Sections
Article 1 General Provisions 47-9101 – 47-9110
Article 2 Effectiveness of Security Agreement, Attachment of Security Interest and Rights of Parties to Security Agreement 47-9201 – 47-9210
Article 3 Perfection and Priority 47-9301 – 47-9342
Article 4 Rights of Third Parties 47-9401 – 47-9409
Article 5 Filing 47-9501 – 47-9528
Article 6 Default 47-9601 – 47-9628
Article 7 2001 Transition 47-9701 – 47-9709
Article 8 2014 Transition 47-9801 – 47-9808

Terms Used In Arizona Laws > Title 47 > Chapter 9 - Secured Transactions

  • Accession: means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. See
  • 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
  • account for: means a right to payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, for services rendered or to be rendered, for a policy of insurance issued or to be issued, for a secondary obligation incurred or to be incurred, for energy provided or to be provided, for the use or hire of a vessel under a charter or other contract, arising out of the use of a credit or charge card or information contained on or for use with the card or as winnings in a lottery or other game of chance operated or sponsored by a state, a governmental unit of a state or a person licensed or authorized to operate the game by a state or governmental unit of a state. See
  • accounting for: means a record:

    (a) Authenticated by a secured party;

    (b) Indicating the aggregate unpaid secured obligations as of a date not more than thirty-five days earlier or thirty-five days later than the date of the record; and

    (c) Identifying the components of the obligations in reasonable detail. See

  • Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • 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

  • Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
  • As-extracted collateral: means :

    (a) Oil, gas or other minerals that are subject to a security interest that:

    (i) Is created by a debtor having an interest in the minerals before extraction; and

    (ii) Attaches to the minerals as extracted; or

    (b) Accounts arising out of the sale at the wellhead or minehead of oil, gas or other minerals in which the debtor had an interest before extraction. See

  • Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
  • Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
  • Bank: means an organization that is engaged in the business of banking. See
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • 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
  • Cash proceeds: means proceeds that are money, checks, deposit accounts or the like. See
  • Certificate of title: means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. See
  • 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
  • Collateral: means the property subject to a security interest or agricultural lien. See
  • 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

  • Commodity account: means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. See
  • Commodity contract: means a commodity futures contract, an option on a commodity futures contract, a commodity option or another contract if the contract or option is:

    (a) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or

    (b) Traded on a foreign commodity board of trade, exchange or market, and is carried on the books of a commodity intermediary for a commodity customer. See

  • Commodity customer: means a person for which a commodity intermediary carries a commodity contract on its books. See
  • Commodity intermediary: means a person that:

    (a) Is registered as a futures commission merchant under federal commodities law; or

    (b) In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law. See

  • Communicate: means :

    (a) To send a written or other tangible record;

    (b) To transmit a record by any means agreed on by the persons sending and receiving the record; or

    (c) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing office rule. See

  • Consignee: means a merchant to which goods are delivered in a consignment. See
  • 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

  • Consignor: means a person that delivers goods to a consignee in a consignment. See
  • Consumer goods: means goods that are used or bought for use primarily for personal, family or household purposes. See
  • Consumer goods transaction: means a consumer transaction in which:

    (a) An individual incurs an obligation primarily for personal, family or household purposes; and

    (b) A security interest in consumer goods secures the obligation. See

  • Consumer obligor: means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family or household purposes. See
  • 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
  • Continuation statement: means an amendment of a financing statement that:

    (a) Identifies, by its file number, the initial financing statement to which it relates; and

    (b) Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement. See

  • 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.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Debtor: means :

    (a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

    (b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or

    (c) A consignee. See

  • Decedent: A deceased person.
  • Deposit account: means a demand, time, savings, passbook or similar account maintained with a bank. See
  • Docket: A log containing brief entries of court proceedings.
  • Document: means information that is both of the following:

    (a) Inscribed on a tangible medium or stored in an electronic or other medium, and retrievable in perceivable form. See Arizona Laws 11-487.01

  • Document: means a document of title or a receipt of the type described in section 47-7201, subsection B. See
  • Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic or similar capabilities. See Arizona Laws 11-487.01
  • Electronic chattel paper: means chattel paper evidenced by a record or records consisting of information stored in an electronic medium. See
  • Encumbrance: means a right, other than an ownership interest, in real property. See
  • Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
  • Equipment: means goods other than inventory, farm products or consumer goods. See
  • Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Farm products: means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and that are:

    (a) Crops grown, growing or to be grown, including:

    (i) Crops produced on trees, vines and bushes; and

    (ii) Aquatic goods produced in aquacultural operations;

    (b) Livestock, born or unborn, including aquatic goods produced in aquacultural operations;

    (c) Supplies used or produced in a farming operation; or

    (d) Products of crops or livestock in their unmanufactured states. See

  • Farming operation: means raising, cultivating, propagating, fattening, grazing or any other farming, livestock or aquacultural operation. See
  • File number: means the number assigned to an initial financing statement pursuant to section 47-9519, subsection A. See
  • Filing office: means an office designated in section 47-9501 as the place to file a financing statement. See
  • Filing office rule: means a rule adopted pursuant to section 47-9526. See
  • Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See
  • Fixture filing: means the filing of a financing statement covering goods that are or are to become fixtures and satisfying section 47-9502, subsections A and B. See
  • Fixtures: means goods that have become so related to particular real property that an interest in them arises under real property law. See
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • General intangible: means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money and oil, gas or other minerals before extraction. See
  • Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See
  • Goods: means all things that are movable when a security interest attaches. See
  • 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
  • Grantee: includes every person to whom an estate or interest in real property passes, in or by a deed. See Arizona Laws 1-215
  • Grantor: The person who establishes a trust and places property into it.
  • Grantor: includes every person from or by whom an estate or interest in real property passes, in or by a deed. See Arizona Laws 1-215
  • Guardian: A person legally empowered and charged with the duty of taking care of and managing the property of another person who because of age, intellect, or health, is incapable of managing his (her) own affairs.
  • 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
  • including: means not limited to and is not a term of exclusion. See Arizona Laws 1-215
  • Instrument: means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease and is of a type that in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment. See
  • Inventory: means goods, other than farm products, that:

    (a) Are leased by a person as lessor;

    (b) Are held by a person for sale or lease or to be furnished under a contract of service;

    (c) Are furnished by a person under a contract of service; or

    (d) Consist of raw materials, work in process or materials used or consumed in a business. See

  • Investment property: means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account. See
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • 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
  • Letter-of-credit right: means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. See
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Lien creditor: means :

    (a) A creditor that has acquired a lien on the property involved by attachment, levy or the like;

    (b) An assignee for benefit of creditors from the time of assignment;

    (c) A trustee in bankruptcy from the date of the filing of the petition; or

    (d) A receiver in equity from the time of appointment. See

  • Lineal descendant: Direct descendant of the same ancestors.
  • Manufactured home: means a structure that is transportable in one or more sections and that, in the traveling mode, is eight body feet or more in width or forty body feet or more in length, or, when erected on site, is three hundred twenty or more square feet, and that is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning and electrical systems contained therein. See
  • Manufactured home transaction: means a secured transaction:

    (a) That creates a purchase money security interest in a manufactured home, other than a manufactured home held as inventory; or

    (b) In which a manufactured home, other than a manufactured home held as inventory, is the primary collateral. See

  • Minor: means a person under eighteen years of age. See Arizona Laws 1-215
  • Misdemeanor: Usually a petty offense, a less serious crime than a felony, punishable by less than a year of confinement.
  • monetary obligation: means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. See
  • Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
  • Mortgage: means a consensual interest in real property, including fixtures, that secures payment or performance of an obligation. See
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • New debtor: means a person that becomes bound as debtor under section 47-9203, subsection D by a security agreement previously entered into by another person. See
  • New value: means money, money's worth in property, services or new credit or release by a transferee of an interest in property previously transferred to the transferee. See
  • Noncash proceeds: means proceeds other than cash proceeds. See
  • 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.
  • Obligor: means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, owes payment or other performance of the obligation, has provided property other than the collateral to secure payment or other performance of the obligation or is otherwise accountable in whole or in part for payment or other performance of the obligation. See
  • Payment intangible: means a general intangible under which the account debtor's principal obligation is a monetary obligation. See
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government or governmental subdivision, agency or instrumentality or any other legal or commercial entity. See Arizona Laws 11-487.01
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Personal property: includes money, goods, chattels, things in action and evidences of debt. See Arizona Laws 1-215
  • Personal property: All property that is not real property.
  • Population: means the population according to the most recent United States decennial census. See Arizona Laws 1-215
  • Process: means a citation, writ or summons issued in the course of judicial proceedings. 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
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Proposal: means a record authenticated by a secured party that includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to sections 47-9620, 47-9621 and 47-9622. See
  • Public organic record: means a record that is available to the public for inspection and that is:

    (a) A record consisting of the record initially filed with or issued by a state or the United States to form or organize an organization and any record filed with or issued by the state or the United States that amends or restates the initial record;

    (b) An organic record of a business trust consisting of the record initially filed with a state and any record filed with the state that amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or

    (c) A record consisting of legislation enacted by the legislature of a state or the Congress of the United States that forms or organizes an organization, any record amending the legislation and any record filed with or issued by the state or the United States that amends or restates the name of the organization. See

  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • record owner: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See
  • Recourse: An arrangement in which a bank retains, in form or in substance, any credit risk directly or indirectly associated with an asset it has sold (in accordance with generally accepted accounting principles) that exceeds a pro rata share of the bank's claim on the asset. If a bank has no claim on an asset it has sold, then the retention of any credit risk is recourse. Source: FDIC
  • Registered organization: means an organization formed or organized solely under the law of a single state or the United States by the filing of a public organic record with, the issuance of a public organic record by or the enactment of legislation by the state or the United States. See
  • Secondary obligor: means an obligor to the extent that:

    (a) The obligor's obligation is secondary; or

    (b) The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor or property of either. See

  • Secured party: means :

    (a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

    (b) A person that holds an agricultural lien;

    (c) A consignor;

    (d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;

    (e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or

    (f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See

  • Security agreement: means an agreement that creates or provides for a security interest. See
  • Service of process: The service of writs or summonses to the appropriate party.
  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
  • Software: means a computer program and any supporting information provided in connection with a transaction relating to the program. See
  • 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
  • State: means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States. See Arizona Laws 11-487.01
  • Statute: A law passed by a legislature.
  • Supporting obligation: means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument or investment property. See
  • Tangible chattel paper: means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium. See
  • Termination statement: means an amendment of a financing statement that:

    (a) Identifies, by its file number, the initial financing statement to which it relates; and

    (b) Indicates either that it is a termination statement or that the identified financing statement is no longer effective. See

  • Testator: A male person who leaves a will at death.
  • 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.
  • Transmitting utility: means a person primarily engaged in the business of:

    (a) Operating a railroad, subway, street railway or trolley bus;

    (b) Transmitting communications electrically, electromagnetically or by light;

    (c) Transmitting goods by pipeline or sewer; or

    (d) Transmitting or producing and transmitting electricity, steam, gas or water. See

  • Trustee: A person or institution holding and administering property in trust.
  • Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
  • United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
  • Wilfully: means , with respect to conduct or to a circumstance described by a statute defining an offense, that a person is aware or believes that the person's conduct is of that nature or that the circumstance exists. See Arizona Laws 1-215
  • Writing: includes printing. See Arizona Laws 1-215