' 2I5A5'I50 STAT#M#5T AM#5DM#5T 21,,17 I5ST-/'TI15S Bfront and $ac;C 'A-#2/,,H A@ 5AM# A5D P415# 12 '15TA'T AT 2I,#- Jo tionalK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

88

"@ S#5D A'L517,#D0M#5T T1< B5a!e and AddressC PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP T4# A"1># SPA'# IS 21PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 2I,I50 122I'# /S# 15,H 1a@ I5ITIA, 2I5A5'I50 STAT#M#5T 2I,# 51@ PPPPPPPPPPPPPPPPPP 1$@ J K This 2I5A5'I50 STAT#M#5T AM#5DM#5T is to $e filed a%ainst the tract index in the -#A, #STAT# -#'1-DS@ 2@ J K T#-MI5ATI15< #ffecti*eness of the 2inancin% State!ent identified a$o*e is ter!inated 6ith res ect to security interestBsC of the Secured Party authoriEin% this Ter!ination State!ent@ 3@ J K '15TI5/ATI15< #ffecti*eness of the 2inancin% State!ent identified a$o*e 6ith res ect to security interestBsC of the Secured Party authoriEin% this 'ontinuation State!ent is continued for the additional eriod ro*ided $y a lica$le la6@ &@ J K ASSI05M#5T Bfull or artialC< 0i*e na!e of assi%nee in ite! +a or +$ and address of assi%nee in ite! +c; and also %i*e na!e of assi%nor in ite! 9@ PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP (@ AM#5DM#5T BPA-TH I521-MATI15C< This A!end!ent affects J K De$tor or J K Secured Party of record@ 'hec; only one of these t6o $oxes@ Also chec; one of the follo6in% three $oxes and ro*ide a ro riate infor!ation in ite!s ) andRor +@ J K '4A50# na!e andRor address< 0i*e current record na!e in ite! )a or )$; also %i*e ne6 na!e Bif na!e chan%eC in ite! +a or +$ andRor ne6 address Bif address chan%eC in ite! +c@ J K D#,#T# na!e< 0i*e record na!e to $e deleted in ite! )a or )$@ J K ADD na!e< 'o! lete ite! +a or +$9 and also ite! +c; also co! lete ite!s +d-+% Bif a lica$leC@ )@ '/--#5T -#'1-D I521-MATI15< )a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- )$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

89

+@ '4A50#D B5#7C 1- ADD#D I521-MATI15< +a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- +$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP +c@ MAI,I50 ADD-#SS 'ITH STAT# P1STA, '1D# '1/5T-H PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP +d@ TAA ID@ 51@ ADD:, I521@ -# +e@ THP# 12 1-0A5IQATI15 SS5 1- #I5 1-0A5IQATI15 D#"T1PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP +f@ =/-ISDI'TI15 12 1-0A5IQATI15 +%@ 1-0A5IQATI15A, ID 5o@9 if any PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPJ K 515# .@ AM#5DM#5T B'1,,AT#-A, '4A50#C< chec; only one $ox Descri$e collateral J K deleted or J K added9 or %i*e entire J K restated collateral descri tion9 or descri$e collateral J K assi%ned@ PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 9@ 5AM# 12 S#'/-#D PA-TH 12 -#'1-D A/T41-IQI50 T4IS AM#5DM#5T Bna!e of assi%nor9 if this is an Assi%n!entC@ If this is an A!end!ent authoriEed $y a De$tor 6hich adds collateral or adds the authoriEin% De$tor9 or if this is a Ter!ination authoriEed $y a De$tor9 chec; here J K and enter na!e of D#"T1- authoriEin% this A!end!ent@ 9a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 9$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 10@ 1PTI15A, 2I,# -#2#-#5'# DATA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP

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2I,I50 122I'# '1PH - 5ATI15A, /'' 2I5A5'I50 STAT#M#5T AM#5DM#5T B21-M /''3C J"A'L 12 21-MK /'' 2I5A5'I50 STAT#M#5T AM#5DM#5T ADD#5D/M 21,,17 I5ST-/'TI15S Bfront and $ac;C 'A-#2/,,H 11@ I5ITIA, 2I5A5'I50 STAT#M#5T 2I,# 51@ Bsa!e as ite! 1a on A!end!ent for!C PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 12@ 5AM# 12 PA-TH A/T41-IQI50 T4IS AM#5DM#5T Bsa!e as ite! 9 on A!end!ent for!C 12a@ 1-0A5IQATI15:S 5AM# PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 1- 12$@ I5DI>ID/A,:S ,AST 5AM# 2I-ST 5AM# MIDD,# 5AM# S/22IA PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 13@ /S# T4IS SPA'# 21- ADDITI15A, I521-MATI15 PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPT4# A"1># SPA'# IS 21PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP2I,I50 122I'# /S# 15,H 2I,I50 122I'# '1PH - 5ATI15A, /'' 2I5A5'I50 STAT#M#5T AM#5DM#5T ADD#5D/M B21-M /''3AdC BcC A for! that a filin% office !ay not refuse to acce t under su$section BaC or B$C of this section !ust confor! to the for!at rescri$ed for the for! $y the 5ational 'onference of 'o!!issioners on /nifor! State ,a6s@ 9-(22 MAI5T#5A5'# A5D D#ST-/'TI15 12 -#'1-DS Alternati*e A BaC Post-lapse %aintenance and retrieval of infor%ation0 The filin% office shall !aintain a record of the infor!ation ro*ided in a filed financin% state!ent for at least one year after the effecti*eness of the financin% state!ent has la sed under Section 9(1( 6ith res ect to all secured arties of record@ The record !ust $e retrie*a$le $y usin% the na!e of the de$tor and<

91

Alternati*e " B$C Post-lapse %aintenance and retrieval of infor%ation0 The filin% office shall !aintain a record of the infor!ation ro*ided in a filed financin% state!ent for at least one year after the effecti*eness of the financin% state!ent has la sed under Section 9(1( 6ith res ect to all secured arties of record@ The record !ust $e retrie*a$le $y usin% the na!e of the de$tor and< B1C if the record 6as filed Jor recordedK in the filin% office descri$ed in ara%ra h B1C of su$section BaC of Section 9-(019 $y usin% the file nu!$er of the initial financin% state!ent to 6hich the record relates and the date and Jand ti!eK that the record 6as filed Jor recordedK; or B2C if the record 6as filed in the filin% office descri$ed in ara%ra h B2C of su$section BaC of Section 9-(019 $y usin% the file nu!$er of the initial financin% state!ent to 6hich the record relates@ #nd of Alternati*e B$C Destruction of written records0 #xce t to the extent that a statute %o*ernin% dis osition of u$lic records ro*ides other6ise9 the filin% office i!!ediately !ay destroy any 6ritten record e*idencin% a financin% state!ent@ 4o6e*er9 if the filin% office destroys a 6ritten record9 it shall !aintain another record of the financin% state!ent 6hich co! lies 6ith su$section BaC of this section@ 9-(23 I521-MATI15 2-1M 2I,I50 122I'#; SA,# 1- ,I'#5S# 12 -#'1-DS BaC Ac,nowled$%ent of filin$ written record0 If a erson that files a 6ritten record re3uests an ac;no6led%!ent of the filin%9 the filin% office shall send to the erson an i!a%e of the record sho6in% the nu!$er assi%ned to the record ursuant to ara%ra h B1C of su$section BaC of Section 9-(19 and the date and ti!e of the filin% of the record@ 4o6e*er9 if the erson furnishes a co y of the record to the filin% office9 the filin% office !ay instead< B1C note u on the co y the nu!$er assi%ned to the record ursuant to ara%ra h B1C of su$section BaC of Section 9-(19 and the date and ti!e of the filin% of the record; and B2C send the co y to the erson@ B$C Ac,nowled$%ent of filin$ other record0 If a erson files a record other than a 6ritten record9 the filin% office shall co!!unicate to the erson an ac;no6led%!ent that ro*ides< B1C the infor!ation in the record; B2C the nu!$er assi%ned to the record ursuant to ara%ra h B1C of su$section BaC of Section 9-(19; and B3C the date and ti!e of the filin% of the record@

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BcC o%%unication of re5uested infor%ation0 The filin% office shall co!!unicate or other6ise !a;e a*aila$le in a record the follo6in% infor!ation to any erson that re3uests it< B1C 6hether there is on file on a date and ti!e s ecified $y the filin% office9 $ut not a date earlier than three B3C $usiness days $efore the filin% office recei*es the re3uest9 any financin% state!ent that< BAC desi%nates a articular de$tor or9 if the re3uest so states9 desi%nates a articular de$tor at the address s ecified in the re3uest; B"C has not la sed under Section 9-(1( 6ith res ect to all secured arties of record; and B'C if the re3uest so states9 has la sed under Section 9-(1( and a record of 6hich is !aintained $y the filin% office under su$section BaC of Section 9-(22; B2C the date and ti!e of filin% of each financin% state!ent; and B3C the infor!ation ro*ided in each financin% state!ent@ BdC 9ediu% for co%%unicatin$ infor%ation0 In co! lyin% 6ith its duty under su$section BcC of this section9 the filin% office !ay co!!unicate infor!ation in any !ediu!@ 4o6e*er9 if re3uested9 the filin% office shall co!!unicate infor!ation $y issuin% a record that can $e ad!itted into e*idence in the courts of this state 6ithout extrinsic e*idence of its authenticity@ BeC Ti%eliness of filin$ office perfor%ance0 The filin% office shall erfor! the acts re3uired $y su$sections BaC throu%h BdC of this section at the ti!e and in the !anner rescri$ed $y filin%-office rule9 $ut not later than t6o B2C $usiness days after the filin% office recei*es the re3uest@ BfC Public availabilit" of records0 At least 6ee;ly9 the filin% office shall offer to sell or license to the u$lic on a nonexclusi*e $asis9 in $ul;9 co ies of all records filed in it under this art9 in e*ery !ediu! fro! ti!e to ti!e a*aila$le to the filin% office@ 9-(2& D#,AH "H 2I,I50 122I'# Delay $y the filin% office $eyond a ti!e li!it rescri$ed $y this art is excused if< B1C the delay is caused $y interru tion of co!!unication or co! uter facilities9 6ar9 e!er%ency conditions9 failure of e3ui !ent9 or other circu!stances $eyond control of the filin% office; and B2C the filin% office exercises reasona$le dili%ence under the circu!stances@ 9-(2( 2##S

93

BaC 'nitial financin$ state%ent or other recordA $eneral rule0 #xce t as other6ise ro*ided in su$section BeC of this section9 the fee for filin% and indexin% a record under this art9 other than an initial financin% state!ent of the ;ind descri$ed in su$section B$C9 is Jthe a!ount s ecified in su$section BcC9 if a lica$le usK< B1C G JAK if the record is co!!unicated in 6ritin% and consists of one or t6o a%es; B2C G J2AK if the record is co!!unicated in 6ritin% and consists of !ore than t6o a%es; and B2C G J1R2 AK if the record is co!!unicated $y another !ediu! authoriEed $y filin%office rule@D B$C 'nitial financin$ state%entA public-finance and %anufactured-housin$ transactions0 #xce t as other6ise ro*ided in su$section BeC of this section9 the fee for filin% and indexin% an initial financin% state!ent of the follo6in% ;ind is Ja!ount s ecified in su$section BcC9 if a lica$le9 lusK< B1C GPPP if the financin% state!ent indicates that it is filed in connection 6ith a u$licfinance transaction; B2C GPP if the financin% state!ent indicates that is is filed in connection 6ith a !anufactured-ho!e transaction@ Alternati*e A BcC Nu%ber of na%es0 The nu!$er of na!es re3uired to $e indexed does not affect the a!ount of the fee in su$section BaC and B$C@ Alternati*e " BcC Nu%ber of na%es0 #xce t as other6ise ro*ided in su$section BeC9 if a record is co!!unicated in 6ritin%9 the fee for each na!e !ore than t6o re3uired to $e indexed is GPPPPPP@ #nd of Alternati*e BdC Response to infor%ation re5uest0 The fee for res ondin% to a re3uest for infor!ation fro! the filin% office9 includin% for Jissuin% a certificate sho6in%K Jco!!unicatin%K 6hether there is on file any financin% state!ent na!in% a articular de$tor9 is< B1C GPPP if the re3uest is co!!unicated in 6ritin%; and B2C GPP if the re3uest is co!!unicated $y another !ediu! authoriEed $y filin%-office rule@ BeC Record of %ort$a$e0 This section does not re3uire a fee 6ith res ect to a record of a !ort%a%e 6hich is effecti*e as a financin% state!ent filed as a fixture filin% or as a financin% state!ent co*erin% as-extracted collateral or ti!$er to $e cut under su$section BcC of Section 9-(02@ 4o6e*er9 the recordin% and satisfaction fees that other6ise 6ould $e a lica$le to the record of the !ort%a%e a ly@ Legislative Notes: /. To preserve uniformit!, a State that placed the provisions of this section together which statutes setting fee for other services, should do so without modification.

94

0. ' State should enact subsection (c), 'lternative ', and omit the brac eted language in subsections (a) and (b) unless its inde%ing s!stem entails a substantial additional cost when inde%ing additional names. 9-(2) 2I,I50-122I'# -/,#S BaC Adoption of filin$-office rules0 The Jinsert a ro riate %o*ern!ental official or a%encyK shall ado t and u$lish rules to i! le!ent this article@ The filin%-office rules !ust $e< B1C consistent 6ith this article; and B2C ado ted and u$lished in accordance 6ith Section 9-(2)@1@ B$C 6ar%oni8ation of rules0 To ;ee the filin%-office rules and ractices of the filin% office in har!ony 6ith the rules and ractices of filin% offices in other 8urisdictions that enact su$stantially this art9 and to ;ee the technolo%y used $y the filin% office co! ati$le 6ith the technolo%y used $y filin% offices in other 8urisdictions that enact su$stantially this art9 Jinsert a ro riate %o*ern!ental official or a%encyK9 so far as is consistent 6ith the ur oses9 olicies9 and ro*isions of this article9 in ado tin%9 a!endin%9 and re ealin% filin%-office rules9 shall< B1C consult 6ith filin% offices in other 8urisdictions that enact su$stantially this art; B2C consult the !ost recent *ersion of the Model -ules ro!ul%ated $y the International Association of 'or orate Ad!inistrators or any successor or%aniEation; and B3C ta;e into consideration the rules and ractices of9 and the technolo%y used $y9 filin% offices in other 8urisdictions that enact su$stantially this art@ 9-(2+ D/TH T1 -#P1-T The Jinsert a ro riate %o*ern!ental official or a%encyK shall re ort Jannually on or $efore PPPPPPPK to the J0o*ernor and ,e%islatureK on the o eration of the filin% office@ The re ort !ust contain a state!ent of the extent to 6hich< B1C the filin%-office rules are not in har!ony 6ith the rules of filin% offices in other 8urisdictions that enact su$stantially this art and the reasons for these *ariations; and B2C the filin%-office rules are not in har!ony 6ith the !ost recent *ersion of the Model -ules ro!ul%ated $y the International Association of 'or orate Ad!inistrators9 or any successor or%aniEation9 and the reasons for these *ariations@ PART 1 D#.A?)T S?+PART 10 D#.A?)T AND #N./R #9#NT /. S# ?R'T> 'NT#R#ST

9-)01

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-I04TS A2T#- D#2A/,T; =/DI'IA, #521-'#M#5T; '15SI051- 1- "/H#- 12 A''1/5TS9 '4ATT#, PAP#-9 PAHM#5T I5TA50I",#S9 1- P-1MISS1-H 51T#S BaC Ri$hts of secured part" after default0 After default9 a secured arty has the ri%hts ro*ided in this art and9 exce t as other6ise ro*ided in Section 9-)029 those ro*ided $y a%ree!ent of the arties@ A secured arty< B1C !ay reduce a clai! to 8ud%!ent9 foreclose9 or other6ise enforce the clai!9 security interest9 or a%ricultural lien $y any a*aila$le 8udicial rocedure; and B2C if the collateral is docu!ents9 !ay roceed either as to the docu!ents or as to the %oods they co*er@ B$C Ri$hts and duties of secured part" in possession or control0 A secured arty in ossession of collateral or control of collateral under Section 9-10&9 9-10(9 9-10)9 or 910+ has the ri%hts and duties ro*ided in Section 9-20+@ BcC Ri$hts cu%ulative& si%ultaneous e4ercise0 The ri%hts under su$sections BaC and B$C of this section are cu!ulati*e and !ay $e exercised si!ultaneously@ BdC Ri$hts of debtor and obli$or0 #xce t as other6ise ro*ided in su$section B%C of this section and Section 9-)0(9 after default9 a de$tor and an o$li%or ha*e the ri%hts ro*ided in this art and $y a%ree!ent of the arties@ BeC )ien of lev" after @ud$%ent0 If a secured arty has reduced its clai! to 8ud%!ent9 the lien of any le*y that !ay $e !ade u on the collateral $y *irtue of an execution $ased u on the 8ud%!ent relates $ac; to the earliest of< B1C the date of erfection of the security interest or a%ricultural lien in the collateral; B2C the date of filin% a financin% state!ent co*erin% the collateral; or B3C any date s ecified in a statute under 6hich the a%ricultural lien 6as created@ BfC #4ecution sale0 A sale ursuant to an execution is a foreclosure of the security interest or a%ricultural lien $y 8udicial rocedure 6ithin the !eanin% of this section@ A secured arty !ay urchase at the sale and thereafter hold the collateral free of any other re3uire!ents of this article@ B%C onsi$nor or bu"er of certain ri$hts to pa"%ent0 #xce t as other6ise ro*ided in su$section BcC of Section 9-)0+9 this art i! oses no duties u on a secured arty that is a consi%nor or is a $uyer of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes@ 9-)02 7AI>#- A5D >A-IA5'# 12 -I04TS A5D D/TI#S

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#xce t as other6ise ro*ided in Section 9-)2&9 to the extent that they %i*e ri%hts to a de$tor or o$li%or and i! ose duties on a secured arty9 the de$tor or o$li%or !ay not 6ai*e or *ary the rules stated in the follo6in% listed sections< B1C Su$ ara%ra h B'C of ara%ra h B&C of su$section B$C of Section 9-20+9 6hich deals 6ith use and o eration of the collateral $y the secured arty; B2C Section 9-2109 6hich deals 6ith re3uests for an accountin% and re3uests concernin% a list of collateral and state!ent of account; B3C Su$section BcC of Section 9-)0+9 6hich deals 6ith collection and enforce!ent of collateral; B&C Su$section BaC of Section 9-)0. and su$section BcC of Section 9-)1( to the extent that they deal 6ith a lication or ay!ent of noncash roceeds of collection9 enforce!ent9 or dis osition; B(C Su$section BaC of Section 9-)0. and su$section BdC of Section 9-)1( to the extent that they re3uire accountin% for or ay!ent of sur lus roceeds of collateral; B)C Section 9-)09 to the extent that it i! oses u on a secured arty that ta;es ossession of collateral 6ithout 8udicial rocess the duty to do so 6ithout $reach of the eace; B+C Su$section B$C of Section 9-)10 and Sections 9-)119 9-)139 and 9-)1&9 6hich deal 6ith dis osition of collateral; B.C Su$section BfC of Section 9-)1(9 6hich deals 6ith calculation of a deficiency or sur lus 6hen a dis osition is !ade to the secured arty9 a erson related to the secured arty9 or a secondary o$li%or; B9C Section 9-)1)9 6hich deals 6ith ex lanation of the calculation of a sur lus or deficiency; B10C Sections 9-)209 9-)219 and 9-)229 6hich deal 6ith acce tance of collateral in satisfaction of o$li%ation; B11C Section 9-)239 6hich deals 6ith rede! tion of collateral; B12C Section 9-)2&9 6hich deals 6ith er!issi$le 6ai*ers; and B13C Sections 9-)2( and 9-)2)9 6hich deal 6ith the secured artyFs lia$ility for failure to co! ly 6ith this article@ 9-)03 A0-##M#5T 15 STA5DA-DS '15'#-5I50 -I04TS A5D D/TI#S BaC A$reed standards0 The arties !ay deter!ine $y a%ree!ent the standards !easurin% the fulfill!ent of the ri%hts of a de$tor or o$li%or and the duties of a secured arty under a rule stated in Section 9-)02 if the standards are not !anifestly unreasona$le@

97

B$C A$reed standards inapplicable to breach of peace0 Su$section BaC of this section does not a ly to the duty under Section 9-)09 to refrain fro! $reachin% the eace@ 9-)0& P-1'#D/-# I2 S#'/-ITH A0-##M#5T '1>#-S -#A, P-1P#-TH 1- 2IAT/-#S BaC #nforce%entA personal and real propert"0 If a security a%ree!ent co*ers $oth ersonal and real ro erty9 a secured arty !ay roceed< B1C under this art as to the ersonal ro erty 6ithout re8udicin% any ri%hts 6ith res ect to the real ro erty; or B2C as to $oth the ersonal ro erty and the real ro erty in accordance 6ith the ri%hts 6ith res ect to the real ro erty9 in 6hich case the other ro*isions of this art do not a ly@ B$C #nforce%entA fi4tures0 Su$8ect to su$section BcC of this section9 if a security a%ree!ent co*ers %oods that are or $eco!e fixtures9 a secured arty !ay roceed< B1C under this art; or B2C in accordance 6ith the ri%hts 6ith res ect to real ro erty9 in 6hich case the other ro*isions of this art do not a ly@ BcC Re%oval of fi4tures0 Su$8ect to the other ro*isions of this art9 if a secured arty holdin% a security interest in fixtures has riority o*er all o6ners and encu!$rances of the real ro erty9 the secured arty9 after default9 !ay re!o*e the collateral fro! the real ro erty@ BdC 'n@ur" caused b" re%oval0 A secured arty that re!o*es collateral shall ro! tly rei!$urse any encu!$rancer or o6ner of the real ro erty9 other than the de$tor9 for the cost of re air of any hysical in8ury caused $y the re!o*al@ The secured arty need not rei!$urse the encu!$rancer or o6ner for any di!inution in *alue of the real ro erty caused $y the a$sence of the %oods re!o*ed or $y any necessity of re lacin% the!@ A erson entitled to rei!$urse!ent !ay refuse er!ission to re!o*e until the secured arty %i*es ade3uate assurance for the erfor!ance of the o$li%ation to rei!$urse@ 9-)0( /5L5175 D#"T1- 1- S#'15DA-H 1",I01A secured arty does not o6e a duty $ased on its status as secured arty< B1C to a erson that is a de$tor or o$li%or9 unless the secured arty ;no6s< BAC that the erson is a de$tor or o$li%or; B"C the identity of the erson; and

98

B'C ho6 to co!!unicate 6ith the erson; or B2C to a secured arty or lienholder that has filed a financin% state!ent a%ainst a erson9 unless the secured arty ;no6s< BAC that the erson is a de$tor; and B"C the identity of the erson@ 9-)0) TIM# 12 D#2A/,T 21- A0-I'/,T/-A, ,I#5 2or ur oses of this art9 a default occurs in connection 6ith an a%ricultural lien at the ti!e the secured arty $eco!es entitled to enforce the lien in accordance 6ith the statute under 6hich it 6as created@ 9-)0+ '1,,#'TI15 A5D #521-'#M#5T "H S#'/-#D PA-TH BaC ollection and enforce%ent $enerall"0 If so a%reed9 and in any e*ent after default9 a secured arty< B1C !ay notify an account de$tor or other erson o$li%ated on collateral to !a;e ay!ent or other6ise render erfor!ance to or for the $enefit of the secured arty; B2C !ay ta;e any roceeds to 6hich the secured arty is entitled under Section 9-31(; B3C !ay enforce the o$li%ations of an account de$tor or other erson o$li%ated on collateral and exercise the ri%hts of the de$tor 6ith res ect to the o$li%ation of the account de$tor or other erson o$li%ated on collateral to !a;e ay!ent or other6ise render erfor!ance to the de$tor9 and 6ith res ect to any ro erty that secures the o$li%ations of the account de$tor or other erson o$li%ated on the collateral; B&C if it holds a security interest in a de osit account erfected $y control under ara%ra h B1C of su$section BaC of Section 9-10&9 !ay a ly the $alance of the de osit account to the o$li%ation secured $y the de osit account; and B(C if it holds a security interest in a de osit account erfected $y control under ara%ra h B2C or B3C of su$section BaC Section 9-10&9 !ay instruct the $an; to ay the $alance of the de osit account to or for the $enefit of the secured arty@ B$C Non@udicial enforce%ent of %ort$a$e0 If necessary to ena$le a secured arty to exercise under ara%ra h B3C of su$section BaC of this section the ri%ht of a de$tor to enforce a !ort%a%e non8udicially9 the secured arty !ay record in the office in 6hich a record of the !ort%a%e is recorded< B1C a co y of the security a%ree!ent that creates or ro*ides for a security interest in the o$li%ation secured $y the !ort%a%e; and B2C the secured artyFs s6orn affida*it in recorda$le for! statin% that<

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BAC a default has occurred; and B"C the secured arty is entitled to enforce the !ort%a%e non8udicially@ BcC o%%erciall" reasonable collection and enforce%ent0 A secured arty shall roceed in a co!!ercially reasona$le !anner if the secured arty< B1C underta;es to collect fro! or enforce an o$li%ation of an account de$tor or other erson o$li%ated on collateral; and B2C is entitled to char%e $ac; uncollected collateral or other6ise to full or li!ited recourse a%ainst the de$tor or a secondary o$li%or@ BdC #4penses of collection and enforce%ent0 A secured arty !ay deduct fro! the collections !ade ursuant to su$section BcC of this section reasona$le ex enses of collection and enforce!ent9 includin% reasona$le attorneyFs fees and le%al ex enses incurred $y the secured arty@ BeC Duties to secured part" not affected0 This section does not deter!ine 6hether an account de$tor9 $an;9 or other erson o$li%ated on collateral o6es a duty to a secured arty@ 9-)0. APP,I'ATI15 12 P-1'##DS 12 '1,,#'TI15 1- #521-'#M#5T; ,IA"I,ITH 21- D#2I'I#5'H A5D -I04T T1 S/-P,/S Ba Application of proceeds, surplus, and deficienc" if obli$ation secured0 If a security interest or a%ricultural lien secures ay!ent or erfor!ance of an o$li%ation9 the follo6in% rules a ly< B1C A secured arty shall a ly or ay o*er for a lication the cash roceeds of collection or enforce!ent under this section in the follo6in% order to< BAC the reasona$le ex enses of collection and enforce!ent and9 to the extent ro*ided for $y a%ree!ent and not rohi$ited $y la69 reasona$le attorneyFs fees and le%al ex enses incurred $y the secured arty; B"C the satisfaction of o$li%ations secured $y the security interest or a%ricultural lien under 6hich the collection or enforce!ent is !ade; and B'C the satisfaction of o$li%ations secured $y any su$ordinate security interest in or other lien on the collateral su$8ect to the security interest or a%ricultural lien under 6hich the collection or enforce!ent is !ade if the secured arty recei*es an authenticated de!and for roceeds $efore distri$ution of the roceeds is co! leted@ B2C If re3uested $y a secured arty9 a holder of a su$ordinate security interest or other lien shall furnish reasona$le roof of the interest or lien 6ithin a reasona$le ti!e@ /nless the holder co! lies9 the secured arty need not co! ly 6ith the holderFs de!and under su$ ara%ra h B'C of ara%ra h B1C of this su$section@

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B3C A secured arty need not a ly or ay o*er for a lication noncash roceeds of collection and enforce!ent under this section unless the failure to do so 6ould $e co!!ercially unreasona$le@ A secured arty that a lies or ays o*er for a lication noncash roceeds shall do so in a co!!ercially reasona$le !anner@ B&C A secured arty shall account to and ay a de$tor for any sur lus9 and the o$li%or is lia$le for any deficiency@ B$C No surplus or deficienc" in sales of certain ri$hts of pa"%ent0 If the underlyin% transaction is a sale of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes9 the de$tor is not entitled to any sur lus9 and the o$li%or is not lia$le for any deficiency@ 9-)09 S#'/-#D PA-THFS -I04T T1 TAL# P1SS#SSI15 A2T#- D#2A/,T BaC Possession& renderin$ e5uip%ent unusable& disposition on debtor:s pre%ises0 After default9 a secured arty< B1C !ay ta;e ossession of the collateral; and B2C 6ithout re!o*al9 !ay render e3ui !ent unusa$le and dis ose of collateral on a de$torFs re!ises under Section 9-)10@ B$C 7udicial and non@udicial process0 A secured arty !ay roceed under su$section BaC of this section< B1C ursuant to 8udicial rocess; or B2C 6ithout 8udicial rocess9 if it roceeds 6ithout $reach of the eace@ BcC Asse%bl" of collateral0 If so a%reed9 and in any e*ent after default9 a secured arty !ay re3uire the de$tor to asse!$le the collateral and !a;e it a*aila$le to the secured arty at a lace to $e desi%nated $y the secured arty 6hich is reasona$ly con*enient to $oth arties@ 9-)10 DISP1SITI15 12 '1,,AT#-A, A2T#- D#2A/,T BaC Disposition after default0 After default9 a secured arty !ay sell9 lease9 license9 or other6ise dis ose of any or all of the collateral in its resent condition or follo6in% any co!!ercially reasona$le re aration or rocessin%@ B$C o%%erciall" reasonable disposition0 #*ery as ect of a dis osition of collateral9 includin% the !ethod9 !anner9 ti!e9 lace9 and other ter!s9 !ust $e co!!ercially reasona$le@ If co!!ercially reasona$le9 a secured arty !ay dis ose of collateral $y u$lic or ri*ate roceedin%s9 $y one or !ore contracts9 as a unit or in arcels9 and at any ti!e and lace and on any ter!s@ BcC Purchase b" secured part"0 A secured arty !ay urchase collateral<

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B1C at a u$lic dis osition; or B2C at a ri*ate dis osition only if the collateral is of a ;ind that is custo!arily sold on a reco%niEed !ar;et or the su$8ect of 6idely distri$uted standard rice 3uotations@ BdC =arranties on disposition0 A contract for sale9 lease9 license9 or other dis osition includes the 6arranties relatin% to title9 ossession9 3uiet en8oy!ent9 and the li;e 6hich $y o eration of la6 acco! any a *oluntary dis osition of ro erty of the ;ind su$8ect to the contract@ BeC Disclai%er of warranties0 A secured arty !ay disclai! or !odify 6arranties under su$section BdC of this section< B1C in a !anner that 6ould $e effecti*e to disclai! or !odify the 6arranties in a *oluntary dis osition of ro erty of the ;ind su$8ect to the contract of dis osition; or B2C $y co!!unicatin% to the urchaser a record e*idencin% the contract for dis osition and includin% an ex ress disclai!er or !odification of the 6arranties@ BfC Record sufficient to disclai% warranties0 A record is sufficient to disclai! 6arranties under su$section BeC of this section if it indicates DThere is no 6arranty relatin% to title9 ossession9 3uiet en8oy!ent9 or the li;e in this dis ositionD or uses 6ords of si!ilar i! ort@ 9-)11 51TI2I'ATI15 "#21-# DISP1SITI15 12 '1,,AT#-A, BaC BNotification date0B In this section9 Dnotification dateD !eans the earlier of the date on 6hich< B1C a secured arty sends to the de$tor and any secondary o$li%or an authenticated notification of dis osition; or B2C the de$tor and any secondary o$li%or 6ai*e the ri%ht to notification@ B$C Notification of disposition re5uired0 #xce t as other6ise ro*ided in su$section BdC of this section9 a secured arty that dis oses of collateral under Section 9-)10 shall send to the ersons s ecified in su$section BcC of this section a reasona$le authenticated notification of dis osition@ BcC Persons to be notified0 To co! ly 6ith su$section B$C of this section9 the secured arty shall send an authenticated notification of dis osition to< B1C the de$tor; B2C any secondary o$li%or; and B3C if the collateral is other than consu!er %oods< BAC any other erson fro! 6hich the secured arty has recei*ed9 $efore the notification date9 an authenticated notification of a clai! of an interest in the collateral;

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B"C any other secured arty or lienholder that9 ten B10C days $efore the notification date9 held a security interest in or other lien on the collateral erfected $y the filin% of a financin% state!ent that< BiC identified the collateral; BiiC 6as indexed under the de$torFs na!e as of that date; and BiiiC 6as filed in the office in 6hich to file a financin% state!ent a%ainst the de$tor co*erin% the collateral as of that date; and B'C any other secured arty that9 ten B10C days $efore the notification date9 held a security interest in the collateral erfected $y co! liance 6ith a statute9 re%ulation9 or treaty descri$ed in su$section BaC of Section 9-311@ BdC Subsection CbD inapplicableA perishable collateral& reco$ni8ed %ar,et0 Su$section B$C of this section does not a ly if the collateral is erisha$le or threatens to decline s eedily in *alue or is of a ty e custo!arily sold on a reco%niEed !ar;et@ BeC o%pliance with subsection CcDC(DC+D0 A secured arty co! lies 6ith the re3uire!ent for notification rescri$ed $y su$ ara%ra h B"C of ara%ra h B3C of su$section BcC of this section if< B1C not later than t6enty B20C days or earlier than thirty B30C days $efore the notification date9 the secured arty re3uests9 in a co!!ercially reasona$le !anner9 infor!ation concernin% financin% state!ents indexed under the de$torFs na!e in the office indicated in su$ ara%ra h B"C of ara%ra h B3C of su$section BcC of this section; and B2C $efore the notification date9 the secured arty< BAC did not recei*e a res onse to the re3uest for infor!ation; or B"C recei*ed a res onse to the re3uest for infor!ation and sent an authenticated notification of dis osition to each secured arty or other lienholder na!ed in that res onse 6hose financin% state!ent co*ered the collateral@ 9-)12 TIM#,I5#SS 12 51TI2I'ATI15 "#21-# DISP1SITI15 12 '1,,AT#-A, BaC Reasonable ti%e is 5uestion of fact0 #xce t as other6ise ro*ided in su$section B$C of this section9 6hether a notification is sent 6ithin a reasona$le ti!e is a 3uestion of fact@ B$C 1<-da" period sufficient in non-consu%er transaction0 In a transaction other than a consu!er transaction9 a notification of dis osition sent after default and ten B10C days or !ore $efore the earliest ti!e of dis osition set forth in the notification is sent 6ithin a reasona$le ti!e $efore the dis osition@ 9-)13 '15T#5TS A5D 21-M 12 51TI2I'ATI15

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"#21-# DISP1SITI15 12 '1,,AT#-A,< 0#5#-A, #xce t in a consu!er-%oods transaction9 the follo6in% rules a ly<

B1C The contents of a notification of dis osition are sufficient if the notification< BAC descri$es the de$tor and the secured arty; B"C descri$es the collateral that is the su$8ect of the intended dis osition; B'C states the !ethod of intended dis osition; BDC states that the de$tor is entitled to an accountin% of the un aid inde$tedness and states the char%e9 if any9 for an accountin%; and B#C states the ti!e and lace of a u$lic dis osition or the ti!e after 6hich any other dis osition is to $e !ade@ B2C 7hether the contents of a notification that lac;s any of the infor!ation s ecified in ara%ra h B1C of this section are ne*ertheless sufficient is a 3uestion of fact@ B3C The contents of a notification ro*idin% su$stantially the infor!ation s ecified in ara%ra h B1C of this section are sufficient9 e*en if the notification includes< BAC infor!ation not s ecified $y that ara%ra h; or B"C !inor errors that are not seriously !isleadin%@ B&C A articular hrasin% of the notification is not re3uired@ B(C The follo6in% for! of notification and the for! a earin% in ara%ra h B3C of Section 9-)1&9 6hen co! leted9 each ro*ides sufficient infor!ation< 51TI2I'ATI15 12 DISP1SITI15 12 '1,,AT#-A, To< J5a!e of de$tor9 o$li%or9 or other erson to 6hich the notification is sentK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPP 2ro!< J5a!e9 address9 and tele hone nu!$er of secured artyK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPP

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5a!e of De$torBsC< JInclude only if de$torBsC are not an addresseeK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP PPPPPPPPPPPPPPPPPPPP J2or a u$lic dis osition<K 7e 6ill sell Jor lease or license9 as a lica$leK the Jdescri$e collateralK PPPPPPPPPPPPPPPPPP Jto the hi%hest 3ualified $idderK in u$lic as follo6s< Day and Date< PPPPPPPPPPPPPPPPP Ti!e< PPPPPPPPPPPPPPPPP Place< PPPPPPPPPPPPPPPPP J2or a ri*ate dis osition<K 7e 6ill sell Jor lease or license9 as a lica$leK the Jdescri$e collateralK PPPPPPPPPPPPPPPPPP ri*ately so!eti!e after Jday and dateK PPPPPPPPPPPPPPPP@ Hou are entitled to an accountin% of the un aid inde$tedness secured $y the ro erty that 6e intend to sell Jor lease or license9 as a lica$leK Jfor a char%e of GPPPPPPPPPPPPP K@ Hou !ay re3uest an accountin% $y callin% us at Jtele hone nu!$erK PPPPPPPPPPPPPPPP@ J#nd of 2or!K 9-)1& '15T#5TS A5D 21-M 12 51TI2I'ATI15 "#21-# DISP1SITI15 12 '1,,AT#-A,< '15S/M#--011DS T-A5SA'TI15 In a consu!er-%oods transaction9 the follo6in% rules a ly<

B1C A notification of dis osition !ust ro*ide the follo6in% infor!ation< BAC the infor!ation s ecified in ara%ra h B1C of Section 9-)13; B"C a descri tion of any lia$ility for a deficiency of the erson to 6hich the notification is sent; B'C a tele hone nu!$er fro! 6hich the a!ount that !ust $e aid to the secured arty to redee! the collateral under Section 9-)23 is a*aila$le; and BDC a tele hone nu!$er or !ailin% address fro! 6hich additional infor!ation concernin% the dis osition and the o$li%ation secured is a*aila$le@

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B2C A articular hrasin% of the notification is not re3uired@ B3C The follo6in% for! of notification9 6hen co! leted9 ro*ides sufficient infor!ation< J5a!e and address of secured artyK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP JDateK PPPPPPPPPPPPPPPPP 51TI'# 12 1/- P,A5 T1 S#,, P-1P#-TH J5a!e and address of any o$li%or 6ho is also a de$torK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP Su$8ect< JIdentification of TransactionK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP 7e ha*e your Jdescri$e collateralK PPPPPPPPPPPPPPPPPPPPPPPP9 $ecause you $ro;e ro!ises in our a%ree!ent@ J2or a u$lic dis osition<K 7e 6ill sell Jdescri$e collateralK PPPPPPPPPPPPPPPPPPPPPPP at u$lic sale@ A sale could include a lease or license@ The sale 6ill $e held as follo6s< Date< PPPPPPPPPPPPPPPPPPPPPPPPP Ti!e< PPPPPPPPPPPPPPPPPPPPPPPPP Place< PPPPPPPPPPPPPPPPPPPPPPPPP Hou !ay attend the sale and $rin% $idders if you 6ant@ J2or a ri*ate dis osition<K 7e 6ill sell Jdescri$e collateralK PPPPPPPPPPPPPPPPPPPPPP at ri*ate sale so!eti!e after JdateK PPPPPPPPPPPPPPPPP@ A sale could include a lease or license@ The !oney that 6e %et fro! the sale Bafter ayin% our costsC 6ill reduce the a!ount you o6e@ If 6e %et less !oney than you o6e9 you J6ill or 6ill not9 as a lica$leK PPPPPPPPPPPPPPPPPPPPPPP still o6e us the difference@ If 6e %et !ore !oney than you o6e9 you 6ill %et the extra !oney9 unless 6e !ust ay it to so!eone else@ Hou can %et the ro erty $ac; at any ti!e $efore 6e sell it $y ayin% us the full a!ount you o6e Bnot 8ust the ast due ay!entsC9 includin% our ex enses@ To learn the exact a!ount you !ust ay9 call us at Jtele hone nu!$erK PPPPPPPPPPPPPPPPP@

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If you 6ant us to ex lain to you in 6ritin% ho6 6e ha*e fi%ured the a!ount that you o6e us9 you !ay call us at Jtele hone nu!$erK PPPPPPPPPPPPPPP Jor 6rite us at Jsecured artyFs addressK PPPPPPPPPPPPPPPPPPPPPPPPK and re3uest a 6ritten ex lanation@ J7e 6ill char%e you GPPPPPPPPPPPPPPP for the ex lanation if 6e sent you another 6ritten ex lanation of the a!ount you o6e us 6ithin the last six !onths@K If you need !ore infor!ation a$out the sale call us at Jtele hone nu!$erKPPPPPPPPPPPPPPPPPPK Jor 6rite us at Jsecured artyFs addressKPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPK@ 7e are sendin% this notice to the follo6in% other eo le 6ho ha*e an interest in Jdescri$e collateralK PPPPPPPPPPPPPPPPPPPPP or 6ho o6e !oney under your a%ree!ent< J5a!es of all other de$tors and o$li%ors9 if anyK PPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPPP J#nd of 2or!K B&C A notification in the for! of ara%ra h B3C of this section is sufficient9 e*en if additional infor!ation a ears at the end of the for!@ B(C A notification in the for! of ara%ra h B3C of this section is sufficient9 e*en if it includes errors in infor!ation not re3uired $y ara%ra h B1C of this section9 unless the error is !isleadin% 6ith res ect to ri%hts arisin% under this article@ B)C If a notification under this section is not in the for! of ara%ra h B3C of this section9 la6 other than this article deter!ines the effect of includin% infor!ation not re3uired $y ara%ra h B1C of this section@ 9-)1( APP,I'ATI15 12 P-1'##DS 12 DISP1SITI15; ,IA"I,ITH 21- D#2I'I#5'H A5D -I04T T1 S/-P,/S BaC Application and proceeds0 A secured arty shall a ly or ay o*er for a lication the cash roceeds of dis osition under Section 9-)10 in the follo6in% order to< B1C the reasona$le ex enses of reta;in%9 holdin%9 re arin% for dis osition9 rocessin%9 and dis osin%9 and9 to the extent ro*ided for $y a%ree!ent and not rohi$ited $y la69 reasona$le attorneyFs fees and le%al ex enses incurred $y the secured arty; B2C the satisfaction of o$li%ations secured $y the security interest or a%ricultural lien under 6hich the dis osition is !ade; B3C the satisfaction of o$li%ations secured $y any su$ordinate security interest in or other su$ordinate lien on the collateral if<

107

BAC the secured arty recei*es fro! the holder of the su$ordinate security interest or other lien an authenticated de!and for roceeds $efore distri$ution of the roceeds is co! leted; and B"C in a case in 6hich a consi%nor has an interest in the collateral9 the su$ordinate security interest or other lien is senior to the interest of the consi%nor; and B&C a secured arty that is a consi%nor of the collateral if the secured arty recei*es fro! the consi%nor an authenticated de!and for roceeds $efore distri$ution of the roceeds is co! leted@ B$C Proof of subordinate interest0 If re3uested $y a secured arty9 a holder of a su$ordinate security interest or other lien shall furnish reasona$le roof of the interest or lien 6ithin a reasona$le ti!e@ /nless the holder does so9 the secured arty need not co! ly 6ith the holderFs de!and under ara%ra h B3C of su$section BaC of this section@ BcC Application of noncash proceeds0 A secured arty need not a ly or ay o*er for a lication noncash roceeds of dis osition under this section unless the failure to do so 6ould $e co!!ercially unreasona$le@ A secured arty that a lies or ays o*er for a lication noncash roceeds shall do so in a co!!ercially reasona$le !anner@ BdC Surplus or deficienc" if obli$ation secured0 If the security interest under 6hich a dis osition is !ade secures ay!ent or erfor!ance of an o$li%ation9 after !a;in% the ay!ents and a lications re3uired $y su$section BaC of this section and er!itted $y su$section BcC of this section< B1C unless ara%ra h B&C of su$section BaC of this section re3uires the secured arty to ly or ay o*er cash roceeds to a consi%nor9 the secured arty shall account to and ay a de$tor for any sur lus; and B2C the o$li%or is lia$le for any deficiency@ BeC No surplus or deficienc" in sales of certain ri$hts to pa"%ent0 If the underlyin% transaction is a sale of accounts9 chattel a er9 ay!ent intan%i$les9 or ro!issory notes< B1C the de$tor is not entitled to any sur lus; and B2C the o$li%or is not lia$le for any deficiency@ BfC alculation of surplus or deficienc" in disposition to person related to secured part"0 The sur lus or deficiency follo6in% a dis osition is calculated $ased on the a!ount of roceeds that 6ould ha*e $een realiEed in a dis osition co! lyin% 6ith this art to a transferee other than the secured arty9 a erson related to the secured arty9 or a secondary o$li%or if< B1C the transferee in the dis osition is the secured arty9 a erson related to the secured arty9 or a secondary o$li%or; and B2C the a!ount of roceeds of the dis osition is si%nificantly $elo6 the ran%e of roceeds that a co! lyin% dis osition to a erson other than the secured arty9 a erson related to the secured arty9 or a secondary o$li%or 6ould ha*e $rou%ht@

108

B%C ash proceeds received b" @unior secured part"0 A secured arty that recei*es cash roceeds of a dis osition in %ood faith and 6ithout ;no6led%e that the recei t *iolates the ri%hts of the holder of a security interest or other lien that is not su$ordinate to the security interest or a%ricultural lien under 6hich the dis osition is !ade< B1C ta;es the cash roceeds free of the security interest or other lien; B2C is not o$li%ated to a ly the roceeds of the dis osition to the satisfaction of o$li%ations secured $y the security interest or other lien; and B3C is not o$li%ated to account to or ay the holder of the security interest or other lien for any sur lus@ 9-)1) #AP,A5ATI15 12 'A,'/,ATI15 12 S/-P,/S 1- D#2I'I#5'H BaC Definitions0In this section< B1C D#x lanationD !eans a 6ritin% that< BAC states the a!ount of the sur lus or deficiency; B"C ro*ides an ex lanation in accordance 6ith su$section BcC of this section of ho6 the secured arty calculated the sur lus or deficiency; B'C states9 if a lica$le9 that future de$its9 credits9 char%es9 includin% additional credit ser*ice char%es or interest9 re$ates9 and ex enses !ay affect the a!ount of the sur lus or deficiency; and BDC ro*ides a tele hone nu!$er or !ailin% address fro! 6hich additional infor!ation concernin% the transaction is a*aila$le@ B2C D-e3uestD !eans a record< BAC authenticated $y a de$tor or consu!er o$li%or; B"C re3uestin% that the reci ient ro*ide an ex lanation; and B'C sent after dis osition of the collateral under Section 9-)10@ B$C #4planation of calculation0 In a consu!er-%oods transaction in 6hich the de$tor is entitled to a sur lus or a consu!er o$li%or is lia$le for a deficiency under Section 9-)1(9 the secured arty shall< B1C send an ex lanation to the de$tor or consu!er o$li%or9 as a dis osition and< lica$le9 after the

BAC $efore or 6hen the secured arty accounts to the de$tor and ays any sur lus or first !a;es 6ritten de!and on the consu!er o$li%or after the dis osition for ay!ent of the deficiency; and

109

B"C 6ithin fourteen B1&C days after recei t of a re3uest; or B2C in the case of a consu!er o$li%or 6ho is lia$le for a deficiency9 6ithin fourteen B1&C days after recei t of a re3uest9 send to the consu!er o$li%or a record 6ai*in% the secured artyFs ri%ht to a deficiency@ BcC Re5uired 'nfor%ation0 To co! ly 6ith su$ ara%ra h B"C of ara%ra h B1C of su$section BaC of this section9 a 6ritin% !ust ro*ide the follo6in% infor!ation in the follo6in% order< B1C the a%%re%ate a!ount of o$li%ations secured $y the security interest under 6hich the dis osition 6as !ade9 and9 if the a!ount reflects a re$ate of unearned interest or credit ser*ice char%e9 an indication of that fact9 calculated as of a s ecified date< BAC if the secured arty ta;es or recei*es ossession of the collateral after default9 not !ore than thirty-fi*e B3(C days $efore the secured arty ta;es or recei*es ossession; or B"C if the secured arty ta;es or recei*es ossession of the collateral $efore default or does not ta;e ossession of the collateral9 not !ore than thirty-fi*e B3(C days $efore the dis osition; B2C the a!ount of roceeds of the dis osition; B3C the a%%re%ate a!ount of the o$li%ations after deductin% the a!ount of roceeds; B&C the a!ount9 in the a%%re%ate or $y ty e9 and ty es of ex enses9 includin% ex enses of reta;in%9 holdin%9 re arin% for dis osition9 rocessin%9 and dis osin% of the collateral9 and attorneyFs fees secured $y the collateral 6hich are ;no6n to the secured arty and relate to the current dis osition; B(C the a!ount9 in the a%%re%ate or $y ty e9 and ty es of credits9 includin% re$ates of interest or credit ser*ice char%es9 to 6hich the o$li%or is ;no6n to $e entitled and 6hich are not reflected in the a!ount in ara%ra h B1C of this su$section; and B)C the a!ount of the sur lus or deficiency@ BdC Substantial co%pliance0 A articular hrasin% of the ex lanation is not re3uired@ An ex lanation co! lyin% su$stantially 6ith the re3uire!ents of su$section BaC of this section is sufficient9 e*en if it includes !inor errors that are not seriously !isleadin%@ BeC har$es for responses0 A de$tor or consu!er o$li%or is entitled 6ithout char%e to one res onse to a re3uest under this section durin% any six-!onth eriod in 6hich the secured arty did not send to the de$tor or consu!er o$li%or an ex lanation ursuant to ara%ra h B1C of su$section B$C of this section@ The secured arty !ay re3uire ay!ent of a char%e not exceedin% T6enty-fi*e Dollars BG2(@00C for each additional res onse@ 9-)1+ -I04TS 12 T-A5S2#-## 12 '1,,AT#-A, BaC #ffects of disposition0 A secured artyFs dis osition of collateral after default<

110

B1C transfers to a transferee for *alue all of the de$torFs ri%hts in the collateral; B2C dischar%es the security interest under 6hich the dis osition is !ade; and B3C dischar%es any su$ordinate security interest or other su$ordinate lien@ B$C Ri$hts of $ood-faith transferee0 A transferee that acts in %ood faith ta;es free of the ri%hts and interests descri$ed in su$section BaC of this section9 e*en if the secured arty fails to co! ly 6ith this article or the re3uire!ents of any 8udicial roceedin%@ BcC Ri$hts of other transferee0 If a transferee does not ta;e free of the ri%hts and interests descri$ed in su$section BaC of this section9 the transferee ta;es the collateral su$8ect to< B1C the de$torFs ri%hts in the collateral; B2C the security interest or a%ricultural lien under 6hich the dis osition is !ade; and B3C any other security interest or other lien@ 9-)1. -I04TS A5D D/TI#S 12 '#-TAI5 S#'15DA-H 1",I01-S BaC Ri$hts and duties of secondar" obli$or0 A secondary o$li%or ac3uires the ri%hts and $eco!es o$li%ated to erfor! the duties of the secured arty after the secondary o$li%or< B1C recei*es an assi%n!ent of a secured o$li%ation fro! the secured arty; B2C recei*es a transfer of collateral fro! the secured arty and a%rees to acce t the ri%hts and assu!e the duties of the secured arty; or B3C is su$ro%ated to the ri%hts of a secured arty 6ith res ect to collateral@ B$C #ffect of assi$n%ent, transfer, or subro$ation0 An assi%n!ent9 transfer9 or su$ro%ation descri$ed in su$section BaC of this section< B1C is not a dis osition of collateral under Section 9-)10; and B2C relie*es the secured arty of further duties under this article@ 9-)19 T-A5S2#- 12 -#'1-D 1- ,#0A, TIT,# BaC BTransfer state%entB0 In this section9 Dtransfer state!entD !eans a record authenticated $y a secured arty statin%< B1C that the de$tor has defaulted in connection 6ith an o$li%ation secured $y s ecified collateral;

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B2C that the secured arty has exercised its ost-default re!edies 6ith res ect to the collateral; B3C that9 $y reason of the exercise9 a transferee has ac3uired the ri%hts of the de$tor in the collateral; and B&C the na!e and !ailin% address of the secured arty9 de$tor9 and transferee@ B$C #ffect of transfer state%ent0 A transfer state!ent entitles the transferee to the transfer of record of all ri%hts of the de$tor in the collateral s ecified in the state!ent in any official filin%9 recordin%9 re%istration9 or certificate-of-title syste! co*erin% the collateral@ If a transfer state!ent is resented 6ith the a lica$le fee and re3uest for! to the official or office res onsi$le for !aintainin% the syste!9 the official or office shall< B1C acce t the transfer state!ent; B2C ro! tly a!end its records to reflect the transfer; and B3C if a lica$le9 issue a ne6 a transferee@ ro riate certificate of title in the na!e of the

BcC Transfer not a disposition& no relief of secured part":s duties0 A transfer of the record or le%al title to collateral to a secured arty under su$section B$C of this section or other6ise is not of itself a dis osition of collateral under this article and does not of itself relie*e the secured arty of its duties under this article@ 9-)20 A''#PTA5'# 12 '1,,AT#-A, I5 2/,, 1- PA-TIA, SATIS2A'TI15 12 1",I0ATI15; '1MP/,S1-H DISP1SITI15 12 '1,,AT#-A, BaC onditions to acceptance in satisfaction0 #xce t as other6ise ro*ided in su$section B%C of this section9 a secured arty !ay acce t collateral in full or artial satisfaction of the o$li%ation it secures only if< B1C the de$tor consents to the acce tance under su$section BcC of this section; B2C the secured arty does not recei*e9 6ithin the ti!e set forth in su$section BdC of this section9 a notification of o$8ection to the ro osal authenticated $y< BAC a erson to 6hich the secured arty 6as re3uired to send a ro osal under Section 9-)21; or B"C any other erson9 other than the de$tor9 holdin% an interest in the collateral su$ordinate to the security interest that is the su$8ect of the ro osal; B3C if the collateral is consu!er %oods9 the collateral is not in the ossession of the de$tor 6hen the de$tor consents to the acce tance; and B&C su$section BeC of this section does not re3uire the secured arty to dis ose of the collateral or the de$tor 6ai*es the re3uire!ent ursuant to Section 9-)2&@

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B$C Purported acceptance ineffective0 A ur orted or a under this section is ineffecti*e unless<

arent acce tance of collateral

B1C the secured arty consents to the acce tance in an authenticated record or sends a ro osal to the de$tor; and B2C the conditions of su$section BaC of this section are !et@ BcC Debtor:s consent0 2or ur oses of this section< B1C a de$tor consents to an acce tance of collateral in artial satisfaction of the o$li%ation it secures only if the de$tor a%rees to the ter!s of the acce tance in a record authenticated after default; and B2C a de$tor consents to an acce tance of collateral in full satisfaction of the o$li%ation it secures only if the de$tor a%rees to the ter!s of the acce tance in a record authenticated after default or the secured arty< BAC sends to the de$tor after default a ro osal that is unconditional or su$8ect only to a condition that collateral not in the ossession of the secured arty $e reser*ed or !aintained; B"C in the ro osal9 ro oses to acce t collateral in full satisfaction of the o$li%ation it secures; and B'C does not recei*e a notification of o$8ection authenticated $y the de$tor 6ithin t6enty B20C days after the ro osal is sent@ BdC #ffectiveness of notification0 To $e effecti*e under ara%ra h B2C of su$section BaC of this section9 a notification of o$8ection !ust $e recei*ed $y the secured arty< B1C in the case of a erson to 6hich the ro osal 6as sent ursuant to Section 9-)219 6ithin t6enty B20C days after notification 6as sent to that erson; and B2C in other cases< BAC 6ithin t6enty B20C days after the last notification 6as sent ursuant to Section 9)21; or B"C if a notification 6as not sent9 $efore the de$tor consents to the acce tance under su$section BcC of this section@ BeC 9andator" disposition of consu%er $oods0 A secured arty that has ta;en ossession of collateral shall dis ose of the collateral ursuant to Section 9-)10 6ithin the ti!e s ecified in su$section BfC of this section if< B1C Sixty ercent B)0SC of the cash rice has $een aid in the case of a urchase!oney security interest in consu!er %oods; or B2C Sixty ercent B)0SC of the rinci al a!ount of the o$li%ation secured has $een aid in the case of a non- urchase-!oney security interest in consu!er %oods@

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BfC o%pliance with %andator" disposition re5uire%ent0 To co! ly 6ith su$section BeC of this section9 the secured arty shall dis ose of the collateral< B1C 6ithin ninety B90C days after ta;in% ossession; or B2C 6ithin any lon%er eriod to 6hich the de$tor and all secondary o$li%ors ha*e a%reed in an a%ree!ent to that effect entered into and authenticated after default@ B%C No partial satisfaction in consu%er transaction0 In a consu!er transaction9 a secured arty !ay not acce t collateral in artial satisfaction of the o$li%ation it secures@ 9-)21 51TI2I'ATI15 12 P-1P1SA, T1 A''#PT '1,,AT#-A, BaC Persons to which proposal to be sent0 A secured arty that desires to acce t collateral in full or artial satisfaction of the o$li%ation it secures shall send its ro osal to< B1C any erson fro! 6hich the secured arty has recei*ed9 $efore the de$tor consented to the acce tance9 an authenticated notification of a clai! of an interest in the collateral; B2C any other secured arty or lienholder that9 ten B10C days $efore the de$tor consented to the acce tance9 held a security interest in or other lien on the collateral erfected $y the filin% of a financin% state!ent that< BAC identified the collateral; B"C 6as indexed under the de$torFs na!e as of that date; and B'C 6as filed in the office or offices in 6hich a financin% state!ent a%ainst the de$tor co*erin% the collateral as of that date 6ould ha*e $een filed; and B3C any other secured arty that9 ten B10C days $efore the de$tor consented to the acce tance9 held a security interest in the collateral erfected $y co! liance 6ith a statute9 re%ulation9 or treaty descri$ed in su$section BaC of Section 9-311@ B$C Proposal to be sent to secondar" obli$or in partial satisfaction0 A secured arty that desires to acce t collateral in artial satisfaction of the o$li%ation it secures shall send its ro osal to any secondary o$li%or in addition to the ersons descri$ed in su$section BaC of this section@ 9-)22 #22#'T 12 A''#PTA5'# 12 '1,,AT#-A, BaC #ffect of acceptance0 A secured artyFs acce tance of collateral in full or artial satisfaction of the o$li%ation it secures< B1C dischar%es the o$li%ation to the extent consented to $y the de$tor; B2C transfers to the secured arty all of a de$torFs ri%hts in the collateral;

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B3C dischar%es the security interest or a%ricultural lien that is the su$8ect of the de$torFs consent and any su$ordinate security interest or other su$ordinate lien; and B&C ter!inates any other su$ordinate interest@ B$C Dischar$e of subordinate interest notwithstandin$ nonco%pliance0 A su$ordinate interest is dischar%ed or ter!inated under su$section BaC of this section9 e*en if the secured arty fails to co! ly 6ith this article@ 9-)23 -I04T T1 -#D##M '1,,AT#-A, BaC Persons that %a" redee%0 A de$tor9 any secondary o$li%or9 or any other secured arty or lienholder !ay redee! collateral@ B$C Re5uire%ents for rede%ption0 To redee! collateral9 a erson shall tender< B1C fulfill!ent of all o$li%ations secured $y the collateral; and B2C the reasona$le ex enses and attorneyFs fees descri$ed in ara%ra h B1C of su$section BaC of Section 9-)1(@ BcC =hen rede%ption %a" occur0 A rede! tion !ay occur at any ti!e $efore a secured arty< B1C has collected collateral under Section 9-)0+; B2C has dis osed of collateral or entered into a contract for its dis osition under Section 9-)10; or B3C has acce ted collateral in full or artial satisfaction of the o$li%ation it secures under Section 9-)22@ 9-)2& 7AI>#BaC =aiver of disposition notification0 A de$tor or secondary o$li%or !ay 6ai*e the ri%ht to notification of dis osition of collateral under Section 9-)11 only $y an a%ree!ent to that effect entered into and authenticated after default@ B$C =aiver of %andator" disposition0 A de$tor !ay 6ai*e the ri%ht to re3uire dis osition of collateral under su$section BeC of Section 9-)20 only $y a%ree!ent to that effect entered into and authenticated after default@ BcC =aiver of rede%ption ri$ht0 #xce t in a consu!er-%oods transaction9 a de$tor or secondary o$li%or !ay 6ai*e the ri%ht to redee! collateral under Section 9-)23 only $y an a%ree!ent to that effect entered into and authenticated after default@ S/"PA-T 2@ 515'1MP,IA5'# 7IT4 A-TI',#

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9-)2( -#M#DI#S 21- S#'/-#D PA-THFS 2AI,/-# T1 '1MP,H 7IT4 A-TI',# BaC 7udicial orders concernin$ nonco%pliance0 If it is esta$lished that a secured arty is not roceedin% in accordance 6ith this article9 a court !ay order or restrain collection9 enforce!ent9 or dis osition of collateral on a ro riate ter!s and conditions@ B$C Da%a$es for nonco%pliance0 Su$8ect to su$sections BcC9 BdC9 and BfC of this section9 a erson is lia$le for da!a%es in the a!ount of any loss caused $y a failure to co! ly 6ith this article@ ,oss caused $y a failure to co! ly !ay include loss resultin% fro! the de$torFs ina$ility to o$tain9 or increased costs of9 alternati*e financin%@ BcC Persons entitled to recover da%a$es& statutor" da%a$es in consu%er-$oods transaction0 #xce t as other6ise ro*ided in Section 9-)2.< B1C a erson that9 at the ti!e of the failure9 6as a de$tor9 6as an o$li%or9 or held a security interest in or other lien on the collateral !ay reco*er da!a%es under su$section B$C of this section for its loss; and B2C if the collateral is consu!er %oods9 a erson that 6as a de$tor or a secondary o$li%or at the ti!e a secured arty failed to co! ly 6ith this art !ay reco*er for that failure in any e*ent an a!ount not less than the credit ser*ice char%e lus ten ercent B10SC of the rinci al a!ount of the o$li%ation or the ti!e- rice differential lus ten ercent B10SC of the cash rice@ BdC Recover" when deficienc" eli%inated or reduced0 A de$tor 6hose deficiency is eli!inated under Section 9-)2) !ay reco*er da!a%es for the loss of any sur lus@ 4o6e*er9 a de$tor or secondary o$li%or 6hose deficiency is eli!inated or reduced under Section 9-)2) !ay not other6ise reco*er under su$section B$C of this section for nonco! liance 6ith the ro*isions of this art relatin% to collection9 enforce!ent9 dis osition9 or acce tance@ BeC Statutor" da%a$esA nonco%pliance with specified provisions0 In addition to any da!a%es reco*era$le under su$section B$C of this section9 the de$tor9 consu!er o$li%or9 or erson na!ed as a de$tor in a filed record9 as a lica$le9 !ay reco*er 2i*e 4undred Dollars BG(00@00C in each case fro! a erson that< B1C fails to co! ly 6ith Section 9-20.; B2C fails to co! ly 6ith Section 9-209; B3C files a record that the erson is not entitled to file under su$section BaC of Section 9-(09; B&C fails to cause the secured arty of record to file or send a ter!ination state!ent as re3uired $y su$section BaC or BcC Section 9-(13; B(C fails to co! ly 6ith ara%ra h B1C of su$section B$C of Section 9-)1) and 6hose failure is art of a attern9 or consistent 6ith a ractice9 of nonco! liance; or

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B)C fails to co! ly 6ith ara%ra h B2C of su$section B$C of Section 9-)1)@ BfC Statutor" da%a$esA nonco%pliance with Section 9-!1<0 A de$tor or consu!er o$li%or !ay reco*er da!a%es under su$section B$C of this section and9 in addition9 2i*e 4undred Dollars BG(00@00C in each case fro! a erson that9 6ithout reasona$le cause9 fails to co! ly 6ith a re3uest under Section 9-210@ A reci ient of a re3uest under Section 9-210 6hich ne*er clai!ed an interest in the collateral or o$li%ations that are the su$8ect of a re3uest under that section has a reasona$le excuse for failure to co! ly 6ith the re3uest 6ithin the !eanin% of this su$section@ B%C )i%itation of securit" interestA non co%pliance with Section 9-!1<0 If a secured arty fails to co! ly 6ith a re3uest re%ardin% a list of collateral or a state!ent of account under Section 9-2109 the secured arty !ay clai! a security interest only as sho6n in the list or state!ent included in the re3uest as a%ainst a erson that is reasona$ly !isled $y the failure@ 9-)2) A'TI15 I5 74I'4 D#2I'I#5'H 1- S/-P,/S IS I5 ISS/# BaC Applicable rules if a%ount of deficienc" or surplus in issue0 In an action arisin% fro! a transaction9 other than a consu!er transaction9 in 6hich the a!ount of a deficiency or sur lus is in issue9 the follo6in% rules a ly< B1C A secured arty need not ro*e co! liance 6ith the ro*isions of this art relatin% to collection9 enforce!ent9 dis osition9 or acce tance unless the de$tor or a secondary o$li%or laces the secured artyFs co! liance in issue@ B2C If the secured artyFs co! liance is laced in issue9 the secured arty has the $urden of esta$lishin% that the collection9 enforce!ent9 dis osition9 or acce tance 6as conducted in accordance 6ith this art@ B3C #xce t as other6ise ro*ided in Section 9-)2.9 if a secured arty fails to ro*e that the collection9 enforce!ent9 dis osition9 or acce tance 6as conducted in accordance 6ith the ro*isions of this art relatin% to collection9 enforce!ent9 dis osition9 or acce tance9 the lia$ility of a de$tor or a secondary o$li%or for a deficiency is li!ited to an a!ount $y 6hich the su! of the secured o$li%ation9 ex enses9 and attorneyFs fees exceeds the %reater of< BAC the roceeds of the collection9 enforce!ent9 dis osition9 or acce tance; or B"C the a!ount of roceeds that 6ould ha*e $een realiEed had the nonco! lyin% secured arty roceeded in accordance 6ith the ro*isions of this art relatin% to collection9 enforce!ent9 dis osition9 or acce tance@ B&C 2or ur oses of su$ ara%ra h B"C of ara%ra h B3C of this su$section9 the a!ount of roceeds that 6ould ha*e $een realiEed is e3ual to the su! of the secured o$li%ation9 ex enses9 and attorneyFs fees unless the secured arty ro*es that the a!ount is less than that su!@ B(C If a deficiency or sur lus is calculated under su$section BfC of Section 9-)1(9 the de$tor or o$li%or has the $urden of esta$lishin% that the a!ount of roceeds of the dis osition is si%nificantly $elo6 the ran%e of rices that a co! lyin% dis osition to a

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erson other than the secured arty9 a erson related to the secured arty9 or a secondary o$li%or 6ould ha*e $rou%ht@ B$C Non-consu%er transactions& no inference0 The li!itation of the rules in su$section BaC of this section to transactions other than consu!er transactions is intended to lea*e to the court the deter!ination of the ro er rules in consu!er transactions@ The court !ay not infer fro! that li!itation the nature of the ro er rule in consu!er transactions and !ay continue to a ly esta$lished a roaches@ 9-)2+ D#T#-MI5ATI15 12 74#T4#- '15D/'T 7AS '1MM#-'IA,,H -#AS15A",# BaC Greater a%ount obtainable under other circu%stances& no preclusion of co%%ercial reasonableness0 The fact that a %reater a!ount could ha*e $een o$tained $y a collection9 enforce!ent9 dis osition9 or acce tance at a different ti!e or in a different !ethod fro! that selected $y the secured arty is not of itself sufficient to reclude the secured arty fro! esta$lishin% that the collection9 enforce!ent9 dis osition9 or acce tance 6as !ade in a co!!ercially reasona$le !anner@ B$C Dispositions that are co%%erciall" reasonable0 A dis osition of collateral is !ade in a co!!ercially reasona$le !anner if the dis osition is !ade< B1C in the usual !anner on any reco%niEed !ar;et; B2C at the rice current in any reco%niEed !ar;et at the ti!e of the dis osition; or B3C other6ise in confor!ity 6ith reasona$le co!!ercial ractices a!on% dealers in the ty e of ro erty that 6as the su$8ect of the dis osition@ BcC Approval b" court or on behalf of creditors0 A collection9 enforce!ent9 dis osition9 or acce tance is co!!ercially reasona$le if it has $een a ro*ed< B1C in a 8udicial roceedin%; B2C $y a $ona fide creditorsF co!!ittee; B3C $y a re resentati*e of creditors; or B&C $y an assi%nee for the $enefit of creditors@ BdC Approval under subsection CcD not necessar"& absence of approval has no effect0 A ro*al under su$section BcC of this section need not $e o$tained9 and lac; of a ro*al does not !ean that the collection9 enforce!ent9 dis osition9 or acce tance is not co!!ercially reasona$le@ 9-)2. 515,IA"I,ITH A5D ,IMITATI15 15 ,IA"I,ITH

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12 S#'/-#D PA-TH; ,IA"I,ITH 12 S#'15DA-H 1",I01BaC )i%itation of liabilit" of secured part"0 /nless a secured arty ;no6s that a erson is a de$tor or o$li%or9 ;no6s the identity of the erson9 and ;no6s ho6 to co!!unicate 6ith the erson< B1C the secured arty is not lia$le to the erson9 or to a secured arty or lienholder that has filed a financin% state!ent a%ainst the erson9 for failure to co! ly 6ith this article; and B2C the secured artyFs failure to co! ly 6ith this article does not affect the lia$ility of the erson for a deficiency@ B$C )i%itation of liabilit" based on status as secured part"0 A secured arty is not lia$le $ecause of its status as secured arty< B1C to a erson that is a de$tor or o$li%or9 unless the secured arty ;no6s< BAC that the erson is a de$tor or o$li%or; B"C the identity of the erson; and B'C ho6 to co!!unicate 6ith the erson; or B2C to a secured arty or lienholder that has filed a financin% state!ent a%ainst a erson9 unless the secured arty ;no6s< BAC that the erson is a de$tor; and B"C the identity of the erson@ BcC )i%itation of liabilit" if reasonable belief that transaction not a consu%er-$oods transaction or consu%er transaction0 A secured arty is not lia$le to any erson9 and a ersonFs lia$ility for a deficiency is not affected9 $ecause of any act or o!ission arisin% out of the secured artyFs reasona$le $elief that a transaction is not a consu!er-%oods transaction or a consu!er transaction or that %oods are not consu!er %oods9 if the secured artyFs $elief is $ased on its reasona$le reliance on< B1C a de$torFs re resentation concernin% the ur ose for 6hich collateral 6as to $e used9 ac3uired9 or held; or B2C an o$li%orFs re resentation concernin% the ur ose for 6hich a secured o$li%ation 6as incurred@ BdC )i%itation of liabilit" for statutor" da%a$es0 A secured arty is not lia$le to any erson under ara%ra h B2C of su$section BcC of Section 9- )2( for its failure to co! ly 6ith Section 9-)1)@ BeC )i%itation of %ultiple liabilit" for statutor" da%a$es0 A secured arty is not lia$le under ara%ra h B2C of su$section BcC of Section 9-)2( !ore than once 6ith res ect to any one secured o$li%ation@

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PART 2 - TRANS'T'/N

9-+01 #22#'TI># DAT# This JActK ta;es effecton =uly 19 2001@ 9-+02 SA>I50S ',A/S# BaC Pre-effective-date transaction or liens0 #xce t as other6ise ro*ided in this art9 this act a lies to a transaction or lien 6ithin its sco e9 e*en if the transaction or lien 6as entered into or created $efore this act ta;es effect@ B$C ontinuin$ validit"0 #xce t as other6ise ro*ided in su$section BcC of this section and Sections 9-+03 throu%h 9-+09< B1C transactions and liens that 6ere not %o*erned $y Jfor!er Article 9K9 6ere *alidly entered into or created $efore this JActK ta;es effect9 and 6ould $e su$8ect to this act if they had $een entered into or created after this JActK ta;es effect9 and the ri%hts9 duties9 and interests flo6in% fro! those transactions and liens re!ain *alid after this JActK ta;es effect; and B2C the transactions and liens !ay $e ter!inated9 co! leted9 consu!!ated9 and enforced as re3uired or er!itted $y this act or $y the la6 that other6ise 6ould a ly if this JActK had not ta;en effect@ BcC Pre-effective-date proceedin$s0 This JActK does not affect an action9 case9 or roceedin% co!!enced $efore this JActK ta;es effect@ 9-+03 S#'/-ITH I5T#-#ST P#-2#'T#D "#21-# #22#'TI># DAT# BaC ontinuin$ priorit" over lien creditorA perfection re5uire%ents satisfied0 A security interest that is enforcea$le i!!ediately $efore this act ta;es effect and 6ould ha*e riority o*er the ri%hts of a erson that $eco!es a lien creditor at that ti!e is a erfected security interest under this act if9 6hen this act ta;es effect9 the a lica$le re3uire!ents for enforcea$ility and erfection under this act are satisfied 6ithout further action@ B$C ontinuin$ priorit" over lien creditorA perfection re5uire%ents not satisfied0 #xce t as other6ise ro*ided in Section 9-+0(9 if9 i!!ediately $efore this act ta;es effect9 a security interest is enforcea$le and 6ould ha*e riority o*er the ri%hts of a erson that $eco!es a lien creditor at that ti!e9 $ut the a lica$le re3uire!ents for enforcea$ility or erfection under this act are not satisfied 6hen this act ta;es effect9 the security interest< B1C is a erfected security interest for one B1C year after this act ta;es effect;

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B2C re!ains enforcea$le thereafter only if the security interest $eco!es enforcea$le under Section 9-203 $efore the year ex ires; and B3C re!ains erfected thereafter only if the a lica$le re3uire!ents for erfection under this act are satisfied $efore the year ex ires@ 9-+0& S#'/-ITH I5T#-#ST /5P#-2#'T#D "#21-# #22#'TI># DAT# A security interest that is enforcea$le i!!ediately $efore this act ta;es effect $ut 6hich 6ould $e su$ordinate to the ri%hts of a erson that $eco!es a lien creditor at that ti!e< B1C re!ains an enforcea$le security interest for one B1C year after this act ta;es effect; B2C re!ains enforcea$le thereafter if the security interest $eco!es enforcea$le under Section 9-203 6hen this act ta;es effect or 6ithin one B1C year thereafter; and B3C $eco!es erfected< BAC 6ithout further action9 6hen this act ta;es effect if the a erfection under this act are satisfied $efore or at that ti!e; or lica$le re3uire!ents for

B"C 6hen the a lica$le re3uire!ents for erfection are satisfied if the re3uire!ents are satisfied after that ti!e@ 9-+0( #22#'TI>#5#SS 12 A'TI15 TAL#5 "#21-# #22#'TI># DAT# 12 A'T BaC Pre-effective-date action& one-"ear perfection period unless reperfected0 If action9 other than the filin% of a financin% state!ent9 is ta;en $efore this act ta;es effect and the action 6ould ha*e resulted in riority of a security interest o*er the ri%hts of a erson that $eco!es a lien creditor had the security interest $eco!e enforcea$le $efore this act ta;es effect9 the action is effecti*e to erfect a security interest that attaches under this act 6ithin one B1C year after this act ta;es effect@ An attached security interest $eco!es un erfected one B1C year after this act ta;es effect unless the security interest $eco!es a erfected security interest under this act $efore the ex iration of that eriod@ B$C Pre-effective-date filin$0 The filin% of a financin% state!ent $efore this act ta;es effect is effecti*e to erfect a security interest to the extent the filin% 6ould satisfy the a lica$le re3uire!ents for erfection under this act@ BcC Pre-effective-date filin$ in @urisdiction for%erl" $overnin$ perfection0 This act does not render ineffecti*e an effecti*e financin% state!ent that9 $efore this act ta;es effect9 is filed and satisfies the a lica$le re3uire!ents for erfection under the la6 of the 8urisdiction %o*ernin% erfection as ro*ided in Jfor!er Section 9-103K@ 4o6e*er9 exce t as other6ise ro*ided in su$sections BdC and BeC of this section and Section 9-+0)9 the financin% state!ent ceases to $e effecti*e at the earlier of<

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B1C the ti!e the financin% state!ent 6ould ha*e ceased to $e effecti*e under the la6 of the 8urisdiction in 6hich it is filed; or B2C =une 309 200)@ BdC ontinuation state%ent0 The filin% of a continuation state!ent after this act ta;es effect does not continue the effecti*eness of the financin% state!ent filed $efore this act ta;es effect@ 4o6e*er9 u on the ti!ely filin% of a continuation state!ent after this act ta;es effect and in accordance 6ith the la6 of the 8urisdiction %o*ernin% erfection as ro*ided in Part 3 of this article9 the effecti*eness of a financin% state!ent filed in the sa!e office in that 8urisdiction $efore this act ta;es effect continues for the eriod ro*ided $y the la6 of that 8urisdiction@ BeC Application of subsection CcDC!D to trans%ittin$ utilit" financin$ state%ent0 Para%ra h B2C of su$section BcC of this section a lies to a financin% state!ent that9 $efore this act ta;es effect9 is filed a%ainst a trans!ittin% utility and satisfies the a lica$le re3uire!ents for erfection under the la6 of the 8urisdiction %o*ernin% erfection as ro*ided in for!er Section 9-103@1 only to the extent that Part 3 of this article ro*ides that the la6 of a 8urisdiction other than the 8urisdiction in 6hich the financin% state!ent is filed %o*erns erfection of a security interest in collateral co*ered $y the financin% state!ent@ BfC Application of Part -0 A financin% state!ent that includes a financin% state!ent filed $efore this act ta;es effect and a continuation state!ent filed after this act ta;es effect is effecti*e only to the extent that it satisfies the re3uire!ents of Part ( of this article for an initial financin% state!ent@ 9-+0) 74#5 I5ITIA, 2I5A5'I50 STAT#M#5T S/22I'#S T1 '15TI5/# #22#'TI>5#SS 12 2I5A5'I50 STAT#M#5T BaC 'nitial financin$ state%ent in lieu of continuation state%ent0 The filin% of an initial financin% state!ent in the office s ecified in Section 9-(01 continues the effecti*eness of a financin% state!ent filed $efore this act ta;es effect if< B1C the filin% of an initial financin% state!ent in that office 6ould $e effecti*e to erfect a security interest under this act; B2C the re-effecti*e-date financin% state!ent 6as filed in an office in another state or another office in this state; and B3C the initial financin% state!ent satisfies su$section BcC of this section@ B$C Period of continued effectiveness0 The filin% of an initial financin% state!ent under su$section BaC of this section continues the effecti*eness of the re-effecti*e-date financin% state!ent< B1C if the initial financin% state!ent is filed $efore this act ta;es effect9 for the eriod ro*ided in for!er Section 9-&03 6ith res ect to a financin% state!ent; and

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B2C if the initial financin% state!ent is filed after this act ta;es effect9 for the eriod ro*ided in Section 9-(1( 6ith res ect to an initial financin% state!ent@ BcC Re5uire%ents for initial financin$ state%ent under subsection CaD0 To $e effecti*e for ur oses of su$section BaC of this section9 an initial financin% state!ent !ust< B1C satisfy the re3uire!ents of Part ( of this article for an initial financin% state!ent; B 2C identify the re-effecti*e-date financin% state!ent $y indicatin% the office in 6hich the financin% state!ent 6as filed and ro*idin% the dates of filin% and file nu!$ers9 if any9 of the financin% state!ent and of the !ost recent continuation state!ent filed 6ith res ect to the financin% state!ent; and B3C indicate that the re-effecti*e-date financin% state!ent re!ains effecti*e@ 9-+0+ P#-S15S #5TIT,#D T1 2I,# I5ITIA, 2I5A5'I50 STAT#M#5T BaC BPre-effectivde-date financin$ state%ent0B In this section9 D re-effecti*e-date financin% state!entD !eans a financin% state!ent filed $efore this act ta;es effect@ B$C Applicable law0 After this act ta;es effect9 a erson !ay add or delete collateral co*ered $y9 continue or ter!inate the effecti*eness of9 or other6ise a!end the infor!ation ro*ided in9 a re-effecti*e-date financin% state!ent only in accordance 6ith the la6 of the 8urisdiction %o*ernin% erfection as ro*ided in Part 3 of this article@ 4o6e*er9 the effecti*eness of a re-effecti*e-date financin% state!ent also !ay $e ter!inated in accordance 6ith the la6 of the 8urisdiction in 6hich the financin% state!ent is filed@ BcC 9ethod of a%endin$A $eneral rule0 #xce t as other6ise ro*ided in su$section BdC of this section9 if the la6 of this state %o*erns erfection of a security interest9 the infor!ation in a re-effecti*e-date financin% state!ent !ay $e a!ended after this act ta;es effect only if< B1C the re-effecti*e-date financin% state!ent and an a!end!ent are filed in the office s ecified in Section 9-(01; B2C an a!end!ent is filed in the office s ecified in Section 9-(01 concurrently 6ith9 or after the filin% in that office of9 an initial financin% state!ent that satisfies su$section BcC of Section 9-+0); or B3C an initial financin% state!ent that ro*ides the infor!ation as a!ended and satisfies su$section BcC of Section 9-+0) is filed in the office s ecified in Section 9-(01@ BdC 9ethod of a%endin$A continuation0 If the la6 of this state %o*erns erfection of a security interest9 the effecti*eness of a re-effecti*e-date financin% state!ent !ay $e contoured only under su$sections BdC and BfC of Section 9-+0( or Section 9-+0)@ BeC 9ethod of a%endin$A additional ter%ination rule0 7hether or not the la6 of this state %o*erns erfection of a security interest9 the effecti*eness of a re-effecti*e-date financin% state!ent filed in this state !ay $e ter!inated after this act ta;es effect $y filin% a ter!ination state!ent in the office in 6hich the re-effecti*e-date financin% state!ent is

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filed9 unless an initial financin% state!ent that satisfies su$section BcC of Section 9-+0) has $een filed in the office s ecified $y the la6 of the 8urisdiction %o*ernin% erfection as ro*ided in Part 3 of this article as the office in 6hich to file a financin% state!ent@ 9-+0. P#-S15S #5TIT,#D T1 2I,# I5ITIA, 2I5A5'I50 STAT#M#5T 1- '15TI5/ATI15 STAT#M#5T A erson !ay file an initial financin% state!ent or a continuation state!ent under this art if< B1C the secured arty of record authoriEes the filin%; and B2C the filin% is necessary under this art< BAC to continue the effecti*eness of a financin% state!ent filed $efore this act ta;es effect; or B"C to erfect or continue the erfection of a security interest@ 9-+09 P-I1-ITH BaC )aw $overnin$ priorit"0 This act deter!ines the riority of conflictin% clai!s to collateral@ 4o6e*er9 if the relati*e riorities of the clai!s 6ere esta$lished $efore this act ta;es effect9 for!er Article 9 deter!ines riority@ B$C Priorit" if securit" interest beco%es enforceable under Section 9-!<(0 2or ur oses of su$section BaC of Section 9-3229 the riority of a security interest that $eco!es enforcea$le under Section 9-203 dates fro! the ti!e this act ta;es effect if the security interest is erfected under this act $y the filin% of a financin% state!ent $efore this act ta;es effect 6hich 6ould not ha*e $een effecti*e to erfect the security interest under for!er Article 9@ This su$section does not a ly to conflictin% security interests each of 6hich is erfected $y the filin% of such a financin% state!ent@

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