N.Y. Uniform Commercial Code 9-109 – Scope
Section 9–109. Scope.
Terms Used In N.Y. Uniform Commercial Code 9-109
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- 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.
- 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.
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- 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.
(a) General scope of article. Except as otherwise provided in subsections (c) and (d), this article applies to:
(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 2–401, 2–505,
2–711(3), or 2-A-508(5), as provided in Section 9–110;
(6) a security interest arising under Section 4–210 or 5–118;
and
(7) a security interest in a cooperative interest.
(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) another statute of this State expressly governs the creation,
perfection, priority, or enforcement of a security interest
created by this state or a governmental unit of this state;
(3) 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
(4) the rights of a transferee beneficiary or nominated person
under a letter of credit are independent and superior under
Section 5–114.
(d) Inapplicability of article. This article does not apply to:
(1) a landlord's lien, other than an agricultural lien, or a
security interest in a cooperative interest;
(2) a lien, other than an agricultural lien, given by statute or
other rule of law for services or materials, but Section
9–333 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 or contract for an annuity
including a variable annuity 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 9–315 and 9–322 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 9–340 applies with respect to the effectiveness
of rights of recoupment or set-off against deposit
accounts; and
(B) Section 9–404 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 Section 9–203 and 9–308;
(B) fixtures in Section 9–334;
(C) fixture filings in Sections 9–501, 9–502, 9–512,
9–516, and 9–519;
(D) security agreements covering personal and real property
in Section 9–604; and
(E) security interests in cooperative interests;
(12) an assignment of a claim arising in tort, other than a
commercial tort claim, but Sections 9–315 and 9–322 apply
with respect to proceeds and priorities in proceeds; or
(13) an assignment of a deposit account in a consumer
transaction, but Sections 9–315 and 9–322 apply with
respect to proceeds and priorities in proceeds.