§ 6A-9-102 Definitions. – (a) Chapter 9 definitions. In this chapter:
(1) "Accession" means goods that are physically united withother goods in such a manner that the identity of the original goods is notlost.
(2) "Account", except as used in "account for", means a rightto payment of a monetary obligation, whether or not earned by performance, (i)for property that has been or is to be sold, leased, licensed, assigned, orotherwise disposed of, (ii) for services rendered or to be rendered, (iii) fora policy of insurance issued or to be issued, (iv) for a secondary obligationincurred or to be incurred, (v) for energy provided or to be provided, (vi) forthe use or hire of a vessel under a charter or other contract, (vii) arisingout of the use of a credit or charge card or information contained on or foruse with the card, or (viii) as winnings in a lottery or other game of chanceoperated or sponsored by a State, governmental unit of a State, or personlicensed or authorized to operate the game by a State or governmental unit of aState. The term includes health-care-insurance receivables. The term does notinclude (i) rights to payment evidenced by chattel paper or an instrument, (ii)commercial tort claims, (iii) deposit accounts, (iv) investment property, (v)letter-of-credit rights or letters of credit, or (vi) rights to payment formoney or funds advanced or sold, other than rights arising out of the use of acredit or charge card or information contained on or for use with the card.
(3) "Account debtor" means a person obligated on an account,chattel paper, or general intangible. The term does not include personsobligated to pay a negotiable instrument, even if the instrument constitutespart of chattel paper.
(4) "Accounting", except as used in "accounting for", means arecord:
(i) Authenticated by a secured party;
(ii) Indicating the aggregate unpaid secured obligations asof a date not more than 35 days earlier or 35 days later than the date of therecord; and
(iii) Identifying the components of the obligations inreasonable detail.
(5) "Agricultural lien" means an interest in farm products:
(i) Which secures payment or performance of an obligation for:
(A) Goods or services furnished in connection with a debtor'sfarming operation; or
(B) Rent on real property leased by a debtor in connectionwith its farming operation;
(ii) Which is created by statute in favor of a person that:
(A) In the ordinary course of its business furnished goods orservices to a debtor in connection with a debtor's farming operation; or
(B) Leased real property to a debtor in connection with thedebtor's farming operation; and
(iii) Whose effectiveness does not depend on the person'spossession of the personal property.
(6) "As-extracted collateral" means:
(i) Oil, gas, or other minerals that are subject to asecurity interest that:
(A) Is created by a debtor having an interest in the mineralsbefore extraction; and
(B) Attaches to the minerals as extracted; or
(ii) Accounts arising out of the sale at the wellhead orminehead of oil, gas, or other minerals in which the debtor had an interestbefore extraction.
(7) "Authenticate" means:
(i) To sign; or
(ii) To execute or otherwise adopt a symbol, or encrypt orsimilarly process a record in whole or in part, with the present intent of theauthenticating person to identify the person and adopt or accept a record.
(8) "Bank" means an organization that is engaged in thebusiness of banking. The term includes savings banks, savings and loanassociations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money, checks,deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title withrespect to which a statute provides for the security interest in question to beindicated on the certificate as a condition or result of the securityinterest's obtaining priority over the rights of a lien creditor with respectto the collateral.
(11) "Chattel paper" means a record or records that evidenceboth a monetary obligation and a security interest in specific goods, asecurity interest in specific goods and software used in the goods, a securityinterest in specific goods and license of software used in the goods, a leaseof specific goods, or a lease of specific goods and license of software used inthe goods. In this paragraph, "monetary obligation" means a monetary obligationsecured by the goods or owed under a lease of the goods and includes a monetaryobligation with respect to software used in the goods. The term does notinclude (i) charters or other contracts involving the use or hire of a vesselor (ii) records that evidence a right to payment arising out of the use of acredit or charge card or information contained on or for use with the card. Ifa transaction is evidenced by records that include an instrument or series ofinstruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a securityinterest or agricultural lien. The term includes:
(i) Proceeds to which a security interest attaches;
(ii) Accounts, chattel paper, payment intangibles, andpromissory notes that have been sold; and
(iii) Goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tortwith respect to which:
(i) The claimant is an organization; or
(ii) The claimant is an individual and the claim:
(A) Arose in the course of the claimant's business orprofession; and
(B) Does not include damages arising out of personal injuryto or the death of an individual.
(14) "Commodity account" means an account maintained by acommodity intermediary in which a commodity contract is carried for a commoditycustomer.
(15) "Commodity contract" means a commodity futures contract,an option on a commodity futures contract, a commodity option, or anothercontract if the contract or option is:
(i) Traded on or subject to the rules of a board of tradethat has been designated as a contract market for such a contract pursuant tofederal commodities laws; or
(ii) Traded on a foreign commodity board of trade, exchange,or market, and is carried on the books of a commodity intermediary for acommodity customer.
(16) "Commodity customer" means a person for which acommodity intermediary carries a commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(i) Is registered as a futures commission merchant underfederal commodities law; or
(ii) In the ordinary course of its business providesclearance or settlement services for a board of trade that has been designatedas a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(i) To send a written or other tangible record;
(ii) To transmit a record by any means agreed upon by thepersons sending and receiving the record; or
(iii) In the case of transmission of a record to or by afiling office, to transmit a record by any means prescribed by filing-officerule.
(19) "Consignee" means a merchant to which goods aredelivered in a consignment.
(20) "Consignment" means a transaction, regardless of itsform, in which a person delivers goods to a merchant for the purpose of saleand:
(i) The merchant:
(A) Deals in goods of that kind under a name other than thename of the person making delivery;
(B) Is not an auctioneer; and
(C) Is not generally known by its creditors to besubstantially engaged in selling the goods of others;
(ii) With respect to each delivery, the aggregate value ofthe goods is $1,000 or more at the time of delivery;
(iii) The goods are not consumer goods immediately beforedelivery; and
(iv) The transaction does not create a security interest thatsecures an obligation.
(21) "Consignor" means a person that delivers goods to aconsignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumertransaction.
(23) "Consumer goods" means goods that are used or bought foruse primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumertransaction in which:
(i) An individual incurs an obligation primarily forpersonal, family, or household purposes; and
(ii) A security interest in consumer goods secures theobligation.
(25) "Consumer obligor" means an obligor who is an individualand who incurred the obligation as part of a transaction entered into primarilyfor personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in which (i)an individual incurs an obligation primarily for personal, family, or householdpurposes, (ii) a security interest secures the obligation, and (iii) thecollateral is held or acquired primarily for personal, family, or householdpurposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates that it is a continuation statement for, orthat it is filed to continue the effectiveness of, the identified financingstatement.
(28) "Debtor" means:
(i) A person having an interest, other than a securityinterest or other lien, in the collateral, whether or not the person is anobligor;
(ii) A seller of accounts, chattel paper, paymentintangibles, or promissory notes; or
(iii) A consignee.
(29) "Deposit account" means a demand, time, savings,passbook, or similar account maintained with a bank. The term does not includeinvestment property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a receipt of thetype described in subsection 6A-7-201(b).
(31) "Electronic chattel paper" means chattel paper evidencedby a record or records consisting of information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an ownershipinterest, in real property. The term includes mortgages and other liens on realproperty.
(33) "Equipment" means goods other than inventory, farmproducts, or consumer goods.
(34) "Farm products" means goods, other than standing timber,with respect to which the debtor is engaged in a farming operation and whichare:
(i) Crops grown, growing, or to be grown, including:
(A) Crops produced on trees, vines, and bushes; and
(B) Aquatic goods, including seaweeds, produced inaquacultural operations;
(ii) Livestock, born or unborn, including fish, shellfish andother aquatic goods produced in aquacultural operations;
(iii) Supplies used or produced in a farming operation; or
(iv) Products of crops or livestock in their unmanufacturedstates.
(35) "Farming operation" means raising, cultivating,propagating, fattening, grazing, or any other farming, livestock, oraquacultural operation.
(36) "File number" means the number assigned to an initialfinancing statement pursuant to § 6A-9-519(a).
(37) "Filing office" means an office designated in §6A-9-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to§ 6A-9-526.
(39) "Financing statement" means a record or records composedof an initial financing statement and any filed record relating to the initialfinancing statement.
(40) "Fixture filing" means the filing of a financingstatement covering goods that are or are to become fixtures and satisfying§ 6A-9-502(a) and (b). The term includes the filing of a financingstatement covering goods of a transmitting utility which are or are to becomefixtures.
(41) "Fixtures" means goods that have become so related toparticular real property that an interest in them arises under real propertylaw.
(42) "General intangible" means any personal property,including things in action, other than accounts, chattel paper, commercial tortclaims, deposit accounts, documents, goods, instruments, investment property,letter-of-credit rights, letters of credit, money, and oil, gas, or otherminerals before extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance ofreasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when asecurity interest attaches. The term includes (i) fixtures, (ii) standingtimber that is to be cut and removed under a conveyance or contract for sale,(iii) the unborn young of animals, (iv) crops grown, growing, or to be grown,even if the crops are produced on trees, vines, or bushes, and (v) manufacturedhomes. The term also includes a computer program embedded in goods and anysupporting information provided in connection with a transaction relating tothe program if (i) the program is associated with the goods in such a mannerthat it customarily is considered part of the goods, or (ii) by becoming theowner of the goods, a person acquires a right to use the program in connectionwith the goods. The term does not include a computer program embedded in goodsthat consist solely of the medium in which the program is embedded. The termalso does not include accounts, chattel paper, commercial tort claims, depositaccounts, documents, general intangibles, instruments, investment property,letter-of-credit rights, letters of credit, money, or oil, gas, or otherminerals before extraction.
(45) "Governmental unit" means a subdivision, agency,department, county, parish, municipality, or other unit of the government ofthe United States, a State, or a foreign country. The term includes anorganization having a separate corporate existence if the organization iseligible to issue debt on which interest is exempt from income taxation underthe laws of the United States.
(46) "Health-care-insurance receivable" means an interest inor claim under a policy of insurance which is a right to payment of a monetaryobligation for health-care goods or services provided or to be provided.
(47) "Instrument" means a negotiable instrument or any otherwriting that evidences a right to the payment of a monetary obligation, is notitself a security agreement or lease, and is of a type that in ordinary courseof business is transferred by delivery with any necessary indorsement orassignment. The term does not include (i) investment property, (ii) letters ofcredit, or (iii) writings that evidence a right to payment arising out of theuse of a credit or charge card or information contained on or for use with thecard.
(48) "Inventory" means goods, other than farm products, which:
(i) Are leased by a person as lessor;
(ii) Are held by a person for sale or lease or to befurnished under a contract of service;
(iii) Are furnished by a person under a contract of service;or
(iv) Consist of raw materials, work in process, or materialsused or consumed in a business.
(49) "Investment property" means a security, whethercertificated or uncertificated, security entitlement, securities account,commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to aregistered organization, means the jurisdiction under whose law theorganization is organized.
(51) "Letter-of-credit right" means a right to payment orperformance under a letter of credit, whether or not the beneficiary hasdemanded or is at the time entitled to demand payment or performance. The termdoes not include the right of a beneficiary to demand payment or performanceunder a letter of credit.
(52) "Lien creditor" means:
(i) A creditor that has acquired a lien on the propertyinvolved by attachment, levy, or the like;
(ii) An assignee for benefit of creditors from the time ofassignment;
(iii) A trustee in bankruptcy from the date of the filing ofthe petition; or
(iv) A receiver in equity from the time of appointment.
(53) "Manufactured home" means a structure, transportable inone or more sections, which, in the traveling mode, is eight body feet or morein width or 40 body feet or more in length, or, when erected on site, is 320 ormore square feet, and which is built on a permanent chassis and designed to beused as a dwelling with or without a permanent foundation when connected to therequired utilities, and includes the plumbing, heating, air-conditioning, andelectrical systems contained therein. The term includes any structure thatmeets all of the requirements of this paragraph except the size requirementsand with respect to which the manufacturer voluntarily files a certificationrequired by the United States Secretary of Housing and Urban Development andcomplies with the standards established under Title 42 of the United StatesCode.
(54) "Manufactured-home transaction" means a securedtransaction:
(i) That creates a purchase-money security interest in amanufactured home, other than a manufactured home held as inventory; or
(ii) In which a manufactured home, other than a manufacturedhome held as inventory, is the primary collateral.
(55) "Mortgage" means a consensual interest in real property,including fixtures, which secures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound as debtorunder § 6A-9-203(d) by a security agreement previously entered into byanother person.
(57) "New value" means (i) money, (ii) money's worth inproperty, services, or new credit, or (iii) release by a transferee of aninterest in property previously transferred to the transferee. The term doesnot include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than cashproceeds.
(59) "Obligor" means a person that, with respect to anobligation secured by a security interest in or an agricultural lien on thecollateral, (i) owes payment or other performance of the obligation, (ii) hasprovided property other than the collateral to secure payment or otherperformance of the obligation, or (iii) is otherwise accountable in whole or inpart for payment or other performance of the obligation. The term does notinclude issuers or nominated persons under a letter of credit.
(60) "Original debtor," except as used in § 6A-9-310(c),means a person that, as debtor, entered into a security agreement to which anew debtor has become bound under § 6A-9-203(d).
(61) "Payment intangible" means a general intangible underwhich the account debtor's principal obligation is a monetary obligation.
(62) "Person related to", with respect to an individual,means:
(i) The spouse of the individual;
(ii) A brother, brother-in-law, sister, or sister-in-law ofthe individual;
(iii) An ancestor or lineal descendant of the individual orthe individual's spouse; or
(iv) Any other relative, by blood or marriage, of theindividual or the individual's spouse who shares the same home with theindividual.
(63) "Person related to", with respect to an organization,means:
(i) A person directly or indirectly controlling, controlledby, or under common control with the organization;
(ii) An officer or director of, or a person performingsimilar functions with respect to, the organization;
(iii) An officer or director of, or a person performingsimilar functions with respect to, a person described in subparagraph (i);
(iv) The spouse of an individual described in subparagraph(i), (ii), or (iii); or
(v) An individual who is related by blood or marriage to anindividual described in subparagraph (i), (ii), (iii), or (iv) and shares thesame home with the individual.
(64) "Proceeds," except as used in § 6A-9-609(b), meansthe following property:
(i) Whatever is acquired upon the sale, lease, license,exchange, or other disposition of collateral;
(ii) Whatever is collected on, or distributed on account of,collateral;
(iii) Rights arising out of collateral;
(iv) To the extent of the value of collateral, claims arisingout of the loss, nonconformity, or interference with the use of, defects orinfringement of rights in, or damage to, the collateral; or
(v) To the extent of the value of collateral and to theextent payable to the debtor or the secured party, insurance payable by reasonof the loss or nonconformity of, defects or infringement of rights in, ordamage to, the collateral.
(65) "Promissory note" means an instrument that evidences apromise to pay a monetary obligation, does not evidence an order to pay, anddoes not contain an acknowledgment by a bank that the bank has received fordeposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a securedparty which includes the terms on which the secured party is willing to acceptcollateral in full or partial satisfaction of the obligation it securespursuant to §§ 6A-9-620, 6A-9-621, and 6A-9-622.
(67) "Public-finance transaction" means a secured transactionin connection with which:
(i) Debt securities are issued;
(ii) All or a portion of the securities issued have aninitial stated maturity of at least 20 years; and
(iii) The debtor, obligor, secured party, account debtor orother person obligated on collateral, assignor or assignee of a securedobligation, or assignor or assignee of a security interest is a State or agovernmental unit of a State.
(68) "Pursuant to commitment", with respect to an advancemade or other value given by a secured party, means pursuant to the securedparty's obligation, whether or not a subsequent event of default or other eventnot within the secured party's control has relieved or may relieve the securedparty from its obligation.
(69) "Record", except as used in "for record", "of record","record or legal title", and "record owner", means information that isinscribed on a tangible medium or which is stored in an electronic or othermedium and is retrievable in perceivable form.
(70) "Registered organization" means an organizationorganized solely under the law of a single State or the United States and as towhich the State or the United States must maintain a public record showing theorganization to have been organized.
(71) "Secondary obligor" means an obligor to the extent that:
(i) The obligor's obligation is secondary; or
(ii) The obligor has a right of recourse with respect to anobligation secured by collateral against the debtor, another obligor, orproperty of either.
(72) "Secured party" means:
(i) A person in whose favor a security interest is created orprovided for under a security agreement, whether or not any obligation to besecured is outstanding;
(ii) A person that holds an agricultural lien;
(iii) A consignor;
(iv) A person to which accounts, chattel paper, paymentintangibles, or promissory notes have been sold;
(v) A trustee, indenture trustee, agent, collateral agent, orother representative in whose favor a security interest or agricultural lien iscreated or provided for; or
(vi) A person that holds a security interest arising under§ 6A-2-401, 6A-2-505, 6A-2-711(3), 6A-2.1-508(5), 6A-4-210, or 6A-5-118.
(73) "Security agreement" means an agreement that creates orprovides for a security interest.
(74) "Send", in connection with a record or notification,means:
(i) To deposit in the mail, deliver for transmission, ortransmit by any other usual means of communication, with postage or cost oftransmission provided for, addressed to any address reasonable under thecircumstances; or
(ii) To cause the record or notification to be receivedwithin the time that it would have been received if properly sent undersubparagraph (i).
(75) "Software" means a computer program and any supportinginformation provided in connection with a transaction relating to the program.The term does not include a computer program that is included in the definitionof goods.
(76) "State" means a State of the United States, the Districtof Columbia, Puerto Rico, the United States Virgin Islands, or any territory orinsular possession subject to the jurisdiction of the United States.
(77) "Supporting obligation" means a letter-of-credit rightor secondary obligation that supports the payment or performance of an account,chattel paper, a document, a general intangible, an instrument, or investmentproperty.
(78) "Tangible chattel paper" means chattel paper evidencedby a record or records consisting of information that is inscribed on atangible medium.
(79) "Termination statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates either that it is a termination statement orthat the identified financing statement is no longer effective.
(80) "Transmitting utility" means a person primarily engagedin the business of:
(i) Operating a railroad, subway, street railway, or trolleybus;
(ii) Transmitting communications electrically,electromagnetically, or by light;
(iii) Transmitting goods by pipeline or sewer; or
(iv) Transmitting or producing and transmitting electricity,steam, gas, or water.
(b) Definitions in other chapters. "Control" asprovided in § 6A-7-206 and the following definitions in other chaptersapply to this chapter:
"Applicant" § 6A-5-102.
"Beneficiary" § 6A-5-102.
"Broker" § 6A-8-102.
"Certificated security" § 6A-8-102.
"Check" § 6A-3-104.
"Clearing corporation" § 6A-8-102.
"Contract for sale" § 6A-2-106.
"Customer" § 6A-4-104.
"Entitlement holder" § 6A-8-102.
"Financial asset" § 6A-8-102.
"Holder in due course" § 6A-3-302.
"Issuer" (with respect to a letter of
credit or letter-of-credit right) §6A-5-102.
"Issuer" (with respect to a security) §6A-8-201.
"Issuer" (with respect to documents of title) §6A-7-102.
"Lease" § 6A-2.1-103.
"Lease agreement" § 6A-2.1-103.
"Lease contract" § 6A-2.1-103.
"Leasehold interest" § 6A-2.1-103.
"Lessee" § 6A-2.1-103.
"Lessee in ordinary course of business" §6A-2.1-103.
"Lessor" § 6A-2.1-103.
"Lessor's residual interest" §6A-2.1-103.
"Letter of credit" § 6A-5-102.
"Merchant" § 6A-2-104.
"Negotiable instrument" § 6A-3-104.
"Nominated person" § 6A-5-102.
"Note" § 6A-3-104.
"Proceeds of a letter of credit" §6A-5-114.
"Prove" § 6A-3-103.
"Sale" § 6A-2-106.
"Securities account" § 6A-8-501.
"Securities intermediary" § 6A-8-102.
"Security" § 6A-8-102.
"Security certificate" § 6A-8-102.
"Security entitlement" § 6A-8-102.
"Uncertificated security" § 6A-8-102.
(c) Chapter 1 definitions and principles. Chapter 1 ofthis title contains general definitions and principles of construction andinterpretation applicable throughout this chapter.
§ 6A-9-102 Definitions. – (a) Chapter 9 definitions. In this chapter:
(1) "Accession" means goods that are physically united withother goods in such a manner that the identity of the original goods is notlost.
(2) "Account", except as used in "account for", means a rightto payment of a monetary obligation, whether or not earned by performance, (i)for property that has been or is to be sold, leased, licensed, assigned, orotherwise disposed of, (ii) for services rendered or to be rendered, (iii) fora policy of insurance issued or to be issued, (iv) for a secondary obligationincurred or to be incurred, (v) for energy provided or to be provided, (vi) forthe use or hire of a vessel under a charter or other contract, (vii) arisingout of the use of a credit or charge card or information contained on or foruse with the card, or (viii) as winnings in a lottery or other game of chanceoperated or sponsored by a State, governmental unit of a State, or personlicensed or authorized to operate the game by a State or governmental unit of aState. The term includes health-care-insurance receivables. The term does notinclude (i) rights to payment evidenced by chattel paper or an instrument, (ii)commercial tort claims, (iii) deposit accounts, (iv) investment property, (v)letter-of-credit rights or letters of credit, or (vi) rights to payment formoney or funds advanced or sold, other than rights arising out of the use of acredit or charge card or information contained on or for use with the card.
(3) "Account debtor" means a person obligated on an account,chattel paper, or general intangible. The term does not include personsobligated to pay a negotiable instrument, even if the instrument constitutespart of chattel paper.
(4) "Accounting", except as used in "accounting for", means arecord:
(i) Authenticated by a secured party;
(ii) Indicating the aggregate unpaid secured obligations asof a date not more than 35 days earlier or 35 days later than the date of therecord; and
(iii) Identifying the components of the obligations inreasonable detail.
(5) "Agricultural lien" means an interest in farm products:
(i) Which secures payment or performance of an obligation for:
(A) Goods or services furnished in connection with a debtor'sfarming operation; or
(B) Rent on real property leased by a debtor in connectionwith its farming operation;
(ii) Which is created by statute in favor of a person that:
(A) In the ordinary course of its business furnished goods orservices to a debtor in connection with a debtor's farming operation; or
(B) Leased real property to a debtor in connection with thedebtor's farming operation; and
(iii) Whose effectiveness does not depend on the person'spossession of the personal property.
(6) "As-extracted collateral" means:
(i) Oil, gas, or other minerals that are subject to asecurity interest that:
(A) Is created by a debtor having an interest in the mineralsbefore extraction; and
(B) Attaches to the minerals as extracted; or
(ii) Accounts arising out of the sale at the wellhead orminehead of oil, gas, or other minerals in which the debtor had an interestbefore extraction.
(7) "Authenticate" means:
(i) To sign; or
(ii) To execute or otherwise adopt a symbol, or encrypt orsimilarly process a record in whole or in part, with the present intent of theauthenticating person to identify the person and adopt or accept a record.
(8) "Bank" means an organization that is engaged in thebusiness of banking. The term includes savings banks, savings and loanassociations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money, checks,deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title withrespect to which a statute provides for the security interest in question to beindicated on the certificate as a condition or result of the securityinterest's obtaining priority over the rights of a lien creditor with respectto the collateral.
(11) "Chattel paper" means a record or records that evidenceboth a monetary obligation and a security interest in specific goods, asecurity interest in specific goods and software used in the goods, a securityinterest in specific goods and license of software used in the goods, a leaseof specific goods, or a lease of specific goods and license of software used inthe goods. In this paragraph, "monetary obligation" means a monetary obligationsecured by the goods or owed under a lease of the goods and includes a monetaryobligation with respect to software used in the goods. The term does notinclude (i) charters or other contracts involving the use or hire of a vesselor (ii) records that evidence a right to payment arising out of the use of acredit or charge card or information contained on or for use with the card. Ifa transaction is evidenced by records that include an instrument or series ofinstruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a securityinterest or agricultural lien. The term includes:
(i) Proceeds to which a security interest attaches;
(ii) Accounts, chattel paper, payment intangibles, andpromissory notes that have been sold; and
(iii) Goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tortwith respect to which:
(i) The claimant is an organization; or
(ii) The claimant is an individual and the claim:
(A) Arose in the course of the claimant's business orprofession; and
(B) Does not include damages arising out of personal injuryto or the death of an individual.
(14) "Commodity account" means an account maintained by acommodity intermediary in which a commodity contract is carried for a commoditycustomer.
(15) "Commodity contract" means a commodity futures contract,an option on a commodity futures contract, a commodity option, or anothercontract if the contract or option is:
(i) Traded on or subject to the rules of a board of tradethat has been designated as a contract market for such a contract pursuant tofederal commodities laws; or
(ii) Traded on a foreign commodity board of trade, exchange,or market, and is carried on the books of a commodity intermediary for acommodity customer.
(16) "Commodity customer" means a person for which acommodity intermediary carries a commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(i) Is registered as a futures commission merchant underfederal commodities law; or
(ii) In the ordinary course of its business providesclearance or settlement services for a board of trade that has been designatedas a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(i) To send a written or other tangible record;
(ii) To transmit a record by any means agreed upon by thepersons sending and receiving the record; or
(iii) In the case of transmission of a record to or by afiling office, to transmit a record by any means prescribed by filing-officerule.
(19) "Consignee" means a merchant to which goods aredelivered in a consignment.
(20) "Consignment" means a transaction, regardless of itsform, in which a person delivers goods to a merchant for the purpose of saleand:
(i) The merchant:
(A) Deals in goods of that kind under a name other than thename of the person making delivery;
(B) Is not an auctioneer; and
(C) Is not generally known by its creditors to besubstantially engaged in selling the goods of others;
(ii) With respect to each delivery, the aggregate value ofthe goods is $1,000 or more at the time of delivery;
(iii) The goods are not consumer goods immediately beforedelivery; and
(iv) The transaction does not create a security interest thatsecures an obligation.
(21) "Consignor" means a person that delivers goods to aconsignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumertransaction.
(23) "Consumer goods" means goods that are used or bought foruse primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumertransaction in which:
(i) An individual incurs an obligation primarily forpersonal, family, or household purposes; and
(ii) A security interest in consumer goods secures theobligation.
(25) "Consumer obligor" means an obligor who is an individualand who incurred the obligation as part of a transaction entered into primarilyfor personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in which (i)an individual incurs an obligation primarily for personal, family, or householdpurposes, (ii) a security interest secures the obligation, and (iii) thecollateral is held or acquired primarily for personal, family, or householdpurposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates that it is a continuation statement for, orthat it is filed to continue the effectiveness of, the identified financingstatement.
(28) "Debtor" means:
(i) A person having an interest, other than a securityinterest or other lien, in the collateral, whether or not the person is anobligor;
(ii) A seller of accounts, chattel paper, paymentintangibles, or promissory notes; or
(iii) A consignee.
(29) "Deposit account" means a demand, time, savings,passbook, or similar account maintained with a bank. The term does not includeinvestment property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a receipt of thetype described in subsection 6A-7-201(b).
(31) "Electronic chattel paper" means chattel paper evidencedby a record or records consisting of information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an ownershipinterest, in real property. The term includes mortgages and other liens on realproperty.
(33) "Equipment" means goods other than inventory, farmproducts, or consumer goods.
(34) "Farm products" means goods, other than standing timber,with respect to which the debtor is engaged in a farming operation and whichare:
(i) Crops grown, growing, or to be grown, including:
(A) Crops produced on trees, vines, and bushes; and
(B) Aquatic goods, including seaweeds, produced inaquacultural operations;
(ii) Livestock, born or unborn, including fish, shellfish andother aquatic goods produced in aquacultural operations;
(iii) Supplies used or produced in a farming operation; or
(iv) Products of crops or livestock in their unmanufacturedstates.
(35) "Farming operation" means raising, cultivating,propagating, fattening, grazing, or any other farming, livestock, oraquacultural operation.
(36) "File number" means the number assigned to an initialfinancing statement pursuant to § 6A-9-519(a).
(37) "Filing office" means an office designated in §6A-9-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to§ 6A-9-526.
(39) "Financing statement" means a record or records composedof an initial financing statement and any filed record relating to the initialfinancing statement.
(40) "Fixture filing" means the filing of a financingstatement covering goods that are or are to become fixtures and satisfying§ 6A-9-502(a) and (b). The term includes the filing of a financingstatement covering goods of a transmitting utility which are or are to becomefixtures.
(41) "Fixtures" means goods that have become so related toparticular real property that an interest in them arises under real propertylaw.
(42) "General intangible" means any personal property,including things in action, other than accounts, chattel paper, commercial tortclaims, deposit accounts, documents, goods, instruments, investment property,letter-of-credit rights, letters of credit, money, and oil, gas, or otherminerals before extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance ofreasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when asecurity interest attaches. The term includes (i) fixtures, (ii) standingtimber that is to be cut and removed under a conveyance or contract for sale,(iii) the unborn young of animals, (iv) crops grown, growing, or to be grown,even if the crops are produced on trees, vines, or bushes, and (v) manufacturedhomes. The term also includes a computer program embedded in goods and anysupporting information provided in connection with a transaction relating tothe program if (i) the program is associated with the goods in such a mannerthat it customarily is considered part of the goods, or (ii) by becoming theowner of the goods, a person acquires a right to use the program in connectionwith the goods. The term does not include a computer program embedded in goodsthat consist solely of the medium in which the program is embedded. The termalso does not include accounts, chattel paper, commercial tort claims, depositaccounts, documents, general intangibles, instruments, investment property,letter-of-credit rights, letters of credit, money, or oil, gas, or otherminerals before extraction.
(45) "Governmental unit" means a subdivision, agency,department, county, parish, municipality, or other unit of the government ofthe United States, a State, or a foreign country. The term includes anorganization having a separate corporate existence if the organization iseligible to issue debt on which interest is exempt from income taxation underthe laws of the United States.
(46) "Health-care-insurance receivable" means an interest inor claim under a policy of insurance which is a right to payment of a monetaryobligation for health-care goods or services provided or to be provided.
(47) "Instrument" means a negotiable instrument or any otherwriting that evidences a right to the payment of a monetary obligation, is notitself a security agreement or lease, and is of a type that in ordinary courseof business is transferred by delivery with any necessary indorsement orassignment. The term does not include (i) investment property, (ii) letters ofcredit, or (iii) writings that evidence a right to payment arising out of theuse of a credit or charge card or information contained on or for use with thecard.
(48) "Inventory" means goods, other than farm products, which:
(i) Are leased by a person as lessor;
(ii) Are held by a person for sale or lease or to befurnished under a contract of service;
(iii) Are furnished by a person under a contract of service;or
(iv) Consist of raw materials, work in process, or materialsused or consumed in a business.
(49) "Investment property" means a security, whethercertificated or uncertificated, security entitlement, securities account,commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to aregistered organization, means the jurisdiction under whose law theorganization is organized.
(51) "Letter-of-credit right" means a right to payment orperformance under a letter of credit, whether or not the beneficiary hasdemanded or is at the time entitled to demand payment or performance. The termdoes not include the right of a beneficiary to demand payment or performanceunder a letter of credit.
(52) "Lien creditor" means:
(i) A creditor that has acquired a lien on the propertyinvolved by attachment, levy, or the like;
(ii) An assignee for benefit of creditors from the time ofassignment;
(iii) A trustee in bankruptcy from the date of the filing ofthe petition; or
(iv) A receiver in equity from the time of appointment.
(53) "Manufactured home" means a structure, transportable inone or more sections, which, in the traveling mode, is eight body feet or morein width or 40 body feet or more in length, or, when erected on site, is 320 ormore square feet, and which is built on a permanent chassis and designed to beused as a dwelling with or without a permanent foundation when connected to therequired utilities, and includes the plumbing, heating, air-conditioning, andelectrical systems contained therein. The term includes any structure thatmeets all of the requirements of this paragraph except the size requirementsand with respect to which the manufacturer voluntarily files a certificationrequired by the United States Secretary of Housing and Urban Development andcomplies with the standards established under Title 42 of the United StatesCode.
(54) "Manufactured-home transaction" means a securedtransaction:
(i) That creates a purchase-money security interest in amanufactured home, other than a manufactured home held as inventory; or
(ii) In which a manufactured home, other than a manufacturedhome held as inventory, is the primary collateral.
(55) "Mortgage" means a consensual interest in real property,including fixtures, which secures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound as debtorunder § 6A-9-203(d) by a security agreement previously entered into byanother person.
(57) "New value" means (i) money, (ii) money's worth inproperty, services, or new credit, or (iii) release by a transferee of aninterest in property previously transferred to the transferee. The term doesnot include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than cashproceeds.
(59) "Obligor" means a person that, with respect to anobligation secured by a security interest in or an agricultural lien on thecollateral, (i) owes payment or other performance of the obligation, (ii) hasprovided property other than the collateral to secure payment or otherperformance of the obligation, or (iii) is otherwise accountable in whole or inpart for payment or other performance of the obligation. The term does notinclude issuers or nominated persons under a letter of credit.
(60) "Original debtor," except as used in § 6A-9-310(c),means a person that, as debtor, entered into a security agreement to which anew debtor has become bound under § 6A-9-203(d).
(61) "Payment intangible" means a general intangible underwhich the account debtor's principal obligation is a monetary obligation.
(62) "Person related to", with respect to an individual,means:
(i) The spouse of the individual;
(ii) A brother, brother-in-law, sister, or sister-in-law ofthe individual;
(iii) An ancestor or lineal descendant of the individual orthe individual's spouse; or
(iv) Any other relative, by blood or marriage, of theindividual or the individual's spouse who shares the same home with theindividual.
(63) "Person related to", with respect to an organization,means:
(i) A person directly or indirectly controlling, controlledby, or under common control with the organization;
(ii) An officer or director of, or a person performingsimilar functions with respect to, the organization;
(iii) An officer or director of, or a person performingsimilar functions with respect to, a person described in subparagraph (i);
(iv) The spouse of an individual described in subparagraph(i), (ii), or (iii); or
(v) An individual who is related by blood or marriage to anindividual described in subparagraph (i), (ii), (iii), or (iv) and shares thesame home with the individual.
(64) "Proceeds," except as used in § 6A-9-609(b), meansthe following property:
(i) Whatever is acquired upon the sale, lease, license,exchange, or other disposition of collateral;
(ii) Whatever is collected on, or distributed on account of,collateral;
(iii) Rights arising out of collateral;
(iv) To the extent of the value of collateral, claims arisingout of the loss, nonconformity, or interference with the use of, defects orinfringement of rights in, or damage to, the collateral; or
(v) To the extent of the value of collateral and to theextent payable to the debtor or the secured party, insurance payable by reasonof the loss or nonconformity of, defects or infringement of rights in, ordamage to, the collateral.
(65) "Promissory note" means an instrument that evidences apromise to pay a monetary obligation, does not evidence an order to pay, anddoes not contain an acknowledgment by a bank that the bank has received fordeposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a securedparty which includes the terms on which the secured party is willing to acceptcollateral in full or partial satisfaction of the obligation it securespursuant to §§ 6A-9-620, 6A-9-621, and 6A-9-622.
(67) "Public-finance transaction" means a secured transactionin connection with which:
(i) Debt securities are issued;
(ii) All or a portion of the securities issued have aninitial stated maturity of at least 20 years; and
(iii) The debtor, obligor, secured party, account debtor orother person obligated on collateral, assignor or assignee of a securedobligation, or assignor or assignee of a security interest is a State or agovernmental unit of a State.
(68) "Pursuant to commitment", with respect to an advancemade or other value given by a secured party, means pursuant to the securedparty's obligation, whether or not a subsequent event of default or other eventnot within the secured party's control has relieved or may relieve the securedparty from its obligation.
(69) "Record", except as used in "for record", "of record","record or legal title", and "record owner", means information that isinscribed on a tangible medium or which is stored in an electronic or othermedium and is retrievable in perceivable form.
(70) "Registered organization" means an organizationorganized solely under the law of a single State or the United States and as towhich the State or the United States must maintain a public record showing theorganization to have been organized.
(71) "Secondary obligor" means an obligor to the extent that:
(i) The obligor's obligation is secondary; or
(ii) The obligor has a right of recourse with respect to anobligation secured by collateral against the debtor, another obligor, orproperty of either.
(72) "Secured party" means:
(i) A person in whose favor a security interest is created orprovided for under a security agreement, whether or not any obligation to besecured is outstanding;
(ii) A person that holds an agricultural lien;
(iii) A consignor;
(iv) A person to which accounts, chattel paper, paymentintangibles, or promissory notes have been sold;
(v) A trustee, indenture trustee, agent, collateral agent, orother representative in whose favor a security interest or agricultural lien iscreated or provided for; or
(vi) A person that holds a security interest arising under§ 6A-2-401, 6A-2-505, 6A-2-711(3), 6A-2.1-508(5), 6A-4-210, or 6A-5-118.
(73) "Security agreement" means an agreement that creates orprovides for a security interest.
(74) "Send", in connection with a record or notification,means:
(i) To deposit in the mail, deliver for transmission, ortransmit by any other usual means of communication, with postage or cost oftransmission provided for, addressed to any address reasonable under thecircumstances; or
(ii) To cause the record or notification to be receivedwithin the time that it would have been received if properly sent undersubparagraph (i).
(75) "Software" means a computer program and any supportinginformation provided in connection with a transaction relating to the program.The term does not include a computer program that is included in the definitionof goods.
(76) "State" means a State of the United States, the Districtof Columbia, Puerto Rico, the United States Virgin Islands, or any territory orinsular possession subject to the jurisdiction of the United States.
(77) "Supporting obligation" means a letter-of-credit rightor secondary obligation that supports the payment or performance of an account,chattel paper, a document, a general intangible, an instrument, or investmentproperty.
(78) "Tangible chattel paper" means chattel paper evidencedby a record or records consisting of information that is inscribed on atangible medium.
(79) "Termination statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates either that it is a termination statement orthat the identified financing statement is no longer effective.
(80) "Transmitting utility" means a person primarily engagedin the business of:
(i) Operating a railroad, subway, street railway, or trolleybus;
(ii) Transmitting communications electrically,electromagnetically, or by light;
(iii) Transmitting goods by pipeline or sewer; or
(iv) Transmitting or producing and transmitting electricity,steam, gas, or water.
(b) Definitions in other chapters. "Control" asprovided in § 6A-7-206 and the following definitions in other chaptersapply to this chapter:
"Applicant" § 6A-5-102.
"Beneficiary" § 6A-5-102.
"Broker" § 6A-8-102.
"Certificated security" § 6A-8-102.
"Check" § 6A-3-104.
"Clearing corporation" § 6A-8-102.
"Contract for sale" § 6A-2-106.
"Customer" § 6A-4-104.
"Entitlement holder" § 6A-8-102.
"Financial asset" § 6A-8-102.
"Holder in due course" § 6A-3-302.
"Issuer" (with respect to a letter of
credit or letter-of-credit right) §6A-5-102.
"Issuer" (with respect to a security) §6A-8-201.
"Issuer" (with respect to documents of title) §6A-7-102.
"Lease" § 6A-2.1-103.
"Lease agreement" § 6A-2.1-103.
"Lease contract" § 6A-2.1-103.
"Leasehold interest" § 6A-2.1-103.
"Lessee" § 6A-2.1-103.
"Lessee in ordinary course of business" §6A-2.1-103.
"Lessor" § 6A-2.1-103.
"Lessor's residual interest" §6A-2.1-103.
"Letter of credit" § 6A-5-102.
"Merchant" § 6A-2-104.
"Negotiable instrument" § 6A-3-104.
"Nominated person" § 6A-5-102.
"Note" § 6A-3-104.
"Proceeds of a letter of credit" §6A-5-114.
"Prove" § 6A-3-103.
"Sale" § 6A-2-106.
"Securities account" § 6A-8-501.
"Securities intermediary" § 6A-8-102.
"Security" § 6A-8-102.
"Security certificate" § 6A-8-102.
"Security entitlement" § 6A-8-102.
"Uncertificated security" § 6A-8-102.
(c) Chapter 1 definitions and principles. Chapter 1 ofthis title contains general definitions and principles of construction andinterpretation applicable throughout this chapter.
§ 6A-9-102 Definitions. – (a) Chapter 9 definitions. In this chapter:
(1) "Accession" means goods that are physically united withother goods in such a manner that the identity of the original goods is notlost.
(2) "Account", except as used in "account for", means a rightto payment of a monetary obligation, whether or not earned by performance, (i)for property that has been or is to be sold, leased, licensed, assigned, orotherwise disposed of, (ii) for services rendered or to be rendered, (iii) fora policy of insurance issued or to be issued, (iv) for a secondary obligationincurred or to be incurred, (v) for energy provided or to be provided, (vi) forthe use or hire of a vessel under a charter or other contract, (vii) arisingout of the use of a credit or charge card or information contained on or foruse with the card, or (viii) as winnings in a lottery or other game of chanceoperated or sponsored by a State, governmental unit of a State, or personlicensed or authorized to operate the game by a State or governmental unit of aState. The term includes health-care-insurance receivables. The term does notinclude (i) rights to payment evidenced by chattel paper or an instrument, (ii)commercial tort claims, (iii) deposit accounts, (iv) investment property, (v)letter-of-credit rights or letters of credit, or (vi) rights to payment formoney or funds advanced or sold, other than rights arising out of the use of acredit or charge card or information contained on or for use with the card.
(3) "Account debtor" means a person obligated on an account,chattel paper, or general intangible. The term does not include personsobligated to pay a negotiable instrument, even if the instrument constitutespart of chattel paper.
(4) "Accounting", except as used in "accounting for", means arecord:
(i) Authenticated by a secured party;
(ii) Indicating the aggregate unpaid secured obligations asof a date not more than 35 days earlier or 35 days later than the date of therecord; and
(iii) Identifying the components of the obligations inreasonable detail.
(5) "Agricultural lien" means an interest in farm products:
(i) Which secures payment or performance of an obligation for:
(A) Goods or services furnished in connection with a debtor'sfarming operation; or
(B) Rent on real property leased by a debtor in connectionwith its farming operation;
(ii) Which is created by statute in favor of a person that:
(A) In the ordinary course of its business furnished goods orservices to a debtor in connection with a debtor's farming operation; or
(B) Leased real property to a debtor in connection with thedebtor's farming operation; and
(iii) Whose effectiveness does not depend on the person'spossession of the personal property.
(6) "As-extracted collateral" means:
(i) Oil, gas, or other minerals that are subject to asecurity interest that:
(A) Is created by a debtor having an interest in the mineralsbefore extraction; and
(B) Attaches to the minerals as extracted; or
(ii) Accounts arising out of the sale at the wellhead orminehead of oil, gas, or other minerals in which the debtor had an interestbefore extraction.
(7) "Authenticate" means:
(i) To sign; or
(ii) To execute or otherwise adopt a symbol, or encrypt orsimilarly process a record in whole or in part, with the present intent of theauthenticating person to identify the person and adopt or accept a record.
(8) "Bank" means an organization that is engaged in thebusiness of banking. The term includes savings banks, savings and loanassociations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money, checks,deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title withrespect to which a statute provides for the security interest in question to beindicated on the certificate as a condition or result of the securityinterest's obtaining priority over the rights of a lien creditor with respectto the collateral.
(11) "Chattel paper" means a record or records that evidenceboth a monetary obligation and a security interest in specific goods, asecurity interest in specific goods and software used in the goods, a securityinterest in specific goods and license of software used in the goods, a leaseof specific goods, or a lease of specific goods and license of software used inthe goods. In this paragraph, "monetary obligation" means a monetary obligationsecured by the goods or owed under a lease of the goods and includes a monetaryobligation with respect to software used in the goods. The term does notinclude (i) charters or other contracts involving the use or hire of a vesselor (ii) records that evidence a right to payment arising out of the use of acredit or charge card or information contained on or for use with the card. Ifa transaction is evidenced by records that include an instrument or series ofinstruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a securityinterest or agricultural lien. The term includes:
(i) Proceeds to which a security interest attaches;
(ii) Accounts, chattel paper, payment intangibles, andpromissory notes that have been sold; and
(iii) Goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tortwith respect to which:
(i) The claimant is an organization; or
(ii) The claimant is an individual and the claim:
(A) Arose in the course of the claimant's business orprofession; and
(B) Does not include damages arising out of personal injuryto or the death of an individual.
(14) "Commodity account" means an account maintained by acommodity intermediary in which a commodity contract is carried for a commoditycustomer.
(15) "Commodity contract" means a commodity futures contract,an option on a commodity futures contract, a commodity option, or anothercontract if the contract or option is:
(i) Traded on or subject to the rules of a board of tradethat has been designated as a contract market for such a contract pursuant tofederal commodities laws; or
(ii) Traded on a foreign commodity board of trade, exchange,or market, and is carried on the books of a commodity intermediary for acommodity customer.
(16) "Commodity customer" means a person for which acommodity intermediary carries a commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(i) Is registered as a futures commission merchant underfederal commodities law; or
(ii) In the ordinary course of its business providesclearance or settlement services for a board of trade that has been designatedas a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(i) To send a written or other tangible record;
(ii) To transmit a record by any means agreed upon by thepersons sending and receiving the record; or
(iii) In the case of transmission of a record to or by afiling office, to transmit a record by any means prescribed by filing-officerule.
(19) "Consignee" means a merchant to which goods aredelivered in a consignment.
(20) "Consignment" means a transaction, regardless of itsform, in which a person delivers goods to a merchant for the purpose of saleand:
(i) The merchant:
(A) Deals in goods of that kind under a name other than thename of the person making delivery;
(B) Is not an auctioneer; and
(C) Is not generally known by its creditors to besubstantially engaged in selling the goods of others;
(ii) With respect to each delivery, the aggregate value ofthe goods is $1,000 or more at the time of delivery;
(iii) The goods are not consumer goods immediately beforedelivery; and
(iv) The transaction does not create a security interest thatsecures an obligation.
(21) "Consignor" means a person that delivers goods to aconsignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumertransaction.
(23) "Consumer goods" means goods that are used or bought foruse primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumertransaction in which:
(i) An individual incurs an obligation primarily forpersonal, family, or household purposes; and
(ii) A security interest in consumer goods secures theobligation.
(25) "Consumer obligor" means an obligor who is an individualand who incurred the obligation as part of a transaction entered into primarilyfor personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in which (i)an individual incurs an obligation primarily for personal, family, or householdpurposes, (ii) a security interest secures the obligation, and (iii) thecollateral is held or acquired primarily for personal, family, or householdpurposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates that it is a continuation statement for, orthat it is filed to continue the effectiveness of, the identified financingstatement.
(28) "Debtor" means:
(i) A person having an interest, other than a securityinterest or other lien, in the collateral, whether or not the person is anobligor;
(ii) A seller of accounts, chattel paper, paymentintangibles, or promissory notes; or
(iii) A consignee.
(29) "Deposit account" means a demand, time, savings,passbook, or similar account maintained with a bank. The term does not includeinvestment property or accounts evidenced by an instrument.
(30) "Document" means a document of title or a receipt of thetype described in subsection 6A-7-201(b).
(31) "Electronic chattel paper" means chattel paper evidencedby a record or records consisting of information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an ownershipinterest, in real property. The term includes mortgages and other liens on realproperty.
(33) "Equipment" means goods other than inventory, farmproducts, or consumer goods.
(34) "Farm products" means goods, other than standing timber,with respect to which the debtor is engaged in a farming operation and whichare:
(i) Crops grown, growing, or to be grown, including:
(A) Crops produced on trees, vines, and bushes; and
(B) Aquatic goods, including seaweeds, produced inaquacultural operations;
(ii) Livestock, born or unborn, including fish, shellfish andother aquatic goods produced in aquacultural operations;
(iii) Supplies used or produced in a farming operation; or
(iv) Products of crops or livestock in their unmanufacturedstates.
(35) "Farming operation" means raising, cultivating,propagating, fattening, grazing, or any other farming, livestock, oraquacultural operation.
(36) "File number" means the number assigned to an initialfinancing statement pursuant to § 6A-9-519(a).
(37) "Filing office" means an office designated in §6A-9-501 as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to§ 6A-9-526.
(39) "Financing statement" means a record or records composedof an initial financing statement and any filed record relating to the initialfinancing statement.
(40) "Fixture filing" means the filing of a financingstatement covering goods that are or are to become fixtures and satisfying§ 6A-9-502(a) and (b). The term includes the filing of a financingstatement covering goods of a transmitting utility which are or are to becomefixtures.
(41) "Fixtures" means goods that have become so related toparticular real property that an interest in them arises under real propertylaw.
(42) "General intangible" means any personal property,including things in action, other than accounts, chattel paper, commercial tortclaims, deposit accounts, documents, goods, instruments, investment property,letter-of-credit rights, letters of credit, money, and oil, gas, or otherminerals before extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance ofreasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when asecurity interest attaches. The term includes (i) fixtures, (ii) standingtimber that is to be cut and removed under a conveyance or contract for sale,(iii) the unborn young of animals, (iv) crops grown, growing, or to be grown,even if the crops are produced on trees, vines, or bushes, and (v) manufacturedhomes. The term also includes a computer program embedded in goods and anysupporting information provided in connection with a transaction relating tothe program if (i) the program is associated with the goods in such a mannerthat it customarily is considered part of the goods, or (ii) by becoming theowner of the goods, a person acquires a right to use the program in connectionwith the goods. The term does not include a computer program embedded in goodsthat consist solely of the medium in which the program is embedded. The termalso does not include accounts, chattel paper, commercial tort claims, depositaccounts, documents, general intangibles, instruments, investment property,letter-of-credit rights, letters of credit, money, or oil, gas, or otherminerals before extraction.
(45) "Governmental unit" means a subdivision, agency,department, county, parish, municipality, or other unit of the government ofthe United States, a State, or a foreign country. The term includes anorganization having a separate corporate existence if the organization iseligible to issue debt on which interest is exempt from income taxation underthe laws of the United States.
(46) "Health-care-insurance receivable" means an interest inor claim under a policy of insurance which is a right to payment of a monetaryobligation for health-care goods or services provided or to be provided.
(47) "Instrument" means a negotiable instrument or any otherwriting that evidences a right to the payment of a monetary obligation, is notitself a security agreement or lease, and is of a type that in ordinary courseof business is transferred by delivery with any necessary indorsement orassignment. The term does not include (i) investment property, (ii) letters ofcredit, or (iii) writings that evidence a right to payment arising out of theuse of a credit or charge card or information contained on or for use with thecard.
(48) "Inventory" means goods, other than farm products, which:
(i) Are leased by a person as lessor;
(ii) Are held by a person for sale or lease or to befurnished under a contract of service;
(iii) Are furnished by a person under a contract of service;or
(iv) Consist of raw materials, work in process, or materialsused or consumed in a business.
(49) "Investment property" means a security, whethercertificated or uncertificated, security entitlement, securities account,commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to aregistered organization, means the jurisdiction under whose law theorganization is organized.
(51) "Letter-of-credit right" means a right to payment orperformance under a letter of credit, whether or not the beneficiary hasdemanded or is at the time entitled to demand payment or performance. The termdoes not include the right of a beneficiary to demand payment or performanceunder a letter of credit.
(52) "Lien creditor" means:
(i) A creditor that has acquired a lien on the propertyinvolved by attachment, levy, or the like;
(ii) An assignee for benefit of creditors from the time ofassignment;
(iii) A trustee in bankruptcy from the date of the filing ofthe petition; or
(iv) A receiver in equity from the time of appointment.
(53) "Manufactured home" means a structure, transportable inone or more sections, which, in the traveling mode, is eight body feet or morein width or 40 body feet or more in length, or, when erected on site, is 320 ormore square feet, and which is built on a permanent chassis and designed to beused as a dwelling with or without a permanent foundation when connected to therequired utilities, and includes the plumbing, heating, air-conditioning, andelectrical systems contained therein. The term includes any structure thatmeets all of the requirements of this paragraph except the size requirementsand with respect to which the manufacturer voluntarily files a certificationrequired by the United States Secretary of Housing and Urban Development andcomplies with the standards established under Title 42 of the United StatesCode.
(54) "Manufactured-home transaction" means a securedtransaction:
(i) That creates a purchase-money security interest in amanufactured home, other than a manufactured home held as inventory; or
(ii) In which a manufactured home, other than a manufacturedhome held as inventory, is the primary collateral.
(55) "Mortgage" means a consensual interest in real property,including fixtures, which secures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound as debtorunder § 6A-9-203(d) by a security agreement previously entered into byanother person.
(57) "New value" means (i) money, (ii) money's worth inproperty, services, or new credit, or (iii) release by a transferee of aninterest in property previously transferred to the transferee. The term doesnot include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than cashproceeds.
(59) "Obligor" means a person that, with respect to anobligation secured by a security interest in or an agricultural lien on thecollateral, (i) owes payment or other performance of the obligation, (ii) hasprovided property other than the collateral to secure payment or otherperformance of the obligation, or (iii) is otherwise accountable in whole or inpart for payment or other performance of the obligation. The term does notinclude issuers or nominated persons under a letter of credit.
(60) "Original debtor," except as used in § 6A-9-310(c),means a person that, as debtor, entered into a security agreement to which anew debtor has become bound under § 6A-9-203(d).
(61) "Payment intangible" means a general intangible underwhich the account debtor's principal obligation is a monetary obligation.
(62) "Person related to", with respect to an individual,means:
(i) The spouse of the individual;
(ii) A brother, brother-in-law, sister, or sister-in-law ofthe individual;
(iii) An ancestor or lineal descendant of the individual orthe individual's spouse; or
(iv) Any other relative, by blood or marriage, of theindividual or the individual's spouse who shares the same home with theindividual.
(63) "Person related to", with respect to an organization,means:
(i) A person directly or indirectly controlling, controlledby, or under common control with the organization;
(ii) An officer or director of, or a person performingsimilar functions with respect to, the organization;
(iii) An officer or director of, or a person performingsimilar functions with respect to, a person described in subparagraph (i);
(iv) The spouse of an individual described in subparagraph(i), (ii), or (iii); or
(v) An individual who is related by blood or marriage to anindividual described in subparagraph (i), (ii), (iii), or (iv) and shares thesame home with the individual.
(64) "Proceeds," except as used in § 6A-9-609(b), meansthe following property:
(i) Whatever is acquired upon the sale, lease, license,exchange, or other disposition of collateral;
(ii) Whatever is collected on, or distributed on account of,collateral;
(iii) Rights arising out of collateral;
(iv) To the extent of the value of collateral, claims arisingout of the loss, nonconformity, or interference with the use of, defects orinfringement of rights in, or damage to, the collateral; or
(v) To the extent of the value of collateral and to theextent payable to the debtor or the secured party, insurance payable by reasonof the loss or nonconformity of, defects or infringement of rights in, ordamage to, the collateral.
(65) "Promissory note" means an instrument that evidences apromise to pay a monetary obligation, does not evidence an order to pay, anddoes not contain an acknowledgment by a bank that the bank has received fordeposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a securedparty which includes the terms on which the secured party is willing to acceptcollateral in full or partial satisfaction of the obligation it securespursuant to §§ 6A-9-620, 6A-9-621, and 6A-9-622.
(67) "Public-finance transaction" means a secured transactionin connection with which:
(i) Debt securities are issued;
(ii) All or a portion of the securities issued have aninitial stated maturity of at least 20 years; and
(iii) The debtor, obligor, secured party, account debtor orother person obligated on collateral, assignor or assignee of a securedobligation, or assignor or assignee of a security interest is a State or agovernmental unit of a State.
(68) "Pursuant to commitment", with respect to an advancemade or other value given by a secured party, means pursuant to the securedparty's obligation, whether or not a subsequent event of default or other eventnot within the secured party's control has relieved or may relieve the securedparty from its obligation.
(69) "Record", except as used in "for record", "of record","record or legal title", and "record owner", means information that isinscribed on a tangible medium or which is stored in an electronic or othermedium and is retrievable in perceivable form.
(70) "Registered organization" means an organizationorganized solely under the law of a single State or the United States and as towhich the State or the United States must maintain a public record showing theorganization to have been organized.
(71) "Secondary obligor" means an obligor to the extent that:
(i) The obligor's obligation is secondary; or
(ii) The obligor has a right of recourse with respect to anobligation secured by collateral against the debtor, another obligor, orproperty of either.
(72) "Secured party" means:
(i) A person in whose favor a security interest is created orprovided for under a security agreement, whether or not any obligation to besecured is outstanding;
(ii) A person that holds an agricultural lien;
(iii) A consignor;
(iv) A person to which accounts, chattel paper, paymentintangibles, or promissory notes have been sold;
(v) A trustee, indenture trustee, agent, collateral agent, orother representative in whose favor a security interest or agricultural lien iscreated or provided for; or
(vi) A person that holds a security interest arising under§ 6A-2-401, 6A-2-505, 6A-2-711(3), 6A-2.1-508(5), 6A-4-210, or 6A-5-118.
(73) "Security agreement" means an agreement that creates orprovides for a security interest.
(74) "Send", in connection with a record or notification,means:
(i) To deposit in the mail, deliver for transmission, ortransmit by any other usual means of communication, with postage or cost oftransmission provided for, addressed to any address reasonable under thecircumstances; or
(ii) To cause the record or notification to be receivedwithin the time that it would have been received if properly sent undersubparagraph (i).
(75) "Software" means a computer program and any supportinginformation provided in connection with a transaction relating to the program.The term does not include a computer program that is included in the definitionof goods.
(76) "State" means a State of the United States, the Districtof Columbia, Puerto Rico, the United States Virgin Islands, or any territory orinsular possession subject to the jurisdiction of the United States.
(77) "Supporting obligation" means a letter-of-credit rightor secondary obligation that supports the payment or performance of an account,chattel paper, a document, a general intangible, an instrument, or investmentproperty.
(78) "Tangible chattel paper" means chattel paper evidencedby a record or records consisting of information that is inscribed on atangible medium.
(79) "Termination statement" means an amendment of afinancing statement which:
(i) Identifies, by its file number, the initial financingstatement to which it relates; and
(ii) Indicates either that it is a termination statement orthat the identified financing statement is no longer effective.
(80) "Transmitting utility" means a person primarily engagedin the business of:
(i) Operating a railroad, subway, street railway, or trolleybus;
(ii) Transmitting communications electrically,electromagnetically, or by light;
(iii) Transmitting goods by pipeline or sewer; or
(iv) Transmitting or producing and transmitting electricity,steam, gas, or water.
(b) Definitions in other chapters. "Control" asprovided in § 6A-7-206 and the following definitions in other chaptersapply to this chapter:
"Applicant" § 6A-5-102.
"Beneficiary" § 6A-5-102.
"Broker" § 6A-8-102.
"Certificated security" § 6A-8-102.
"Check" § 6A-3-104.
"Clearing corporation" § 6A-8-102.
"Contract for sale" § 6A-2-106.
"Customer" § 6A-4-104.
"Entitlement holder" § 6A-8-102.
"Financial asset" § 6A-8-102.
"Holder in due course" § 6A-3-302.
"Issuer" (with respect to a letter of
credit or letter-of-credit right) §6A-5-102.
"Issuer" (with respect to a security) §6A-8-201.
"Issuer" (with respect to documents of title) §6A-7-102.
"Lease" § 6A-2.1-103.
"Lease agreement" § 6A-2.1-103.
"Lease contract" § 6A-2.1-103.
"Leasehold interest" § 6A-2.1-103.
"Lessee" § 6A-2.1-103.
"Lessee in ordinary course of business" §6A-2.1-103.
"Lessor" § 6A-2.1-103.
"Lessor's residual interest" §6A-2.1-103.
"Letter of credit" § 6A-5-102.
"Merchant" § 6A-2-104.
"Negotiable instrument" § 6A-3-104.
"Nominated person" § 6A-5-102.
"Note" § 6A-3-104.
"Proceeds of a letter of credit" §6A-5-114.
"Prove" § 6A-3-103.
"Sale" § 6A-2-106.
"Securities account" § 6A-8-501.
"Securities intermediary" § 6A-8-102.
"Security" § 6A-8-102.
"Security certificate" § 6A-8-102.
"Security entitlement" § 6A-8-102.
"Uncertificated security" § 6A-8-102.
(c) Chapter 1 definitions and principles. Chapter 1 ofthis title contains general definitions and principles of construction andinterpretation applicable throughout this chapter.
