Scope

  1. Law
  2. Tennessee Code
  3. Commercial Instruments and Transactions
  4. Secured Transactions
  5. General Provisions
  6. Scope

Checkout our iOS App for a better way to browser and research.

  1. General scope of chapter.  Except as otherwise provided in subsections (c) and (d), this chapter applies to:
    1. a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
    2. an agricultural lien;
    3. a sale of accounts, chattel paper, payment intangibles, or promissory notes;
    4. a consignment;
    5. a security interest arising under § 47-2-401, § 47-2-505, § 47-2-711(3), or § 47-2A-508(5), as provided in § 47-9-110; and
    6. a security interest arising under § 47-4-210 or § 47-5-118.
  2. Security interest in secured obligation.  The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply.
  3. Extent to which chapter does not apply.  This chapter does not apply to the extent that:
    1. a statute, regulation, or treaty of the United States preempts this chapter;
    2. another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state, including, but not limited to, title 9, chapter 22;
    3. a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
    4. the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under § 47-5-114.
  4. Inapplicability of chapter.  This chapter does not apply to:
    1. a landlord's lien, other than an agricultural lien;
    2. a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but § 47-9-333 applies with respect to priority of the lien;
    3. an assignment of a claim for wages, salary, or other compensation of an employee;
    4. a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
    5. an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
    6. an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
    7. an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
    8. a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but §§ 47-9-315 and 47-9-322 apply with respect to proceeds and priorities in proceeds;
    9. an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
    10. a right of recoupment or set-off, but:
      1. § 47-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
      2. § 47-9-404 applies with respect to defenses or claims of an account debtor;
    11. the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
      1. liens on real property in § 47-9-203 and § 47-9-308;
      2. fixtures in § 47-9-334;
      3. fixture filings in § 47-9-501, § 47-9-502, § 47-9-512, § 47-9-516, and § 47-9-519; and
      4. security agreements covering personal and real property in § 47-9-604;
    12. an assignment of a claim arising in tort, other than a commercial tort claim, but §§ 47-9-315 and 47-9-322 apply with respect to proceeds and priorities in proceeds;
    13. an assignment of a deposit account in a consumer transaction, but §§ 47-9-315 and 47-9-322 apply with respect to proceeds and priorities in proceeds;
    14. an assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2), as amended from time to time; or
    15. an assignment of a claim or right to receive benefits under a special needs trust described in 42 U.S.C. § 1396p(d)(4), as amended from time to time.


Download our app to see the most-to-date content.