ARTICLE 9
SECURED TRANSACTIONS

Table of Contents

Sec. 42a-9-102. *(See end of section for amended version and effective date.) Definitions and index of definitions.
Sec. 42a-9-105. *(See end of section for amended version and effective date.) Control of electronic chattel paper.
Sec. 42a-9-307. *(See end of section for amended version and effective date.) Location of debtor.
Sec. 42a-9-311. *(See end of section for amended version and effective date.) Perfection of security interests in property subject to certain statutes, regulations and treaties.
Sec. 42a-9-316. *(See end of section for amended version and effective date.) Continued perfection of security interest following change in governing law.
Sec. 42a-9-317. *(See end of section for amended version and effective date.) Interests that take priority over or take free of security interest or agricultural lien.
Sec. 42a-9-326. *(See end of section for amended version and effective date.) Priority of security interests created by new debtor.
Sec. 42a-9-406. *(See end of section for amended version and effective date.) Discharge of account debtor. Notification of assignment. Identification and proof of assignment. Restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective.
Sec. 42a-9-408. *(See end of section for amended version and effective date.) Restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles ineffective.
Sec. 42a-9-503. *(See end of section for amended version and effective date.) Name of debtor and secured party.
Sec. 42a-9-507. *(See end of section for amended version and effective date.) Effect of certain events on effectiveness of financing statement.
Sec. 42a-9-515. *(See end of section for amended version and effective date.) Duration and effectiveness of financing statement. Effect of lapsed financing statement.
Sec. 42a-9-516. *(See end of section for amended version and effective date.) What constitutes filing. Effectiveness of filing.
Sec. 42a-9-518. *(See end of section for amended version and effective date.) Claim concerning inaccurate or wrongfully filed record.
Sec. 42a-9-519. *(See end of section for amended version and effective date.) Numbering, maintaining and indexing records. Communicating information provided in records.
Sec. 42a-9-525. *(See end of section for amended version and effective date.) Fees.
Sec. 42a-9-607. *(See end of section for amended version and effective date.) Collection and enforcement by secured party.
Sec. 42a-9-802. (Note: This section is effective July 1, 2013.) Savings clause.
Sec. 42a-9-803. (Note: This section is effective July 1, 2013.) Security interest perfected before July 1, 2013.
Sec. 42a-9-804. (Note: This section is effective July 1, 2013.) Security interest unperfected before July 1, 2013.
Sec. 42a-9-805. (Note: This section is effective July 1, 2013.) Effectiveness of action taken before July 1, 2013.
Sec. 42a-9-806. (Note: This section is effective July 1, 2013.) When initial financing statement suffices to continue effectiveness of financing statement.
Sec. 42a-9-807. (Note: This section is effective July 1, 2013.) Amendment of financing statement filed before July 1, 2013.
Sec. 42a-9-808. (Note: This section is effective July 1, 2013.) Person entitled to file initial financing statement or continuation statement.
Sec. 42a-9-809. (Note: This section is effective July 1, 2013.) Priority.

PART 1
GENERAL PROVISIONS

      Sec. 42a-9-102. *(See end of section for amended version and effective date.) 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.)

      *Note: On and after July 1, 2013, this section, as amended by section 1 of public act 11-108, is to read as follows:

      "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) With present intent to adopt or accept a record, to attach to or logically associate with the record an electronic sound, symbol or process.

      (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. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record 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 formed or 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) "Public organic record" means a record that is available to the public for inspection and is:

      (A) A record consisting of the record initially filed with or issued by a state or the United States to form or organize an organization and any record filed with or issued by the state or the United States which amends or restates the initial record;

      (B) An organic record of a business trust consisting of the record initially filed with a state and any record filed with the state which amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or

      (C) A record consisting of legislation enacted by the legislature of a state or the Congress of the United States which forms or organizes an organization, any record amending the legislation and any record filed with or issued by the state or the United States which amends or restates the name of the organization.

      (69) "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.

      (70) "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.

      (71) "Registered organization" means an organization formed or organized solely under the law of a single state or the United States by the filing of a public organic record with, the issuance of a public organic record by or the enactment of legislation by the state or the United States. The term includes a business trust that is formed or organized under the law of a single state if a statute of the state governing business trusts requires that the business trust's organic record be filed with the state.

      (72) "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.

      (73) "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.

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

      (75) "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).

      (76) "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.

      (77) "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.

      (78) "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.

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

      (80) "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.

      (81) "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; P.A. 11-108, S. 1.)

      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; P.A. 11-108 amended Subsec. (a) to redefine "authenticate" in Subdiv. (7), to redefine "certificate of title" in Subdiv. (10), to redefine "jurisdiction of organization" in Subdiv. (50), to add new Subdiv. (68) defining "public organic record", to redesignate existing Subdivs. (68) to (80) as Subdivs. (69) to (81) and to redefine "registered organization" in Subdiv. (71), effective July 1, 2013.

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      Sec. 42a-9-105. *(See end of section for amended version and effective date.) 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.)

      *Note: On and after July 1, 2013, this section, as amended by section 2 of public act 11-108, is to read as follows:

      "Sec. 42a-9-105. Control of electronic chattel paper. (a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.

      (b) A system satisfies subsection (a) of this section 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) of this subsection, 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 amendments that add or change an identified assignee of the authoritative copy can be made only with the consent 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 amendment of the authoritative copy is readily identifiable as authorized or unauthorized."

      (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; P.A. 11-108, S. 2.)

      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; P.A. 11-108 inserted Subsec. (a) and (b) designators, amended Subsec. (a) to add provision that secured party has control if "a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned" and amended Subsec. (b) to add provision in prefatory language that "A system satisfies subsection (a) of this section if", make a technical change in Subdiv. (1), replace "revisions" with "amendments" and "participation" with "consent" in Subdiv. (4) and replace "revision" with "amendment" and "identifiable as an authorized or unauthorized revision" with "identifiable as authorized or unauthorized" in Subdiv. (6), effective July 1, 2013.

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PART 3
PERFECTION AND PRIORITY

      Sec. 42a-9-307. *(See end of section for amended version and effective date.) 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.)

      *Note: On and after July 1, 2013, this section, as amended by section 3 of public act 11-108, is to read as follows:

      "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) of this section 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) of this section 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) of this section.

      (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) of this section, 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, including by designating its main office, home office or other comparable office; or

      (3) In the District of Columbia, if neither subdivision (1) nor subdivision (2) of this subsection applies.

      (g) A registered organization continues to be located in the jurisdiction specified by subsection (e) or (f) of this section 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; P.A. 11-108, S. 3.)

      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; P.A. 11-108 amended Subsec. (f)(2) to add "including by designating its main office, home office or other comparable office", and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-311. *(See end of section for amended version and effective date.) Perfection of security interests in property subject to certain statutes, regulations and treaties. (a) Except as otherwise provided in subsection (d) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:

      (1) A statute, regulation or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt subsection (a) of section 42a-9-310;

      (2) Any certificate-of-title statute covering automobiles, trailers, mobile homes, boats, farm tractors or the like, which provides for a security interest to be indicated on the certificate as a condition or result of perfection, and any non-Uniform Commercial Code filing statute, including chapter 247, section 21-67a, section 49-5, chapter 282 and chapter 283; or

      (3) A certificate-of-title statute of another jurisdiction which provides for a security interest 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 property.

      (b) Compliance with the requirements of a statute, regulation or treaty described in subsection (a) of this section for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this article. Except as otherwise provided in subsection (d) of this section, section 42a-9-313 and subsections (d) and (e) of section 42a-9-316 for goods covered by a certificate of title, a security interest in property subject to a statute, regulation or treaty described in subsection (a) of this section may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.

      (c) Except as otherwise provided in subsection (d) of this section and subsections (d) and (e) of section 42a-9-316, duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation or treaty described in subsection (a) of this section are governed by the statute, regulation or treaty. In other respects, the security interest is subject to this article.

      (d) During any period in which collateral subject to a statute specified in subdivision (2) of subsection (a) of this section is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person.

      (1959, P.A. 133, S. 9-311; P.A. 01-132, S. 31; P.A. 02-131, S. 99; P.A. 03-62, S. 4, 5.)

      *Note: On and after July 1, 2013, this section, as amended by section 4 of public 11-108, is to read as follows:

      "Sec. 42a-9-311. Perfection of security interests in property subject to certain statutes, regulations and treaties. (a) Except as otherwise provided in subsection (d) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:

      (1) A statute, regulation or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt subsection (a) of section 42a-9-310;

      (2) Any statute covering automobiles, trailers, mobile homes, boats, farm tractors or the like, which provides for a security interest to be indicated on a certificate of title as a condition or result of perfection, and any non-Uniform Commercial Code filing statute, including chapter 247, section 21-67a, section 49-5, chapter 282 and chapter 283; or

      (3) A statute of another jurisdiction which provides for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.

      (b) Compliance with the requirements of a statute, regulation or treaty described in subsection (a) of this section for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this article. Except as otherwise provided in subsection (d) of this section, section 42a-9-313 and subsections (d) and (e) of section 42a-9-316 for goods covered by a certificate of title, a security interest in property subject to a statute, regulation or treaty described in subsection (a) of this section may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.

      (c) Except as otherwise provided in subsection (d) of this section and subsections (d) and (e) of section 42a-9-316, duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation or treaty described in subsection (a) of this section are governed by the statute, regulation or treaty. In other respects, the security interest is subject to this article.

      (d) During any period in which collateral subject to a statute specified in subdivision (2) of subsection (a) of this section is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person."

      (1959, P.A. 133, S. 9-311; P.A. 01-132, S. 31; P.A. 02-131, S. 99; P.A. 03-62, S. 4, 5; P.A. 11-108, S. 4.)

      History: P.A. 01-132 replaced former provisions re the alienability of the debtor's rights in collateral with provisions re the perfection of a security interest in property subject to certain statutes, regulations and treaties; P.A. 02-131 amended Subsec. (d) by adding "or leasing"; P.A. 03-62 amended Subsec. (a)(2) to delete reference to a non-Uniform-Commercial-Code "central" filing statute and amended Subsec. (d) to delete reference to a person in the business of "leasing" goods of that kind; P.A. 11-108 amended Subsec. (a) by replacing in Subdivs. (2) and (3) "certificate-of-title statute" with "statute" and "the certificate" with "a certificate of title", effective July 1, 2013.

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      Sec. 42a-9-316. *(See end of section for amended version and effective date.) Continued perfection of security interest following change in governing law. (a) A security interest perfected pursuant to the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 remains perfected until the earliest of:

      (1) The time perfection would have ceased under the law of that jurisdiction;

      (2) The expiration of four months after a change of the debtor's location to another jurisdiction;

      (3) The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction; or

      (4) The expiration of one year after a new debtor located in another jurisdiction becomes bound under subsection (d) of section 42a-9-203.

      (b) If a security interest described in subsection (a) becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

      (c) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:

      (1) The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction;

      (2) Thereafter the collateral is brought into another jurisdiction; and

      (3) Upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.

      (d) Except as otherwise provided in subsection (e), a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered.

      (e) A security interest described in subsection (d) becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under subsection (b) of section 42a-9-311 or section 42a-9-313 are not satisfied before the earlier of:

      (1) The time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or

      (2) The expiration of four months after the goods had become so covered.

      (f) A security interest in deposit accounts, letter-of-credit rights or investment property which is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of:

      (1) The time the security interest would have become unperfected under the law of that jurisdiction; or

      (2) The expiration of four months after a change of the applicable jurisdiction to another jurisdiction.

      (g) If a security interest described in subsection (f) becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

      (1959, P.A. 133, S. 9-316; P.A. 01-132, S. 36.)

      *Note: On and after July 1, 2013, this section, as amended by section 5 of public act 11-108, is to read as follows:

      "Sec. 42a-9-316. Effect of change in governing law. (a) A security interest perfected pursuant to the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 remains perfected until the earliest of:

      (1) The time perfection would have ceased under the law of that jurisdiction;

      (2) The expiration of four months after a change of the debtor's location to another jurisdiction; or

      (3) The expiration of one year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.

      (b) If a security interest described in subsection (a) of this section becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

      (c) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:

      (1) The collateral is located in one jurisdiction and subject to a security interest perfected under the law of that jurisdiction;

      (2) Thereafter the collateral is brought into another jurisdiction; and

      (3) Upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.

      (d) Except as otherwise provided in subsection (e) of this section, a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered.

      (e) A security interest described in subsection (d) of this section becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under subsection (b) of section 42a-9-311 or section 42a-9-313 are not satisfied before the earlier of:

      (1) The time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or

      (2) The expiration of four months after the goods had become so covered.

      (f) A security interest in deposit accounts, letter-of-credit rights or investment property which is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of:

      (1) The time the security interest would have become unperfected under the law of that jurisdiction; or

      (2) The expiration of four months after a change of the applicable jurisdiction to another jurisdiction.

      (g) If a security interest described in subsection (f) of this section becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

      (h) The following rules apply to collateral to which a security interest attaches within four months after the debtor changes its location to another jurisdiction:

      (1) A financing statement filed before the change pursuant to the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.

      (2) If a security interest perfected by a financing statement that is effective under subdivision (1) of this subsection becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 or the expiration of the four-month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.

      (i) If a financing statement naming an original debtor is filed pursuant to the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 and the new debtor is located in another jurisdiction, the following rules apply:

      (1) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four months after, the new debtor becomes bound under subsection (d) of section 42a-9-203, if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.

      (2) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in subdivision (1) of section 42a-9-301 or subsection (c) of section 42a-9-305 or the expiration of the four-month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value."

      (1959, P.A. 133, S. 9-316; P.A. 01-132, S. 36; P.A. 11-108, S. 5.)

      History: P.A. 01-132 replaced former provisions re subordination by agreement by any person entitled to priority with provisions re continued perfection of security interest following a change in governing law; P.A. 11-108 amended Subsec. (a) to delete former Subdiv. (4) re expiration of one year after new debtor located in another jurisdiction becomes bound under Sec. 42a-9-203(d), added Subsec. (h) re effect on filed financing statement of change in governing law, added Subsec. (i) re effect of change in governing law on financing statement filed against original debtor, and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-317. *(See end of section for amended version and effective date.) Interests that take priority over or take free of security interest or agricultural lien. (a) A security interest or agricultural lien is subordinate to the rights of:

      (1) A person entitled to priority under section 42a-9-322; and

      (2) Except as otherwise provided in subsection (e) of this section, a person that becomes a lien creditor before the earlier of the time:

      (A) The security interest or agricultural lien is perfected; or

      (B) One of the conditions specified in subdivision (3) of subsection (b) of section 42a-9-203 is met and a financing statement covering the collateral is filed.

      (b) Except as otherwise provided in subsection (e) of this section, a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments or a security certificate takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

      (c) Except as otherwise provided in subsection (e) of this section, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

      (d) A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles or investment property other than a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

      (e) Except as otherwise provided in sections 42a-9-320 and 42a-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee or lien creditor which arise between the time the security interest attaches and the time of filing.

      (1959, P.A. 133, S. 9-317; 1961, P.A. 116, S. 12; P.A. 01-132, S. 37; P.A. 04-64, S. 70.)

      *Note: On and after July 1, 2013, this section, as amended by section 6 of public act 11-108, is to read as follows:

      "Sec. 42a-9-317. Interests that take priority over or take free of security interest or agricultural lien. (a) A security interest or agricultural lien is subordinate to the rights of:

      (1) A person entitled to priority under section 42a-9-322; and

      (2) Except as otherwise provided in subsection (e) of this section, a person that becomes a lien creditor before the earlier of the time:

      (A) The security interest or agricultural lien is perfected; or

      (B) One of the conditions specified in subdivision (3) of subsection (b) of section 42a-9-203 is met and a financing statement covering the collateral is filed.

      (b) Except as otherwise provided in subsection (e) of this section, a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

      (c) Except as otherwise provided in subsection (e) of this section, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

      (d) A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.

      (e) Except as otherwise provided in sections 42a-9-320 and 42a-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee or lien creditor which arise between the time the security interest attaches and the time of filing."

      (1959, P.A. 133, S. 9-317; 1961, P.A. 116, S. 12; P.A. 01-132, S. 37; P.A. 04-64, S. 70; P.A. 11-108, S. 6.)

      History: 1961 act corrected section heading; P.A. 01-132 replaced former provisions re contract or tort liability not being imposed on the secured party for the debtor's acts or omissions with provisions re interests that take priority over or take free of a security interest or agricultural lien; P.A. 04-64 made technical changes in Subsecs. (a)(2), (b) and (c), added "tangible" in Subsec. (b) and added "electronic documents" in Subsec. (d) to conform to revisions made to article 7 by the same act; P.A. 11-108 amended Subsec. (b) to replace "security certificate" with "certificated security" and amended Subsec. (d) to replace "accounts, electronic chattel paper, electronic documents, general intangibles or investment property other than a certificated security" with "collateral other than tangible chattel paper, tangible documents, goods, instruments or a certificated security", effective July 1, 2013.

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      Sec. 42a-9-326. *(See end of section for amended version and effective date.) Priority of security interests created by new debtor. (a) Subject to subsection (b), a security interest created by a new debtor which is perfected by a filed financing statement that is effective solely under section 42a-9-508 in collateral in which a new debtor has or acquires rights is subordinate to a security interest in the same collateral which is perfected other than by a filed financing statement that is effective solely under section 42a-9-508.

      (b) The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements that are effective solely under section 42a-9-508. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.

      (P.A. 01-132, S. 46.)

      *Note: On and after July 1, 2013, this section, as amended by section 7 of public act 11-108, is to read as follows:

      "Sec. 42a-9-326. Priority of security interests created by new debtor. (a) Subject to subsection (b) of this section, a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of subdivision (1) of subsection (i) of section 42a-9-316 or section 42a-9-508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement.

      (b) The other provisions of this part determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a) of this section. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound."

      (P.A. 01-132, S. 46; P.A. 11-108, S. 7.)

      History: P.A. 11-108 amended Subsec. (a) to rephrase provisions including replacing provision that security interest "is perfected by a filed financing statement that is effective solely under section 42a-9-508" with "is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of subdivision (1) of subsection (i) of section 42a-9-316 or section 42a-9-508" and amended Subsec. (b) to replace "filed financing statements that are effective solely under section 42a-9-508" with "filed financing statements described in subsection (a) of this section", effective July 1, 2013.

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PART 4
RIGHTS OF THIRD PARTIES

      Sec. 42a-9-406. *(See end of section for amended version and effective date.) Discharge of account debtor. Notification of assignment. Identification and proof of assignment. Restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective. (a) Subject to subsections (b) to (j), inclusive, an account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. An assignor who receives payment after notification is given must return the payment to the account debtor or forward the payment to the assignee.

      (b) Subject to subsection (h), notification is ineffective under subsection (a):

      (1) If it does not reasonably identify the rights assigned;

      (2) To the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this article; or

      (3) At the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if:

      (A) Only a portion of the account, chattel paper or payment intangible has been assigned to that assignee;

      (B) A portion has been assigned to another assignee; or

      (C) The account debtor knows that the assignment to that assignee is limited.

      (c) Subject to subsection (h), if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection (a).

      (d) Except as otherwise provided in subsection (e) and in section 42a-2A-403 and section 42a-9-407, and subject to subsection (h), a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it:

      (1) Prohibits, restricts or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in, the account, chattel paper, payment intangible or promissory note; or

      (2) Provides that the assignment or transfer or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the account, chattel paper, payment intangible or promissory note.

      (e) Subsection (d) does not apply to the sale of a payment intangible or promissory note.

      (f) Except as otherwise provided in section 42a-2A-403 and section 42a-9-407, and subject to subsections (h) and (i), a rule of law, statute or regulation that prohibits, restricts or requires the consent of a government, governmental body or official or account debtor to the assignment or transfer of, or creation of a security interest in, an account or chattel paper is ineffective to the extent that the rule of law, statute or regulation:

      (1) Prohibits, restricts or requires the consent of the government, governmental body or official or account debtor to the assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in the account or chattel paper; or

      (2) Provides that the assignment or transfer or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the account or chattel paper.

      (g) Subject to subsection (h), an account debtor may not waive or vary its option under subdivision (3) of subsection (b).

      (h) This section is subject to law other than this article which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family or household purposes.

      (i) Except as provided in subsection (j) of this section, this section prevails over any inconsistent provision of any statute or regulation of this state unless the provision is contained in a statute of this state, refers expressly to this section and states that the provision prevails over this section.

      (j) (1) This section does not apply to:

      (A) An assignment of a health-care-insurance receivable;

      (B) An assignment or transfer of or creation of a security interest in:

      (i) A claim or right to receive compensation for injuries or sickness as described in 26 USC 104(a)(1) or (2), as amended from time to time, or

      (ii) A claim or right to receive benefits under a special needs trust as described in 42 USC 1396p(d)(4), as amended from time to time.

      (2) Subsection (f) of this section does not apply to an assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in, a right the transfer of which is prohibited or restricted by any of the following statutes to the extent that the statute is inconsistent with said subsection: Section 12-831, 31-320 or 52-225f.

      (1959, P.A. 133, S. 9-406; P.A. 76-229, S. 4, 6; 76-369, S. 33; P.A. 80-419, S. 8; May Sp. Sess. P.A. 92-6, S. 113, 117; P.A. 01-132, S. 68; P.A. 02-131, S. 102, 103; P.A. 03-62, S. 6.)

      *Note: On and after July 1, 2013, this section, as amended by section 8 of public act 11-108, is to read as follows:

      "Sec. 42a-9-406. Discharge of account debtor. Notification of assignment. Identification and proof of assignment. Restrictions on assignment of accounts, chattel paper, payment intangibles and promissory notes ineffective. (a) Subject to subsections (b) to (j), inclusive, of this section, an account debtor on an account, chattel paper or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor. An assignor who receives payment after notification is given must return the payment to the account debtor or forward the payment to the assignee.

      (b) Subject to subsection (h) of this section, notification is ineffective under subsection (a) of this section:

      (1) If it does not reasonably identify the rights assigned;

      (2) To the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than this article; or

      (3) At the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if:

      (A) Only a portion of the account, chattel paper or payment intangible has been assigned to that assignee;

      (B) A portion has been assigned to another assignee; or

      (C) The account debtor knows that the assignment to that assignee is limited.

      (c) Subject to subsection (h) of this section, if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection (a) of this section.

      (d) Except as otherwise provided in subsection (e) of this section and in sections 42a-2A-403 and 42a-9-407, and subject to subsection (h) of this section, a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it:

      (1) Prohibits, restricts or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in, the account, chattel paper, payment intangible or promissory note; or

      (2) Provides that the assignment or transfer or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the account, chattel paper, payment intangible or promissory note.

      (e) Subsection (d) of this section does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under section 42a-9-610 or an acceptance of collateral under section 42a-9-620.

      (f) Except as otherwise provided in sections 42a-2A-403 and 42a-9-407, and subject to subsections (h) and (i) of this section, a rule of law, statute or regulation that prohibits, restricts or requires the consent of a government, governmental body or official or account debtor to the assignment or transfer of, or creation of a security interest in, an account or chattel paper is ineffective to the extent that the rule of law, statute or regulation:

      (1) Prohibits, restricts or requires the consent of the government, governmental body or official or account debtor to the assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in the account or chattel paper; or

      (2) Provides that the assignment or transfer or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the account or chattel paper.

      (g) Subject to subsection (h) of this section, an account debtor may not waive or vary its option under subdivision (3) of subsection (b) of this section.

      (h) This section is subject to law other than this article which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family or household purposes.

      (i) Except as provided in subsection (j) of this section, this section prevails over any inconsistent provision of any statute or regulation of this state unless the provision is contained in a statute of this state, refers expressly to this section and states that the provision prevails over this section.

      (j) (1) This section does not apply to:

      (A) An assignment of a health-care-insurance receivable;

      (B) An assignment or transfer of or creation of a security interest in:

      (i) A claim or right to receive compensation for injuries or sickness as described in 26 USC 104(a)(1) or (2), as amended from time to time, or

      (ii) A claim or right to receive benefits under a special needs trust as described in 42 USC 1396p(d)(4), as amended from time to time.

      (2) Subsection (f) of this section does not apply to an assignment or transfer of, or the creation, attachment, perfection or enforcement of a security interest in, a right the transfer of which is prohibited or restricted by any of the following statutes to the extent that the statute is inconsistent with said subsection: Section 12-831, 31-320 or 52-225f."

      (1959, P.A. 133, S. 9-406; P.A. 76-229, S. 4, 6; 76-369, S. 33; P.A. 80-419, S. 8; May Sp. Sess. P.A. 92-6, S. 113, 117; P.A. 01-132, S. 68; P.A. 02-131, S. 102, 103; P.A. 03-62, S. 6; P.A. 11-108, S. 8.)

      History: P.A. 76-229 raised fee from $3 to $5; P.A. 76-369 added provision re statements signed by person other than secured party of record and imposed $10 fee for statements in nonstandard form and additional $1 fee for indexing extra names; P.A. 80-419 raised fee for statements in standard form from $5 to $6 and for those in nonstandard form from $10 to $11; May Sp. Sess. P.A. 92-6 deleted the amount of the fees for filing and noting statements of release and added the requirement that each debtor name be set forth by the secured party; P.A. 01-132 replaced former provisions re statement of release of collateral and duties of filing officer upon presentation of such a statement with provisions re discharge of account debtor, notification of assignment, identification and proof of assignment and when restrictions on assignment are ineffective; P.A. 02-131 amended Subsecs. (d) and (f) by adding references to Sec. 42a-2A-403; P.A. 03-62 amended Subsec. (a) to replace reference to "subsections (b) to (i), inclusive" with reference to "subsections (b) to (j), inclusive" and added new Subsec. (i) re priority of section over any inconsistent provision of any statute or regulation of this state, redesignating existing Subsec. (i) as Subsec. (j); P.A. 11-108 amended Subsec. (e) to add "other than a sale pursuant to a disposition under section 42a-9-610 or an acceptance of collateral under section 42a-9-620", and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-408. *(See end of section for amended version and effective date.) Restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles ineffective. (a) Except as otherwise provided in subsection (b), a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license or franchise, and which term prohibits, restricts or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment or perfection of a security interest in, the promissory note, health-care-insurance receivable or general intangible, is ineffective to the extent that the term:

      (1) Would impair the creation, attachment or perfection of a security interest; or

      (2) Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible.

      (b) Subsection (a) applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note.

      (c) Except as provided in subsection (f), a rule of law, statute or regulation that prohibits, restricts or requires the consent of a government, governmental body or official, person obligated on a promissory note or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable or general intangible, including a contract, permit, license or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute or regulation:

      (1) Would impair the creation, attachment or perfection of a security interest; or

      (2) Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible.

      (d) To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute or regulation described in subsection (c) would be effective under law other than this article but is ineffective under subsection (a) or (c), the creation, attachment or perfection of a security interest in the promissory note, health-care-insurance receivable or general intangible:

      (1) Is not enforceable against the person obligated on the promissory note or the account debtor;

      (2) Does not impose a duty or obligation on the person obligated on the promissory note or the account debtor;

      (3) Does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party;

      (4) Does not entitle the secured party to use or assign the debtor's rights under the promissory note, health-care-insurance receivable or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable or general intangible;

      (5) Does not entitle the secured party to use, assign, possess or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and

      (6) Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable or general intangible.

      (e) Except as provided in subsection (f) of this section, this section prevails over any inconsistent provision of any statute or regulation of this state unless the provision is contained in a statute of this state, refers expressly to this section and states that the provision prevails over this section.

      (f) (1) This section does not apply to an assignment or transfer of, or the creation, attachment or perfection of a security interest in:

      (A) A claim or right to receive compensation for injuries or sickness as described in 26 USC 104(a)(1) or (2), as amended from time to time, or

      (B) A claim or right to receive benefits under a special needs trust as described in 42 USC 1396p(d)(4), as amended from time to time.

      (2) Subsection (c) of this section does not apply to an assignment or transfer of, or the creation, attachment or perfection of a security interest in, a right the transfer of which is prohibited or restricted by any of the following statutes to the extent that the statute is inconsistent with said subsection: Section 12-831, 31-320 or 52-225f.

      (1959, P.A. 133, S. 9-408; P.A. 01-132, S. 70; P.A. 03-62, S. 8.)

      *Note: On and after July 1, 2013, this section, as amended by section 9 of public act 11-108, is to read as follows:

      "Sec. 42a-9-408. Restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles ineffective. (a) Except as otherwise provided in subsection (b) of this section, a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license or franchise, and which term prohibits, restricts or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment or perfection of a security interest in, the promissory note, health-care-insurance receivable or general intangible, is ineffective to the extent that the term:

      (1) Would impair the creation, attachment or perfection of a security interest; or

      (2) Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible.

      (b) Subsection (a) of this section applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note, other than a sale pursuant to a disposition under section 42a-9-610 or an acceptance of collateral under section 42a-9-620.

      (c) Except as provided in subsection (f) of this section, a rule of law, statute or regulation that prohibits, restricts or requires the consent of a government, governmental body or official, person obligated on a promissory note or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable or general intangible, including a contract, permit, license or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute or regulation:

      (1) Would impair the creation, attachment or perfection of a security interest; or

      (2) Provides that the assignment or transfer or the creation, attachment or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination or remedy under the promissory note, health-care-insurance receivable or general intangible.

      (d) To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute or regulation described in subsection (c) of this section would be effective under law other than this article but is ineffective under subsection (a) or (c) of this section, the creation, attachment or perfection of a security interest in the promissory note, health-care-insurance receivable or general intangible:

      (1) Is not enforceable against the person obligated on the promissory note or the account debtor;

      (2) Does not impose a duty or obligation on the person obligated on the promissory note or the account debtor;

      (3) Does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party;

      (4) Does not entitle the secured party to use or assign the debtor's rights under the promissory note, health-care-insurance receivable or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable or general intangible;

      (5) Does not entitle the secured party to use, assign, possess or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and

      (6) Does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable or general intangible.

      (e) Except as provided in subsection (f) of this section, this section prevails over any inconsistent provision of any statute or regulation of this state unless the provision is contained in a statute of this state, refers expressly to this section and states that the provision prevails over this section.

      (f) (1) This section does not apply to an assignment or transfer of, or the creation, attachment or perfection of a security interest in:

      (A) A claim or right to receive compensation for injuries or sickness as described in 26 USC 104(a)(1) or (2), as amended from time to time, or

      (B) A claim or right to receive benefits under a special needs trust as described in 42 USC 1396p(d)(4), as amended from time to time.

      (2) Subsection (c) of this section does not apply to an assignment or transfer of, or the creation, attachment or perfection of a security interest in, a right the transfer of which is prohibited or restricted by any of the following statutes to the extent that the statute is inconsistent with said subsection: Section 12-831, 31-320 or 52-225f."

      (1959, P.A. 133, S. 9-408; P.A. 01-132, S. 70; P.A. 03-62, S. 8; P.A. 11-108, S. 9.)

      History: P.A. 01-132 replaced former provisions re when a filing officer may destroy records with provisions re when restrictions on assignment of promissory notes, health-care-insurance receivables and certain general intangibles are ineffective; P.A. 03-62 amended Subsec. (f)(1) to add the "attachment or perfection" of a security interest and (f)(2) to delete the "enforcement" of a security interest and make technical changes; P.A. 11-108 amended Subsec. (b) to add "other than a sale pursuant to a disposition under section 42a-9-610 or an acceptance of collateral under section 42a-9-620" and made technical changes, effective July 1, 2013.

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PART 5
FILING

      Sec. 42a-9-503. *(See end of section for amended version and effective date.) Name of debtor and secured party. (a) A financing statement sufficiently provides the name of the debtor:

      (1) If the debtor is a registered organization, only if the financing statement provides the name of the debtor indicated on the public record of the debtor's jurisdiction of organization which shows the debtor to have been organized;

      (2) If the debtor is a decedent's estate, only if the financing statement provides the name of the decedent and indicates that the debtor is an estate;

      (3) If the debtor is a trust or a trustee acting with respect to property held in trust, only if the financing statement:

      (A) Provides the name specified for the trust in its organic documents or, if no name is specified, provides the name of the settlor and additional information sufficient to distinguish the debtor from other trusts having one or more of the same settlors; and

      (B) Indicates, in the debtor's name or otherwise, that the debtor is a trust or is a trustee acting with respect to property held in trust; and

      (4) In other cases:

      (A) If the debtor has a name, only if it provides the individual or organizational name of the debtor; and

      (B) If the debtor does not have a name, only if it provides the names of the partners, members, associates or other persons comprising the debtor.

      (b) A financing statement that provides the name of the debtor in accordance with subsection (a) is not rendered ineffective by the absence of:

      (1) A trade name or other name of the debtor; or

      (2) Unless required under subparagraph (B) of subdivision (4) of subsection (a) of this section, names of partners, members, associates or other persons comprising the debtor.

      (c) A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.

      (d) Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement.

      (e) A financing statement may provide the name of more than one debtor and the name of more than one secured party.

      (1959, P.A. 133, S. 9-503; P.A. 01-132, S. 74.)

      *Note: On and after July 1, 2013, this section, as amended by section 10 of public act 11-108, is to read as follows:

      "Sec. 42a-9-503. Name of debtor and secured party. (a) A financing statement sufficiently provides the name of the debtor:

      (1) Except as otherwise provided in subdivision (3) of this subsection, if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name that is stated to be the registered organization's name on the public organic record most recently filed with or issued or enacted by the registered organization's jurisdiction of organization which purports to state, amend or restate the registered organization's name;

      (2) Subject to subsection (f) of this section, if the collateral is being administered by a personal representative of a decedent, only if the financing statement provides, as the name of the debtor, the name of the decedent and, in a separate part of the financing statement, indicates that the collateral is being administered by a personal representative;

      (3) If the collateral is held in a trust that is not a registered organization, only if the financing statement:

      (A) Provides, as the name of the debtor:

      (i) If the organic record of the trust specifies a name for the trust, the name specified; or

      (ii) If the organic record of the trust does not specify a name for the trust, the name of the settlor or testator; and

      (B) In a separate part of the financing statement:

      (i) If the name is provided in accordance with subparagraph (A)(i) of this subdivision, indicates that the collateral is held in a trust; or

      (ii) If the name is provided in accordance with subparagraph (A)(ii) of this subdivision, provides additional information sufficient to distinguish the trust from other trusts having one or more of the same settlors or the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates;

      (4) If the debtor is an individual, only if the financing statement:

      (A) Provides the individual name of the debtor;

      (B) Provides the surname and first personal name of the debtor; or

      (C) Subject to subsection (g) of this section, provides the name of the individual which is indicated on a motor vehicle operator's license or identity card that this state has issued to the individual in accordance with subpart (B) of part III of chapter 246 or section 1-1h, respectively, and which has not expired; and

      (5) In other cases:

      (A) If the debtor has a name, only if the financing statement provides the organizational name of the debtor; and

      (B) If the debtor does not have a name, only if the financing statement provides the names of the partners, members, associates or other persons comprising the debtor, in a manner that each name provided would be sufficient if the person named were the debtor.

      (b) A financing statement that provides the name of the debtor in accordance with subsection (a) of this section is not rendered ineffective by the absence of:

      (1) A trade name or other name of the debtor; or

      (2) Unless required under subparagraph (B) of subdivision (5) of subsection (a) of this section, names of partners, members, associates or other persons comprising the debtor.

      (c) A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.

      (d) Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement.

      (e) A financing statement may provide the name of more than one debtor and the name of more than one secured party.

      (f) The name of the decedent indicated on an order appointing a personal representative of the decedent issued by a court having jurisdiction over the collateral is sufficient as the "name of the decedent" under subdivision (2) of subsection (a) of this section.

      (g) If this state has issued to an individual more than one motor vehicle operator's license or identity card of a kind described in subparagraph (C) of subdivision (4) of subsection (a) of this section, the one that was issued most recently is the one to which subparagraph (C) of subdivision (4) of subsection (a) of this section refers.

      (h) In this section, the "name of the settlor or testator" means:

      (1) If the settlor is a registered organization, the name that is stated to be the settlor's name on the public organic record most recently filed with or issued or enacted by the settlor's jurisdiction of organization which purports to state, amend or restate the settlor's name; or

      (2) In other cases, the name of the settlor or testator indicated in the trust's organic record."

      (1959, P.A. 133, S. 9-503; P.A. 01-132, S. 74; P.A. 11-108, S. 10.)

      History: P.A. 01-132 replaced former provisions re the secured party's right to take possession after default with provisions re the name of the debtor and the secured party in a financing statement; P.A. 11-108 amended Subsec. (a) by revising Subdiv. (1) to add exception re Subdiv. (3), include circumstance if "the collateral is held in a trust that is a registered organization" and replace requirement that financing statement provide "the name of the debtor indicated on the public record of the debtor's jurisdiction of organization which shows the debtor to have been organized" with "the name that is stated to be the registered organization's name on the public organic record most recently filed with or issued or enacted by the registered organization's jurisdiction of organization which purports to state, amend or restate the registered organization's name", by revising Subdiv. (2) to replace "If the debtor is a decedent's estate" with "Subject to subsection (f) of this section, if the collateral is being administered by a personal representative of a decedent" and provide that "a separate part of" the financing statement indicate that "the collateral is being administered by a personal representative", rather than the financing statement indicate that "the debtor is an estate", by revising Subdiv. (3) to make applicable "If the collateral is held in a trust that is not a registered organization", rather than "If the debtor is a trust or a trustee acting with respect to property held in trust", and replace former provisions with provisions re required contents of financing statement, by adding new Subdiv. (4) re contents of financing statement if debtor is an individual and by redesignating existing Subdiv. (4) as Subdiv. (5) and amending same to delete in Subpara. (A) reference to the "individual" name of debtor and add in Subpara. (B) "in a manner that each name provided would be sufficient if the person named were the debtor", added Subsec. (f) re sufficiency of name of decedent indicated on order appointing personal representative of decedent, added Subsec. (g) re when more than one operator's license or identity card has been issued, added Subsec. (h) re definition of "name of the settlor or testator", and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-507. *(See end of section for amended version and effective date.) Effect of certain events on effectiveness of financing statement. (a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.

      (b) Except as otherwise provided in subsection (c) and section 42a-9-508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under section 42a-9-506.

      (c) If a debtor so changes its name that a filed financing statement becomes seriously misleading under section 42a-9-506:

      (1) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four months after, the change; and

      (2) The financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the change, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the change.

      (1959, P.A. 133, S. 9-507; P.A. 01-132, S. 78.)

      *Note: On and after July 1, 2013, this section, as amended by section 11 of public act 11-108, is to read as follows:

      "Sec. 42a-9-507. Effect of certain events on effectiveness of financing settlement. (a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.

      (b) Except as otherwise provided in subsection (c) of this section and section 42a-9-508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under section 42a-9-506.

      (c) If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under subsection (a) of section 42a-9-503 so that the financing statement becomes seriously misleading under section 42a-9-506:

      (1) The financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four months after, the filed financing statement becomes seriously misleading; and

      (2) The financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months after the financing statement became seriously misleading."

      (1959, P.A. 133, S. 9-507; P.A. 01-132, S. 78; P.A. 11-108, S. 11.)

      History: P.A. 01-132 replaced former provisions re secured party's liability for failure to comply with the default provisions with provisions re the effect of certain events on the effectiveness of financing statements; P.A. 11-108 amended Subsec. (b) to make a technical change and amended Subsec. (c) to replace "If a debtor so changes its name that a filed financing statement becomes seriously misleading under section 42a-9-506" with "If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under subsection (a) of section 42a-9-503 so that the financing statement becomes seriously misleading under section 42a-9-506", replace in Subdiv. (1) "the change" with "the filed financing statement becomes seriously misleading" and replace in Subdiv. (2) "the change" with "the filed financing statement becomes seriously misleading" and with "the financing statement became seriously misleading", effective July 1, 2013.

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      Sec. 42a-9-515. *(See end of section for amended version and effective date.) Duration and effectiveness of financing statement. Effect of lapsed financing statement. (a) Except as otherwise provided in subsections (b), (e), (f) and (g), a filed financing statement is effective for a period of five years after the date of filing.

      (b) Except as otherwise provided in subsections (e), (f) and (g), an initial financing statement filed in connection with a public finance transaction or manufactured-home transaction is effective for a period of thirty years after the date of filing if it indicates that it is filed in connection with a public finance transaction or manufactured-home transaction.

      (c) The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to subsection (d). Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value.

      (d) A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) or the thirty-year period specified in subsection (b), whichever is applicable.

      (e) Except as otherwise provided in section 42a-9-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the five-year period, the financing statement lapses in the same manner as provided in subsection (c), unless, before the lapse, another continuation statement is filed pursuant to subsection (d). Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement.

      (f) If a debtor is a transmitting utility and a filed financing statement so indicates, the financing statement is effective until a termination statement is filed.

      (g) A record of a mortgage that is effective as a financing statement filed as a fixture filing under subsection (c) of section 42a-9-502 remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property.

      (P.A. 01-132, S. 86; P.A. 03-62, S. 11.)

      *Note: On and after July 1, 2013, this section, as amended by section 12 of public act 11-108, is to read as follows:

      "Sec. 42a-9-515. Duration and effectiveness of financing statement. Effect of lapsed financing statement. (a) Except as otherwise provided in subsections (b), (e), (f) and (g) of this section, a filed financing statement is effective for a period of five years after the date of filing.

      (b) Except as otherwise provided in subsections (e), (f) and (g) of this section, an initial financing statement filed in connection with a public finance transaction or manufactured-home transaction is effective for a period of thirty years after the date of filing if it indicates that it is filed in connection with a public finance transaction or manufactured-home transaction.

      (c) The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to subsection (d) of this section. Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value.

      (d) A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) of this section or the thirty-year period specified in subsection (b) of this section, whichever is applicable.

      (e) Except as otherwise provided in section 42a-9-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the five-year period, the financing statement lapses in the same manner as provided in subsection (c) of this section, unless, before the lapse, another continuation statement is filed pursuant to subsection (d) of this section. Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement.

      (f) If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed.

      (g) A record of a mortgage that is effective as a financing statement filed as a fixture filing under subsection (c) of section 42a-9-502 remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property."

      (P.A. 01-132, S. 86; P.A. 03-62, S. 11; P.A. 11-108, S. 12.)

      History: P.A. 03-62 amended Subsec. (b) to add references to "public finance transaction"; P.A. 11-108 amended Subsec. (f) to replace "filed financing statement" with "filed initial financing statement", and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-516. *(See end of section for amended version and effective date.) What constitutes filing. Effectiveness of filing. (a) Except as otherwise provided in subsection (b), communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. In the case of the recording of a record in a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, tender of the filing fee means tender of the fee specified in section 7-34a.

      (b) Filing does not occur with respect to a record that a filing office refuses to accept because:

      (1) The record is not communicated by a method or medium of communication authorized by the filing office;

      (2) An amount equal to or greater than the applicable filing fee is not tendered;

      (3) The filing office is unable to index the record because:

      (A) In the case of an initial financing statement, the record does not provide a name for the debtor;

      (B) In the case of an amendment or correction statement, the record:

      (i) Does not identify the initial financing statement as required by section 42a-9-512 or 42a-9-518, as applicable; or

      (ii) Identifies an initial financing statement whose effectiveness has lapsed under section 42a-9-515; or

      (C) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's last name;

      (4) In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

      (5) In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

      (A) Provide a mailing address for the debtor;

      (B) Indicate whether the debtor is an individual or an organization; or

      (C) If the financing statement indicates that the debtor is an organization, provide:

      (i) A type of organization for the debtor; and

      (ii) A jurisdiction of organization for the debtor;

      (6) In the case of an assignment reflected in an initial financing statement under subsection (a) of section 42a-9-514 or an amendment filed under subsection (b) of section 42a-9-514, the record does not provide a name and mailing address for the assignee; or

      (7) In the case of a continuation statement, the record is not filed within the six-month period prescribed by subsection (d) of section 42a-9-515.

      (c) For purposes of subsection (b):

      (1) A record does not provide information if the filing office is unable to read or decipher the information; and

      (2) A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by section 42a-9-512, 42a-9-514 or 42a-9-518, is an initial financing statement.

      (d) A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in subsection (b), is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files.

      (P.A. 01-132, S. 87.)

      *Note: On and after July 1, 2013, this section, as amended by section 13 of public act 11-108, is to read as follows:

      "Sec. 42a-9-516. What constitutes filing. Effectiveness of filing. (a) Except as otherwise provided in subsection (b) of this section, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing. In the case of the recording of a record in a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, tender of the filing fee means tender of the fee specified in section 7-34a.

      (b) Filing does not occur with respect to a record that a filing office refuses to accept because:

      (1) The record is not communicated by a method or medium of communication authorized by the filing office;

      (2) An amount equal to or greater than the applicable filing fee is not tendered;

      (3) The filing office is unable to index the record because:

      (A) In the case of an initial financing statement, the record does not provide a name for the debtor;

      (B) In the case of an amendment or information statement, the record:

      (i) Does not identify the initial financing statement as required by section 42a-9-512 or 42a-9-518, as applicable; or

      (ii) Identifies an initial financing statement whose effectiveness has lapsed under section 42a-9-515; or

      (C) In the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's surname;

      (4) In the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;

      (5) In the case of an initial financing statement or an amendment that provides a name of a debtor which was not previously provided in the financing statement to which the amendment relates, the record does not:

      (A) Provide a mailing address for the debtor; or

      (B) Indicate whether the name provided as the name of the debtor is the name of an individual or an organization;

      (6) In the case of an assignment reflected in an initial financing statement under subsection (a) of section 42a-9-514 or an amendment filed under subsection (b) of section 42a-9-514, the record does not provide a name and mailing address for the assignee; or

      (7) In the case of a continuation statement, the record is not filed within the six-month period prescribed by subsection (d) of section 42a-9-515.

      (c) For purposes of subsection (b) of this section:

      (1) A record does not provide information if the filing office is unable to read or decipher the information; and

      (2) A record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by section 42a-9-512, 42a-9-514 or 42a-9-518, is an initial financing statement.

      (d) A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a reason other than one set forth in subsection (b) of this section, is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files."

      (P.A. 01-132, S. 87; P.A. 11-108, S. 13.)

      History: P.A. 11-108 amended Subsec. (b) by revising Subdiv. (3)(B) to replace "correction statement" with "information statement", revising Subdiv. (3)(C) to replace "last name" with "surname", revising Subdiv. (5)(B) to replace "whether the debtor is an individual or an organization" with "whether the name provided as the name of the debtor is the name of an individual or an organization" and deleting former Subdiv. (5)(C) re financing statement that indicates debtor is organization but does not provide a type or jurisdiction of organization, and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-518. *(See end of section for amended version and effective date.) Claim concerning inaccurate or wrongfully filed record. (a) A person may file in the filing office a correction statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.

      (b) A correction statement must:

      (1) Identify the record to which it relates by:

      (A) The file number assigned to the initial financing statement to which the record relates; or

      (B) If the correction statement relates to a record recorded in a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, the book and page number on which or the date and time that the initial financing statement was recorded;

      (2) Indicate that it is a correction statement; and

      (3) Provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.

      (c) The filing of a correction statement does not affect the effectiveness of an initial financing statement or other filed record.

      (P.A. 01-132, S. 89; P.A. 03-62, S. 12.)

      *Note: On and after July 1, 2013, this section, as amended by section 14 of public act 11-108, is to read as follows:

      "Sec. 42a-9-518. Claim concerning inaccurate or wrongfully filed record. (a) A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.

      (b) An information statement under subsection (a) of this section must:

      (1) Identify the record to which it relates by:

      (A) The file number assigned to the initial financing statement to which the record relates; or

      (B) If the information statement relates to a record recorded in a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, the book and page number on which or the date and time that the initial financing statement was recorded;

      (2) Indicate that it is an information statement; and

      (3) Provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.

      (c) A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under subsection (d) of section 42a-9-509.

      (d) An information statement under subsection (c) of this section must:

      (1) Identify the record to which it relates by:

      (A) The file number assigned to the initial financing statement to which the record relates; or

      (B) If the information statement relates to a record recorded in a filing office described in subdivision (1) of subsection (a) of section 42a-9-501, the book and page number on which or the date and time that the initial financing statement was recorded;

      (2) Indicate that it is an information statement; and

      (3) Provide the basis for the person's belief that the person that filed the record was not entitled to do so under subsection (d) of section 42a-9-509.

      (e) The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record."

      (P.A. 01-132, S. 89; P.A. 03-62, S. 12; P.A. 11-108, S. 14.)

      History: P.A. 03-62 amended Subsec. (b)(1)(B) to make a technical change; P.A. 11-108 replaced "correction statement" with "information statement", added new Subsec. (c) re filing of information statement when secured party believes person that filed a record not entitled to do so, added Subsec. (d) re contents of information statement filed under Subsec. (c), redesignated existing Subsec. (c) as Subsec. (e), and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-519. *(See end of section for amended version and effective date.) Numbering, maintaining and indexing records. Communicating information provided in records. (a) For each record filed in a filing office, the filing office shall:

      (1) In the case of a record filed in the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, assign a unique number to the filed record;

      (2) In the case of a record filed in the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, create a record that bears the number assigned to the filed record and the date and time of filing;

      (3) Maintain the filed record for public inspection; and

      (4) Index the filed record in accordance with subsections (b), (c) and (d).

      (b) Except as otherwise provided in subsections (c) and (d), the filing office shall:

      (1) Index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and

      (2) Index a record that provides a name of a debtor which was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.

      (c) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, it must be filed for record and the filing office shall index it:

      (1) In the grantor index under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and

      (2) In the grantee index under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.

      (d) (1) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under subsection (a) of section 42a-9-514 or an amendment filed under subsection (b) of section 42a-9-514:

      (A) In the grantor index under the name of the assignor as grantor; and

      (B) In the grantee index under the name of the assignee as grantee.

      (2) The filing officer shall also enter upon the margin of the record of such initial financing statement a notation of the record of the subsequent assignment or amendment and of any continuation statement, termination statement or correction statement.

      (e) The filing office shall maintain a capability:

      (1) To retrieve a record by the name of the debtor and:

      (A) If the filing office is described in subdivision (1) of subsection (a) of section 42a-9-501, by the book and page number assigned to the initial financing statement to which the record relates; or

      (B) If the filing office is described in subdivision (2) of subsection (a) of section 42a-9-501, by the file number assigned to the initial financing statement to which the record relates; and

      (2) To associate and retrieve with one another an initial financing statement and each filed record relating to the initial financing statement.

      (f) The filing office may not remove a debtor's name from the index until one year after the effectiveness of a financing statement naming the debtor lapses under section 42a-9-515 with respect to all secured parties of record.

      (g) The filing office shall perform the acts required by subsections (a) to (d), inclusive, at the time and in the manner prescribed by filing-office regulation, but not later than five business days after the filing office receives the record in question.

      (h) Subsection (g) does not apply to a filing office described in subdivision (1) of subsection (a) of section 42a-9-501.

      (P.A. 01-132, S. 90; P.A. 03-62, S. 13.)

      *Note: On and after July 1, 2013, this section, as amended by section 15 of public act 11-108, is to read as follows:

      "Sec. 42a-9-519. Numbering, maintaining and indexing records. Communicating information provided in records. (a) For each record filed in a filing office, the filing office shall:

      (1) In the case of a record filed in the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, assign a unique number to the filed record;

      (2) In the case of a record filed in the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, create a record that bears the number assigned to the filed record and the date and time of filing;

      (3) Maintain the filed record for public inspection; and

      (4) Index the filed record in accordance with subsections (b), (c) and (d) of this section.

      (b) Except as otherwise provided in subsections (c) and (d) of this section, the filing office shall:

      (1) Index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and

      (2) Index a record that provides a name of a debtor which was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.

      (c) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, it must be filed for record and the filing office shall index it:

      (1) In the grantor index under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and

      (2) In the grantee index under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.

      (d) (1) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under subsection (a) of section 42a-9-514 or an amendment filed under subsection (b) of section 42a-9-514:

      (A) In the grantor index under the name of the assignor as grantor; and

      (B) In the grantee index under the name of the assignee as grantee.

      (2) The filing officer shall also enter upon the margin of the record of such initial financing statement a notation of the record of the subsequent assignment or amendment and of any continuation statement, termination statement or information statement.

      (e) The filing office shall maintain a capability:

      (1) To retrieve a record by the name of the debtor and:

      (A) If the filing office is described in subdivision (1) of subsection (a) of section 42a-9-501, by the book and page number assigned to the initial financing statement to which the record relates; or

      (B) If the filing office is described in subdivision (2) of subsection (a) of section 42a-9-501, by the file number assigned to the initial financing statement to which the record relates; and

      (2) To associate and retrieve with one another an initial financing statement and each filed record relating to the initial financing statement.

      (f) The filing office may not remove a debtor's name from the index until one year after the effectiveness of a financing statement naming the debtor lapses under section 42a-9-515 with respect to all secured parties of record.

      (g) The filing office shall perform the acts required by subsections (a) to (d), inclusive, of this section at the time and in the manner prescribed by filing-office regulation, but not later than five business days after the filing office receives the record in question.

      (h) Subsection (g) of this section does not apply to a filing office described in subdivision (1) of subsection (a) of section 42a-9-501."

      (P.A. 01-132, S. 90; P.A. 03-62, S. 13; P.A. 11-108, S. 15.)

      History: P.A. 03-62 amended Subsec. (d) to designate provision re indexing as Subdiv. (1), redesignate existing Subdivs. (1) and (2) as Subparas. (A) and (B), respectively, of said Subdiv. (1) and designate provision re margin notations as Subdiv. (2); P.A. 11-108 amended Subsec. (d)(2) to replace "correction statement" with "information statement", and made technical changes, effective July 1, 2013.

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      Sec. 42a-9-525. *(See end of section for amended version and effective date.) Fees. (a) The filing office described in subdivision (2) of subsection (a) of section 42a-9-501 shall charge and collect the following uniform fee: For filing and indexing an initial financing statement, a correction statement or an amendment, fifty dollars. No fee shall be charged (1) to the state when the initial financing statement, correction statement or amendment is filed by or at the request of the Attorney General or an assistant attorney general or by a duly authorized official of the state or any of its agencies, boards or commissions acting in an official capacity, or (2) to a municipality when the initial financing statement, correction statement or amendment is filed by a tax collector or other municipal officer of such municipality pursuant to the provisions of sections 12-195a to 12-195g, inclusive, or (3) for any filing accomplished solely by electronic means and without the physical submission of any document, instrument or paper, in accordance with a plan approved by the Secretary of the State.

      (b) The uniform fee for responding to a request for information from the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, including issuing a certificate showing whether there is on file, on the date and time stated therein, any financing statement naming a particular debtor and any amendment thereof and, if there is, giving the date and hour of filing such amendment and the name and address of each secured party named therein, is fifty dollars. Upon request, the filing officer shall furnish a photographic or electronic copy of any filed financing statement or amendment for a uniform fee of forty dollars regardless of the number of pages and affix such filing officer's certification and official seal thereto for a fee of fifteen dollars. No fee shall be charged to the state when a certificate showing whether there is on file, on the date and hour stated therein, any presently effective financing statement naming a particular debtor and any amendment thereof, is requested by the Attorney General or an assistant attorney general or by a duly authorized official of the state or any of its agencies, boards or commissions acting in an official capacity, and no fee shall be charged to a municipality when such certificate is requested by the tax collector or other municipal officer of such municipality pursuant to the provisions of sections 12-195a to 12-195g, inclusive.

      (c) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under subsection (c) of section 42a-9-502. However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.

      (P.A. 01-132, S. 96; P.A. 03-62, S. 15; June Sp. Sess. P.A. 09-3, S. 385.)

      *Note: On and after July 1, 2013, this section, as amended by section 16 of public act 11-108, is to read as follows:

      "Sec. 42a-9-525. Fees. (a) The filing office described in subdivision (2) of subsection (a) of section 42a-9-501 shall charge and collect the following uniform fee: For filing and indexing an initial financing statement, an information statement or an amendment, fifty dollars. No fee shall be charged (1) to the state when the initial financing statement, information statement or amendment is filed by or at the request of the Attorney General or an assistant attorney general or by a duly authorized official of the state or any of its agencies, boards or commissions acting in an official capacity, or (2) to a municipality when the initial financing statement, information statement or amendment is filed by a tax collector or other municipal officer of such municipality pursuant to the provisions of sections 12-195a to 12-195g, inclusive, or (3) for any filing accomplished solely by electronic means and without the physical submission of any document, instrument or paper, in accordance with a plan approved by the Secretary of the State.

      (b) The uniform fee for responding to a request for information from the filing office described in subdivision (2) of subsection (a) of section 42a-9-501, including issuing a certificate showing whether there is on file, on the date and time stated therein, any financing statement naming a particular debtor and any amendment thereof and, if there is, giving the date and hour of filing such amendment and the name and address of each secured party named therein, is fifty dollars. Upon request, the filing officer shall furnish a photographic or electronic copy of any filed financing statement or amendment for a uniform fee of forty dollars regardless of the number of pages and affix such filing officer's certification and official seal thereto for a fee of fifteen dollars. No fee shall be charged to the state when a certificate showing whether there is on file, on the date and hour stated therein, any presently effective financing statement naming a particular debtor and any amendment thereof, is requested by the Attorney General or an assistant attorney general or by a duly authorized official of the state or any of its agencies, boards or commissions acting in an official capacity, and no fee shall be charged to a municipality when such certificate is requested by the tax collector or other municipal officer of such municipality pursuant to the provisions of sections 12-195a to 12-195g, inclusive.

      (c) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under subsection (c) of section 42a-9-502. However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply."

      (P.A. 01-132, S. 96; P.A. 03-62, S. 15; June Sp. Sess. P.A. 09-3, S. 385; P.A. 11-108, S. 16.)

      History: P.A. 03-62 amended Subsec. (a) to replace "Secretary of the State" with "filing office described in subdivision (2) of subsection (a) of section 42a-9-501" and amended Subsec. (b) to specify that the filing office is "described in subdivision (2) of subsection (a) of section 42a-9-501", replace one reference to "date and hour" with "date and time" and replace "an authorized official" with "a duly authorized official"; June Sp. Sess. P.A. 09-3 amended Subsecs. (a) and (b) to increase fees; P.A. 11-108 amended Subsec. (a) to replace "correction statement" with "information statement", effective July 1, 2013.

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PART 6
DEFAULT

      Sec. 42a-9-607. *(See end of section for amended version and effective date.) Collection and enforcement by secured party. (a) If so agreed, and in any event after default, a secured party:

      (1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;

      (2) May take any proceeds to which the secured party is entitled under section 42a-9-315;

      (3) May enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;

      (4) If it holds a security interest in a deposit account perfected by control under subdivision (1) of subsection (a) of section 42a-9-104, may apply the balance of the deposit account to the obligation secured by the deposit account; and

      (5) If it holds a security interest in a deposit account perfected by control under subdivision (2) or (3) of subsection (a) of section 42a-9-104, may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.

      (b) If necessary to enable a secured party to exercise under subdivision (3) of subsection (a) of this section the right, if any, of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:

      (1) A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and

      (2) The secured party's sworn affidavit in recordable form stating that:

      (A) A default has occurred; and

      (B) The secured party is entitled to enforce the mortgage nonjudicially.

      (c) A secured party shall proceed in a commercially reasonable manner if the secured party:

      (1) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and

      (2) Is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.

      (d) A secured party may deduct from the collections made pursuant to subsection (c) reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.

      (e) This section does not determine whether an account debtor, bank or other person obligated on collateral owes a duty to a secured party.

      (P.A. 01-132, S. 104.)

      *Note: On and after July 1, 2013, this section, as amended by section 17 of public act 11-108, is to read as follows:

      "Sec. 42a-9-607. Collection and enforcement by secured party. (a) If so agreed, and in any event after default, a secured party:

      (1) May notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;

      (2) May take any proceeds to which the secured party is entitled under section 42a-9-315;

      (3) May enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;

      (4) If it holds a security interest in a deposit account perfected by control under subdivision (1) of subsection (a) of section 42a-9-104, may apply the balance of the deposit account to the obligation secured by the deposit account; and

      (5) If it holds a security interest in a deposit account perfected by control under subdivision (2) or (3) of subsection (a) of section 42a-9-104, may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.

      (b) If necessary to enable a secured party to exercise under subdivision (3) of subsection (a) of this section the right, if any, of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:

      (1) A copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and

      (2) The secured party's sworn affidavit in recordable form stating that:

      (A) A default has occurred with respect to an obligation secured by the mortgage; and

      (B) The secured party is entitled to enforce the mortgage nonjudicially.

      (c) A secured party shall proceed in a commercially reasonable manner if the secured party:

      (1) Undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and

      (2) Is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.

      (d) A secured party may deduct from the collections made pursuant to subsection (c) of this section reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.

      (e) This section does not determine whether an account debtor, bank or other person obligated on collateral owes a duty to a secured party."

      (P.A. 01-132, S. 104; P.A. 11-108, S. 17.)

      History: P.A. 11-108 amended Subsec. (b)(2)(A) to add "with respect to an obligation secured by the mortgage" re default and amended Subsec. (d) to make a technical change, effective July 1, 2013.

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PART 8
TRANSITION PROVISIONS

      Sec. 42a-9-802. (Note: This section is effective July 1, 2013.) Savings clause. (a) Except as otherwise provided in this part, public act 11-108* applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2013.

      (b) Public act 11-108* does not affect an action, case or proceeding commenced before July 1, 2013.

      (P.A. 11-108, S. 18.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-803. (Note: This section is effective July 1, 2013.) Security interest perfected before July 1, 2013. (a) A security interest that is a perfected security interest immediately before July 1, 2013, is a perfected security interest under this article, as amended by public act 11-108*, if, on July 1, 2013, the applicable requirements for attachment and perfection under this article, as amended by public act 11-108*, are satisfied without further action.

      (b) Except as otherwise provided in section 42a-9-805, if, immediately before July 1, 2013, a security interest is a perfected security interest, but the applicable requirements for perfection under this article, as amended by public act 11-108*, are not satisfied on July 1, 2013, the security interest remains perfected thereafter only if the applicable requirements for perfection under this article, as amended by public act 11-108*, are satisfied within one year after July 1, 2013.

      (P.A. 11-108, S. 19.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-804. (Note: This section is effective July 1, 2013.) Security interest unperfected before July 1, 2013. A security interest that is an unperfected security interest immediately before July 1, 2013, becomes a perfected security interest:

      (1) Without further action, on July 1, 2013, if the applicable requirements for perfection under this article, as amended by public act 11-108*, are satisfied before or at that time; or

      (2) When the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.

      (P.A. 11-108, S. 20.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-805. (Note: This section is effective July 1, 2013.) Effectiveness of action taken before July 1, 2013. (a) The filing of a financing statement before July 1, 2013, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this article, as amended by public act 11-108*.

      (b) Public act 11-108* does not render ineffective an effective financing statement that, before July 1, 2013, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this article in effect on June 30, 2013. However, except as otherwise provided in subsections (c) and (d) of this section and section 42a-9-806, the financing statement ceases to be effective:

      (1) If the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had public act 11-108* not taken effect; or

      (2) If the financing statement is filed in another jurisdiction, at the earlier of:

      (A) The time the financing statement would have ceased to be effective under the law of that jurisdiction; or

      (B) June 30, 2018.

      (c) The filing of a continuation statement on or after July 1, 2013, does not continue the effectiveness of a financing statement filed before July 1, 2013. However, upon the timely filing of a continuation statement on or after July 1, 2013, and in accordance with the law of the jurisdiction governing perfection as provided in this article, as amended by public act 11-108*, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2013, continues for the period provided by the law of that jurisdiction.

      (d) Subparagraph (B) of subdivision (2) of subsection (b) of this section applies to a financing statement that, before July 1, 2013, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this article in effect on June 30, 2013, only to the extent that this article, as amended by public act 11-108*, provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.

      (e) A financing statement that includes a financing statement filed before July 1, 2013, and a continuation statement filed on or after July 1, 2013, is effective only to the extent that it satisfies the requirements of part 5 of this article, as amended by public act 11-108*, for an initial financing statement. A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of subdivision (2) of subsection (a) of section 42a-9-503, as amended by public act 11-108*. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of subdivision (3) of subsection (a) of section 42a-9-503, as amended by public act 11-108*.

      (P.A. 11-108, S. 21.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-806. (Note: This section is effective July 1, 2013.) When initial financing statement suffices to continue effectiveness of financing statement. (a) The filing of an initial financing statement in the office specified in section 42a-9-501 continues the effectiveness of a financing statement filed before July 1, 2013, if:

      (1) The filing of an initial financing statement in that office would be effective to perfect a security interest under this article, as amended by public act 11-108*;

      (2) The pre-effective-date financing statement, as defined in section 42a-9-807, was filed in an office in another state; and

      (3) The initial financing statement satisfies subsection (c) of this section.

      (b) The filing of an initial financing statement under subsection (a) of this section continues the effectiveness of the pre-effective-date financing statement, as defined in section 42a-9-807:

      (1) If the initial financing statement is filed before July 1, 2013, for the period provided in section 42a-9-515 in effect on June 30, 2013, with respect to an initial financing statement; and

      (2) If the initial financing statement is filed on or after July 1, 2013, for the period provided in section 42a-9-515, as amended by public act 11-108*, with respect to an initial financing statement.

      (c) To be effective for purposes of subsection (a) of this section, an initial financing statement must:

      (1) Satisfy the requirements of part 5 of this article, as amended by public act 11-108*, for an initial financing statement;

      (2) Identify the pre-effective-date financing statement, as defined in section 42a-9-807, by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and

      (3) Indicate that the pre-effective-date financing statement, as defined in section 42a-9-807, remains effective.

      (P.A. 11-108, S. 22.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-807. (Note: This section is effective July 1, 2013.) Amendment of financing statement filed before July 1, 2013. (a) In this section and section 42a-9-806, "pre-effective-date financing statement" means a financing statement filed before July 1, 2013.

      (b) On or after July 1, 2013, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a pre-effective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in this article, as amended by public act 11-108*. However, the effectiveness of a pre-effective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.

      (c) Except as otherwise provided in subsection (d) of this section, if the law of this state governs perfection of a security interest, the information in a pre-effective-date financing statement may be amended on or after July 1, 2013, only if:

      (1) The pre-effective-date financing statement and an amendment are filed in the office specified in section 42a-9-501;

      (2) An amendment is filed in the office specified in section 42a-9-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies subsection (c) of section 42a-9-806; or

      (3) An initial financing statement that provides the information as amended and satisfies subsection (c) of section 42a-9-806 is filed in the office specified in section 42a-9-501.

      (d) If the law of this state governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement may be continued only under subsections (c) and (e) of section 42a-9-805 or section 42a-9-806.

      (e) Whether or not the law of this state governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement filed in this state may be terminated on or after July 1, 2013, by filing a termination statement in the office in which the pre-effective-date financing statement is filed, unless an initial financing statement that satisfies subsection (c) of section 42a-9-806 has been filed in the office specified by the law of the jurisdiction governing perfection as provided in this article, as amended by public act 11-108*, as the office in which to file a financing statement.

      (P.A. 11-108, S. 23.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-808. (Note: This section is effective July 1, 2013.) Person entitled to file initial financing statement or continuation statement. A person may file an initial financing statement or a continuation statement under this part if:

      (1) The secured party of record authorizes the filing; and

      (2) The filing is necessary under this part:

      (A) To continue the effectiveness of a financing statement filed before July 1, 2013; or

      (B) To perfect or continue the perfection of a security interest.

      (P.A. 11-108, S. 24.)

      History: P.A. 11-108 effective July 1, 2013.

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      Sec. 42a-9-809. (Note: This section is effective July 1, 2013.) Priority. Public act 11-108* determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2013, this article in effect on June 30, 2013, determines priority.

      (P.A. 11-108, S. 25.)

      *Note: Public act 11-108 is entitled "An Act Concerning Amendments to Article 9 of the Uniform Commercial Code Concerning Secured Transactions". (See Reference Table captioned "Public Acts of 2011" following the Index which lists the sections amended, created or repealed by the act.)


      History: P.A. 11-108 effective July 1, 2013.

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