A. Except as otherwise provided in subsections C and D of this section, this chapter applies to:

Terms Used In Arizona Laws 47-9109

  • Account debtor: means a person obligated on an account, chattel paper or general intangible but does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper. See Arizona Laws 47-9102
  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Agricultural lien: means an interest, other than a security interest, in farm products:

    (a) That secures payment or performance of an obligation for:

    (i) Goods or services furnished in connection with a debtor's farming operation; or

    (ii) Rent on real property leased by a debtor in connection with its farming operation;

    (b) That is created by statute in favor of a person that:

    (i) In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or

    (ii) Leased real property to a debtor in connection with the debtor's farming operation; and

    (c) Whose effectiveness does not depend on the person's possession of the personal property. See Arizona Laws 47-9102

  • 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
  • Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Arizona Laws 47-9102
  • Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
  • Commercial tort claim: means a claim arising in tort with respect to which:

    (a) The claimant is an organization; or

    (b) The claimant is an individual and the claim:

    (i) Arose in the course of the claimant's business or profession; and

    (ii) Does not include damages arising out of personal injury to or the death of an individual. See Arizona Laws 47-9102

  • Consignment: means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:

    (a) The merchant:

    (i) Deals in goods of that kind under a name other than the name of the person making delivery;

    (ii) Is not an auctioneer; and

    (iii) Is not generally known by its creditors to be substantially engaged in selling the goods of others;

    (b) With respect to each delivery, the aggregate value of the goods is one thousand dollars or more at the time of delivery;

    (c) The goods are not consumer goods immediately before delivery; and

    (d) The transaction does not create a security interest that secures an obligation. See Arizona Laws 47-9102

  • Consumer transaction: means a transaction in which an individual incurs an obligation primarily for personal, family or household purposes, a security interest secures the obligation and the collateral is held or acquired primarily for personal, family or household purposes. See Arizona Laws 47-9102
  • Contract: A legal written agreement that becomes binding when signed.
  • Deposit account: means a demand, time, savings, passbook or similar account maintained with a bank. See Arizona Laws 47-9102
  • Fixtures: means goods that have become so related to particular real property that an interest in them arises under real property law. See Arizona Laws 47-9102
  • Governmental unit: means a subdivision, agency, department, county, parish, municipality or other unit of the government of the United States, a state or a foreign country. See Arizona Laws 47-9102
  • Health-care-insurance receivable: means an interest in or claim under a policy of insurance that is a right to payment of a monetary obligation for health care goods or services provided. See Arizona Laws 47-9102
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • 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.
  • 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.
  • Payment intangible: means a general intangible under which the account debtor's principal obligation is a monetary obligation. See Arizona Laws 47-9102
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Promissory note: means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds. See Arizona Laws 47-9102
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States. See Arizona Laws 47-9102
  • 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 District of Columbia and the territories. See Arizona Laws 1-215

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 47-2401 or 47-2505 or section 47-2711, subsection C or section 47-2A508, subsection E, as provided in section 47-9110; and

6. A security interest arising under section 47-4210 or 47-5118.

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

C. This chapter does not apply to the extent that:

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

2. A statute of a foreign country or a governmental unit of 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 that 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 47-5114.

D. This chapter does not apply to:

1. A landlord’s lien, other than an agricultural lien;

2. A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 47-9333 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 that 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 47-9315 and 47-9322 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 setoff, but:

(a) Section 47-9340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and

(b) Section 47-9404 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 47-9203 and 47-9308;

(b) Fixtures in section 47-9334;

(c) Fixture filings in sections 47-9501, 47-9502, 47-9512, 47-9516 and 47-9519; and

(d) Security agreements covering personal and real property in section 47-9604;

12. An assignment of a claim arising in tort, other than a commercial tort claim, but sections 47-9315 and 47-9322 apply with respect to proceeds and priorities in proceeds;

13. An assignment of a deposit account in a consumer transaction, but sections 47-9315 and 47-9322 apply with respect to proceeds and priorities in proceeds;

14. A transfer, pledge, assignment, grant or similar action by this state, another state or a governmental unit of this state or another state;

15. A claim or right to receive compensation for injuries or sickness as described in 26 United States Code § 104a(1) or (2); or

16. A claim or right to receive benefits under a special needs trust as described in 42 United States Code § 1396p(d)(4).

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