Vermont Statutes Title 9 Sec. 9-109
Terms Used In Vermont Statutes Title 9 Sec. 9-109
- 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.
- Municipality: shall include a city, town, town school district, incorporated school or fire district or incorporated village, and all other governmental incorporated units. 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.
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
- 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.
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- 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.
§ 9—109. Scope
(a) Except as otherwise provided in subsections (c) and (d) of this section, 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 of this title or subsection 2—711(3), or 2A—508(5) of this title, as provided in section 9—110 of this title; and
(6) a security interest arising under section 4—210 or 5—118 of this title.
(b) 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) This article does not apply to the extent that:
(1) a statute, regulation, or treaty of the United States preempts this article;
(2) 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
(3) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 5—114 of this title.
(d) This article does not apply to:
(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, but section 9—333 of this title 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, 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 of this title 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 of this title applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B) section 9—404 of this title 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 sections 9—203 of this title and 9—308 of this title;
(B) fixtures in section 9—334 of this title;
(C) fixture filings in sections 9—501, 9—502, 9—512, 9—516, and 9—519 of this title; and
(D) security agreements covering personal and real property in section 9—604 of this title;
(12) an assignment of a claim arising in tort, other than a commercial tort claim, but sections 9—315 and 9—322 of this title apply with respect to proceeds and priorities in proceeds;
(13) an assignment of a deposit account in a consumer transaction, but sections 9—315 and 9—322 of this title apply with respect to proceeds and priorities in proceeds;
(14) a transfer by this State or a subdivision, agency, department, county, municipality, or other unit of the government of this State;
(15) a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2); or
(16) a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. § 1396p(d)(4). (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2001, No. 46, §§ 1a, 1b.)