California Commercial Code 9109 – (a) Except as otherwise provided in subdivisions (c) and (d), …
(a) Except as otherwise provided in subdivisions (c) and (d), this division applies to each of the following:
(1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract.
Terms Used In California Commercial Code 9109
- 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.
- contract: means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in Section 1303. See California Commercial Code 1201
- 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.
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201
- 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.
- Right: includes remedy. See California Commercial Code 1201
- Security interest: includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Division 9 (commencing with Section 9101). See California Commercial Code 1201
- 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.
(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 2401 or 2505, subdivision (3) of Section 2711, or subdivision (e) of Section 10508, as provided in Section 9110.
(6) A security interest arising under Section 4210 or 5118.
(b) The application of this division 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 division does not apply.
(c) This division does not apply to the extent that either of the following conditions is satisfied:
(1) A statute, regulation, or treaty of the United States preempts this division.
(2) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 5114.
(d) This division does not apply to any of the following:
(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, however Section 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 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 loan made by an insurance company pursuant to the provisions of a policy or contract issued by it and upon the sole security of the policy or contract.
(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, provided that both of the following sections apply:
(A) Section 9340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts.
(B) Section 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 each of the following:
(A) Liens on real property pursuant to Sections 9203 and 9308.
(B) Fixtures pursuant to Section 9334.
(C) Fixture filings pursuant to Sections 9501, 9502, 9512, 9516, and 9519.
(D) Security agreements covering personal and real property pursuant to Section 9604.
(12) An assignment of a claim arising in tort, other than a commercial tort claim, however Sections 9315 and 9322 apply with respect to proceeds and priorities in proceeds.
(13) An assignment of a deposit account in a consumer transaction, however Sections 9315 and 9322 apply with respect to proceeds and priorities in proceeds.
(14) A security interest created by the assignment of the benefits of a public construction contract under the Improvement Act of 1911 (Division 7 (commencing with Section 5000) of the Streets and Highways Code).
(15) Transition property, as defined in § 840 of the Public Utilities Code, except to the extent that the provisions of this division are referred to in Article 5.5 (commencing with Section 840) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, recovery property, as defined in § 848 of the Public Utilities Code, except to the extent that the provisions of this division are referred to in Article 5.6 (commencing with Section 848) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code, and water supply property, as defined in § 849 of the Public Utilities Code, except to the extent that the provisions of this division are referred to in Article 5.7 (commencing with Section 849) of Chapter 4 of Part 1 of Division 1 of the Public Utilities Code.
(16) A claim or right of an employee or employee’s dependents to receive workers’ compensation under Division 1 (commencing with Section 50) or Division 4 (commencing with Section 3200) of the Labor Code.
(17) A transfer by a government or governmental unit.
(Amended by Stats. 2014, Ch. 482, Sec. 4. (SB 936) Effective January 1, 2015.)