(a) General scope of article. Except as otherwise provided in subsections (c) and (d), this article applies to:
Terms Used In Alabama Code 7-9A-109
Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
Contract: A legal written agreement that becomes binding when signed.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Lien: A claim against real or personal property in satisfaction of a debt.
Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
person: includes a corporation as well as a natural person. See Alabama Code 1-1-1
property: includes both real and personal property. See Alabama Code 1-1-1
Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
real property: includes lands, tenements and hereditaments. See Alabama Code 1-1-1
state: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Alabama Code 1-1-1
Statute: A law passed by a legislature.
Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
United States: includes the territories thereof and the District of Columbia. See Alabama Code 1-1-1
(1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;(2) an agricultural lien;(3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;(4) a consignment;(5) a security interest arising under Section 7-2-401, 7-2-505, 7-2-711(3), or 7-2A-508(5), as provided in Section 7-9A-110; and(6) a security interest arising under Section 7-4-210 or 7-5-118.(b) Security interest in secured obligation. The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.(c) Extent to which article does not apply. This article does not apply to the extent that:
(1) a statute, regulation, or treaty of the United States preempts this article;(2) a statute of another State, a foreign country, or a governmental unit of another State or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the State, country, or governmental unit; or(3) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 7-5-114.(d) Inapplicability of article. This article does not apply to:
(1) except as provided in Section 7-9A-333, a landlord’s lien, other than an agricultural lien;(2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 7-9A-333 applies with respect to priority of the lien;(3) an assignment of a claim for wages, salary, or other compensation of an employee;(4) a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;(5) an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;(6) an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;(7) an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;(8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 7-9A-315 and 7-9A-322 apply with respect to proceeds and priorities in proceeds;(9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;(10) a right of recoupment or set-off, but:
(A) Section 7-9A-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and(B) Section 7-9A-404 applies with respect to defenses or claims of an account debtor;(11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A) liens on real property in Sections 7-9A-203 and 7-9A-308;(B) fixtures in Section 7-9A-334;(C) fixture filings in Sections 7-9A-501, mortgage as financing statement; time of filing financing statement” class=”unlinked-ref” datatype=”S” sessionyear=”2020″ statecd=”AL” title=”7″>7-9A-502, 7-9A-512, 7-9A-516, and 7-9A-519; and(D) security agreements covering personal and real property in Section 7-9A-604;(12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 7-9A-315 and 7-9A-322 apply with respect to proceeds and priorities in proceeds;(13) an assignment of a deposit account in a consumer transaction, but Sections 7-9A-315 and 7-9A-322 apply with respect to proceeds and priorities in proceeds; or(14) to a security interest created in connection with any of its securities by this State, any municipal corporation, county, public authority, public corporation or other similar public or governmental agency or unit in this State, or any political subdivision of any thereof, or by any educational institution or educational corporation organized under the laws of this State, whether such institution or corporation is public or private.
