Scope

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  • (a) General scope of article. Except as otherwise provided in subsections (c) and (d), this article applies to:

    • (1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

    • (2) an agricultural lien;

    • (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;

    • (4) a consignment;

    • (5) a security interest arising under § 2–401, 2–505, 2–711(3), or 2A-508(5), as provided in § 9–110; and

    • (6) a security interest arising under § 4–210 or 5–118.

  • (b) Security interest in secured obligation. The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.

  • (c) Extent to which article does not apply. This article does not apply to the extent that:

    • (1) a statute, regulation, or treaty of the United States preempts this article;

    • (2) another statute of this State expressly governs the creation, perfection, priority, or enforcement of a security interest created by this State or a governmental unit of this State;

    • (3) a statute of another State, a foreign country, or a governmental unit of another State or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the State, country, or governmental unit; or

    • (4) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under § 5–114.

  • (d) Inapplicability of article. This article does not apply to:

    • (1) a landlord's lien, other than an agricultural lien;

    • (2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but § 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 healthcare-insurance receivable and any subsequent assignment of the right to payment, but Sections 9–315 and 9–322 apply with respect to proceeds and priorities in proceeds;

    • (9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

    • (10) a right of recoupment or set-off, but:

      • (A) § 9–340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

      • (B) § 9–404 applies with respect to defenses or claims of an account debtor;

    • (11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

      • (A) liens on real property in Sections 9–203 and 9–308;

      • (B) fixtures in § 9–334;

      • (C) fixture filings in Sections 9–501, 9–502, 9–512, 9–516, and 9–519; and

      • (D) security agreements covering personal and real property in § 9–604;

    • (12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 9–315 and 9–322 apply with respect to proceeds and priorities in proceeds; or

    • (13) an assignment of a deposit account in a consumer transaction, but Sections 9–315 and 9–322 apply with respect to proceeds and priorities in proceeds.


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