PART 2. 
EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT



OF
SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT



 



Subpart 1. 
Effectiveness and Attachment



 



§490:9-201  General effectiveness of
security agreement.  (a)  Except as otherwise provided in this chapter, a
security agreement is effective according to its terms between the parties,
against purchasers of the collateral, and against creditors.



(b)  A transaction subject to this article is
subject to:



(1)  Any applicable rule of law which establishes a
different rule for consumers;



(2)  Any other statute or regulation that regulates
the rates, charges, agreements, and practices for loans, credit sales, or other
extensions of credit; and



(3)  Any consumer-protection statute or regulation.



(c)  In case of conflict between this article
and a rule of law, statute, or regulation described in subsection (b), the rule
of law, statute, or regulation controls.  Failure to comply with a statute or
regulation described in subsection (b) has only the effect the statute or
regulation specifies.



(d)  This article does not:



(1)  Validate any rate, charge, agreement, or practice
that violates a rule of law, statute, or regulation described in subsection
(b); or



(2)  Extend the application of the rule of law, statute,
or regulation to a transaction not otherwise subject to it. [L 2000, c 241, pt
of §1]