General effectiveness of security agreement

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47-9201. General effectiveness of security agreement

A. Except as otherwise provided in this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors.

B. A transaction subject to this chapter is subject to any applicable rule of law that establishes a different rule for consumers and any other statute or rule that regulates the rates, charges, agreements and practices for loans, credit sales or other extensions of credit and any consumer protection statute or rule.

C. In case of conflict between this chapter and a rule of law, statute or other rule described in subsection B, the rule of law, statute or other rule controls. Failure to comply with a statute or rule described in subsection B has only the effect the statute or rule specifies.

D. This chapter does not:

1. Validate any rate, charge, agreement or practice that violates a rule of law, statute or other rule described in subsection B; or

2. Extend the application of the rule of law, statute or other rule to a transaction not otherwise subject to it.


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