§ 25-9-108. Sufficiency of description.

273 words·~1 min read·/nc/chapter-25/25-9-108

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(a)Sufficiency of description. - Except as otherwise provided in subsections (c), (d), and

(e)of this section, a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

(b)Examples of reasonable identification. - Except as otherwise provided in subsection

(d)of this section, a description of collateral reasonably identifies the collateral if it identifies the collateral by:

(1)Specific listing;

(2)Category;

(3)Except as otherwise provided in subsection

(e)of this section, a type of collateral defined in this Chapter;

(4)Quantity;

(5)Computational or allocational formula or procedure; or

(6)Except as otherwise provided in subsection

(c)of this section, any other method, if the identity of the collateral is objectively determinable.

(c)Supergeneric description not sufficient. - A description of collateral as "all the debtor's assets" or "all the debtor's personal property" or using words of similar import does not reasonably identify the collateral.

(d)Investment property. - Except as otherwise provided in subsection

(e)of this section, a description of a security entitlement, securities account, or commodity account is sufficient if it describes:

(1)The collateral by those terms or as investment property; or

(2)The underlying financial asset or commodity contract.

(e)When description by type insufficient. - A description only by type of collateral defined in this Chapter is an insufficient description of:

(1)A commercial tort claim; or

(2)In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account. (1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)