Secs. 42a-9-112 to 42a-9-116. Where collateral is not owned by debtor. Security interests arising under article 2 on sales. Consignment. Investment property.
Security interest arising in purchase or delivery of financial asset. Sections 42a-9-112 to 42a-9-116, inclusive, are repealed, effective October 1, 2001.
(1959, P.A. 133, S. 9-112, 9-113; P.A. 76-369, S. 13; P.A. 93-314, S. 1; P.A. 97-182, S. 55, 56; P.A. 98-93, S. 13, 15;
P.A. 01-132, S. 183.)
PART 2
EFFECTIVENESS OF SECURITY AGREEMENT;
ATTACHMENT OF SECURITY INTEREST;
RIGHTS OF PARTIES TO SECURITY AGREEMENT
Sec. 42a-9-201. General effectiveness of security agreement. (a) Except as
otherwise provided in this title, a security agreement is effective according to its terms
between the parties, against purchasers of the collateral and against creditors.
(b) A transaction subject to this article is subject to any applicable rule of law which
establishes a different rule for consumers and sections 36a-555 to 36a-573, inclusive,
and sections 36a-770 to 36a-786, inclusive.
(c) In case of conflict between this article and a rule of law, statute or regulation
described in subsection (b), the rule of law, statute or regulation controls. Failure to
comply with a statute or regulation described in subsection (b) has only the effect the
statute or regulation specifies.
(d) This article does not:
(1) Validate any rate, charge, agreement or practice that violates a rule of law, statute
or regulation described in subsection (b); or
(2) Extend the application of the rule of law, statute or regulation to a transaction
not otherwise subject to it.
(1959, P.A. 133, S. 9-201; P.A. 01-132, S. 11.)
History: P.A. 01-132 designated existing provision re general effectiveness of security agreement as Subsec. (a), added
Subsec. (b) re applicability of consumer laws, added Subsec. (c) re primacy of other applicable law in case of conflict and
designated existing provisions re deference to other applicable law as Subsec. (d) and amended to revise and rephrase
provisions.
Cited. 168 C. 152. Cited. 211 C. 613, 621.
Cited. 18 CA 265, 270.
Annotation to former Sec. 42a-9-203(4):
Cited. 231 C. 707, 717, 719, 722.
Sec. 42a-9-202. Title to collateral immaterial. Except as otherwise provided with
respect to consignments or sales of accounts, chattel paper, payment intangibles or promissory notes, the provisions of this article with regard to rights and obligations apply
whether title to collateral is in the secured party or the debtor.
(1959, P.A. 133, S. 9-202; P.A. 01-132, S. 12.)
History: P.A. 01-132 added "Except as otherwise provided with respect to consignments or sales of accounts, chattel
paper, payment intangibles or promissory notes" and deleted reference to provisions re "remedies".
Cited. 4 CA 58, 64.
Cited. 25 CS 335.
Sec. 42a-9-203. Attachment and enforceability of security interest. Proceeds.
Supporting obligations. Formal requisites. (a) A security interest attaches to collateral
when it becomes enforceable against the debtor with respect to the collateral, unless an
agreement expressly postpones the time of attachment.
(b) Except as otherwise provided in subsections (c) to (i), inclusive, of this section,
a security interest is enforceable against the debtor and third parties with respect to the
collateral only if:
(1) Value has been given;
(2) The debtor has rights in the collateral or the power to transfer rights in the
collateral to a secured party; and
(3) One of the following conditions is met:
(A) The debtor has authenticated a security agreement that provides a description
of the collateral and, if the security interest covers timber to be cut, a description of the
land concerned;
(B) The collateral is not a certificated security and is in the possession of the secured
party under section 42a-9-313 pursuant to the debtor's security agreement;
(C) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under section 42a-8-301 pursuant to the
debtor's security agreement; or
(D) The collateral is deposit accounts, electronic chattel paper, investment property,
letter-of-credit rights or electronic documents, and the secured party has control under
section 42a-7-106, 42a-9-104, 42a-9-105, 42a-9-106 or 42a-9-107 pursuant to the debtor's security agreement.
(c) Subsection (b) is subject to section 42a-4-210 on the security interest of a collecting bank, section 42a-5-118 on the security interest of a letter-of-credit issuer or nominated person, section 42a-9-110 on a security interest arising under article 2 or 2A, and
section 42a-9-206 on security interests in investment property.
(d) A person becomes bound as debtor by a security agreement entered into by
another person if, by operation of law other than this article or by contract:
(1) The security agreement becomes effective to create a security interest in the
person's property; or
(2) The person becomes generally obligated for the obligations of the other person,
including the obligation secured under the security agreement, and acquires or succeeds
to all or substantially all of the assets of the other person.
(e) If a new debtor becomes bound as debtor by a security agreement entered into
by another person:
(1) The agreement satisfies subdivision (3) of subsection (b) of this section with
respect to existing or after-acquired property of the new debtor to the extent the property
is described in the agreement; and
(2) Another agreement is not necessary to make a security interest in the property
enforceable.
(f) The attachment of a security interest in collateral gives the secured party the
rights to proceeds provided by section 42a-9-315 and is also attachment of a security
interest in a supporting obligation for the collateral.
(g) The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal or real property is also attachment
of a security interest in the security interest, mortgage or other lien.
(h) The attachment of a security interest in a securities account is also attachment
of a security interest in the security entitlements carried in the securities account.
(i) The attachment of a security interest in a commodity account is also attachment
of a security interest in the commodity contracts carried in the commodity account.
(1959, P.A. 133, S. 9-203; 1961, P.A. 116, S. 10; 1963, P.A. 526, S. 24; P.A. 76-369, S. 14; P.A. 79-435, S. 47; May
Sp. Sess. P.A. 92-11, S. 28, 70; P.A. 97-182, S. 57; P.A. 01-132, S. 13; P.A. 02-131, S. 97; P.A. 04-64, S. 62.)
History: 1961 act corrected section reference in Subsec. (2) to include Sec. 42-98; 1963 act added reference to Sec.
42a-9-209 in Subsec. (2); P.A. 76-369 amended Subsec. (1) to specify that security interest is not enforceable against
debtor or third parties "with respect to the collateral", to delete reference to oil, gas or minerals to be extracted, to specify
cover crops "growing or to be grown", to delete provision which had stated that word "proceeds" is sufficient without
further description in describing collateral and to add Subdivs. (b) and (c), inserted new Subsecs. (2) and (3), renumbering
former Subsec. (2) accordingly; P.A. 79-435 added reference in Subsec. (1) to Sec. 42a-8-321 on security interests; May
Sp. Sess. P.A. 92-11 amended Subsec. (1) to replace reference to Sec. 42a-4-208 with Sec. 42a-4-210; P.A. 97-182 amended
Subsec. (1) to replace reference to "Sec. 42a-8-321 on security interests in securities" with reference to "Secs. 42a-9-115
and 42a-9-116 on security interests in investment property" and to add in Subdiv. (a) "the collateral is investment property
and the secured party has control pursuant to agreement"; P.A. 01-132 substantially revised, rephrased and reordered
section and replaced numeric Subsec. designators with alphabetic designators and alphabetic Subdiv. designators with
numeric designators; P.A. 02-131 amended Subsec. (c) by adding reference to article 2A; P.A. 04-64 amended Subsec.
(b) by making a technical change and, in Subdiv. (3)(D), adding "or electronic documents" and reference to Sec. 42a-7-106 to conform to revisions made to article 7 by the same act.
Annotation to former statute (1958 Rev., S. 49-93):
Sufficiency of description of chattel mortgage. 147 C. 535.
Annotations to present section:
Security agreement may cover after-acquired property. A security agreement may be established through several writings signed by the same or different debtors. 168 C. 152. Cited. 182 C. 437, 439.
Cited. 4 CA 58, 62, 65.
Subsec. (1):
Cited. 4 CA 58, 63.
Sec. 42a-9-204. After-acquired property. Future advances. (a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security
interest in after-acquired collateral.
(b) A security interest does not attach under a term constituting an after-acquired
property clause to:
(1) Consumer goods, other than an accession when given as additional security,
unless the debtor acquires rights in them within ten days after the secured party gives
value; or
(2) A commercial tort claim.
(c) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles or promissory notes are sold in connection with, future
advances or other value, whether or not the advances or value are given pursuant to
commitment.
(1959, P.A. 133, S. 9-204; P.A. 76-369, S. 15; P.A. 01-132, S. 14.)
History: P.A. 76-369 deleted former Subsecs. (1) to (4)(a) re attachment of security interest and debtor's rights, inserted
new Subsec. (1), designated former Subsec. (4)(b) as Subsec. (2) and renumbered former Subsec. (5) as Subsec. (3); P.A.
01-132 redesignated former Subsecs. (1), (2) and (3) as Subsecs. (a), (b) and (c), amended Subsec. (a) to rephrase provisions,
amended Subsec. (b) to rephrase provisions and add Subdiv. (2) re commercial tort claim and amended Subsec. (c) to
rephrase provisions.
Security agreement including as collateral all inventory "owned or hereafter acquired" was applicable to inventory
acquired after the agreement was filed. 168 C. 152.
Subsec. (1):
Mere possession of property by debtor does not give him rights in it which he is required to have before it can be
collateral in a security transaction. 25 CS 333.
Subsec. (3):
Cited. 25 CS 335. Cited. 35 CS 73, 75.
Sec. 42a-9-205. Use or disposition of collateral permissible. (a) A security interest is not invalid or fraudulent against creditors solely because:
(1) The debtor has the right or ability to:
(A) Use, commingle or dispose of all or part of the collateral, including returned
or repossessed goods;
(B) Collect, compromise, enforce or otherwise deal with collateral;
(C) Accept the return of collateral or make repossessions; or
(D) Use, commingle or dispose of proceeds; or
(2) The secured party fails to require the debtor to account for proceeds or replace
collateral.
(b) This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends upon possession of the collateral by
the secured party.
(1959, P.A. 133, S. 9-205; P.A. 76-369, S. 16; P.A. 01-132, S. 15.)
History: P.A. 76-369 deleted reference to collection or compromise of contract rights; P.A. 01-132 rephrased provisions
and inserted Subsec., Subdiv. and Subpara. designators.
Sec. 42a-9-206. Security interest arising in purchase or delivery of financial
asset. (a) A security interest in favor of a securities intermediary attaches to a person's
security entitlement if:
(1) The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(2) The securities intermediary credits the financial asset to the buyer's securities
account before the buyer pays the securities intermediary.
(b) The security interest described in subsection (a) secures the person's obligation
to pay for the financial asset.
(c) A security interest in favor of a person that delivers a certificated security or
other financial asset represented by a writing attaches to the security or other financial
asset if:
(1) The security or other financial asset:
(A) In the ordinary course of business is transferred by delivery with any necessary
endorsement or assignment; and
(B) Is delivered under an agreement between persons in the business of dealing
with such securities or financial assets; and
(2) The agreement calls for delivery against payment.
(d) The security interest described in subsection (c) secures the obligation to make
payment for the delivery.
(1959, P.A. 133, S. 9-206; 1963, P.A. 526, S. 22; P.A. 01-132, S. 16.)
History: 1963 act added references to lessees and lessors in Subsec. (1); P.A. 01-132 replaced former provisions re
enforceability of agreement by a buyer or lessee not to assert claims or defenses against an assignee and re applicability
of article 2 to a sale and the seller's warranties when a seller retains a purchase money security interest in goods with
provisions re security interest arising in the purchase or delivery of financial asset.
Sec. 42a-9-206a. Effectiveness of security agreement in household furniture.
Any agreement for security in household furniture owned and in the possession of an
individual and used primarily for housekeeping purposes shall be effective only to the
extent that the agreement involves a purchase-money security interest as provided in
section 42a-9-103a.
(P.A. 01-132, S. 182.)
Sec. 42a-9-207. Rights and duties of secured party having possession or control of collateral. (a) Except as otherwise provided in subsection (d), a secured party
shall use reasonable care in the custody and preservation of collateral in the secured
party's possession. In the case of chattel paper or an instrument, reasonable care includes
taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b) Except as otherwise provided in subsection (d), if a secured party has possession
of collateral:
(1) Reasonable expenses, including the cost of insurance and payment of taxes or
other charges, incurred in the custody, preservation, use or operation of the collateral
are chargeable to the debtor and are secured by the collateral;
(2) The risk of accidental loss or damage is on the secured party to the extent of a
deficiency in any effective insurance coverage;
(3) The secured party shall keep the collateral identifiable, but fungible collateral
may be commingled; and
(4) The secured party may use or operate the collateral:
(A) For the purpose of preserving the collateral or its value;
(B) As permitted by an order of a court having competent jurisdiction; or
(C) Except in the case of consumer goods, in the manner and to the extent agreed
by the debtor.
(c) Except as otherwise agreed by a debtor other than a consumer debtor or as otherwise provided in subsection (d) of this section, a secured party having possession of
collateral or control of collateral under section 42a-7-106, 42a-9-104, 42a-9-105, 42a-9-106 or 42a-9-107:
(1) May hold as additional security any proceeds, except money or funds, received
from the collateral;
(2) Shall apply money or funds received from the collateral to reduce the secured
obligation, unless remitted to the debtor; and
(3) May create a security interest in the collateral.
(d) If the secured party is a buyer of accounts, chattel paper, payment intangibles
or promissory notes or a consignor:
(1) Subsection (a) does not apply unless the secured party is entitled under an
agreement:
(A) To charge back uncollected collateral; or
(B) Otherwise to full or limited recourse against the debtor or a secondary obligor
based on the nonpayment or other default of an account debtor or other obligor on the
collateral; and
(2) Subsections (b) and (c) do not apply.
(1959, P.A. 133, S. 9-207; P.A. 01-132, S. 17; P.A. 04-64, S. 63.)
History: P.A. 01-132 substantially revised and reordered provisions including replacing numeric Subsec. designators
with alphabetic designators and alphabetic Subdiv. designators with numeric designators, amending Subsec. (b)(2) to shift
the risk of accidental loss or damage from the debtor to the secured party and adding Subsec. (d) re applicability of section
if the secured party is a buyer of accounts, chattel paper, payment intangibles or promissory notes or a consignor; P.A. 04-64 amended Subsec. (c) by making a technical change and adding reference to Sec. 42a-7-106 to conform to revisions
made to article 7 by the same act.
Sec. 42a-9-208. Additional duties of secured party having control of collateral.
(a) This section applies to cases in which there is no outstanding secured obligation and
the secured party is not committed to make advances, incur obligations or otherwise
give value.
(b) Within ten days after receiving an authenticated demand by the debtor:
(1) A secured party having control of a deposit account under subdivision (2) of
subsection (a) of section 42a-9-104 shall send to the bank with which the deposit account
is maintained an authenticated statement that releases the bank from any further obligation to comply with instructions originated by the secured party;
(2) A secured party having control of a deposit account under subdivision (3) of
subsection (a) of section 42a-9-104 shall:
(A) Pay the debtor the balance on deposit in the deposit account; or
(B) Transfer the balance on deposit into a deposit account in the debtor's name;
(3) A secured party, other than a buyer, having control of electronic chattel paper
under section 42a-9-105 shall:
(A) Communicate the authoritative copy of the electronic chattel paper to the debtor
or its designated custodian;
(B) If the debtor designates a custodian that is the designated custodian with which
the authoritative copy of the electronic chattel paper is maintained for the secured party,
communicate to the custodian an authenticated record releasing the designated custodian
from any further obligation to comply with instructions originated by the secured party
and instructing the custodian to comply with instructions originated by the debtor; and
(C) Take appropriate action to enable the debtor or its designated custodian to make
copies of or revisions to the authoritative copy which add or change an identified assignee
of the authoritative copy without the consent of the secured party;
(4) A secured party having control of investment property under subdivision (2) of
subsection (d) of section 42a-8-106 or subsection (b) of section 42a-9-106 shall send
to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated record that releases the
securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party;
(5) A secured party having control of a letter-of-credit right under section 42a-9-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds
of the letter of credit to the secured party an authenticated release from any further
obligation to pay or deliver proceeds of the letter of credit to the secured party; and
(6) A secured party having control of an electronic document shall:
(A) Give control of the electronic document to the debtor or its designated custodian;
(B) If the debtor designates a custodian that is the designated custodian with which
the authoritative copy of the electronic document is maintained for the secured party,
communicate to the custodian an authenticated record releasing the designated custodian
from any further obligation to comply with instructions originated by the secured party
and instructing the custodian to comply with instructions originated by the debtor; and
(C) Take appropriate action to enable the debtor or its designated custodian to make
copies of or revisions to the authoritative copy which add or change an identified assignee
of the authoritative copy without the consent of the secured party.
(1959, P.A. 133, S. 9-208; P.A. 01-132, S. 18; P.A. 04-64, S. 64.)
History: P.A. 01-132 replaced former provisions re request by a debtor for a statement of account or a list of the collateral
with provisions re additional duties of a secured party having control of collateral; P.A. 04-64 amended Subsec. (b) by
adding Subdiv. (6) re control of electronic document to conform to revisions made to article 7 by the same act.
Sec. 42a-9-209. Duties of secured party if account debtor has been notified of
assignment. (a) Except as otherwise provided in subsection (c), this section applies if:
(1) There is no outstanding secured obligation; and
(2) The secured party is not committed to make advances, incur obligations or otherwise give value.
(b) Within ten days after receiving an authenticated demand by the debtor, a secured
party shall send to an account debtor that has received notification of an assignment to
the secured party as assignee under subsection (a) of section 42a-9-406 an authenticated
record that releases the account debtor from any further obligation to the secured party.
(c) This section does not apply to an assignment constituting the sale of an account,
chattel paper or payment intangible.
(1963, P.A. 526, S. 23; P.A. 01-132, S. 19.)
History: P.A. 01-132 replaced former provisions re effectiveness of a security agreement in household furniture with
provisions re duties of a secured party if an account debtor has been notified of an assignment.
Sec. 42a-9-210. Request for accounting. Request regarding list of collateral or
statement of account. (a) In this section:
(1) "Request" means a record of a type described in subdivision (2), (3) or (4) of
this subsection.
(2) "Request for an accounting" means a record authenticated by a debtor requesting
that the recipient provide an accounting of the unpaid obligations secured by collateral
and reasonably identifying the transaction or relationship that is the subject of the request.
(3) "Request regarding a list of collateral" means a record authenticated by a debtor
requesting that the recipient approve or correct a list of what the debtor believes to
be the collateral securing an obligation and reasonably identifying the transaction or
relationship that is the subject of the request.
(4) "Request regarding a statement of account" means a record authenticated by a
debtor requesting that the recipient approve or correct a statement indicating what the
debtor believes to be the aggregate amount of unpaid obligations secured by collateral
as of a specified date and reasonably identifying the transaction or relationship that is
the subject of the request.
(b) Subject to subsections (c), (d), (e) and (f), a secured party, other than a buyer
of accounts, chattel paper, payment intangibles or promissory notes or a consignor, shall
comply with a request within fourteen days after receipt:
(1) In the case of a request for an accounting, by authenticating and sending to the
debtor an accounting; and
(2) In the case of a request regarding a list of collateral or a request regarding a
statement of account, by authenticating and sending to the debtor an approval or correction.
(c) A secured party that claims a security interest in all of a particular type of collateral owned by the debtor may comply with a request regarding a list of collateral by
sending to the debtor an authenticated record including a statement to that effect within
fourteen days after receipt.
(d) A person that receives a request regarding a list of collateral, claims no interest
in the collateral when it receives the request, and claimed an interest in the collateral at
an earlier time shall comply with the request within fourteen days after receipt by sending
to the debtor an authenticated record:
(1) Disclaiming any interest in the collateral; and
(2) If known to the recipient, providing the name and mailing address of any assignee of or successor to the recipient's interest in the collateral.
(e) A person that receives a request for an accounting or a request regarding a statement of account, claims no interest in the obligations when it receives the request and
claimed an interest in the obligations at an earlier time shall comply with the request
within fourteen days after receipt by sending to the debtor an authenticated record:
(1) Disclaiming any interest in the obligations; and
(2) If known to the recipient, providing the name and mailing address of any assignee of or successor to the recipient's interest in the obligations.
(f) A debtor is entitled without charge to one response to a request under this section
during any six-month period. The secured party may require payment of a charge not
exceeding twenty-five dollars for each additional response.
(P.A. 01-132, S. 20.)
Annotation to former section 42a-9-208:
Cited. 221 C. 77, 82.
PART 3
PERFECTION AND PRIORITY
Sec. 42a-9-301. Law governing perfection and priority of security interests.
Except as otherwise provided in sections 42a-9-303 to 42a-9-306, inclusive, the following rules determine the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in collateral:
(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or
nonperfection and the priority of a security interest in collateral.
(2) While collateral is located in a jurisdiction, the local law of that jurisdiction
governs perfection, the effect of perfection or nonperfection and the priority of a possessory security interest in that collateral.
(3) Except as otherwise provided in subdivision (4) of this section, while tangible
negotiable documents, goods, instruments, money or tangible chattel paper is located
in a jurisdiction, the local law of that jurisdiction governs:
(A) Perfection of a security interest in the goods by filing a fixture filing;
(B) Perfection of a security interest in timber to be cut; and
(C) The effect of perfection or nonperfection and the priority of a nonpossessory
security interest in the collateral.
(4) The local law of the jurisdiction in which the wellhead or minehead is located
governs perfection, the effect of perfection or nonperfection and the priority of a security
interest in as-extracted collateral.
(1959, P.A. 133, S. 9-301; P.A. 76-369, S. 17; P.A. 93-21, S. 1; P.A. 97-182, S. 58; P.A. 01-132, S. 21; P.A. 04-64, S. 65.)
History: P.A. 76-369 added reference to buyers of farm products in Subsec. (1)(c), deleted reference to contract rights
in Subsec. (1)(d), deleted provision in Subsec. (3) which stated "Unless all the creditors represented had knowledge of the
security interest such a representative of creditors is a lien creditor without knowledge even though he personally has
knowledge of the security interest", added Subsec. (4), and changed wording slightly in Subsecs. (1)(a) and (2) for clarity;
P.A. 93-21 amended Subsec. (2) to increase the number of days from "ten" to "twenty" in which the filing of the purchase
money security interest is made after the debtor receives possession of the collateral; P.A. 97-182 amended Subsec. (1) to
add "investment property" in Subdiv. (d); P.A. 01-132 replaced former provisions re persons who take priority over an
unperfected security interest and when a person who becomes a lien creditor takes subject to the security interest with
provisions re the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest
in collateral; P.A. 04-64 amended Subdiv. (3) by making a technical change and adding reference to "tangible" negotiable
documents to conform to revisions made to article 7 by the same act.
Annotation to former section 42a-9-103a(3):
Auto brought into Connecticut with perfected interest has perfected interest for four months without filing. 6 Conn.
Cir. Ct. 499.
Sec. 42a-9-302. Law governing perfection and priority of agricultural liens.
While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of an agricultural lien on the farm products.
(1959, P.A. 133, S. 9-302; 1961, P.A. 116, S. 11; 573, S. 4; 1963, P.A. 650, S. 2; P.A. 76-369, S. 18; P.A. 79-435, S.
48; P.A. 85-246, S. 21; May Sp. Sess. P.A. 92-11, S. 29, 70; P.A. 97-182, S. 59; P.A. 01-132, S. 22.)
History: 1961 acts amended Subsec. (4) for conformity with motor vehicle certificate of title act and added Subsec.
(5); 1963 act specified that article provisions do not apply to "a security interest in property in the state of Connecticut
created pursuant to chapter 128"; P.A. 76-369 amended Subsec. (1) to delete exception re purchase money security interest
in farm equipment with purchase price of $2500 or less, unless equipment is a fixture under Sec. 42a-9-313 or a motor
vehicle which must be licensed, inserting in its stead exception re security interest created by assignment of beneficial
interest in trust or estate, to clarify Subdiv. (d), to delete contract rights in Subdiv. (e) and to add Subdiv. (g), deleted former
Subsecs. (3) and (4) which excepted security interests in property in this or other states from filing requirements under
certain circumstances and which outlined perfection of security interest in certain vehicles, inserting new Subsecs. (3) and
(4) in their stead; P.A. 79-435 included "securities as provided in section 42a-8-321" in Subsec. (1)(f); P.A. 85-246 deleted
reference to street railway company in Subsec. (5); May Sp. Sess. P.A. 92-11 amended Subsec. (1)(f) to replace reference
to Sec. 42a-4-208 with Sec. 42a-4-210; P.A. 97-182 amended Subsec. (1) to add "certificated securities" in Subdiv. (b),
delete in Subdiv. (f) a reference to a security interest "in securities as provided in Sec. 42a-8-321" and add Subdiv. (h) re
a security interest in investment property which is perfected without filing under Sec. 42a-9-115 or 42a-9-116; P.A. 01-132 replaced former provisions re when filing is required to perfect a security interest and security interests to which the
filing provisions of this article do not apply with provisions re the law governing perfection, the effect of perfection or
nonperfection and the priority of an agricultural lien on farm products.
Sec. 42a-9-303. Law governing perfection and priority of security interests in
goods covered by a certificate of title. (a) This section applies to goods covered by a
certificate of title, even if there is no other relationship between the jurisdiction under
whose certificate of title the goods are covered and the goods or the debtor.
(b) Goods become covered by a certificate of title when a valid application for the
certificate of title and the applicable fee are delivered to the appropriate authority. Goods
cease to be covered by a certificate of title at the earlier of the time the certificate of
title ceases to be effective under the law of the issuing jurisdiction or the time the goods
become covered subsequently by a certificate of title issued by another jurisdiction.
(c) The local law of the jurisdiction under whose certificate of title the goods are
covered governs perfection, the effect of perfection or nonperfection and the priority
of a security interest in goods covered by a certificate of title from the time the goods
become covered by the certificate of title until the goods cease to be covered by the
certificate of title.
(1959, P.A. 133, S. 9-303; P.A. 01-132, S. 23.)
History: P.A. 01-132 replaced former provisions re when a security interest is perfected and when a security interest
is deemed to be perfected continuously with provisions re the law governing perfection, the effect of perfection or nonperfection and the priority of a security interest in goods covered by a certificate of title.
Sec. 42a-9-304. Law governing perfection and priority of security interests in
deposit accounts. (a) The local law of a bank's jurisdiction governs perfection, the
effect of perfection or nonperfection and the priority of a security interest in a deposit
account maintained with that bank.
(b) The following rules determine a bank's jurisdiction for purposes of this part:
(1) If an agreement between the bank and the debtor governing the deposit account
expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes
of this part, this article or this title, that jurisdiction is the bank's jurisdiction.
(2) If subdivision (1) does not apply and an agreement between the bank and its
customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction.
(3) If neither subdivision (1) nor subdivision (2) applies and an agreement between
the bank and its customer governing the deposit account expressly provides that the
deposit account is maintained at an office in a particular jurisdiction, that jurisdiction
is the bank's jurisdiction.
(4) If none of the preceding subdivisions applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the
customer's account is located.
(5) If none of the preceding subdivisions applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
(1959, P.A. 133, S. 9-304; P.A. 76-369, S. 19, 20; P.A. 79-435, S. 49; P.A. 96-198, S. 24; P.A. 97-182, S. 60; P.A. 01-132, S. 24.)
History: P.A. 76-369 included security interests "in money" in Subsec. (1) and added reference to Subsecs. (2) and (3)
of Sec. 42a-9-306 and specified in Subsec. (5)(a) that priority between conflicting security interests in goods is subject to
Sec. 42a-9-312(3); P.A. 79-435 specified applicability to instruments "other than certificated securities" in Subsecs. (1),
(4) and (5); P.A. 96-198 amended Subsec. (1) to add provision that a security interest in the rights to proceeds of a written
letter of credit can be perfected only by the secured party's taking possession of the letter of credit; P.A. 97-182 amended
Subsecs. (1), (4) and (5) to make provisions applicable to a security interest in a certificated security by deleting the
provisions that excluded certificated securities from the term "instruments" and amended Subsec. (5) to include the delivery
of a certificated security in Subdiv. (b); P.A. 01-132 replaced former provisions re manner of perfecting a security interest
in instruments, documents, proceeds of a letter of credit and goods covered by documents and temporary perfection without
filing or transfer of possession with provisions re the law governing perfection, the effect of perfection or nonperfection
and the priority of a security interest in a deposit account maintained with a bank.
Sec. 42a-9-305. Law governing perfection and priority of security interests in
investment property. (a) Except as otherwise provided in subsection (c), the following
rules apply:
(1) While a security certificate is located in a jurisdiction, the local law of that
jurisdiction governs perfection, the effect of perfection or nonperfection and the priority
of a security interest in the certificated security represented thereby.
(2) The local law of the issuer's jurisdiction as specified in subsection (d) of section
42a-8-110 governs perfection, the effect of perfection or nonperfection and the priority
of a security interest in an uncertificated security.
(3) The local law of the securities intermediary's jurisdiction as specified in subsection (e) of section 42a-8-110 governs perfection, the effect of perfection or nonperfection
and the priority of a security interest in a security entitlement or securities account.
(4) The local law of the commodity intermediary's jurisdiction governs perfection,
the effect of perfection or nonperfection and the priority of a security interest in a commodity contract or commodity account.
(b) The following rules determine a commodity intermediary's jurisdiction for purposes of this part:
(1) If an agreement between the commodity intermediary and commodity customer
governing the commodity account expressly provides that a particular jurisdiction is
the commodity intermediary's jurisdiction for purposes of this part, this article or this
title, that jurisdiction is the commodity intermediary's jurisdiction.
(2) If subdivision (1) does not apply and an agreement between the commodity
intermediary and commodity customer governing the commodity account expressly
provides that the agreement is governed by the law of a particular jurisdiction, that
jurisdiction is the commodity intermediary's jurisdiction.
(3) If neither subdivision (1) nor subdivision (2) applies and an agreement between
the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a
particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
(4) If none of the preceding subdivisions applies, the commodity intermediary's
jurisdiction is the jurisdiction in which the office identified in an account statement as
the office serving the commodity customer's account is located.
(5) If none of the preceding subdivisions applies, the commodity intermediary's
jurisdiction is the jurisdiction in which the chief executive office of the commodity
intermediary is located.
(c) The local law of the jurisdiction in which the debtor is located governs:
(1) Perfection of a security interest in investment property by filing;
(2) Automatic perfection of a security interest in investment property created by a
broker or securities intermediary; and
(3) Automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary.
(1959, P.A. 133, S. 9-305; P.A. 76-369, S. 21; P.A. 77-604, S. 26, 84; P.A. 79-435, S. 50; P.A. 96-198, S. 25; P.A. 97-182, S. 61; June Sp. Sess. P.A. 98-1, S. 33, 121; P.A. 01-132, S. 25.)
History: P.A. 76-369 specified applicability of provisions to security interests in money; P.A. 77-604 made technical
correction; P.A. 79-435 specified applicability to instruments "other than certificated securities"; P.A. 96-198 added provision that a security interest in the right to proceeds of a written letter of credit may be perfected by the secured party's
taking possession of the letter of credit; P.A. 97-182 made provisions applicable to a security interest in certificated securities
by deleting the provision that excluded certificated securities from the term "instrument"; June Sp. Sess. P.A. 98-1 made
a technical change, effective June 24, 1998 (Revisor's note: In codifying this section the Revisors deleted the words "other
than certificated securities" to reflect the deletion of these words by P.A. 97-182); P.A. 01-132 replaced former provisions
re when possession by the secured party perfects a security interest with provisions re the law governing perfection, the
effect of perfection or nonperfection and the priority of a security interest in investment property.
Sec. 42a-9-306. Law governing perfection and priority of security interests
in letter-of-credit rights. (a) Subject to subsection (c), the local law of the issuer's
jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection and the priority of a security interest in a letter-of-credit right if
the issuer's jurisdiction or nominated person's jurisdiction is a state.
(b) For purposes of this part, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person
with respect to the letter-of-credit right as provided in section 42a-5-116.
(c) This section does not apply to a security interest that is perfected only under
subsection (d) of section 42a-9-308.
(1959, P.A. 133, S. 9-306; P.A. 76-369, S. 22; P.A. 97-182, S. 62; P.A. 01-132, S. 26.)
History: P.A. 76-369 redefined "proceeds" and included deposit accounts as "cash proceeds" in Subsec. (1), clarified
financing statement required in Subsec. (3), clarified applicability of Subsec. (4) to deposit accounts and clarified provisions
of that Subsec. re security interest in debtor's cash and accounts; P.A. 97-182 amended Subsec. (3) to add a new Subdiv.
(c) re the circumstance when the original collateral was investment property and the proceeds are identifiable cash proceeds
and reletter former Subdiv. (c) as Subdiv. (d); P.A. 01-132 replaced former provisions re the rights of a secured party
upon disposition of collateral and in proceeds with provisions re the law governing perfection, the effect of perfection or
nonperfection and the priority of a security interest in a letter-of-credit right.
Sec. 42a-9-307. Location of debtor. (a) In this section, "place of business" means
a place where a debtor conducts its affairs.
(b) Except as otherwise provided in this section, the following rules determine a
debtor's location:
(1) A debtor who is an individual is located at the individual's principal residence.
(2) A debtor that is an organization and has only one place of business is located
at its place of business.
(3) A debtor that is an organization and has more than one place of business is
located at its chief executive office.
(c) Subsection (b) applies only if a debtor's residence, place of business or chief
executive office, as applicable, is located in a jurisdiction whose law generally requires
information concerning the existence of a nonpossessory security interest to be made
generally available in a filing, recording or registration system as a condition or result
of the security interest's obtaining priority over the rights of a lien creditor with respect
to the collateral. If subsection (b) does not apply, the debtor is located in the District of
Columbia.
(d) A person that ceases to exist, have a residence or have a place of business continues to be located in the jurisdiction specified by subsections (b) and (c).
(e) A registered organization that is organized under the law of a state is located in
that state.
(f) Except as otherwise provided in subsection (i), a registered organization that is
organized under the law of the United States and a branch or agency of a bank that is
not organized under the law of the United States or a state are located:
(1) In the state that the law of the United States designates, if the law designates a
state of location;
(2) In the state that the registered organization, branch or agency designates, if the
law of the United States authorizes the registered organization, branch or agency to
designate its state of location; or
(3) In the District of Columbia, if neither subdivision (1) nor subdivision (2) applies.
(g) A registered organization continues to be located in the jurisdiction specified
by subsection (e) or (f) notwithstanding:
(1) The suspension, revocation, forfeiture or lapse of the registered organization's
status as such in its jurisdiction of organization; or
(2) The dissolution, winding up or cancellation of the existence of the registered
organization.
(h) The United States is located in the District of Columbia.
(i) A branch or agency of a bank that is not organized under the law of the United
States or a state is located in the state in which the branch or agency is licensed, if all
branches and agencies of the bank are licensed in only one state.
(j) A foreign air carrier under the Federal Aviation Act of 1958, as amended, is
located at the designated office of the agent upon which service of process may be made
on behalf of the carrier.
(k) This section applies only for purposes of this part.
(1959, P.A. 133, S. 9-307; P.A. 76-369, S. 23; P.A. 01-132, S. 27.)
History: P.A. 76-369 removed purchase of farm equipment with original purchase price of $2500 or less other than
fixtures from purview of Subsec. (2) and added Subsec. (3); P.A. 01-132 replaced former provisions re when a buyer takes
free of a security interest with provisions re rules determining a debtor's location.
Sec. 42a-9-308. When security interest or agricultural lien is perfected. Continuity of perfection. (a) Except as otherwise provided in this section and section 42a-9-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 42a-9-310 to 42a-9-316, inclusive, have been satisfied.
A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(b) An agricultural lien is perfected if it has become effective and all of the applicable
requirements for perfection in section 42a-9-310 have been satisfied. An agricultural
lien is perfected when it becomes effective if the applicable requirements are satisfied
before the agricultural lien becomes effective.
(c) A security interest or agricultural lien is perfected continuously if it is originally
perfected by one method under this article and is later perfected by another method
under this article, without an intermediate period when it was unperfected.
(d) Perfection of a security interest in collateral also perfects a security interest in
a supporting obligation for the collateral.
(e) Perfection of a security interest in a right to payment or performance also perfects
a security interest in a security interest, mortgage or other lien on personal or real property
securing the right.
(f) Perfection of a security interest in a securities account also perfects a security
interest in the security entitlements carried in the securities account.
(g) Perfection of a security interest in a commodity account also perfects a security
interest in the commodity contracts carried in the commodity account.
(1959, P.A. 133, S. 9-308; P.A. 76-369, S. 24; P.A. 01-132, S. 28.)
History: P.A. 76-369 rephrased provision re priority of purchaser of chattel paper or instrument over security interest
and deleted "nonnegotiable" as modifier of "instrument"; P.A. 01-132 replaced former provisions re when a purchaser of
chattel paper or an instrument has priority over a security interest in the chattel paper or instrument with provisions re
when a security interest or agricultural lien is perfected and the continuity of perfection.
Annotation to former section 42a-9-303(1):
Cited. 221 C. 77, 82.
Sec. 42a-9-309. Security interest perfected upon attachment. The following security interests are perfected when they attach:
(1) A purchase-money security interest in consumer goods, except as otherwise
provided in subsection (b) of section 42a-9-311 with respect to consumer goods that
are subject to a statute or treaty described in subsection (a) of section 42a-9-311;
(2) An assignment of accounts or payment intangibles which does not by itself or
in conjunction with other assignments to the same assignee transfer a significant part
of the assignor's outstanding accounts or payment intangibles;
(3) A sale of a payment intangible;
(4) A sale of a promissory note;
(5) A security interest created by the assignment of a health-care-insurance receivable to the provider of the health-care goods or services;
(6) A security interest arising under section 42a-2-401, section 42a-2-505, subsection (3) of section 42a-2-711 or subsection (d) of section 42a-2A-724, until the debtor
obtains possession of the collateral;
(7) A security interest of a collecting bank arising under section 42a-4-210;
(8) A security interest of an issuer or nominated person arising under section 42a-5-118;
(9) A security interest arising in the delivery of a financial asset under subsection
(c) of section 42a-9-206;
(10) A security interest in investment property created by a broker or securities
intermediary;
(11) A security interest in a commodity contract or a commodity account created
by a commodity intermediary;
(12) An assignment for the benefit of all creditors of the transferor and subsequent
transfers by the assignee thereunder; and
(13) A security interest created by an assignment of a beneficial interest in a decedent's estate.
(1959, P.A. 133, S. 9-309; P.A. 79-435, S. 51; P.A. 97-182, S. 63; P.A. 01-132, S. 29; P.A. 02-131, S. 98.)
History: P.A. 79-435 substituted reference to Sec. 42a-8-302 for reference to Sec. 42a-8-301; P.A. 97-182 replaced
"bona fide purchaser" with "protected purchaser" and replaced reference to Sec. 42a-8-302 with Sec. 42a-8-303; P.A. 01-132 replaced former provisions re protection of purchasers of instruments, documents and securities with provisions re
security interests that are perfected when they attach; P.A. 02-131 amended Subdiv. (6) by adding reference to Sec. 42a-2A-724(d).
Sec. 42a-9-310. When filing required to perfect security interest or agricultural lien. Security interests and agricultural lien. Security interest and agricultural liens to which filing provisions do not apply. (a) Except as otherwise provided
in subsection (b) of this section and subsection (b) of section 42a-9-312, a financing
statement must be filed to perfect all security interests and agricultural liens.
(b) The filing of a financing statement is not necessary to perfect a security interest:
(1) That is perfected under subsection (d), (e), (f) or (g) of section 42a-9-308;
(2) That is perfected under section 42a-9-309 when it attaches;
(3) In property subject to a statute, regulation or treaty described in subsection (a)
of section 42a-9-311;
(4) In goods in possession of a bailee which is perfected under subdivision (1) or
(2) of subsection (d) of section 42a-9-312;
(5) In certificated securities, documents, goods or instruments which is perfected
without filing, control or possession under subsection (e), (f) or (g) of section 42a-9-312;
(6) In collateral in the secured party's possession under section 42a-9-313;
(7) In a certificated security which is perfected by delivery of the security certificate
to the secured party under section 42a-9-313;
(8) In deposit accounts, electronic chattel paper, electronic documents, investment
property or letter-of-credit rights which is perfected by control under section 42a-9-314;
(9) In proceeds which is perfected under section 42a-9-315; or
(10) That is perfected under section 42a-9-316.
(c) If a secured party assigns a perfected security interest or agricultural lien, a filing
under this article is not required to continue the perfected status of the security interest
against creditors of and transferees from the original debtor.
(1959, P.A. 133, S. 9-310; P.A. 01-132, S. 30; P.A. 04-64, S. 66.)
History: P.A. 01-132 replaced former provisions re priority of certain liens upon goods arising by operation of law with
provisions re when the filing of a financing statement is necessary to perfect a security interest or agricultural lien and re
security interests to which the filing provisions do not apply; P.A. 04-64 amended Subsec. (b) by adding "control" in
Subdiv. (5) and adding "electronic documents" in Subdiv. (8) to conform to revisions made to article 7 by the same act.
Annotations to former section 42a-9-302:
Cited. 1 CA 595, 598, 602.
Subsec. (1):
Cited. 25 CS 335. Cited. 31 CS 523, 527. Subdivision (e): Cited. 33 CS 616.
Subsec. (2):
Cited. 18 CA 265, 272.