Terms Used In Ohio Code > Chapter 1309 - 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 Ohio Code 1309.102
• Account: includes health-care insurance receivables. See Ohio Code 1309.102
• Account debtor: means a person who is obligated on an account, chattel paper, or general intangible. See Ohio Code 1309.102
• 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 Ohio Code 1309.102

• 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. See Ohio Code 1309.102

• 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.
• Another: when used to designate the owner of property which is the subject of an offense, includes not only natural persons but also every other owner of property. See Ohio Code 1.02
• 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 Ohio Code 1309.102

• 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: includes savings banks, savings and loan associations, credit unions, and trust companies. See Ohio Code 1309.102
• 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 Ohio Code 1309.102
• 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 Ohio Code 1309.102
• Chattel paper: means a record that evidences 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 Ohio Code 1309.102
• Collateral: means the property subject to a security interest or agricultural lien, including:

  (a) Proceeds to which a security interest attaches;

  (b) Accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and

  (c) Goods that are the subject of a consignment. See Ohio Code 1309.102

• 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 Ohio Code 1309.102

• Commodity account: means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer. See Ohio Code 1309.102
• 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 the 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 Ohio Code 1309.102

• Commodity customer: means a person for whom a commodity intermediary carries a commodity contract on its books. See Ohio Code 1309.102
• Commodity intermediary: means a person that:

  (a) Is registered as a futures commission merchant under the federal commodities laws; 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 the federal commodities laws. See Ohio Code 1309.102

• Communicate: means :

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

  (b) To transmit a record by any means agreed upon 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 Ohio Code 1309.102

• Consignee: means a merchant to whom goods are delivered in a consignment. See Ohio Code 1309.102
• 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. See Ohio Code 1309.102

• Consignor: means a person that delivers goods to a consignee in a consignment. See Ohio Code 1309.102
• Consumer transaction: includes consumer-goods transactions. See Ohio Code 1309.102
• Consumer goods: means goods that are used or bought for use primarily for personal, family, or household purposes. See Ohio Code 1309.102
• 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 Ohio Code 1309.102
• Consumer transaction: means a transaction in which: (a) an individual incurs an obligation primarily for personal, family, or household purposes, (b) a security interest secures the obligation, and (c) the collateral is held or acquired primarily for personal, family, or household purposes. See Ohio Code 1309.102
• 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 Ohio Code 1309.102

• 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 Ohio Code 1309.102

• 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 Ohio Code 1309.102

• Decedent: A deceased person.
• Deposit account: means a demand, time, savings, passbook, or similar account maintained with a bank but does not include investment property or accounts evidenced by an instrument. See Ohio Code 1309.102
• Document: means a document of title or a receipt of the type described in division (B) of section 1307. See Ohio Code 1309.102
• Electronic chattel paper: means chattel paper evidenced by a record consisting of information stored in an electronic medium. See Ohio Code 1309.102
• Encumbrance: includes mortgages and other liens on real property. See Ohio Code 1309.102
• 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 Ohio Code 1309.102
• 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;

  (ii) Aquatic goods produced in aquacultural operations;

  (iii) Algacultural products as defined in section 901. See Ohio Code 1309.102

• Farming operation: means raising, cultivating, propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation. See Ohio Code 1309.102
• File number: means the number assigned to an initial financing statement under division (A) of section 1309. See Ohio Code 1309.102
• Filing office: means an office designated in section 1309. See Ohio Code 1309.102
• Filing-office rule: means a rule adopted under section 1309. See Ohio Code 1309.102
• Financing statement: means a record composed of an initial financing statement and any filed record or records relating to the initial financing statement. See Ohio Code 1309.102
• Fixture filing: includes the filing of a financing statement covering goods of a transmitting utility that are or are to become fixtures. See Ohio Code 1309.102
• Fixtures: means goods that have become so related to particular real property that an interest in them arises under real property law. See Ohio Code 1309.102
• 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: includes payment intangibles and software. See Ohio Code 1309.102
• Goods: includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. See Ohio Code 1309.102
• Governmental unit: includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States. See Ohio Code 1309.102
• Grantor: The person who establishes a trust and places property into it.
• 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 Ohio Code 1309.102
• in writing: includes any representation of words, letters, symbols, or figures; this provision does not affect any law relating to signatures. See Ohio Code 1.59
• 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 ordinary course of business is transferred by delivery with any necessary indorsement or assignment. See Ohio Code 1309.102
• 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 Ohio Code 1309.102

• Investment property: means a security, whether certificated or uncertificated, a security entitlement, a securities account, a commodity contract, or a commodity account. See Ohio Code 1309.102
• 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 Ohio Code 1309.102
• Lien: A claim against real or personal property in satisfaction of a debt.
• Lien creditor: means :

  (a) A creditor who 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 Ohio Code 1309.102

• Lineal descendant: Direct descendant of the same ancestors.
• Manufactured home: includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the United States secretary of housing and urban development and complies with the standards established under Title 42 of the United States Code. See Ohio Code 1309.102
• 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 Ohio Code 1309.102

• 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 Ohio Code 1309.102
• Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
• Mortgage: means a consensual interest in real property, including fixtures, that secures payment or performance of an obligation. See Ohio Code 1309.102
• 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 division (D) of section 1309. See Ohio Code 1309.102
• New value: means (i) money, (ii) money's worth in property, services, or new credit, or (iii) release by a transferee of an interest in property previously transferred to the transferee. See Ohio Code 1309.102
• Noncash proceeds: means proceeds other than cash proceeds. See Ohio Code 1309.102
• 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 who, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, (i) owes payment or other performance of the obligation, (ii) has provided property other than the collateral to secure payment or other performance of the obligation, or (iii) is otherwise accountable in whole or in part for payment or other performance of the obligation. See Ohio Code 1309.102
• Oversight: Committee review of the activities of a Federal agency or program.
• Payment intangible: means a general intangible under which the account debtor's principal obligation is a monetary obligation. See Ohio Code 1309.102
• Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
• Personal property: All property that is not real property.
• 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 Ohio Code 1309.102
• Property: means real and personal property. See Ohio Code 1.59
• 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 1309. See Ohio Code 1309.102
• Public organic record: means a record that is available to the public for inspection and 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 Ohio Code 1309.102

• Public-finance transaction: means a secured transaction in connection with which:

  (a) Debt securities are issued;

  (b) All or a portion of the securities issued have an initial stated maturity of at least twenty years; and

  (c) The debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state. See Ohio Code 1309.102

• 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 Ohio Code 1309.102
• 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 Ohio Code 1309.102
• Rule: includes regulation. See Ohio Code 1.59
• 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 Ohio Code 1309.102

• 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 whom 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 who holds a security interest arising under section 1302. See Ohio Code 1309.102

• Security agreement: means an agreement that creates or provides for a security interest. See Ohio Code 1309.102
• 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 Ohio Code 1309.102
• 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 Ohio Code 1309.102
• 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 Ohio Code 1309.102
• Tangible chattel paper: means chattel paper evidenced by a record consisting of information that is inscribed on a tangible medium. See Ohio Code 1309.102
• 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 Ohio Code 1309.102

• 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 Ohio Code 1309.102

• 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 all the states. See Ohio Code 1.59