§ 9-109. Scope.
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/de/title-6/chapter-9/9-109A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 2A-508(5), as provided in Section 9-110; and
(6)a security interest arising under Section 4-210 or 5-118.
(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;
(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, 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 Sections 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; and
(D)security agreements covering personal and real property in Section 9-604;
(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.