7-9A-404
Section 7-9A-404 Rights acquired by assignee; claims and defenses against assignee. (a) Assignee's
rights subject to terms, claims, and defenses; exceptions. Unless an account debtor has made
an enforceable agreement not to assert defenses or claims, and subject to subsections (b)
through (e), the rights of an assignee are subject to: (1) all terms of the agreement between
the account debtor and assignor and any defense or claim in recoupment arising from the transaction
that gave rise to the contract; and (2) any other defense or claim of the account debtor against
the assignor which accrues before the account debtor receives a notification of the assignment
authenticated by the assignor or the assignee. (b) Account debtor's claim reduces amount owed
to assignee. Subject to subsection (c) and except as otherwise provided in subsection (d),
the claim of an account debtor against an assignor may be asserted against an assignee under
subsection (a) only to reduce the amount the account...
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7-9A-403
Section 7-9A-403 Agreement not to assert defenses against assignee. (a) "Value."
In this section, "value" has the meaning provided in Section 7-3-303(a). (b) Agreement
not to assert claim or defense. Except as otherwise provided in this section, an agreement
between an account debtor and an assignor not to assert against an assignee any claim or defense
that the account debtor may have against the assignor is enforceable by an assignee that takes
an assignment: (1) for value; (2) in good faith; (3) without notice of a claim of a property
or possessory right to the property assigned; and (4) without notice of a defense or claim
in recoupment of the type that may be asserted against a person entitled to enforce a negotiable
instrument under Section 7-3-305(a). (c) When subsection (b) not applicable. Subsection (b)
does not apply to defenses of a type that may be asserted against a holder in due course of
a negotiable instrument under Section 7-3-305(b). (d) Omission of required statement...
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7-9A-406
Section 7-9A-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) Discharge of account debtor; effect of notification.
Subject to subsections (b) through (i), 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. (b) When
notification ineffective. Subject to subsection (h), notification is ineffective under subsection
(a): (1) if it does not reasonably identify the rights assigned;...
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7-9A-405
Section 7-9A-405 Modification of assigned contract. (a) Effect of modification on assignee.
A modification of or substitution for an assigned contract is effective against an assignee
if made in good faith and in accordance with reasonable commercial standards. The assignee
acquires corresponding rights under the modified or substituted contract. The assignment may
provide that the modification or substitution is a breach of contract by the assignor. This
subsection is subject to subsections (b) through (d). (b) Applicability of subsection (a).
Subsection (a) applies to the extent that: (1) the right to payment or a part thereof under
an assigned contract has not been fully earned by performance; or (2) the right to payment
or a part thereof has been fully earned by performance and the account debtor has not received
notification of the assignment under Section 7-9A-406(a). (c) Rule for individual under other
law. This section is subject to law other than this article which establishes...
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7-9-302
Section 7-9-302 When filing is required to perfect security interest; security interests to
which filing provisions of this article do not apply. THIS SECTION WAS REPEALED IN THE 2001
REGULAR SESSION, BY ACT 2001-481, EFFECTIVE JAN. 1, 2002. (1) A financing statement must be
filed to perfect all security interests except the following: (a) A security interest in collateral
in possession of the secured party under Section 7-9-305; (b) A security interest temporarily
perfected in instruments, certificated securities, or documents without delivery under Section
7-9-304 or in proceeds for a 20-day period under Section 7-9-306; (c) A security interest
created by an assignment of a beneficial interest in a trust or a decedent's estate; (d) A
purchase money security interest in consumer goods; but filing is required for a motor vehicle
required to be registered; and fixture filing is required for priority over conflicting interests
in fixtures to the extent provided in Section 7-9-313; (e) An...
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7-1-201
Section 7-1-201 General definitions. (a) [Reserved]. (b) Subject to additional definitions
contained in the subsequent articles of this title which are applicable to specific articles
or parts thereof, and unless the context otherwise requires, in this title: (1) "Action,"
in the sense of a judicial proceeding, includes recoupment, counterclaim, set-off, suit in
equity, and any other proceeding in which rights are determined. (2) "Aggrieved party"
means a party entitled to pursue a remedy. (3) "Agreement," as distinguished from
"contract," means the bargain of the parties in fact, as found in their language
or inferred from other circumstances, including course of performance, course of dealing,
or usage of trade as provided in Section 7-1-303. (4) "Bank" means a person engaged
in the business of banking and includes a savings bank, savings and loan association, credit
union, and trust company. (5) "Bearer" means a person in possession of a negotiable
instrument, document of title, or...
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7-9A-625
Section 7-9A-625 Remedies for secured party's failure to comply with article. (a) Judicial
orders concerning noncompliance. If it is established that a secured party is not proceeding
in accordance with this article, a court may order or restrain collection, enforcement, or
disposition of collateral on appropriate terms and conditions. (b) Damages for noncompliance.
Subject to subsections (c), (d), and (f), a person is liable for damages in the amount of
any loss caused by a failure to comply with this article. Loss caused by a failure to comply
may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative
financing. (c) Persons entitled to recover damages; statutory damages in consumer-goods transaction.
Except as otherwise provided in Section 7-9A-628: (1) a person that, at the time of the failure,
was a debtor, was an obligor, or held a security interest in or other lien on the collateral
may recover damages under subsection (b) for its loss;...
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7-7-210
Section 7-7-210 Enforcement of warehouse's lien. (a) Except as otherwise provided in subsection
(b), a warehouse's lien may be enforced by public or private sale of the goods, in bulk or
in packages, at any time or place and on any terms that are commercially reasonable, after
notifying all persons known to claim an interest in the goods. The notification must include
a statement of the amount due, the nature of the proposed sale, and the time and place of
any public sale. The fact that a better price could have been obtained by a sale at a different
time or in a method different from that selected by the warehouse is not of itself sufficient
to establish that the sale was not made in a commercially reasonable manner. The warehouse
sells in a commercially reasonable manner if the warehouse sells the goods in the usual manner
in any recognized market therefor, sells at the price current in that market at the time of
the sale, or otherwise sells in conformity with commercially reasonable...
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7-9A-102
Section 7-9A-102 Definitions and index of definitions. (a) Article 9A definitions. 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...

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7-9A-109
Section 7-9A-109 Scope. (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 Section 7-2-401, 7-2-505, 7-2-711(3), or 7-2A-508(5),
as provided in Section 7-9A-110; and (6) a security interest arising under Section 7-4-210
or 7-5-118. (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...
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