ARTICLE 9*
SECURED TRANSACTIONS

PART 1
GENERAL PROVISIONS

      Sec. 42a-9-101. Short title. This article may be cited as "Uniform Commercial Code-Secured Transactions".

      (1959, P.A. 133, S. 9-101; P.A. 01-132, S. 1.)

      History: P.A. 01-132 replaced "shall be known and may be cited" with "may be cited".

      Annotations to former statutes:

      (1958 Rev., Chapter 709): Trust receipts in relation to conditional sales. 129 C. 446.

      (1958 Rev., S. 42-77): Under the act of 1893 conditions under which the original vendor could replevy the goods sold under an unrecorded contract of sale, from a bona fide purchaser for value. 63 C. 436. Statute has not changed the law de retention of possession by the vendor. 70 C. 510; 77 C. 38; 101 C. 562. Statute applies only to contracts by which the title is not to pass upon delivery but upon the performance of some subsequent condition. 71 C. 165. Conditional sale made in New York to be performed in Connecticut is to be governed by the law of this state. 73 C. 133; 104 C. 564. Failure to record within two months held to be unreasonable; fixture in building. 75 C. 165. Where contract requires vendee to make weekly payments and also to pay in full within one year, vendor may retake for default in either requirement. 76 C. 221. "Contract" includes what; purpose of requiring record; that person taking acknowledgment was vendor's agent immaterial. 77 C. 276. "Household furniture"; linoleum for floor covering held to be. 78 C. 273. Lease, giving right to purchase, and providing for application of rentals paid on price not necessarily to be construed as conditional sale. 79 C. 419. Vendee cannot be compelled to continue payments where creditor attaches piano, then takes assignment from vendor and rests on latter. Id., 570. One who attaches interest of vendee stands in his shoes as regards payments. Id., 573; 80 C. 389. What considered in determining whether writing is mortgage or conditional sale. 81 C. 711. Recording before acknowledgment and later recording after acknowledgment held insufficient. 87 C. 369. Destruction of property will not relieve vendee of obligation to pay. 89 C. 232. Agreement in form of lease held to be a conditional sale. 95 C. 181; 97 C. 574; 104 C. 563. Where agreement of conditional sale provides that vendor may elect to treat it as straight bill of sale, no notice of election is necessary and suit may be brought for balance due. 96 C. 449. Sales and assignments of excepted articles need not be in writing. 98 C. 216. Electric light fixtures held household furniture. 101 C. 3. Cited. 105 C. 586; 113 C. 481; 132 C. 288. Distinction between mortgage and conditional bill of sale. 107 C. 527. Conditional bill of sale to retail dealer does not hold against retail customer without knowledge. Id., 365. Contract construed to be conditional though without express provision that title shall remain in seller. 112 C. 615. As against subsequent vendees, failure to acknowledge renders sale absolute. 113 C. 542. Not a conditional bill of sale where goods delivered are not described in it. 114 C. 71. Where corporation executes, certificate must disclose that person acknowledging was acting as officer or agent. Id., 514. Signing by treasurer on behalf of corporation and acknowledgment by him individually does not comply with statute. Id. Where both vendor and vendee execute instrument, both must acknowledge. Id.; 123 C. 438. Certificate sufficient which identifies subscriber, specifies the writing subscribed, states capacity in which he executed and certifies his acknowledgment. Id., 518; 120 C. 50. Under former statute contract for sale of portable building could be recorded in town where real estate was situated. 116 C. 368. Between trust receipt and conditional sale. Id., 490. Defectively executed contract of conditional sale may be enforced against vendee by assignee of vendor. 117 C. 457. Where unrecorded conditional sale contract is cancelled, recording of new contract with different terms within reasonable time is sufficient compliance with statute, where no rights of third parties have intervened. 120 C. 585. Instrument with obvious error in date held not to describe all conditions of sale. 127 C. 199. Attaching creditor of conditional vendee is limited by whatever conditions vendor and vendee agreed upon. 129 C. 232. Where trustee under trust receipt had power to sell, conditional sales contract did not inaccurately describe him as seller and, as entruster had lien not title, it did not inaccurately represent title to be in seller. Id., 446. Nor does signing by individual and acknowledgment by him on behalf of a corporation. Id., 517. Leaving blank the day of the month on which installment payments must be met is not compliance with statute. Acknowledgment of corporate signature must be certified. 137 C. 541. The failure of a contract to mention the sales tax is not such a failure to describe the condition of the sale as would make the reservation of title in the seller invalid as against an attaching creditor of the buyer. Unilateral contract does not require signature or acknowledgment of the seller. 144 C. 311. Purposes of section. Liberally construed toward those for whose protection it was enacted. 146 C. 64. Provides unequivocally that all of the conditions shall be expressed in writing. Id.

      Creditors may attack a conditional sale not complying with statute notwithstanding that they had actual notice. 1 CS 123. Taking of possession essential to a sale. Id., 160. Substitution of original conditional bill of sale for another not complying with statute renders latter a chattel mortgage in form. 2 CS 32. Conditional bill of sale not executed in conformity with this section is absolute sale. 3 CS 71. Conditions under which filing time was held unreasonable. 9 CS 284. Statute protects those who may be led to believe in the apparent ownership of the vendee by indicia of ownership. 10 CS 455. There is no duty to file a so-called extension agreement purporting to modify or alter the original agreement. 11 CS 277. Not applicable to chattel mortgage. Id., 403. Acknowledgment sufficient which identifies the subscriber, specifies the writing subscribed, states the capacity in which he executed it and certifies his acknowledgment thereof. 17 CS 29.

      (1958 Rev., S. 42-79): Receiver held not to be "personal representative," but rather the agent of creditors. 70 C. 228; 71 C. 366; 87 C. 369; 104 C. 568; 105 C. 586; 114 C. 71. Trustee in insolvency of conditional vendee under an unrecorded contract takes an absolute title; his actual knowledge of the terms of sale is immaterial. 70 C. 324. Cited. 72 C. 509. If bill of sale not recorded, sale is absolute as to trustee in bankruptcy of vendee; right of one who purchases from him. 75 C. 635. Purpose of provision; who may attack vendor's title, in absence of recording. 87 C. 369; 94 C. 569. Effect of conditional sale of mortgaged chattels with assumption of mortgage by buyer. 95 C. 181, 185. Vendee, with notice, of a conditional vendee, is not a personal representative but cannot take advantage of defects in instrument. 102 C. 393. Assignment for benefit of creditors where all but one release claims and attachments; held that they, or their committee taking assignment, are not "personal representatives" of debtor; defectively executed or recorded conditional bill of sale is unenforceable against them. 105 C. 586. Aliter if assignment is without consideration. Id. A purchaser from conditional vendee having actual or implied authority to resell is not affected by recording of such conditional sale; so in case of purchaser of automobile from retail dealer. 107 C. 366. Cited. 112 C. 615; 113 C. 481. Against subsequent vendees, failure to acknowledge renders sale absolute. Id., 542. Cited. 114 C. 515. Former statute construed. 116 C. 369. Purported conditional sale held to be chattel mortgage in effect. Id., 487. Trust receipt compared with conditional sale, chattel mortgage and consignment. Id., 490. Statutes do not render invalid as between the parties defectively executed conditional sale contracts. 117 C. 460. Cited. 120 C. 53. Where acknowledgment is incorrect on its face, creditor or purchaser is justified in dealing with article as property of the vendee. 123 C. 445. Not necessary to show reliance on apparent ownership of car to take advantage of defective bill of sale. 127 C. 199. Cited. 129 C. 517. Failure to state date of installment payments and improper acknowledgment, render sale absolute as to creditors of vendee. 137 C. 541. Parties are competent to agree that fixtures are to remain personalty as between themselves even though the system might be in all other aspects a permanent part of the real estate. 144 C. 499.

      Cited. 1 CS 108. Where plaintiff's conditional vendors failed to repossess the property, creditors were entitled to attach and replevy. Id., 123. Cited. 3 CS 71. Greenhouse held part of land and could not be removed. 4 CS 56. An attaching creditor may attach property sold under an unfiled conditional bill of sale notwithstanding that he has actual knowledge of it and its terms. 9 CS 284. Oil burner sold under contract of conditional sale, which was installed in furnace, was held not to be a fixture. 10 CS 455. No comparable statute providing for chattel mortgages. Id., 403. Cited. 11 CS 277. Cited. 17 CS 29.

      Annotation to present section:

      Cited. 4 CA 58.

      Sec. 42a-9-102. Definitions and index of definitions. (a) In this article:

      (1) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.

      (2) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance issued or to be issued, (iv) for a secondary obligation incurred or to be incurred, (v) for energy provided or to be provided, (vi) for the use or hire of a vessel under a charter or other contract, (vii) arising out of the use of a credit or charge card or information contained on or for use with the card, or (viii) as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state or person licensed or authorized to operate the game by a state or governmental unit of a state. The term includes health-care-insurance receivables. The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.

      (3) "Account debtor" means a person obligated on an account, chattel paper or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.

      (4) "Accounting", except as used in "accounting for", means a record:

      (A) Authenticated by a secured party;

      (B) Indicating the aggregate unpaid secured obligations as of a date not more than thirty-five days earlier or thirty-five days later than the date of the record; and

      (C) Identifying the components of the obligations in reasonable detail.

      (5) "Agricultural lien" means an interest, other than a security interest, in farm products:

      (A) Which secures payment or performance of an obligation for:

      (i) Goods or services furnished in connection with a debtor's farming operation; or

      (ii) Rent on real property leased by a debtor in connection with its farming operation;

      (B) Which is created by statute in favor of a person that:

      (i) In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or

      (ii) Leased real property to a debtor in connection with the debtor's farming operation; and

      (C) Whose effectiveness does not depend on the person's possession of the personal property.

      (6) "As-extracted collateral" means:

      (A) Oil, gas or other minerals that are subject to a security interest that:

      (i) Is created by a debtor having an interest in the minerals before extraction; and

      (ii) Attaches to the minerals as extracted; or

      (B) Accounts arising out of the sale at the wellhead or minehead of oil, gas or other minerals in which the debtor had an interest before extraction.

      (7) "Authenticate" means:

      (A) To sign; or

      (B) To execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.

      (8) "Bank" means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions and trust companies.

      (9) "Cash proceeds" means proceeds that are money, checks, deposit accounts or the like.

      (10) "Certificate of title" means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.

      (11) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this subdivision, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term does not include (i) charters or other contracts involving the use or hire of a vessel, or (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.

      (12) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:

      (A) Proceeds to which a security interest attaches;

      (B) Accounts, chattel paper, payment intangibles and promissory notes that have been sold; and

      (C) Goods that are the subject of a consignment.

      (13) "Commercial tort claim" means a claim arising in tort with respect to which:

      (A) The claimant is an organization; or

      (B) The claimant is an individual and the claim:

      (i) Arose in the course of the claimant's business or profession; and

      (ii) Does not include damages arising out of personal injury to or the death of an individual.

      (14) "Commodity account" means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer.

      (15) "Commodity contract" means a commodity futures contract, an option on a commodity futures contract, a commodity option or another contract if the contract or option is:

      (A) Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or

      (B) Traded on a foreign commodity board of trade, exchange or market, and is carried on the books of a commodity intermediary for a commodity customer.

      (16) "Commodity customer" means a person for which a commodity intermediary carries a commodity contract on its books.

      (17) "Commodity intermediary" means a person that:

      (A) Is registered as a futures commission merchant under federal commodities law; or

      (B) In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.

      (18) "Communicate" means:

      (A) To send a written or other tangible record;

      (B) To transmit a record by any means agreed upon by the persons sending and receiving the record; or

      (C) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office regulation.

      (19) "Consignee" means a merchant to which goods are delivered in a consignment.

      (20) "Consignment" means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:

      (A) The merchant:

      (i) Deals in goods of that kind under a name other than the name of the person making delivery;

      (ii) Is not an auctioneer; and

      (iii) Is not generally known by its creditors to be substantially engaged in selling the goods of others;

      (B) With respect to each delivery, the aggregate value of the goods is one thousand dollars or more at the time of delivery;

      (C) The goods are not consumer goods immediately before delivery; and

      (D) The transaction does not create a security interest that secures an obligation.

      (21) "Consignor" means a person that delivers goods to a consignee in a consignment.

      (22) "Consumer debtor" means a debtor in a consumer transaction.

      (23) "Consumer goods" means goods that are used or bought for use primarily for personal, family or household purposes.

      (24) "Consumer-goods transaction" means a consumer transaction in which:

      (A) An individual incurs an obligation primarily for personal, family or household purposes; and

      (B) A security interest in consumer goods secures the obligation.

      (25) "Consumer obligor" means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family or household purposes.

      (26) "Consumer transaction" means a transaction in which (i) an individual incurs an obligation primarily for personal, family or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family or household purposes. The term includes consumer-goods transactions.

      (27) "Continuation statement" means an amendment of a financing statement which:

      (A) Identifies, by its file number or, in the case of a recording with a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, by book and page number, the initial financing statement to which it relates; and

      (B) Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.

      (28) "Debtor" means:

      (A) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

      (B) A seller of accounts, chattel paper, payment intangibles or promissory notes; or

      (C) A consignee.

      (29) "Deposit account" means a demand, time, savings, passbook or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument.

      (30) "Document" means a document of title or a receipt of the type described in subsection (b) of section 42a-7-201.

      (31) "Electronic chattel paper" means chattel paper evidenced by a record or records consisting of information stored in an electronic medium.

      (32) "Encumbrance" includes real property mortgages and other liens on real property and all other rights in real property that are not ownership interests.

      (33) "Equipment" means goods other than inventory, farm products or consumer goods.

      (34) "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are:

      (A) Crops grown, growing or to be grown, including:

      (i) Crops produced on trees, vines and bushes; and

      (ii) Aquatic goods produced in aquacultural operations;

      (B) Livestock, born or unborn, including aquatic goods produced in aquacultural operations;

      (C) Supplies used or produced in a farming operation; or

      (D) Products of crops or livestock in their unmanufactured states.

      (35) "Farming operation" means raising, cultivating, propagating, fattening, grazing or any other farming, livestock or aquacultural operation.

      (36) "File number" means the number assigned to an initial financing statement pursuant to subsection (a) of section 42a-9-519.

      (37) "Filing office" means an office designated in section 42a-9-501 as the place to file a financing statement.

      (38) "Filing-office regulation" means a regulation adopted pursuant to section 42a-9-526.

      (39) "Financing statement" means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.

      (40) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying subsections (a) and (b) of section 42a-9-502. The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.

      (41) "Fixtures" means goods that have become so related to particular real property that an interest in them arises under real property law.

      (42) "General intangible" means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money and oil, gas or other minerals before extraction. The term includes payment intangibles and software.

      (43) "Good faith" has the same meaning as provided in subdivision (20) of subsection (b) of section 42a-1-201.

      (44) "Goods" means all things that are movable when a security interest attaches. The term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing or to be grown, even if the crops are produced on trees, vines or bushes, and (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money or oil, gas or other minerals before extraction.

      (45) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.

      (46) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.

      (47) "Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease and is of a type that in ordinary course of business is transferred by delivery with any necessary endorsement or assignment. The term does not include (i) investment property, (ii) letters of credit, or (iii) writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.

      (48) "Inventory" means goods, other than farm products, which:

      (A) Are leased by a person as lessor;

      (B) Are held by a person for sale or lease or to be furnished under a contract of service;

      (C) Are furnished by a person under a contract of service; or

      (D) Consist of raw materials, work in process or materials used or consumed in a business.

      (49) "Investment property" means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract or commodity account.

      (50) "Jurisdiction of organization", with respect to a registered organization, means the jurisdiction under whose law the organization is organized.

      (51) "Letter-of-credit right" means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.

      (52) "Lien creditor" means:

      (A) A creditor that has acquired a lien on the property involved by attachment, levy or the like;

      (B) An assignee for benefit of creditors from the time of assignment;

      (C) A trustee in bankruptcy from the date of the filing of the petition; or

      (D) A receiver in equity from the time of appointment.

      (53) "Manufactured home" means a "mobile manufactured home" as defined in section 21-64.

      (54) "Manufactured-home transaction" means a secured transaction:

      (A) That creates a purchase-money security interest in a manufactured home, other than a manufactured home held as inventory; or

      (B) In which a manufactured home, other than a manufactured home held as inventory, is the primary collateral.

      (55) "Mortgage" means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.

      (56) "New debtor" means a person that becomes bound as debtor under subsection (d) of section 42a-9-203 by a security agreement previously entered into by another person.

      (57) "New value" means (i) money, (ii) money's worth in property, services or new credit, or (iii) release by a transferee of an interest in property previously transferred to the transferee. The term does not include an obligation substituted for another obligation.

      (58) "Noncash proceeds" means proceeds other than cash proceeds.

      (59) "Obligor" means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, (i) owes payment or other performance of the obligation, (ii) has provided property other than the collateral to secure payment or other performance of the obligation, or (iii) is otherwise accountable in whole or in part for payment or other performance of the obligation. The term does not include issuers or nominated persons under a letter of credit.

      (60) "Original debtor", except as used in subsection (c) of section 42a-9-310, means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under subsection (d) of section 42a-9-203.

      (61) "Payment intangible" means a general intangible under which the account debtor's principal obligation is a monetary obligation.

      (62) "Person related to", with respect to an individual, means:

      (A) The spouse of the individual;

      (B) A brother, brother-in-law, sister or sister-in-law of the individual;

      (C) An ancestor or lineal descendant of the individual or the individual's spouse; or

      (D) Any other relative, by blood or marriage, of the individual or the individual's spouse who shares the same home with the individual.

      (63) "Person related to", with respect to an organization, means:

      (A) A person directly or indirectly controlling, controlled by or under common control with the organization;

      (B) An officer or director of, or a person performing similar functions with respect to, the organization;

      (C) An officer or director of, or a person performing similar functions with respect to, a person described in subparagraph (A);

      (D) The spouse of an individual described in subparagraph (A), (B) or (C); or

      (E) An individual who is related by blood or marriage to an individual described in subparagraph (A), (B), (C) or (D) and shares the same home with the individual.

      (64) "Proceeds", except as used in subsection (b) of section 42a-9-609, means the following property:

      (A) Whatever is acquired upon the sale, lease, license, exchange or other disposition of collateral;

      (B) Whatever is collected on, or distributed on account of, collateral;

      (C) Rights arising out of collateral;

      (D) To the extent of the value of collateral, claims arising out of the loss, nonconformity or interference with the use of, defects or infringement of rights in, or damage to, the collateral; or

      (E) To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.

      (65) "Promissory note" means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.

      (66) "Proposal" means a record authenticated by a secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to sections 42a-9-620, 42a-9-621 and 42a-9-622.

      (67) "Public-finance transaction" means a secured transaction in connection with which:

      (A) Debt securities are issued;

      (B) All or a portion of the securities issued have an initial stated maturity of at least twenty years; and

      (C) The debtor, obligor, secured party, account debtor or other person obligated on collateral, assignor or assignee of a secured obligation or assignor or assignee of a security interest is a state or a governmental unit of a state.

      (68) "Pursuant to commitment", with respect to an advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.

      (69) "Record", except as used in "for record", "of record", "record or legal title" and "record owner", means information that is inscribed on a tangible medium or which is stored in an electronic or other medium and is retrievable in perceivable form.

      (70) "Registered organization" means an organization organized solely under the law of a single state or the United States and as to which the state or the United States must maintain a public record showing the organization to have been organized.

      (71) "Secondary obligor" means an obligor to the extent that:

      (A) The obligor's obligation is secondary; or

      (B) The obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor or property of either.

      (72) "Secured party" means:

      (A) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

      (B) A person that holds an agricultural lien;

      (C) A consignor;

      (D) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;

      (E) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or

      (F) A person that holds a security interest arising under section 42a-2-401, section 42a-2-505, subsection (3) of section 42a-2-711, subsection (d) of section 42a-2A-724, section 42a-4-210 or section 42a-5-118.

      (73) "Security agreement" means an agreement that creates or provides for a security interest.

      (74) "Send", in connection with a record or notification, means:

      (A) To deposit in the mail, deliver for transmission or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or

      (B) To cause the record or notification to be received within the time that it would have been received if properly sent under subparagraph (A).

      (75) "Software" means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.

      (76) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.

      (77) "Supporting obligation" means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument or investment property.

      (78) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.

      (79) "Termination statement" means an amendment of a financing statement which:

      (A) Identifies, by its file number or, in the case of a recording with a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, by book and page number, the initial financing statement to which it relates; and

      (B) Indicates either that it is a termination statement or that the identified financing statement is no longer effective.

      (80) "Transmitting utility" means a person primarily engaged in the business of:

      (A) Operating a railroad, subway, street railway or trolley bus;

      (B) Transmitting communications electrically, electromagnetically or by light;

      (C) Transmitting goods by pipeline or sewer; or

      (D) Transmitting or producing and transmitting electricity, steam, gas or water.

      (b) "Control" as provided in section 42a-7-106 and the following definitions in other articles apply to this article:

      "Applicant". Section 42a-5-102.

      "Beneficiary". Section 42a-5-102.

      "Broker". Section 42a-8-102.

      "Certificated security". Section 42a-8-102.

      "Check". Section 42a-3-104.

      "Clearing corporation". Section 42a-8-102.

      "Contract for sale". Section 42a-2-106.

      "Customer". Section 42a-4-104.

      "Entitlement holder". Section 42a-8-102.

      "Financial asset". Section 42a-8-102.

      "Holder in due course". Section 42a-3-302.

      "Issuer" (with respect to a letter of credit or letter-of-credit right). Section 42a-5-102.

      "Issuer" (with respect to a security). Section 42a-8-201.

      "Issuer" (with respect to documents of title). Section 42a-7-102.

      "Lease". Section 42a-2A-102.

      "Lease agreement". Section 42a-2A-102.

      "Lease contract". Section 42a-2A-102.

      "Leasehold interest". Section 42a-2A-102.

      "Lessee". Section 42a-2A-102.

      "Lessee in ordinary course of business". Section 42a-2A-102.

      "Lessor". Section 42a-2A-102.

      "Lessor's residual interest". Section 42a-2A-102.

      "Letter of credit". Section 42a-5-102.

      "Merchant". Section 42a-2-104.

      "Negotiable instrument". Section 42a-3-104.

      "Nominated person". Section 42a-5-102.

      "Note". Section 42a-3-104.

      "Proceeds of a letter of credit". Section 42a-5-114.

      "Prove". Section 42a-3-103.

      "Sale". Section 42a-2-106.

      "Securities account". Section 42a-8-501.

      "Securities intermediary". Section 42a-8-102.

      "Security". Section 42a-8-102.

      "Security certificate". Section 42a-8-102.

      "Security entitlement". Section 42a-8-102.

      "Uncertificated security". Section 42a-8-102.

      (c) Article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.

      (1959, P.A. 133, S. 9-102; P.A. 76-369, S. 7; P.A. 01-132, S. 2; P.A. 02-131, S. 93, 94; P.A. 04-64, S. 60, 61; P.A. 05-109, S. 39.)

      History: P.A. 76-369 amended Subsec. (1) to delete exception re provisions of Sec. 42a-9-103 on multiple state transactions, to delete redundant clause which had specified that article applies "so far as concerns any personal property and fixtures within the jurisdiction of this state" and to delete references to contract rights as personal property or fixtures; P.A. 01-132 replaced former provisions re policy and scope of this article with provisions defining terms used in this article and specifying definitions in other articles that apply to this article; P.A. 02-131 amended Subsec. (a)(72)(F) by adding reference to Sec. 42a-2A-724(d) and amended Subsec. (b) by adding applicable terms defined in Sec. 42a-2A-102; P.A. 04-64 amended Subsec. (a)(30) by making a technical change and amended Subsec. (b) by adding reference to "control" as provided in Sec. 42a-7-106 and adding reference to "issuer" with respect to documents of title as defined in Sec. 42a-7-102 to conform to revisions made to article 7 by the same act; P.A. 05-109 amended Subsec. (a)(43) by replacing definition of "good faith" with reference to meaning of said term provided in Sec. 42a-1-201(b)(20) to conform to revisions made to article 1 by the same act.

      Annotations to former section 42a-9-105:

      "Agreement" means the bargain of the parties in fact as found in their language or by implication from other circumstances. 168 C. 152.

      Subsec. (1):

      Subdiv. (b) cited. 182 C. 437.

      Subdiv. (d) cited. 34 CS 632.

      Cited. 5 Conn. Cir. Ct. 406.

      Annotations to former section 42a-9-106:

      Cited. 185 C. 583.

      Annotations to former section 42a-9-109:

      Connecticut has strong public policy of protecting purchasers of consumer goods. 158 C. 543. The definition of "goods" includes "inventory". 168 C. 152. Cited. 209 C. 163. Cited. 221 C. 530.

      Subdiv. (1):

      Cited 182 C. 437.

      Subdiv. (4):

      Cited. 212 C. 167.

      Sec. 42a-9-103. Accounts, contract rights, general intangibles and equipment relating to another jurisdiction; incoming goods already subject to security interest. Section 42a-9-103 is repealed.

      (1959, P.A. 133, S. 9-103; 1963, P.A. 526, S. 21; P.A. 76-369, S. 8.)

      Sec. 42a-9-103a. Purchase-money security interest. (a) In this section:

      (1) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and

      (2) "Purchase-money obligation" means an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.

      (b) A security interest in goods is a purchase-money security interest:

      (1) To the extent that the goods are purchase-money collateral with respect to that security interest;

      (2) If the security interest is in inventory that is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest; and

      (3) Also to the extent that the security interest secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.

      (c) A security interest in software is a purchase-money security interest to the extent that the security interest also secures a purchase-money obligation incurred with respect to goods in which the secured party holds or held a purchase-money security interest if:

      (1) The debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and

      (2) The debtor acquired its interest in the software for the principal purpose of using the software in the goods.

      (d) The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.

      (e) (1) In a transaction other than a consumer-goods transaction, if the extent to which a security interest is a purchase-money security interest depends on the application of a payment to a particular obligation, the payment must be applied:

      (A) In accordance with any reasonable method of application to which the parties agree;

      (B) In the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or

      (C) In the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:

      (i) To obligations that are not secured; and

      (ii) If more than one obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.

      (2) In a consumer-goods transaction, if the extent to which a security interest is a purchase-money security interest depends on the application of a payment to a particular obligation:

      (A) The payment must be applied so that the secured party retains no purchase money security interest in any property as to which the secured party has recovered payments aggregating the amount of the sale price including any finance charges attributable thereto; and

      (B) For the purposes of this subdivision only, in the case of items purchased on different dates, the first item purchased shall be deemed the first paid for and, in the case of items purchased on the same date, the lowest priced item shall be deemed the first paid for.

      (f) In a transaction other than a consumer-goods transaction, a purchase-money security interest does not lose its status as such, even if:

      (1) The purchase-money collateral also secures an obligation that is not a purchase-money obligation;

      (2) Collateral that is not purchase-money collateral also secures the purchase-money obligation; or

      (3) The purchase-money obligation has been renewed, refinanced, consolidated or restructured.

      (g) In a transaction other than a consumer-goods transaction, a secured party claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest.

      (h) The limitation of the rules in subsections (f) and (g) of this section to transactions other than consumer-goods transactions is intended to leave to the court the determination of the proper rules in consumer-goods transactions. The court may not infer from that limitation the nature of the proper rule in consumer-goods transactions and may continue to apply established approaches. Those approaches may apply principles of existing statutory and case law that apply to analogous consumer transactions in similar goods under part XI of chapter 669 and under the law of this state.

      (P.A. 76-369, S. 9; P.A. 77-604, S. 25, 84; P.A. 79-435, S. 45; P.A. 96-198, S. 20; P.A. 97-182, S. 52; P.A. 01-132, S. 3; P.A. 03-62, S. 1.)

      History: P.A. 77-604 made technical correction in Subsec. (3)(a), removing comma following "described in subsection (5) of this section"; P.A. 79-435 specified in Subsec. (3) that subsection applies to accounts "other than certificated securities" and added Subsec. (6) re uncertificated securities; P.A. 96-198 amended Subsec. (1) to make it applicable to "rights to proceeds of written letters of credit"; P.A. 97-182 amended Subsec. (6) to specify choice of law rules for perfection of security interests in investment property by adding Subdiv. (a) to provide that said Subsec. applies to investment property, adding Subdiv. (b) re certificated securities, designating existing provisions re uncertificated securities as Subdiv. (c) and rephrasing said Subdiv., adding Subdiv. (d) re security entitlements and securities accounts, adding Subdiv. (e) re commodity contracts or commodity accounts and adding Subdiv. (f) re exception to choice of law rules; P.A. 01-132 replaced former provisions re perfection of security interests in multiple state transactions with provisions re purchase-money security interest; P.A. 03-62 amended Subsec. (e) to replace reference in Subdiv. (2)(B) to "subsection" with "subdivision".

      Sec. 42a-9-104. Control of deposit account. (a) A secured party has control of a deposit account if:

      (1) The secured party is the bank with which the deposit account is maintained;

      (2) The debtor, secured party and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor; or

      (3) The secured party becomes the bank's customer with respect to the deposit account.

      (b) A secured party that has satisfied subsection (a) of this section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

      (1959, P.A. 133, S. 9-104; P.A. 76-369, S. 10; P.A. 96-198, S. 21; P.A. 01-132, S. 4.)

      History: P.A. 76-369 deleted specific reference to Ship Mortgage Act in Subdiv. (a), exempted transfer by governments or governmental agencies rather than equipment trusts covering railway rolling stock in Subdiv. (e), clarified exemption re contract rights and added transfers of single accounts as satisfaction of preexisting indebtedness in Subdiv. (f), added exception re proceeds in Subdiv. (g), specified applicability to judgments "taken on a right to payment which was collateral" in Subdiv. (h) and clarified exemption for deposit accounts in Subdiv. (k), adding exception re proceeds; P.A. 96-198 added Subdiv. (m) making article inapplicable to a transfer of an interest in a letter of credit other than the rights to proceeds of a written letter of credit; P.A. 01-132 replaced former provisions re transactions excluded from article with provisions re when a secured party has control of a deposit account.

      Sec. 42a-9-105. Control of electronic chattel paper. A secured party has control of electronic chattel paper if the record or records comprising the chattel paper are created, stored and assigned in such a manner that:

      (1) A single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5) and (6), unalterable;

      (2) The authoritative copy identifies the secured party as the assignee of the record or records;

      (3) The authoritative copy is communicated to and maintained by the secured party or its designated custodian;

      (4) Copies or revisions that add or change an identified assignee of the authoritative copy can be made only with the participation of the secured party;

      (5) Each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and

      (6) Any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.

      (1959, P.A. 133, S. 9-105; P.A. 76-369, S. 11; P.A. 79-435, S. 46; P.A. 85-246, S. 20; P.A. 96-198, S. 22; P.A. 97-182, S. 53; P.A. 01-132, S. 5.)

      History: P.A. 76-369 deleted references to contract rights throughout section, redefined "chattel paper" to specifically exclude charters or contracts involving use or hire of vessels, redefined "document" to include receipts described in Sec. 42a-7-201(2), redefined "goods" to exclude minerals before extraction and to include standing timber, and defined "deposit account", "encumbrance", "mortgage", advances made "pursuant to commitment", and "transmitting utility" in Subsec. (1) and to add referrals to "attach", "construction mortgage", "fixture", "fixture filing" and "United States" in Subsec. (2); P.A. 79-435 specified "certificated" securities in definition of "instrument"; P.A. 85-246 deleted reference to street railway or trolley bus business in Subsec. (1); P.A. 96-198 amended Subsec. (3) to add "Letter of credit. Section 42a-5-102." and "Proceeds of a letter of credit. Section 42a-5-114(a)."; P.A. 97-182 amended Subsec. (1) to redefine "goods" to exclude "investment property" and redefine "instrument" to delete from the meaning "a certificated security, as defined in section 42a-8-102" and specify that the term does not include investment property, amended Subsec. (2) to add referrals for "commodity contract", "commodity customer", "commodity intermediary", "control" and "investment property" and amended Subsec. (3) to add referrals for "broker", "certificated security", "clearing corporation", "control", "delivery", "entitlement holder", "financial asset", "securities intermediary", "security", "security certificate", "security entitlement" and "uncertificated security"; P.A. 01-132 replaced former provisions re definitions and index of definitions with provisions re when a secured party has control of electronic chattel paper.

      Sec. 42a-9-106. Control of investment property. (a) A person has control of a certificated security, uncertificated security or security entitlement as provided in section 42a-8-106.

      (b) A secured party has control of a commodity contract if:

      (1) The secured party is the commodity intermediary with which the commodity contract is carried; or

      (2) The commodity customer, secured party and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.

      (c) A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.

      (1959, P.A. 133, S. 9-106; P.A. 76-369, S. 12; P.A. 96-198, S. 23; P.A. 97-182, S. 54; P.A. 01-132, S. 6.)

      History: P.A. 76-369 redefined "account" to specify right to payment "whether or not it has been earned by performance", deleted definition of "contract right", redefined "general intangibles" to include money and added provision re charter or contract involving use or hire of vessel; P.A. 96-198 redefined "general intangibles" to exclude "rights to proceeds of written letters of credit"; P.A. 97-182 redefined "general intangibles" to exclude investment property; P.A. 01-132 replaced former provisions defining "account" and "general intangibles" with provisions re when a person or secured party has control of investment property.

      Sec. 42a-9-107. Control of letter-of-credit right. A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under subsection (c) of section 42a-5-114 or otherwise applicable law or practice.

      (1959, P.A. 133, S. 9-107; P.A. 01-132, S. 7.)

      History: P.A. 01-132 replaced former provisions defining "purchase money security interest" with provisions re when a secured party has control of a letter-of-credit right.

      Sec. 42a-9-108. Sufficiency of description. (a) Except as otherwise provided in subsections (c), (d) and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.

      (b) Except as otherwise provided in subsection (d), 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), a type of collateral defined in this title;

      (4) Quantity;

      (5) Computational or allocational formula or procedure; or

      (6) Except as otherwise provided in subsection (c), any other method, if the identity of the collateral is objectively determinable.

      (c) 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) Except as otherwise provided in subsection (e), 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) A description only by type of collateral defined in this title 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.

      (1959, P.A. 133, S. 9-108; P.A. 01-132, S. 8.)

      History: P.A. 01-132 replaced former provisions re when after-acquired collateral is deemed to be taken for new value and not as security for an antecedent debt with provisions re when a description of real or personal property, collateral or investment property is sufficient.

      Annotation to former section 42a-9-110:

      Cited. 25 CS 335.

      Sec. 42a-9-109. Scope. (a) 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 42a-2-401, section 42a-2-505, subsection (3) of section 42a-2-711 or subsection (d) of section 42a-2A-724, as provided in section 42a-9-110; and

      (6) A security interest arising under section 42a-4-210 or 42a-5-118.

      (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) 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 42a-5-114.

      (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 42a-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 42a-9-315 and 42a-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 42a-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

      (B) Section 42a-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 42a-9-203 and 42a-9-308;

      (B) Fixtures in section 42a-9-334;

      (C) Fixture filings in sections 42a-9-501, 42a-9-502, 42a-9-512, 42a-9-516 and 42a-9-519; and

      (D) Security agreements covering personal and real property in section 42a-9-604;

      (12) An assignment of a claim arising in tort, other than a commercial tort claim, but sections 42a-9-315 and 42a-9-322 apply with respect to proceeds and priorities in proceeds;

      (13) An assignment of a deposit account in a consumer transaction, but sections 42a-9-315 and 42a-9-322 apply with respect to proceeds and priorities in proceeds;

      (14) A pledge or other lien by this state or a government subdivision or agency of this state in existence on or after October 1, 2003, in connection with a bond or note issue of this state or of a government subdivision or agency of this state, which pledge or other lien is governed by a statute of this state that (A) provides for the creation of a pledge or other lien by this state or a government subdivision or agency of this state in connection with any bond or note issued by this state or a government subdivision or agency of this state, and (B) expressly states that such pledge or lien shall be valid and binding as against other parties;

      (15) An assignment of workers' compensation benefits governed by section 31-320; or

      (16) A security interest in a deposit account that is a payroll account or a trust account and which is titled or otherwise clearly identifiable as such an account, except that this article does apply to a security interest in (A) such an account if another statute of this state expressly so provides, or (B) a deposit account of a debtor that is a statutory trust formed or a foreign statutory trust registered under chapter 615, provided such deposit account is not a payroll account or a trust account which is titled or otherwise clearly identifiable as such an account.

      (1959, P.A. 133, S. 9-109; P.A. 01-132, S. 9; P.A. 02-131, S. 95; P.A. 03-62, S. 2, 3; May Sp. Sess. P.A. 04-2, S. 52.)

      History: P.A. 01-132 replaced former provisions re classification of goods as consumer goods, equipment, farm products or inventory with provisions re applicability of this article; P.A. 02-131 amended Subsec. (a)(5) by adding reference to Sec. 42a-2A-724(d); P.A. 03-62 amended Subsec. (c) to add new Subdiv. (2) re inapplicability when another statute expressly governs the creation, perfection, priority or enforcement of a security interest created by this state or a governmental unit of this state, redesignating existing Subdivs. (2) and (3) as Subdivs. (3) and (4), respectively, and amended Subsec. (d) to delete former Subdiv. (14) re inapplicability to a transfer by a government or government subdivision or agency of this state, redesignating existing Subdivs. (15) and (16) as Subdivs. (14) and (15), respectively, and to add exception in Subdiv. (15) re applicability to security interest in a deposit account if another statute expressly so provides or in a deposit account of a debtor that is a statutory trust or foreign statutory trust provided such deposit account is not a payroll account or a trust account which is titled or otherwise clearly identifiable as such an account; May Sp. Sess. P.A. 04-2 amended Subsec. (d) to add new Subdiv. (14) re state liens and redesignated existing Subdivs. (14) and (15) as new Subdivs. (15) and (16), respectively, effective May 12, 2004, and applicable to any pledge, lien or security interest of this state or any political subdivision of this state, which was in existence on October 1, 2003, or created after that date.

      Annotations to former section 42a-9-102:

      Cited. 44 CS 156.

      Subsec. (1):

      Subdiv. (a): Cited. 165 C. 364.

      Cited. 25 CS 335. Cited. 38 CS 98. Subdiv. (a) cited. 40 CS 475.

      Subsec. (2):

      Cited. 25 CS 335.

      Annotations to former section 42a-9-104:

      Cited. 161 C. 242.

      Cited. 38 CS 98.

      Subdiv. (j):

      Cited. 183 C. 369.

      Cited. 40 CA 616, 624.

      Cited 44 CS 156.

      Sec. 42a-9-110. Security interests arising under article 2 or 2A. 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 is subject to this article. However, until the debtor obtains possession of the goods;

      (1) The security interest is enforceable, even if subdivision (3) of subsection (b) of section 42a-9-203 has not been satisfied;

      (2) Filing is not required to perfect the security interest;

      (3) The rights of the secured party after default by the debtor are governed by article 2 or 2A; and

      (4) The security interest has priority over a conflicting security interest created by the debtor.

      (1959, P.A. 133, S. 9-110; P.A. 01-132, S. 10; P.A. 02-131, S. 96.)

      History: P.A. 01-132 replaced former provisions re when a description of personal property or real estate is sufficient with provisions re when a security interest arising under certain provisions of article 2 is subject to this article; P.A. 02-131 added references to Sec. 42a-2A-724(d) and article 2A.

      Sec. 42a-9-111. Applicability of bulk transfer laws. Section 42a-9-111 is repealed.

      (1959, P.A. 133, S. 9-111; P.A. 93-107, S. 4.)

      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.

      Cited. 18 CA 265.

      Annotation to former Sec. 42a-9-203(4):

      Cited. 231 C. 707.

      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.

      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.

      Cited. 4 CA 58.

      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.

      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.)