Terms Used In Arizona Laws > Title 47 > Chapter 9 > Article 3 - Perfection and Priority

• 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 Arizona Laws 47-9102
• 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

• 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 Arizona Laws 47-9102

• 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 Arizona Laws 47-9102
• Cash proceeds: means proceeds that are money, checks, deposit accounts or the like. See Arizona Laws 47-9102
• 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 Arizona Laws 47-9102
• 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
• Commodity account: means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. See Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• Commodity customer: means a person for which a commodity intermediary carries a commodity contract on its books. See Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• Consignee: means a merchant to which goods are delivered in a consignment. See Arizona Laws 47-9102
• Consignor: means a person that delivers goods to a consignee in a consignment. See Arizona Laws 47-9102
• Consumer goods: means goods that are used or bought for use primarily for personal, family or household purposes. See Arizona Laws 47-9102
• Contract: A legal written agreement that becomes binding when signed.
• 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 Arizona Laws 47-9102

• Decedent: A deceased person.
• Deposit account: means a demand, time, savings, passbook or similar account maintained with a bank. See Arizona Laws 47-9102
• Document: means a document of title or a receipt of the type described in section 47-7201, subsection B. See Arizona Laws 47-9102
• Electronic chattel paper: means chattel paper evidenced by a record or records consisting of information stored in an electronic medium. See Arizona Laws 47-9102
• Encumbrance: means a right, other than an ownership interest, in real property. See Arizona Laws 47-9102
• 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 Arizona Laws 47-9102
• 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}
• 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 Arizona Laws 47-9102

• Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Arizona Laws 47-9102
• 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 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
• 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 Arizona Laws 47-9102
• Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Arizona Laws 47-9102
• Goods: means all things that are movable when a security interest attaches. 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
• 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 Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• Investment property: means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account. See Arizona Laws 47-9102
• 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 Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• 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 Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• Mortgage: means a consensual interest in real property, including fixtures, that secures payment or performance of an obligation. See Arizona Laws 47-9102
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• 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 Arizona Laws 47-9102
• 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 Arizona Laws 47-9102
• 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.
• 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 Arizona Laws 47-9102
• 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 Arizona Laws 47-9102

• Security agreement: means an agreement that creates or provides for a security interest. See Arizona Laws 47-9102
• Service of process: The service of writs or summonses to the appropriate party.
• Software: means a computer program and any supporting information provided in connection with a transaction relating to the program. See Arizona Laws 47-9102
• 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.
• 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 Arizona Laws 47-9102
• Tangible chattel paper: means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium. See Arizona Laws 47-9102
• United States: includes the District of Columbia and the territories. See Arizona Laws 1-215