57A-9-109. Application of chapter.
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/sd/title-57/chapter-57-9/57a-9-109A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Except as otherwise provided in subsections
(c)and (d), this chapter 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 § 57A-2-401 , 57A-2-505 , 57A-2-711(3), or 57A-2A-508(5), as provided in § 57A-9-110 ; and
(6)A security interest arising under § 57A-4-210 or 57A-5-118 .
(b)The application of this chapter 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 chapter does not apply.
(c)This chapter does not apply to the extent that:
(1)A statute, regulation, or treaty of the United States preempts this chapter;
(2)Another statute of this State governs the creation 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 § 57A-5-114 .
(d)This chapter 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 § 57A-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 §§ 57A-9-315 and 57A-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 57A-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B)Section 57A-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 §§ 57A-9-203 and 57A-9-308 ;
(B)Fixtures in § 57A-9-334 ;
(C)Fixture filings in §§ 57A-9-501 , 57A-9-502 , 57A-9-512 , 57A-9-516 , and 57A-9-519 ; and
(D)Security agreements covering personal and real property in § 57A-9-604 ;
(12)An assignment of a claim arising in tort, other than a commercial tort claim, but §§ 57A-9-315 and 57A-9-322 apply with respect to proceeds and priorities in proceeds;
(13)A transfer or security interest made or created by a state or any governmental unit;
(14)An assignment of a deposit account in a consumer transaction, but §§ 57A-9-315 and 57A-9-322 apply with respect to proceeds and priorities in proceeds;
(15)The pledging or segregating of collateral for public deposits as authorized by § 51A-10-9 , chapter 52-5 , and chapter 4-6A ;
(16)An assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2), as amended to January 1, 2001; or
(17)An assignment of a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. § 1396p(d)(4), as amended to January 1, 2001.