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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-325/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-325 - Priority of Security Interests in Transferred Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-325 - Priority of Security Interests in Transferred Collateral.
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Section 7-9A-325
Priority of security interests in transferred collateral.
(a) Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
(1) the debtor acquired the collateral subject to the security interest created by the other person;
(2) the security interest created by the other person was perfected when the debtor acquired the collateral; and
(3) there is no period thereafter when the security interest is unperfected.
(b) Limitation of subsection (a) subordination. Subsection (a) subordinates a security interest only if the security interest:
(1) otherwise would have priority solely under Section 7-9A-322(a) or 7-9A-324; or
(2) arose solely under Section 7-2-711(3) or 7-2A-508(5).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-326/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-326 - Priority of Security Interests Created by New Debtor.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-326 - Priority of Security Interests Created by New Debtor.
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Section 7-9A-326
Priority of security interests created by new debtor.
(a) Subordination of security interest created by new debtor. Subject to subsection (b), 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 Section 7-9A-316(i)(1) or 7-9A-508 is subordinate to a security interest in the same collateral which is perfected other than by such a filed financing statement.
(b) Priority under other provisions; multiple original debtors. 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). 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.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-327/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-327 - Priority of Security Interests in Deposit Account.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-327 - Priority of Security Interests in Deposit Account.
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Section 7-9A-327
Priority of security interests in deposit account.
The following rules govern priority among conflicting security interests in the same deposit account:
(1) A security interest held by a secured party having control of the deposit account under Section 7-9A-104 has priority over a conflicting security interest held by a secured party that does not have control.
(2) Except as otherwise provided in paragraphs (3) and (4), security interests perfected by control under Section 7-9A-314 rank according to priority in time of obtaining control.
(3) Except as otherwise provided in paragraph (4), a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.
(4) A security interest perfected by control under Section 7-9A-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-328/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-328 - Priority of Security Interests in Investment Property.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-328 - Priority of Security Interests in Investment Property.
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Section 7-9A-328
Priority of security interests in investment property.
The following rules govern priority among conflicting security interests in the same investment property:
(1) A security interest held by a secured party having control of investment property under Section 7-9A-106 has priority over a security interest held by a secured party that does not have control of the investment property.
(2) Except as otherwise provided in paragraphs (3) and (4), conflicting security interests held by secured parties each of which has control under Section 7-9A-106 rank according to priority in time of:
(A) if the collateral is a security, obtaining control;
(B) if the collateral is a security entitlement carried in a securities account and:
(i) if the secured party obtained control under Section 7-8-106(d)(1), the secured party's becoming the person for which the securities account is maintained;
(ii) if the secured party obtained control under Section 7-8-106(d)(2), the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account; or
(iii) if the secured party obtained control through another person under Section 7-8-106(d)(3), the time on which priority would be based under this paragraph if the other person were the secured party; or
(C) if the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in Section 7-9A-106(b)(2) with respect to commodity contracts carried or to be carried with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected by taking delivery under Section 7-9A-313(a) and not by control under Section 7-9A-314 has priority over a conflicting security interest perfected by a method other than control.
(6) Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under Section 7-9A-106 rank equally.
(7) In all other cases, priority among conflicting security interests in investment property is governed by Sections 7-9A-322 and 7-9A-323.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-329/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-329 - Priority of Security Interests in Letter-of-Credit Right.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-329 - Priority of Security Interests in Letter-of-Credit Right.
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Section 7-9A-329
Priority of security interests in letter-of-credit right.
The following rules govern priority among conflicting security interests in the same letter-of-credit right:
(1) A security interest held by a secured party having control of the letter-of-credit right under Section 7-9A-107 has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(2) Security interests perfected by control under Section 7-9A-314 rank according to priority in time of obtaining control.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-330/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-330 - Priority of Purchaser of Chattel Paper or Instrument.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-330 - Priority of Purchaser of Chattel Paper or Instrument.
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Section 7-9A-330
Priority of purchaser of chattel paper or instrument.
(a) Purchaser's priority: Security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:
(1) in good faith and in the ordinary course of the purchaser's business, the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under Section 7-9A-105; and
(2) the chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser.
(b) Purchaser's priority: Other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under Section 7-9A-105 in good faith, in the ordinary course of the purchaser's business, and without knowledge that the purchase violates the rights of the secured party.
(c) Chattel paper purchaser's priority in proceeds. Except as otherwise provided in Section 7-9A-327, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:
(1) Section 7-9A-322 provides for priority in the proceeds; or
(2) the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser's security interest in the proceeds is unperfected.
(d) Instrument purchaser's priority. Except as otherwise provided in Section 7-9A-331(a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.
(e) Holder of purchase-money security interest gives new value. For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.
(f) Indication of assignment gives knowledge. For purposes of subsections (b) and (d), if chattel paper or an instrument indicates that it has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-331/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-331 - Priority of Rights of Purchasers of Instruments, Documents, and Securities Under...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-331 - Priority of Rights of Purchasers of Instruments, Documents, and Securities Under Other Articles; Priority of Interests in Financial Assets and Security Entitlements Under Article 8.
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Section 7-9A-331
Priority of rights of purchasers of instruments, documents, and securities under other articles; priority of interests in financial assets and security entitlements under Article 8.
(a) Rights under Articles 3, 7, and 8 not limited. This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in Articles 3, 7, and 8.
(b) Protection under Article 8. This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Article 8.
(c) Filing not notice. Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-332/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-332 - Transfer of Money; Transfer of Funds From Deposit Account.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-332 - Transfer of Money; Transfer of Funds From Deposit Account.
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Section 7-9A-332
Transfer of money; transfer of funds from deposit account.
(a) Transferee of money. A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
(b) Transferee of funds from deposit account. A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-333/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-333 - Priority of Certain Liens Arising by Operation of Law.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-333 - Priority of Certain Liens Arising by Operation of Law.
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Section 7-9A-333
Priority of certain liens arising by operation of law.
(a) "Possessory lien." In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien:
(1) which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;
(2) which is created by statute or rule of law in favor of the person; and
(3) whose effectiveness depends on the person's possession of the goods.
(b) Priority of possessory lien. A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise.
(c) Priority of landlord's lien. Priority conflicts between a landlord's lien for rent arising by operation of law, other than an agricultural lien, and a security interest in goods brought on leased premises shall be determined as follows:
(1) If the security interest attaches after the goods are brought on the premises, the landlord's lien has priority over the security interest;
(2) If the security interest attaches before the goods are brought on the premises, the security interest has priority over the landlord's lien from the time the security interest is perfected or the landlord has notice of the security interest, whichever first occurs; except that if the secured party files with respect to a purchase-money security interest before or within 20 days after the debtor receives possession of the goods, the security interest takes priority over the landlord's lien.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-334/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-334 - Priority of Security Interests in Fixtures and Crops.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-334 - Priority of Security Interests in Fixtures and Crops.
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Section 7-9A-334
Priority of security interests in fixtures and crops.
(a) Security interest in fixtures under this article. A security interest under this article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this article in ordinary building materials incorporated into an improvement on land.
(b) Security interest in fixtures under real-property law. This article does not prevent creation of an encumbrance upon fixtures under real property law.
(c) General rule: Subordination of security interest in fixtures. In cases not governed by subsections (d) through (h), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.
(d) Fixtures purchase-money priority. Except as otherwise provided in subsection (h), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:
(1) the security interest is a purchase-money security interest;
(2) the interest of the encumbrancer or owner arises before the goods become fixtures; and
(3) the security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.
(e) Priority of security interest in fixtures over interests in real property. A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:
(1) the debtor has an interest of record in the real property or is in possession of the real property and the security interest:
(A) is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and
(B) has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;
(2) before the goods become fixtures, the security interest is perfected by any method permitted by this article and the fixtures are readily removable:
(A) factory or office machines;
(B) equipment that is not primarily used or leased for use in the operation of the real property; or
(C) replacements of domestic appliances that are consumer goods;
(3) the conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article; or
(4) the security interest is:
(A) created in a manufactured home in a manufactured-home transaction; and
(B) perfected pursuant to a statute described in Section 7-9A-311(a)(2).
(f) Priority based on consent, disclaimer, or right to remove. A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:
(1) the encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or
(2) the debtor has a right to remove the goods as against the encumbrancer or owner.
(g) Continuation of paragraph (f)(2) priority. The priority of the security interest under paragraph (f)(2) continues for a reasonable time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f), a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.
(i) Priority of security interest in crops. A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.
(j) Subsection (i) prevails over inconsistent law. Subsection (i) prevails over any inconsistent provision of an existing or future statute, rule, or regulation of this State unless the provision is contained in a statute of this State, refers expressly to subsection (i), and states that the provision prevails over subsection (i).
(Act 2001-481, p. 647, §1; Act 2002-403, p. 1015, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-335/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-335 - Accessions.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-335 - Accessions.
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Section 7-9A-335
Accessions.
(a) Creation of security interest in accession. A security interest may be created in an accession and continues in collateral that becomes an accession.
(b) Perfection of security interest. If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.
(c) Priority of security interest. Except as otherwise provided in subsection (d), the other provisions of this part determine the priority of a security interest in an accession.
(d) Compliance with certificate-of-title statute. A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate-of-title statute under Section 7-9A-311(b).
(e) Removal of accession after default. After default, subject to Part 6, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.
(f) Reimbursement following removal. A secured party that removes an accession from other goods under subsection (e) shall promptly reimburse any holder of a security interest or other lien on, or owner of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-336/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-336 - Commingled Goods.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-336 - Commingled Goods.
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Section 7-9A-336
Commingled goods.
(a) "Commingled goods." In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.
(b) No security interest in commingled goods as such. A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.
(c) Attachment of security interest to product or mass. If collateral becomes commingled goods, a security interest attaches to the product or mass.
(d) Perfection of security interest. If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) is perfected.
(e) Priority of security interest. Except as otherwise provided in subsection (f), the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass. If more than one security interest attaches to the product or mass under subsection (c), the following rules determine priority:
(1) A security interest that is perfected under subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.
(2) If more than one security interest is perfected under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-337/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-337 - Priority of Security Interests in Goods Covered by Certificate of Title.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-337 - Priority of Security Interests in Goods Covered by Certificate of Title.
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Section 7-9A-337
Priority of security interests in goods covered by certificate of title.
If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:
(1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
(2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under Section 7-9A-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-338/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing S...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information.
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Section 7-9A-338
Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information.
If a security interest or agricultural lien is perfected by a filed financing statement providing information described in Section 7-9A-516(b)(5) which is incorrect at the time the financing statement is filed:
(1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.
(Act 2001-481, p. 647, §1; Act 2004-315, p. 464, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-3/section-7-9a-339/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 3 - Priority.›Section 7-9A-339 - Priority Subject to Subordination.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 3 - Priority. › Section 7-9A-339 - Priority Subject to Subordination.
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Section 7-9A-339
Priority subject to subordination.
This article does not preclude subordination by agreement by a person entitled to priority.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-4/section-7-9a-340/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 4 - Rights of Bank.›Section 7-9A-340 - Effectiveness of Right of Recoupment or Set-Off Against Deposit Account.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 4 - Rights of Bank. › Section 7-9A-340 - Effectiveness of Right of Recoupment or Set-Off Against Deposit Account.
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Section 7-9A-340
Effectiveness of right of recoupment or set-off against deposit account.
(a) Exercise of recoupment or set-off. Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.
(b) Recoupment or set-off not affected by security interest. Except as otherwise provided in subsection (c), the application of this article to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.
(c) When set-off ineffective. The exercise by a bank of a set-off against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under Section 7-9A-104(a)(3), if the set-off is based on a claim against the debtor.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-4/section-7-9a-341/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 4 - Rights of Bank.›Section 7-9A-341 - Bank's Rights and Duties With Respect to Deposit Account.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 4 - Rights of Bank. › Section 7-9A-341 - Bank's Rights and Duties With Respect to Deposit Account.
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Section 7-9A-341
Bank's rights and duties with respect to deposit account.
Except as otherwise provided in Section 7-9A-340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:
(1) the creation, attachment, or perfection of a security interest in the deposit account;
(2) the bank's knowledge of the security interest; or
(3) the bank's receipt of instructions from the secured party.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-3/division-4/section-7-9a-342/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 3 - Perfection and Priority.›Division 4 - Rights of Bank.›Section 7-9A-342 - Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 3 - Perfection and Priority. › Division 4 - Rights of Bank. › Section 7-9A-342 - Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement.
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Section 7-9A-342
Bank's right to refuse to enter into or disclose existence of control agreement.
This article does not require a bank to enter into an agreement of the kind described in Section 7-9A-104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-401/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-401 - Alienability of Debtor's Rights.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-401 - Alienability of Debtor's Rights.
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Section 7-9A-401
Alienability of debtor's rights.
(a) Other law governs alienability; exceptions. Except as otherwise provided in subsection (b) and Sections 7-9A-406, 7-9A-407, 7-9A-408, and 7-9A-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this article.
(b) Agreement does not prevent transfer. An agreement between the debtor and secured party which prohibits a transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-402/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-402 - Secured Party Not Obligated on Contract of Debtor or in Tort.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-402 - Secured Party Not Obligated on Contract of Debtor or in Tort.
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Section 7-9A-402
Secured party not obligated on contract of debtor or in tort.
The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-403/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-403 - Agreement Not to Assert Defenses Against Assignee.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-403 - Agreement Not to Assert Defenses Against Assignee.
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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 in consumer transaction. In a consumer transaction, if a record evidences the account debtor's obligation, if law other than this article requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and if the record does not include such a statement:
(1) the record has the same effect as if the record included such a statement; and
(2) the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.
(e) Rule for individual under other law. 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.
(f) Other law not displaced. Except as otherwise provided in subsection (d), this section does not displace law other than this article which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-404/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-404 - Rights Acquired by Assignee; Claims and Defenses Against Assignee.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-404 - Rights Acquired by Assignee; Claims and Defenses Against Assignee.
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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 debtor owes.
(c) Rule for individual under other law. 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.
(d) Omission of required statement in consumer transaction. In a consumer transaction, if a record evidences the account debtor's obligation, if law other than this article requires that the record include a statement to the effect that the account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and if the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.
(e) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a health-care-insurance receivable.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-405/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-405 - Modification of Assigned Contract.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-405 - Modification of Assigned Contract.
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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 a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
(d) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a health-care-insurance receivable.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-406/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-406 - Discharge of Account Debtor; Notification of Assignment; Identification and Proof...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › 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.
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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;
(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) Proof of assignment. 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) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (e) and Sections 7-2A-303 and 7-9A-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) Inapplicability of subsection (d) to certain sales. Subsection (d) does not apply to the sale of a payment intangible or promissory note, other than a sale pursuant to a disposition under Section 7-9A-610 or an acceptance of collateral under Section 7-9A-620.
(f) Legal restrictions on assignment generally ineffective. Except as otherwise provided in Sections 7-2A-303 and 7-9A-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) Subsection (b)(3) not waivable. Subject to subsection (h), an account debtor may not waive or vary its option under subsection (b)(3).
(h) Rule for individual under other law. 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) Inapplicability to health-care-insurance receivable. This section does not apply to an assignment of a health-care-insurance receivable.
(j) Section prevails over inconsistent law. This section prevails over any inconsistent provision of an existing or future statute, rule, 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.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-407/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-407 - Restrictions on Creation or Enforcement of Security Interest in Leasehold Interes...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-407 - Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest.
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Section 7-9A-407
Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest.
(a) Term restricting assignment generally ineffective. Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:
(1) prohibits, restricts, or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; 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 lease.
(b) Effectiveness of certain terms. Except as otherwise provided in Section 7-2A-303(7), a term described in subsection (a)(2) is effective to the extent that there is:
(1) transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or
(2) delegation of a material performance of either party to the lease contract in violation of the term.
(c) Security interest not material impairment. The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of Section 7-2A-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-408/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-408 - Restrictions on Assignment of Promissory Notes, Health-Care-Insurance Receivables...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-408 - Restrictions on Assignment of Promissory Notes, Health-Care-Insurance Receivables, and Certain General Intangibles Ineffective.
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Section 7-9A-408
Restrictions on assignment of promissory notes, health-care-insurance receivables, and certain general intangibles ineffective.
(a) Term restricting assignment generally ineffective. 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) Applicability of subsection (a) to sales of certain rights to payment. 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, other than a sale pursuant to a disposition under Section 7-9A-610 or an acceptance of collateral under Section 7-9A-620.
(c) Legal restrictions on assignment generally ineffective. 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) Limitation on ineffectiveness under subsections (a) and (c). 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) Section prevails over inconsistent law. This section prevails over any inconsistent provision of an existing or future statute, rule, 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.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-4/section-7-9a-409/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 4 - Rights of Third Parties.›Section 7-9A-409 - Restrictions on Assignment of Letter-of-Credit Rights Ineffective.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 4 - Rights of Third Parties. › Section 7-9A-409 - Restrictions on Assignment of Letter-of-Credit Rights Ineffective.
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Section 7-9A-409
Restrictions on assignment of letter-of-credit rights ineffective.
(a) Term or law restricting assignment generally ineffective. A term in a letter of credit or a rule of law, statute, regulation, custom, or practice applicable to the letter of credit which prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a security interest in a letter-of-credit right is ineffective to the extent that the term or rule of law, statute, regulation, custom, or practice:
(1) would impair the creation, attachment, or perfection of a security interest in the letter-of-credit right; or
(2) provides that the assignment 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 letter-of-credit right.
(b) Limitation on ineffectiveness under subsection (a). To the extent that a term in a letter of credit is ineffective under subsection (a) but would be effective under law other than this article or a custom or practice applicable to the letter of credit, to the transfer of a right to draw or otherwise demand performance under the letter of credit, or to the assignment of a right to proceeds of the letter of credit, the creation, attachment, or perfection of a security interest in the letter-of-credit right:
(1) is not enforceable against the applicant, issuer, nominated person, or transferee beneficiary;
(2) imposes no duties or obligations on the applicant, issuer, nominated person, or transferee beneficiary; and
(3) does not require the applicant, issuer, nominated person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept payment or other performance from the secured party.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-1/section-7-9a-501/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-501 - Filing Office.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-501 - Filing Office.
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Section 7-9A-501
Filing office.
(a) Filing offices. Except as otherwise provided in subsection (b), if the local law of this State governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:
(1) the office designated for the filing or recording of a record of a mortgage on the related real property, if:
(A) the collateral is as-extracted collateral or timber to be cut; or
(B) the financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures; or
(2) the office of the Secretary of State, in all other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.
(b) Filing office for transmitting utilities. The office in which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is the office of the Secretary of State. The financing statement also constitutes a fixture filing as to the collateral indicated in the financing statement which is or is to become fixtures.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-502 - Contents of Financing Statement; Record of Mortgage as Financing Statement; Time...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-502 - Contents of Financing Statement; Record of Mortgage as Financing Statement; Time of Filing Financing Statement.
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Section 7-9A-502
Contents of financing statement; record of mortgage as financing statement; time of filing financing statement.
(a) Sufficiency of financing statement. Subject to subsection (b), a financing statement is sufficient only if it:
(1) provides the name of the debtor;
(2) provides the name of the secured party or a representative of the secured party; and
(3) indicates the collateral covered by the financing statement.
(b) Real-property-related financing statements. Except as otherwise provided in Section 7-9A-501(b), to be sufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture filing and covers goods that are or are to become fixtures, must satisfy subsection (a) and also:
(1) indicate that it covers this type of collateral;
(2) indicate that it is to be filed in the real property records;
(3) provide a description of the real property to which the collateral is related sufficient to give constructive notice of a mortgage under the law of this State if the description were contained in a record of the mortgage of the real property; and
(4) if the debtor does not have an interest of record in the real property, provide the name of a record owner.
(c) Record of mortgage as financing statement. A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut only if:
(1) the record indicates the goods or accounts that it covers;
(2) the goods are or are to become fixtures related to the real property described in the record or the collateral is related to the real property described in the record and is as-extracted collateral or timber to be cut;
(3) the record satisfies the requirements for a financing statement in this section, but:
(A) the record need not indicate that it is to be filed in the real property records; and
(B) the record sufficiently provides the name of a debtor who is an individual if it provides the individual name of the debtor or the surname and first personal name of the debtor, even if the debtor is an individual to whom Section 7-9A-503(a)(4) applies; and
(4) the record is recorded.
(d) Filing before security agreement or attachment. A financing statement may be filed before a security agreement is made or a security interest otherwise attaches.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-503 - Name of Debtor and Secured Party.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-503 - Name of Debtor and Secured Party.
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Section 7-9A-503
Name of debtor and secured party.
(a) Sufficiency of debtor's name. A financing statement sufficiently provides the name of the debtor:
(1) except as otherwise provided in paragraph (3), 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), if the collateral is being administered by the 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 so 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), indicates that the collateral is held in a trust; or
(ii) if the name is provided in accordance with subparagraph (A)(ii), 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) subject to subsection (g), if the debtor is an individual to whom this state has issued a driver's license or nondriver identification card that has not expired, only if it provides the name of the individual which is indicated on the driver's license or nondriver identification card;
(5) if the debtor is an individual to whom paragraph (4) does not apply, only if it provides the individual name of the debtor or the surname and first personal name of the debtor; and
(6) 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 it 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) Additional debtor-related information. 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 subsection (a)(6)(B), names of partners, members, associates, or other persons comprising the debtor.
(c) Debtor's trade name insufficient. A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.
(d) Representative capacity. 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) Multiple debtors and secured parties. A financing statement may provide the name of more than one debtor and the name of more than one secured party.
(f) Name of decedent. The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the name of the decedent under subsection (a)(2).
(g) Multiple driver's licenses or nondriver identification cards. If this state has issued to an individual more than one driver's license or nondriver identification card of a kind described in subsection (a)(4), the card that was issued most recently is the card to which subsection (a)(4) refers.
(h) Definition. 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.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-504 - Indication of Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-504 - Indication of Collateral.
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Section 7-9A-504
Indication of collateral.
A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:
(1) a description of the collateral pursuant to Section 7-9A-108; or
(2) an indication that the financing statement covers all assets or all personal property.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-505 - Filing and Compliance With Other Statutes and Treaties for Consignments, Leases,...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-505 - Filing and Compliance With Other Statutes and Treaties for Consignments, Leases, Other Bailments, and Other Transactions.
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Section 7-9A-505
Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions.
(a) Use of terms other than "debtor" and "secured party." A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in Section 7-9A-311(a), using the terms "consignor", "consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee", "owner", "registered owner", "buyer", "seller", or words of similar import, instead of the terms "secured party" and "debtor".
(b) Effect of financing statement under subsection (a). This part applies to the filing of a financing statement under subsection (a) and, as appropriate, to compliance that is equivalent to filing a financing statement under Section 7-9A-311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, licensor, owner, or buyer which attaches to the collateral is perfected by the filing or compliance.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-506 - Effect of Errors or Omissions.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-506 - Effect of Errors or Omissions.
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Section 7-9A-506
Effect of errors or omissions.
(a) Minor errors and omissions. A financing statement substantially satisfying the requirements of this part is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading.
(b) Financing statement seriously misleading. Except as otherwise provided in subsection (c), a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 7-9A-503(a) is seriously misleading.
(c) Financing statement not seriously misleading. If a search of the records of the filing office under the debtor's correct name, using the filing office's standard search logic, if any, would disclose a financing statement that fails sufficiently to provide the name of the debtor in accordance with Section 7-9A-503(a), the name provided does not make the financing statement seriously misleading.
(d) "Debtor's correct name." For purposes of Section 7-9A-508(b), the "debtor's correct name" in subsection (c) means the correct name of the new debtor.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-507 - Effect of Certain Events on Effectiveness of Financing Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-507 - Effect of Certain Events on Effectiveness of Financing Statement.
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Section 7-9A-507
Effect of certain events on effectiveness of financing statement.
(a) Disposition. 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) Information becoming seriously misleading. Except as otherwise provided in subsection (c) and Section 7-9A-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 7-9A-506.
(c) Change in debtor's name. If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under Section 7-9A-503(a) so that the financing statement becomes seriously misleading under Section 7-9A-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 that event.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-508 - Effectiveness of Financing Statement if New Debtor Becomes Bound by Security Agre...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-508 - Effectiveness of Financing Statement if New Debtor Becomes Bound by Security Agreement.
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Section 7-9A-508
Effectiveness of financing statement if new debtor becomes bound by security agreement.
(a) Financing statement naming original debtor. Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
(b) Financing statement becoming seriously misleading. If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under Section 7-9A-506:
(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 Section 7-9A-203(d); and
(2) the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four months after the new debtor becomes bound under Section 7-9A-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
(c) When section not applicable. This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under Section 7-9A-507(a).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-1/section-7-9a-509/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-509 - Persons Entitled to File a Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-509 - Persons Entitled to File a Record.
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Section 7-9A-509
Persons entitled to file a record.
(a) Person entitled to file record. A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:
(1) the debtor authorizes the filing in an authenticated record or pursuant to subsection (b) or (c); or
(2) the person holds an agricultural lien that has become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.
(b) Security agreement as authorization. By authenticating or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering:
(1) the collateral described in the security agreement; and
(2) property that becomes collateral under Section 7-9A-315(a)(2), whether or not the security agreement expressly covers proceeds.
(c) Acquisition of collateral as authorization. By acquiring collateral in which a security interest or agricultural lien continues under Section 7-9A-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under Section 7-9A-315(a)(2).
(d) Person entitled to file certain amendments. A person may file an amendment other than an amendment that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:
(1) the secured party of record authorizes the filing; or
(2) the amendment is a termination statement for a financing statement as to which the secured party of record has failed to file or send a termination statement as required by Section 7-9A-513(a) or (c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.
(e) Multiple secured parties of record. If there is more than one secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under subsection (d).
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-510 - Effectiveness of Filed Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-510 - Effectiveness of Filed Record.
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Section 7-9A-510
Effectiveness of filed record.
(a) Filed record effective if authorized. A filed record is effective only to the extent that it was filed by a person that may file it under Section 7-9A-509.
(b) Authorization by one secured party of record. A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record.
(c) Continuation statement not timely filed. A continuation statement that is not filed within the six-month period prescribed by Section 7-9A-515(d) is ineffective.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-511 - Secured Party of Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-511 - Secured Party of Record.
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Section 7-9A-511
Secured party of record.
(a) Secured party of record. A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under Section 7-9A-514(a), the assignee named in the initial financing statement is the secured party of record with respect to the financing statement.
(b) Amendment naming secured party of record. If an amendment of a financing statement which provides the name of a person as a secured party or a representative of a secured party is filed, the person named in the amendment is a secured party of record. If an amendment is filed under Section 7-9A-514(b), the assignee named in the amendment is a secured party of record.
(c) Amendment deleting secured party of record. A person remains a secured party of record until the filing of an amendment of the financing statement which deletes the person.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-512 - Amendment of Financing Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-512 - Amendment of Financing Statement.
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Section 7-9A-512
Amendment of financing statement.
(a) Amendment of information in financing statement. Subject to Section 7-9A-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwise amend the information provided in, a financing statement by filing an amendment that:
(1) identifies, by its file number, the initial financing statement to which the amendment relates; and
(2) if the amendment relates to an initial financing statement filed or recorded in a filing office described in Section 7-9A-501(a)(1), provides the information specified in Section 7-9A-502(b).
(b) Period of effectiveness not affected. Except as otherwise provided in Section 7-9A-515, the filing of an amendment does not extend the period of effectiveness of the financing statement.
(c) Effectiveness of amendment adding collateral. A financing statement that is amended by an amendment that adds collateral is effective as to the added collateral only from the date of the filing of the amendment.
(d) Effectiveness of amendment adding debtor. A financing statement that is amended by an amendment that adds a debtor is effective as to the added debtor only from the date of the filing of the amendment.
(e) Certain amendments ineffective. An amendment is ineffective to the extent it:
(1) purports to delete all debtors and fails to provide the name of a debtor to be covered by the financing statement; or
(2) purports to delete all secured parties of record and fails to provide the name of a new secured party of record.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-513 - Termination Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-513 - Termination Statement.
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Section 7-9A-513
Termination statement.
(a) Consumer goods. A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and:
(1) there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2) the debtor did not authorize the filing of the initial financing statement.
(b) Time for compliance with subsection (a). To comply with subsection (a), a secured party shall cause the secured party of record to file the termination statement:
(1) within one month after there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2) if earlier, within 20 days after the secured party receives an authenticated demand from a debtor.
(c) Other collateral. In cases not governed by subsection (a), within 20 days after a secured party receives an authenticated demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:
(1) except in the case of a financing statement covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;
(2) the financing statement covers accounts or chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation;
(3) the financing statement covers goods that were the subject of a consignment to the debtor but are not in the debtor's possession; or
(4) the debtor did not authorize the filing of the initial financing statement.
(d) Effect of filing termination statement. Except as otherwise provided in Section 7-9A-510, upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective. Except as otherwise provided in Section 7-9A-510, for purposes of Sections 7-9A-519(g), 7-9A-522(a), and 7-9A-523(c), the filing with the filing office of a termination statement relating to a financing statement that indicates that the debtor is a transmitting utility also causes the effectiveness of the financing statement to lapse.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-514 - Assignment of Powers of Secured Party of Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-514 - Assignment of Powers of Secured Party of Record.
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Section 7-9A-514
Assignment of powers of secured party of record.
(a) Assignment reflected on initial financing statement. Except as otherwise provided in subsection (c), an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address of the secured party.
(b) Assignment of filed financing statement. Except as otherwise provided in subsection (c), a secured party of record may assign of record all or part of its power to authorize an amendment to a financing statement by filing in the filing office an amendment of the financing statement which:
(1) identifies, by its file number, the initial financing statement to which it relates;
(2) provides the name of the assignor; and
(3) provides the name and mailing address of the assignee.
(c) Assignment of record of mortgage. An assignment of record of a security interest in a fixture covered by a record of a mortgage which is effective as a financing statement filed as a fixture filing under Section 7-9A-502(c) may be made only by an assignment of record of the mortgage in the manner provided by law of this State other than this title.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-515 - Duration and Effectiveness of Financing Statement; Effect of Lapsed Financing Sta...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-515 - Duration and Effectiveness of Financing Statement; Effect of Lapsed Financing Statement.
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Section 7-9A-515
Duration and effectiveness of financing statement; effect of lapsed financing statement.
(a) Five-year effectiveness. Except as otherwise provided in subsections (b), (e), (f), (g), and (h), a filed financing statement is effective for a period of five years after the date of filing.
(b) Manufactured-home transaction. Except as otherwise provided in subsections (e), (f), and (g), an initial financing statement filed in connection with a manufactured-home transaction is effective for a period of 30 years after the date of filing if it indicates that it is filed in connection with a manufactured-home transaction.
(c) Lapse and continuation of financing statement. 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) When continuation statement may be filed. A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) or the 30-year period specified in subsection (b), whichever is applicable.
(e) Effect of filing continuation statement. Except as otherwise provided in Section 7-9A-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) Transmitting utility financing statement. 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) Record of mortgage as financing statement. A record of a mortgage that is effective as a financing statement filed as a fixture filing under Section 7-9A-502(c) 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.
(h) Obligations made pursuant to the provisions of the Alabama Small Loan Act. If the secured obligation is made pursuant to the provisions of the Alabama Small Loan Act, the effectiveness of a filed financing statement lapses upon the earlier of repayment of the loan in full or the expiration of five years after the date of filing.
(Act 2001-481, p. 647, §1; Act 2003-191, 1st Sp. Sess., p. 508, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-1/section-7-9a-516/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-516 - What Constitutes Filing; Effectiveness of Filing.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-516 - What Constitutes Filing; Effectiveness of Filing.
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Section 7-9A-516
What constitutes filing; effectiveness of filing.
(a) What constitutes filing. 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.
(b) Refusal to accept record; filing does not occur. 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 7-9A-512 or 7-9A-518, as applicable; or
(ii) identifies an initial financing statement whose effectiveness has lapsed under Section 7-9A-515;
(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; or
(D) in the case of a record filed or recorded in the filing office described in Section 7-9A-501(a)(1), the record does not provide a sufficient description of the real property to which it relates;
(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 Section 7-9A-514(a) or an amendment filed under Section 7-9A-514(b), 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 Section 7-9A-515(d).
(c) Rules applicable to subsection (b). 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 7-9A-512, 7-9A-514, or 7-9A-518, is an initial financing statement.
(d) Refusal to accept record; record effective as filed record. 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.
(Act 2001-481, p. 647, §1; Act 2002-518, p. 1337, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-1/section-7-9a-517/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-517 - Effect of Indexing Errors.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-517 - Effect of Indexing Errors.
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Section 7-9A-517
Effect of indexing errors.
The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-1/section-7-9a-518/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 1 - Filing; Contents and Effectiveness of Financing Statement.›Section 7-9A-518 - Claim Concerning Inaccurate or Wrongfully Filed Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 1 - Filing; Contents and Effectiveness of Financing Statement. › Section 7-9A-518 - Claim Concerning Inaccurate or Wrongfully Filed Record.
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Section 7-9A-518
Claim concerning inaccurate or wrongfully filed record.
(a) Statement with respect to record indexed under person's name. 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) Contents of statement under subsection (a). An information statement under subsection (a) must:
(1) identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(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) Statement by secured party of record. 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 Section 7-9A-509(d).
(d) Contents of statement under subsection (c). An information statement under subsection (c) must:
(1) identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(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 Section 7-9A-509(d).
(e) Record not affected by information statement. The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-519/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-519 - Numbering, Maintaining, and Indexing Records; Communicating Information Provided...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-519 - Numbering, Maintaining, and Indexing Records; Communicating Information Provided in Records.
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Section 7-9A-519
Numbering, maintaining, and indexing records; communicating information provided in records.
(a) Filing office duties. For each record filed in a filing office, the filing office shall:
(1) assign a unique number to the filed record;
(2) 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 (c), (d), and (e).
(b) File number. By July 1, 2002, a file number must include a digit that:
(1) is mathematically derived from or related to the other digits of the file number; and
(2) aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error.
(c) Indexing: General. Except as otherwise provided in subsections (d) and (e), 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.
(d) Indexing: Real-property-related financing statement. 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 it:
(1) 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) to the extent that the law of this State provides for indexing of records of mortgages under the name of the mortgagee, 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.
(e) Indexing: Real-property-related assignment. 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 Section 7-9A-514(a) or an amendment filed under Section 7-9A-514(b):
(1) under the name of the assignor as grantor; and
(2) to the extent that the law of this State provides for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.
(f) Retrieval and association capability. The filing office shall maintain a capability:
(1) to retrieve a record by the name of the debtor and 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.
(g) Removal of debtor's name. 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 7-9A-515 with respect to all secured parties of record.
(h) Timeliness of filing office performance. The filing office shall perform the acts required by subsections (a) through (e) at the time and in the manner prescribed by filing-office rule, but not later than two business days after the filing office receives the record in question.
(i) Inapplicability to real-property-related filing office. Subsections (b) and (h) do not apply to a filing office described in Section 7-9A-501(a)(1).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-520/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-520 - Acceptance and Refusal to Accept Record.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-520 - Acceptance and Refusal to Accept Record.
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Section 7-9A-520
Acceptance and refusal to accept record.
(a) Mandatory refusal to accept record. A filing office shall refuse to accept a record for filing for a reason set forth in Section 7-9A-516(b) and may refuse to accept a record for filing only for a reason set forth in Section 7-9A-516(b).
(b) Communication concerning refusal. If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing-office rule but, in the case of a filing office described in Section 7-9A-501(a)(2), in no event more than two business days after the filing office receives the record.
(c) When filed financing statement effective. A filed financing statement satisfying Section 7-9A-502(a) and (b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, Section 7-9A-338 applies to a filed financing statement providing information described in Section 7-9A-516(b)(5) which is incorrect at the time the financing statement is filed.
(d) Separate application to multiple debtors. If a record communicated to a filing office provides information that relates to more than one debtor, this part applies as to each debtor separately.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-521/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-521 - Uniform Form of Written Financing Statement and Amendment.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-521 - Uniform Form of Written Financing Statement and Amendment.
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Section 7-9A-521
Uniform form of written financing statement and amendment.
(a) Initial financing statement form. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in Section 7-9A-516(b):
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS
A. NAME & PHONE OF CONTACT AT FILER (optional) ___________________________________
B. E-MAIL CONTACT AT FILER (optional) _________
C. SEND ACKNOWLEDGMENT TO: (Name and Address)
_________________________________________________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
1. DEBTOR'S NAME: Provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); if any part of the Individual Debtor's name will not fit in line 1b, leave all of item 1 blank, check here [ ] and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)
1a. ORGANIZATION'S NAME _________________________________________
OR
1b. INDIVIDUAL'S SURNAME _________________
FIRST PERSONAL NAME ______________
ADDITIONAL NAME(S)/INITIAL(S) _______________
SUFFIX _________
1c. MAILING ADDRESS ____________________
CITY __________
STATE _________
POSTAL CODE _________
COUNTRY _________
2. DEBTOR'S NAME: Provide only one Debtor name (2a or 2b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor’s name); if any part of the Individual Debtor's name will not fit in line 2b, leave all of item 2 blank, check here [ ] and provide the Individual Debtor information in item 10 of the Financing Statement Addendum (Form UCC1Ad)
2a. ORGANIZATION'S NAME _________
OR
2b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) ___________________
SUFFIX _________
2c. MAILING ADDRESS _____________________
CITY _________
STATE _________
POSTAL CODE _________
COUNTRY _________
3. SECURED PARTY’S NAME (or NAME of ASSIGNEE of ASSIGNOR SECURED PARTY): Provide only one Secured Party name (3a or 3b)
3a. ORGANIZATION'S NAME _________
OR
3b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
3c. MAILING ADDRESS _________
CITY _________
STATE _________
POSTAL CODE _________
COUNTRY _________
4. COLLATERAL: This financing statement covers the following collateral: __________________________
5. Check only if applicable and check only one box:
Collateral is
[ ] held in a Trust (see UCC1Ad, Item 17 and Instructions)
[ ] being administered by a Decedent's Personal Representative
6a. Check only if applicable and check only one box:
[ ] Public-Finance Transaction
[ ] Manufactured-Home Transaction
[ ] A Debtor is a Transmitting Utility
6b. Check only if applicable and check only one box:
[ ] Agricultural Lien
[ ] Non-UCC Filing
7. ALTERNATIVE DESIGNATION (if applicable):
[ ] Lessee/Lessor
[ ] Consignee/Consignor
[ ] Seller/Buyer
[ ] Bailee/Bailor
[ ] Licensee/Licensor
8. OPTIONAL FILER REFERENCE DATA: _________________________________
[UCC FINANCING STATEMENT (Form UCC1)]
UCC FINANCING STATEMENT ADDENDUM
FOLLOW INSTRUCTIONS
9. NAME OF FIRST DEBTOR: Same as item 1a or 1b on Financing Statement; if line 1b was left blank because Individual Debtor name did not fit, check here [ ]
9a. ORGANIZATION'S NAME _________
OR
9b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
10. DEBTOR'S NAME: Provide (10a or 10b) only one additional Debtor name or Debtor name that did not fit in line 1b or 2b of the Financing Statement (Form UCC1) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor’s name) and enter the mailing address in line 10c
10a. ORGANIZATION'S NAME _________
OR
10b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
10c. MAILING ADDRESS _________
CITY _________
STATE _________
POSTAL CODE _________
COUNTRY _________
11. [ ] ADDITIONAL SECURED PARTY'S NAME or
[ ] ASSIGNOR SECURED PARTY'S NAME: Provide only one name (11a or 11b)
11a. ORGANIZATION'S NAME _________
OR
11b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
11c. MAILING ADDRESS _________
CITY _________
STATE _________
POSTAL CODE _________
COUNTRY _________
12. ADDITIONAL SPACE FOR ITEM 4 (Collateral) ________________________________
13. [ ] This FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL ESTATE RECORDS (if applicable)
14. This FINANCING STATEMENT:
[ ] covers timber to be cut
[ ] covers as-extracted collateral
[ ] is filed as a fixture filing
15. Name and address of a RECORD OWNER of real estate described in item 16 (if Debtor does not have a record interest): _________
16. Description of real estate: _________
17. MISCELLANEOUS: _________
(b) Amendment form. A filing office that accepts written records may not refuse to accept a written record in the following form and format except for a reason set forth in Section 7-9A-516(b):
UCC FINANCING STATEMENT AMENDMENT
FOLLOW INSTRUCTIONS
A. NAME & PHONE OF CONTACT AT FILER (optional) _________
B. E-MAIL CONTACT AT FILER (optional)
C. SEND ACKNOWLEDGMENT TO: (Name and Address) _______________________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
1a. INITIAL FINANCING STATEMENT FILE NUMBER _________
1b. [ ] This FINANCING STATEMENT AMENDMENT is to be filed [for record] (or recorded) in the REAL ESTATE RECORDS
Filer: attach Amendment Addendum (Form UCC3Ad) and provide Debtor’s name in item 13.
2. [ ] TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to the security interest(s) of Secured Party authorizing this Termination Statement
3. [ ] ASSIGNMENT (full or partial): Provide name of Assignee in item 7a or 7b, and address of Assignee in item 7c and name of Assignor in item 9 For partial assignment, complete items 7 and 9 and also indicate affected collateral in item 8
4. [ ] CONTINUATION: Effectiveness of the Financing Statement identified above with respect to the security interest(s) of Secured Party authorizing this Continuation Statement is continued for the additional period provided by applicable law
5. [ ] PARTY INFORMATION CHANGE:
Check one of these two boxes:
This Change affects
[ ] Debtor or
[ ] Secured Party of record.
AND
Check one of these three boxes to:
[ ] CHANGE name and/or address: Complete item 6a or 6b; and item 7a or 7b and item 7c
[ ] ADD name: Complete item 7a or 7b, and item 7c
[ ] DELETE name: Give record name to be deleted in item 6a or 6b
6. CURRENT RECORD INFORMATION: Complete for Party Information Change - provide only one name (6a or 6b)
6a. ORGANIZATION'S NAME _________
OR
6b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
7. CHANGED OR ADDED INFORMATION: Complete for Assignment or Party Information Change - provide only one name (7a or 7b) (use exact full name; do not omit, modify, or abbreviate any part of the Debtor's name)
7a. ORGANIZATION'S NAME _________
OR
7b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX __________
7c. MAILING ADDRESS _________
CITY _________
STATE _________
POSTAL CODE _________
COUNTRY _________
8. [ ] COLLATERAL CHANGE:
Also check one of these four boxes:
[ ] ADD collateral
[ ] DELETE collateral
[ ] RESTATE covered collateral
[ ] ASSIGN collateral
Indicate collateral:
9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT: Provide only one name (9a or 9b) (name of Assignor, if this is an Assignment)
If this is an Amendment authorized by a DEBTOR, check here [ ] and provide name of authorizing Debtor
9a. ORGANIZATION'S NAME _________
OR
9b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
10. OPTIONAL FILER REFERENCE DATA: _________
[UCC FINANCING STATEMENT AMENDMENT (Form UCC3)]
UCC FINANCING STATEMENT AMENDMENT ADDENDUM
FOLLOW INSTRUCTIONS
11. INITIAL FINANCING STATEMENT FILE NUMBER: Same as item 1a on Amendment form _________
12. NAME OF PARTY AUTHORIZING THIS AMENDMENT: Same as item 9 on Amendment form _________
12a. ORGANIZATION'S NAME _________
OR
12b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX _________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
13. Name of DEBTOR on related financing statement (Name of a current Debtor of record required for indexing purposes only in some filing offices - see Instruction item 13): Provide only one Debtor name (13a or 13b) (use exact, full name; do not omit, modify, or abbreviate any part of the Debtor's name); see Instructions if name does not fit
13a. ORGANIZATION'S NAME _________
OR
13b. INDIVIDUAL'S SURNAME _________
FIRST PERSONAL NAME _________
ADDITIONAL NAME(S)/INITIAL(S) _________
SUFFIX ______________
14. ADDITIONAL SPACE FOR ITEM 8 (Collateral): _________
15. This FINANCING STATEMENT AMENDMENT:
[ ] covers timber to be cut
[ ] covers as-extracted collateral
[ ] is filed as a fixture filing
16. Name and address of a RECORD OWNER of real estate described in item 17 (if Debtor does not have a record interest):_________
17. Description of real estate: _________
18. MISCELLANEOUS: _________
[UCC FINANCING STATEMENT AMENDMENT ADDENDUM (Form UCC3Ad)]
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-522/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-522 - Maintenance and Destruction of Records.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-522 - Maintenance and Destruction of Records.
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Section 7-9A-522
Maintenance and destruction of records.
(a) Post-lapse maintenance and retrieval of information. The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under Section 7-9A-515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and by using the file number assigned to the initial financing statement to which the record relates.
(b) Destruction of written records. Except to the extent that a statute governing disposition of public records provides otherwise, the filing office immediately may destroy any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement which complies with subsection (a).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-523/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-523 - Information From Filing Office; Sale or License of Records.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-523 - Information From Filing Office; Sale or License of Records.
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Section 7-9A-523
Information from filing office; sale or license of records.
(a) Acknowledgment of filing written record. If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to Section 7-9A-519(a)(1) and the date and time of the filing of the record. However, if the person furnishes a copy of the record to the filing office, the filing office may instead:
(1) note upon the copy the number assigned to the record pursuant to Section 7-9A-519(a)(1) and the date and time of the filing of the record; and
(2) send the copy to the person.
(b) Acknowledgment of filing other record. If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides:
(1) the information in the record;
(2) the number assigned to the record pursuant to Section 7-9A-519(a)(1); and
(3) the date and time of the filing of the record.
(c) Communication of requested information. The filing office shall communicate or otherwise make available in a record the following information to any person that requests it:
(1) whether there is on file on a date and time specified by the filing office, but not a date earlier than three business days before the filing office receives the request, any financing statement that:
(A) designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request;
(B) has not lapsed under Section 7-9A-515 with respect to all secured parties of record; and
(C) if the request so states, has lapsed under Section 7-9A-515 and a record of which is maintained by the filing office under Section 7-9A-522(a);
(2) the date and time of filing of each financing statement; and
(3) the information provided in each financing statement.
(d) Medium for communicating information. In complying with its duty under subsection (c), the filing office may communicate information in any medium. However, if requested, the filing office shall communicate information by issuing its written certificate.
(e) Timeliness of filing office performance. The filing office shall perform the acts required by subsections (a) through (d) at the time and in the manner prescribed by filing-office rule. The filing office should perform the required acts within a reasonable period of time, and after January 1, 2003, not later than two business days after the filing office receives the request.
(f) Public availability of records. The Secretary of State shall adopt a rule pursuant to the Alabama Administrative Procedure Act which provides a procedure and reasonable fees for the sale or licensing to the public on a nonexclusive basis, in bulk, of copies of all records filed in the office of the Secretary of State under this part. There is hereby created in the State Treasury a fund to be known as the Secretary of State's Information Bulk Sales Fund. Section 7-9A-525 or any other law to the contrary notwithstanding, all funds, fees, charges, costs and collections accruing to or collected by the office of the Secretary of State under the provisions of this section shall be deposited into the State Treasury to the credit of this fund and shall not be expended for any purpose whatsoever unless the same shall have been allotted and budgeted in accordance with the provisions of Article 4 of Chapter 4 of Title 41, and only in the amounts and for the purposes provided by the Legislature in the general appropriation bill or this section.
(g) The Secretary of State shall develop and implement a central indexing system containing the information filed with his or her office pursuant to subsection (f) of Section 7-9A-320. Under this system, the Secretary of State shall record the date and time of filing and compile the information into a master list organized according to farm products. The list shall be organized within each farm product category in alphabetical order according to the last name of the debtor, or in the case of debtors doing business other than as individuals, the first word in the name of such debtor, in numerical order according to the Social Security or taxpayer identification number of the debtor, geographically by county, and by crop year. The master list also shall contain the name and address of the secured party, the name and address of the debtor, a description of the farm products, including amount where applicable, subject to the security interest and a reasonable description of the real estate, including the county, where the farm products are located.
(h) The Secretary of State shall maintain a list of all buyers of farm products, commission merchants, and selling agents who register with the Secretary of State indicating an interest in receiving the lists described in subsection (i).
(i) The Secretary of State shall distribute at regular intervals as determined by him or her, to each buyer, commission merchant, and selling agent registered under subsection (h) a copy in written or printed form or, if elected by the buyer, commission merchant, or selling agent in accordance with procedures established by the Secretary of State, in electronic form, of those portions of the master list which the buyer, commission merchant, or selling agent has indicated an interest in receiving. The charge for a printed copy of the entire or any portion of the master list and any supplements to that list shall be a fee established by the Secretary of State of up to twenty-five cents ($.25) per page, but no buyer, commission merchant, or selling agent shall be obligated to pay more than two thousand dollars ($2,000) per year in charges for a printed copy of each distributed master list or portion thereof. The charge for receiving the entire or any portion of the master list in electronic form shall be a fee established by the Secretary of State of up to one hundred dollars ($100) annually.
(j) Upon request of any person, the Secretary of State shall provide, within 24 hours, an oral confirmation of whether there is on file, on the date and hour stated, any presently effective financing statement naming a particular debtor to be followed by a written confirmation. The fee for confirming an oral search shall be twenty dollars ($20) plus two dollars ($2) for each financing statement and for each statement of assignment reported therein.
(Act 2001-481, p. 647, §1; Act 2002-518, p. 1337, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-524/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-524 - Delay by Filing Office.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-524 - Delay by Filing Office.
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Section 7-9A-524
Delay by filing office.
Delay by the filing office beyond a time limit prescribed by this part is excused if:
(1) the delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office; and
(2) the filing office exercises reasonable diligence under the circumstances.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-525/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-525 - Fees.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-525 - Fees.
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Section 7-9A-525
Fees.
(a) Initial financing statement or other record: General rule. Except as otherwise provided in subsection (e), and except that no filing fee is required for the filing of a termination statement pursuant to Section 7-9A-513, the fee for filing and indexing a record under this part is:
(1) $20.00 if the record is communicated in writing and consists of one or two pages;
(2) $20.00 plus $2.00 for each page more than two if the record is communicated in writing and consists of more than two pages; and
(3) $15.00 if the record is communicated by another medium authorized by filing-office rule.
(b) Initial financing statement: Manufactured-housing transactions: Section 7-9A-502(c). Except as otherwise provided in subsection (c), the fee for filing and indexing an initial financing statement of the kind described in Section 7-9A-502(c) is $10.00 if the financing statement indicates that it is filed in connection with a manufactured-home transaction.
(c) Number of names. The number of names required to be indexed does not affect the amount of the fee in subsection (a) or (b) of this section.
(d) Response to information request. The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:
(1) $20.00 if the request is communicated in writing; and
(2) $15.00 if the request is communicated by another medium authorized by filing-office rule.
The fees described in subdivisions (1) and (2) shall apply to each debtor named submitted in the request where the request seeks information on more than one debtor. An additional fee of $100.00 shall be required where the request for information requests expedited response by the Secretary of State.
(e) Record of mortgage. This section does not require a fee with respect to 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 Section 7-9A-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the mortgage apply.
(f) Use of non-standard form. A fee of $5.00 shall be required in addition to the fees set forth in subsections (a), (b), and (d) where the filing or request is submitted in a non-standard form.
(g) Proration of fees.
(1) If the first mailing address of the debtor or debtors on the initial finance statement is located in a county in Alabama, $5.00 of the filing fee associated with the filing of the financing statement in the office of the Secretary of State shall be rebated to the probate judge of the county where the address is located. This rebate shall begin January 1, 2002, and lapse after December 31, 2011.
(2) The balance of the fee shall be paid to the General Fund of the State of Alabama, a portion to be allocated to the office of the Secretary of State as provided in subsection (j).
(h) Uniform Commercial Code Fund. There is hereby created in the State Treasury a fund to be known and designated as the Uniform Commercial Code Fund. All funds, fees, charges, costs, and collections accruing to or collected by the office of the Secretary of State under the provisions of this section, except fees rebated to probate judges pursuant to subsection (g), shall be deposited into the State Treasury to the credit of the Uniform Commercial Code Fund except as provided in subsection (j).
(i) Use of funds. All funds now or hereafter deposited in the State Treasury to the credit of the Uniform Commercial Code Fund shall be expended for the purpose of carrying out the provisions of the law authorizing the collection of such funds and shall be payable from said fund on the requisition of the Secretary of State; provided, however, commencing in the fiscal year beginning October 1, 2003, and in subsequent fiscal years, no funds shall be withdrawn nor expended for any purpose whatsoever unless the same shall have been allotted and budgeted in accordance with the provisions of Article 4 of Chapter 4 of Title 41, and only in the amounts and for the purposes provided by the Legislature in the general appropriation bill.
(j) Allocation of fees. From July 1, 2001, through December 31, 2001, 81 percent of all fees collected in accordance with this section by the Secretary of State shall be deposited to the credit of the State General Fund for the credit of the Secretary of State to use for the implementation of this article. There shall be no change in fees collected by the office of the judge of probate from July 1, 2001, through December 31, 2001.
From January 1, 2002, through September 30, 2002, and in subsequent fiscal years, 81 percent of total funds collected in accordance with this section or any fees collected in direct relation to the Uniform Commercial Code during that period shall be deposited to the credit of the State General Fund.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-5/division-2/section-7-9a-526/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 5 - Filing.›Division 2 - Duties and Operation of Filing Office.›Section 7-9A-526 - Filing-Office Rules.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 5 - Filing. › Division 2 - Duties and Operation of Filing Office. › Section 7-9A-526 - Filing-Office Rules.
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Section 7-9A-526
Filing-office rules.
(a) Adoption of filing-office rules. The Secretary of State shall adopt and publish rules to implement this article. The filing-office rules must be:
(1) consistent with this article; and
(2) adopted and published in accordance with the Alabama Administrative Procedure Act.
(b) Harmonization of rules. To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially this part, and to keep the technology used by the filing office compatible with the technology used by filing offices in other jurisdictions that enact substantially this part, the Secretary of State, so far as is consistent with the purposes, policies, and provisions of this article, in adopting, amending, and repealing filing-office rules, shall:
(1) consult with filing offices in other jurisdictions that enact substantially this part; and
(2) consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
(3) take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this part.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-601/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-601 - Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chatt...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-601 - Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes.
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Section 7-9A-601
Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(a) Rights of secured party after default. After default, a secured party has the rights provided in this part and, except as otherwise provided in Section 7-9A-602, those provided by agreement of the parties. A secured party:
(1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
(2) if the collateral is documents, may proceed either as to the documents or as to the goods they cover.
(b) Rights and duties of secured party in possession or control. A secured party in possession of collateral or control of collateral under Section 7-7-106, 7-9A-104, 7-9A-105, 7-9A-106, or 7-9A-107 has the rights and duties provided in Section 7-9A-207.
(c) Rights cumulative; simultaneous exercise. The rights under subsections (a) and (b) are cumulative and may be exercised simultaneously.
(d) Rights of debtor and obligor. Except as otherwise provided in subsection (g) and Section 7-9A-605, after default, a debtor and an obligor have the rights provided in this part and by agreement of the parties.
(e) Lien of levy after judgment. If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
(1) the date of perfection of the security interest or agricultural lien in the collateral;
(2) the date of filing a financing statement covering the collateral; or
(3) any date specified in a statute under which the agricultural lien was created.
(f) Execution sale. A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this article.
(g) Consignor or buyer of certain rights to payment. Except as otherwise provided in Section 7-9A-607(c), this part imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
(Act 2001-481, p. 647, §1; Act 2004-315, p. 464, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-602/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-602 - Waiver and Variance of Rights and Duties.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-602 - Waiver and Variance of Rights and Duties.
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Section 7-9A-602
Waiver and variance of rights and duties.
Except as otherwise provided in Section 7-9A-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:
(1) Section 7-9A-207(b)(4)(C), which deals with use and operation of the collateral by the secured party;
(2) Section 7-9A-210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account;
(3) Section 7-9A-607(c), which deals with collection and enforcement of collateral;
(4) Sections 7-9A-608(a) and 7-9A-615(c) to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition;
(5) Sections 7-9A-608(a) and 7-9A-615(d) to the extent that they require accounting for or payment of surplus proceeds of collateral;
(6) Section 7-9A-609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace;
(7) Sections 7-9A-610(b), 7-9A-611, 7-9A-613, and 7-9A-614, which deal with disposition of collateral;
(8) Section 7-9A-615(f), which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor;
(9) Section 7-9A-616, which deals with explanation of the calculation of a surplus or deficiency;
(10) Sections 7-9A-620, 7-9A-621, and 7-9A-622, which deal with acceptance of collateral in satisfaction of obligation;
(11) Section 7-9A-623, which deals with redemption of collateral;
(12) Section 7-9A-624, which deals with permissible waivers; and
(13) Sections 7-9A-625 and 7-9A-626, which deal with the secured party's liability for failure to comply with this article.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-603/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-603 - Agreement on Standards Concerning Rights and Duties.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-603 - Agreement on Standards Concerning Rights and Duties.
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Section 7-9A-603
Agreement on standards concerning rights and duties.
(a) Agreed standards. The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in Section 7-9A-602 if the standards are not manifestly unreasonable.
(b) Agreed standards inapplicable to breach of peace. Subsection (a) does not apply to the duty under Section 7-9A-609 to refrain from breaching the peace.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-604/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-604 - Procedure if Security Agreement Covers Real Property or Fixtures.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-604 - Procedure if Security Agreement Covers Real Property or Fixtures.
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Section 7-9A-604
Procedure if security agreement covers real property or fixtures.
(a) Enforcement: Personal and real property. If a security agreement covers both personal and real property, a secured party may proceed:
(1) under this part as to the personal property without prejudicing any rights with respect to the real property; or
(2) as to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of this part do not apply.
(b) Enforcement: Fixtures. Subject to subsection (c), if a security agreement covers goods that are or become fixtures, a secured party may proceed:
(1) under this part; or
(2) in accordance with the rights with respect to real property, in which case the other provisions of this part do not apply.
(c) Removal of fixtures. Subject to the other provisions of this part, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
(d) Injury caused by removal. A secured party that removes collateral shall promptly reimburse any encumbrancer or owner of the real property, other than the debtor or obligor, for the cost of repair of any physical injury caused by the removal. The secured party need not reimburse the encumbrancer or owner for any diminution in value of the real property caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-605/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-605 - Unknown Debtor or Secondary Obligor.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-605 - Unknown Debtor or Secondary Obligor.
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Section 7-9A-605
Unknown debtor or secondary obligor.
A secured party does not owe a duty based on its status as secured party:
(1) to a person that is a debtor or obligor, unless the secured party knows:
(A) that the person is a debtor or obligor;
(B) the identity of the person; and
(C) how to communicate with the person; or
(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A) that the person is a debtor; and
(B) the identity of the person.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-606/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-606 - Time of Default for Agricultural Lien.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-606 - Time of Default for Agricultural Lien.
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Section 7-9A-606
Time of default for agricultural lien.
For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-607/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-607 - Collection and Enforcement by Secured Party.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-607 - Collection and Enforcement by Secured Party.
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Section 7-9A-607
Collection and enforcement by secured party.
(a) Collection and enforcement generally. 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 7-9A-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 Section 7-9A-104(a)(1), 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 Section 7-9A-104(a)(2) or (3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage. If necessary to enable a secured party to exercise under subsection (a)(3) the right 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 the obligation secured by the mortgage; and
(B) the secured party is entitled to enforce the mortgage nonjudicially.
(c) Commercially reasonable collection and enforcement. 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) Expenses of collection and enforcement. 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) Duties to secured party not affected. This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.
(Act 2001-481, p. 647, §1; Act 2014-374, p. 1339, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-608/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-608 - Application of Proceeds of Collection or Enforcement; Liability for Deficiency an...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-608 - Application of Proceeds of Collection or Enforcement; Liability for Deficiency and Right to Surplus.
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Section 7-9A-608
Application of proceeds of collection or enforcement; liability for deficiency and right to surplus.
(a) Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:
(1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under Section 7-9A-607 in the following order to:
(A) the reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(B) the satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and
(C) the satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed.
(2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder's demand under paragraph (1)(C).
(3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under Section 7-9A-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
(4) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.
(b) No surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-609/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-609 - Secured Party's Right to Take Possession After Default.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-609 - Secured Party's Right to Take Possession After Default.
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Section 7-9A-609
Secured party's right to take possession after default.
(a) Possession; rendering equipment unusable; disposition on debtor's premises. After default, a secured party:
(1) may take possession of the collateral; and
(2) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under Section 7-9A-610.
(b) Judicial and nonjudicial process. A secured party may proceed under subsection (a):
(1) pursuant to judicial process; or
(2) without judicial process, if it proceeds without breach of the peace.
(c) Assembly of collateral. If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-610/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-610 - Disposition of Collateral After Default.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-610 - Disposition of Collateral After Default.
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Section 7-9A-610
Disposition of collateral after default.
(a) Disposition after default. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
(b) Commercially reasonable disposition. Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
(c) Purchase by secured party. A secured party may purchase collateral:
(1) at a public disposition; or
(2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(d) Warranties on disposition. A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
(e) Disclaimer of warranties. A secured party may disclaim or modify warranties under subsection (d):
(1) in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
(2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f) Record sufficient to disclaim warranties. A record is sufficient to disclaim warranties under subsection (e) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-611/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-611 - Notification Before Disposition of Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-611 - Notification Before Disposition of Collateral.
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Section 7-9A-611
Notification before disposition of collateral.
(a) "Notification date." In this section, "notification date" means the earlier of the date on which:
(1) a secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
(2) the debtor and any secondary obligor waive the right to notification.
(b) Notification of disposition required. Except as otherwise provided in subsection (d), a secured party that disposes of collateral under Section 7-9A-610 shall send to the persons specified in subsection (c) a reasonable authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection (b), the secured party shall send an authenticated notification of disposition to:
(1) the debtor;
(2) any secondary obligor; and
(3) if the collateral is other than consumer goods:
(A) any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
(B) any other secured party or lienholder that, 10 days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(i) identified the collateral;
(ii) was indexed under the debtor's name as of that date; and
(iii) was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
(C) any other secured party that, 10 days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in Section 7-9A-311(a).
(d) Subsection (b) inapplicable: Perishable collateral; recognized market. Subsection (b) does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.
(e) Compliance with subsection (c)(3)(B). A secured party complies with the requirement for notification prescribed by subsection (c)(3)(B) if:
(1) not later than 20 days or earlier than 30 days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection (c)(3)(B); and
(2) before the notification date, the secured party:
(A) did not receive a response to the request for information; or
(B) received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-612/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-612 - Timeliness of Notification Before Disposition of Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-612 - Timeliness of Notification Before Disposition of Collateral.
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Section 7-9A-612
Timeliness of notification before disposition of collateral.
(a) Reasonable time is question of fact. Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact.
(b) 10-day period sufficient in non-consumer transaction. In a transaction other than a consumer transaction, a notification of disposition sent after default and 10 days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-613/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-613 - Contents and Form of Notification Before Disposition of Collateral: General.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-613 - Contents and Form of Notification Before Disposition of Collateral: General.
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Section 7-9A-613
Contents and form of notification before disposition of collateral: General.
Except in a consumer-goods transaction, the following rules apply:
(1) The contents of a notification of disposition are sufficient if the notification:
(A) describes the debtor and the secured party;
(B) describes the collateral that is the subject of the intended disposition;
(C) states the method of intended disposition;
(D) states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
(E) states the time and place of a public disposition or the time after which any other disposition is to be made.
(2) Whether the contents of a notification that lacks any of the information specified in paragraph (1) are nevertheless sufficient is a question of fact.
(3) The contents of a notification providing substantially the information specified in paragraph (1) are sufficient, even if the notification includes:
(A) information not specified by that paragraph; or
(B) minor errors that are not seriously misleading.
(4) A particular phrasing of the notification is not required.
(5) The following form of notification and the form appearing in Section 7-9A-614(3), when completed, each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL
To: _______________ (Name of debtor, obligor, or other person to which the notification is sent)
From: __________ (Name, address, and telephone number of secured party)
Name of Debtor(s): _________ (Include only if debtor(s) are not an addressee)
For a public disposition:
We will sell or lease or license, as applicable, the ________ (describe collateral) to the highest qualified bidder in public as follows:
Day and Date:
Time:
Place:
For a private disposition:
We will sell or lease or license, as applicable, the ________ (describe collateral) privately some time after ________ (day and date).
You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell or lease or license, as applicable, for a charge of $____. You may request an accounting by calling us at _______ (telephone number).
[End of Form]
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-614/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-614 - Contents and Form of Notification Before Disposition of Collateral: Consumer-Good...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-614 - Contents and Form of Notification Before Disposition of Collateral: Consumer-Goods Transaction.
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Section 7-9A-614
Contents and form of notification before disposition of collateral: Consumer-goods transaction.
In a consumer-goods transaction, the following rules apply:
(1) A notification of disposition must provide the following information:
(A) the information specified in Section 7-9A-613(1);
(B) a description of any liability for a deficiency of the person to which the notification is sent;
(C) a telephone number from which the amount that must be paid to the secured party to redeem the collateral under Section 7-9A-623 is available; and
(D) a telephone number or mailing address from which additional information concerning the disposition and the obligation secured is available.
(2) A particular phrasing of the notification is not required.
(3) The following form of notification, when completed, provides sufficient information:
Name and address of secured party
Date
NOTICE OF OUR PLAN TO SELL PROPERTY
Name and address of any obligor who is also a debtor
Subject: __________ (Identification of Transaction)
We have your ___________ (describe collateral), because you broke promises in our agreement.
For a public disposition:
We will sell _____________ (describe collateral) at public sale. A sale could include a lease or license. The sale will be held as follows:
Date:
Time:
Place:
You may attend the sale and bring bidders if you want.
For a private disposition:
We will sell _________ (describe collateral) at private sale some time after ______ (date). A sale could include a lease or license.
The money that we get from the sale (after paying our costs) will reduce the amount you owe. If we get less money than you owe, you ________________ (will or will not, as applicable) still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else.
You can get the property back at any time before we sell it by paying us the full amount you owe (not just the past due payments), including our expenses. To learn the exact amount you must pay, call us at _________ (telephone number).
If you want us to explain to you in writing how we have figured the amount that you owe us, you may call us at _________ (telephone number) or write us at ___________ (secured party's address) and request a written explanation. We will charge you $ ____ for the explanation if we sent you another written explanation of the amount you owe us within the last six months.
If you need more information about the sale call us at ________ (telephone number) or write us at _____________ (secured party's address).
We are sending this notice to the following other people who have an interest in _________ (describe collateral) or who owe money under your agreement:
______________ (Names of all other debtors and obligors, if any)
[End of Form]
(4) A notification in the form of paragraph (3) is sufficient, even if additional information appears at the end of the form.
(5) A notification in the form of paragraph (3) is sufficient, even if it includes errors in information not required by paragraph (1), unless the error is misleading with respect to rights arising under this article.
(6) If a notification under this section is not in the form of paragraph (3), law other than this article determines the effect of including information not required by paragraph (1).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-615/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-615 - Application of Proceeds of Disposition; Liability for Deficiency and Right to Sur...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-615 - Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus.
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Section 7-9A-615
Application of proceeds of disposition; liability for deficiency and right to surplus.
(a) Application of proceeds. A secured party shall apply or pay over for application the cash proceeds of disposition under Section 7-9A-610 in the following order to:
(1) the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(2) the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;
(3) the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:
(A) the secured party receives from the holder of the subordinate security interest or other lien an authenticated demand for proceeds before distribution of the proceeds is completed; and
(B) in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and
(4) a secured party that is a consignor of the collateral if the secured party receives from the consignor an authenticated demand for proceeds before distribution of the proceeds is completed.
(b) Proof of subordinate interest. If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder does so, the secured party need not comply with the holder's demand under subsection (a)(3).
(c) Application of noncash proceeds. A secured party need not apply or pay over for application noncash proceeds of disposition under Section 7-9A-610 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
(d) Surplus or deficiency if obligation secured. If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c):
(1) unless subsection (a)(4) requires the secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and
(2) the obligor is liable for any deficiency.
(e) No surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes:
(1) the debtor is not entitled to any surplus; and
(2) the obligor is not liable for any deficiency.
(f) Calculation of surplus or deficiency in disposition to person related to secured party. The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with this part to a transferee other than the secured party, a person related to the secured party, or a secondary obligor if:
(1) the transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and
(2) the amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
(g) Cash proceeds received by junior secured party. A secured party that receives cash proceeds of a disposition in good faith and without knowledge that the receipt violates the rights of the holder of a security interest or other lien that is not subordinate to the security interest or agricultural lien under which the disposition is made:
(1) takes the cash proceeds free of the security interest or other lien;
(2) is not obligated to apply the proceeds of the disposition to the satisfaction of obligations secured by the security interest or other lien; and
(3) is not obligated to account to or pay the holder of the security interest or other lien for any surplus.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-616/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-616 - Explanation of Calculation of Surplus or Deficiency.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-616 - Explanation of Calculation of Surplus or Deficiency.
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Section 7-9A-616
Explanation of calculation of surplus or deficiency.
(a) Definitions. In this section:
(1) "Explanation" means a writing that:
(A) states the amount of the surplus or deficiency;
(B) provides an explanation in accordance with subsection (c) of how the secured party calculated the surplus or deficiency;
(C) states, if applicable, that future debits, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency; and
(D) provides a telephone number or mailing address from which additional information concerning the transaction is available.
(2) "Request" means a record:
(A) authenticated by a debtor or consumer obligor;
(B) requesting that the recipient provide an explanation; and
(C) sent after disposition of the collateral under Section 7-9A-610.
(b) Explanation of calculation. In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under Section 7-9A-615, the secured party shall:
(1) send an explanation to the debtor or consumer obligor, as applicable, after the disposition and:
(A) before or when the secured party accounts to the debtor and pays any surplus or first makes written demand on the consumer obligor after the disposition for payment of the deficiency; and
(B) within 14 days after receipt of a request; or
(2) in the case of a consumer obligor who is liable for a deficiency, within 14 days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.
(c) Required information. To comply with subsection (a)(1)(B), a writing must provide the following information in the following order:
(1) the aggregate amount of obligations secured by the security interest under which the disposition was made, and, if the amount reflects a rebate of unearned interest or credit service charge, an indication of that fact, calculated as of a specified date:
(A) if the secured party takes or receives possession of the collateral after default, not more than 35 days before the secured party takes or receives possession; or
(B) if the secured party takes or receives possession of the collateral before default or does not take possession of the collateral, not more than 35 days before the disposition;
(2) the amount of proceeds of the disposition;
(3) the aggregate amount of the obligations after deducting the amount of proceeds;
(4) the amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorney's fees secured by the collateral which are known to the secured party and relate to the current disposition;
(5) the amount, in the aggregate or by type, and types of credits, including rebates of interest or credit service charges, to which the obligor is known to be entitled and which are not reflected in the amount in paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) Substantial compliance. A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) is sufficient, even if it includes minor errors that are not seriously misleading.
(e) Charges for responses. A debtor or consumer obligor is entitled without charge to one response to a request under this section during any six-month period in which the secured party did not send to the debtor or consumer obligor an explanation pursuant to subsection (b)(1). The secured party may require payment of a charge not exceeding $25 for each additional response.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-617/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-617 - Rights of Transferee of Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-617 - Rights of Transferee of Collateral.
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Section 7-9A-617
Rights of transferee of collateral.
(a) Effects of disposition. A secured party's disposition of collateral after default:
(1) transfers to a transferee for value all of the debtor's rights in the collateral;
(2) discharges the security interest under which the disposition is made; and
(3) discharges any subordinate security interest or other subordinate lien.
(b) Rights of good-faith transferee. A transferee that acts in good faith takes free of the rights and interests described in subsection (a), even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
(c) Rights of other transferee. If a transferee does not take free of the rights and interests described in subsection (a), the transferee takes the collateral subject to:
(1) the debtor's rights in the collateral;
(2) the security interest or agricultural lien under which the disposition is made; and
(3) any other security interest or other lien.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-618/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-618 - Rights and Duties of Certain Secondary Obligors.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-618 - Rights and Duties of Certain Secondary Obligors.
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Section 7-9A-618
Rights and duties of certain secondary obligors.
(a) Rights and duties of secondary obligor. A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
(1) receives an assignment of a secured obligation from the secured party;
(2) receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or
(3) is subrogated to the rights of a secured party with respect to collateral.
(b) Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a):
(1) is not a disposition of collateral under Section 7-9A-610; and
(2) relieves the secured party of further duties under this article.
(Act 2001-481, p. 647, §1.)
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-619 - Transfer of Record or Legal Title.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-619 - Transfer of Record or Legal Title.
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Section 7-9A-619
Transfer of record or legal title.
(a) "Transfer statement." In this section, "transfer statement" means a record authenticated by a secured party stating:
(1) that the debtor has defaulted in connection with an obligation secured by specified collateral;
(2) that the secured party has exercised its post-default remedies with respect to the collateral;
(3) that, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and
(4) the name and mailing address of the secured party, debtor, and transferee.
(b) Effect of transfer statement. A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate-of-title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:
(1) accept the transfer statement;
(2) promptly amend its records to reflect the transfer; and
(3) if applicable, issue a new appropriate certificate of title in the name of the transferee.
(c) Transfer not a disposition; no relief of secured party's duties. A transfer of the record or legal title to collateral to a secured party under subsection (b) or otherwise is not of itself a disposition of collateral under this article and does not of itself relieve the secured party of its duties under this article.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-620/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-620 - Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsor...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-620 - Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsory Disposition of Collateral.
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Section 7-9A-620
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral.
(a) Conditions to acceptance in satisfaction. Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
(1) the debtor consents to the acceptance under subsection (c);
(2) the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal authenticated by:
(A) a person to which the secured party was required to send a proposal under Section 7-9A-621; or
(B) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;
(3) if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and
(4) subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to Section 7-9A-624.
(b) Purported acceptance ineffective. A purported or apparent acceptance of collateral under this section is ineffective unless:
(1) the secured party consents to the acceptance in an authenticated record or sends a proposal to the debtor; and
(2) the conditions of subsection (a) are met.
(c) Debtor's consent. For purposes of this section:
(1) a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and
(2) a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:
(A) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;
(B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and
(C) does not receive a notification of objection authenticated by the debtor within 20 days after the proposal is sent.
(d) Effectiveness of notification. To be effective under subsection (a)(2), a notification of objection must be received by the secured party:
(1) in the case of a person to which the proposal was sent pursuant to Section 7-9A-621, within 20 days after notification was sent to that person; and
(2) in other cases:
(A) within 20 days after the last notification was sent pursuant to Section 7-9A-621; or
(B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c).
(e) Mandatory disposition of consumer goods. A secured party that has taken possession of collateral shall dispose of the collateral pursuant to Section 7-9A-610 within the time specified in subsection (f) if:
(1) 60 percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or
(2) 60 percent of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.
(f) Compliance with mandatory disposition requirement. To comply with subsection (e), the secured party shall dispose of the collateral:
(1) within 90 days after taking possession; or
(2) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.
(g) No partial satisfaction in consumer transaction. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-621/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-621 - Notification of Proposal to Accept Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-621 - Notification of Proposal to Accept Collateral.
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Section 7-9A-621
Notification of proposal to accept collateral.
(a) Persons to which proposal to be sent. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1) any person from which the secured party has received, before the debtor consented to the acceptance, an authenticated notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, 10 days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(A) identified the collateral;
(B) was indexed under the debtor's name as of that date; and
(C) was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date; and
(3) any other secured party that, 10 days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in Section 7-9A-311(a).
(b) Proposal to be sent to secondary obligor in partial satisfaction. A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a).
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-622/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-622 - Effect of Acceptance of Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-622 - Effect of Acceptance of Collateral.
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Section 7-9A-622
Effect of acceptance of collateral.
(a) Effect of acceptance. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1) discharges the obligation to the extent consented to by the debtor;
(2) transfers to the secured party all of a debtor's rights in the collateral;
(3) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4) terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this article.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-623/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-623 - Right to Redeem Collateral.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-623 - Right to Redeem Collateral.
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Section 7-9A-623
Right to redeem collateral.
(a) Persons that may redeem. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
(b) Requirements for redemption. To redeem collateral, a person shall tender:
(1) fulfillment of all obligations secured by the collateral; and
(2) the reasonable expenses and attorney's fees described in Section 7-9A-615(a)(1).
(c) When redemption may occur. A redemption may occur at any time before a secured party:
(1) has collected collateral under Section 7-9A-607;
(2) has disposed of collateral or entered into a contract for its disposition under Section 7-9A-610; or
(3) has accepted collateral in full or partial satisfaction of the obligation it secures under Section 7-9A-622.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-1/section-7-9a-624/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 1 - Default and Enforcement of Security Interest.›Section 7-9A-624 - Waiver.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 1 - Default and Enforcement of Security Interest. › Section 7-9A-624 - Waiver.
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Section 7-9A-624
Waiver.
(a) Waiver of disposition notification. A debtor or secondary obligor may waive the right to notification of disposition of collateral under Section 7-9A-611 only by an agreement to that effect entered into and authenticated after default.
(b) Waiver of mandatory disposition. A debtor may waive the right to require disposition of collateral under Section 7-9A-620(e) only by an agreement to that effect entered into and authenticated after default.
(c) Waiver of redemption right. Except in a consumer-goods transaction, a debtor or secondary obligor may waive the right to redeem collateral under Section 7-9A-623 only by an agreement to that effect entered into and authenticated after default.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-2/section-7-9a-625/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 2 - Noncompliance With Article.›Section 7-9A-625 - Remedies for Secured Party's Failure to Comply With Article.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 2 - Noncompliance With Article. › Section 7-9A-625 - Remedies for Secured Party's Failure to Comply With Article.
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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; and
(2) if the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with this part may recover for that failure in any event an amount not less than the credit service charge plus 10 percent of the principal amount of the obligation or the time-price differential plus 10 percent of the cash price.
(d) Recovery when deficiency eliminated or reduced. A debtor whose deficiency is eliminated under Section 7-9A-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under Section 7-9A-626 may not otherwise recover under subsection (b) for noncompliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance.
(e) Statutory damages: Noncompliance with specified provisions. In addition to any damages recoverable under subsection (b), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover $500 in each case from a person that:
(1) fails to comply with Section 7-9A-208;
(2) fails to comply with Section 7-9A-209;
(3) files a record that the person is not entitled to file under Section 7-9A-509(a);
(4) fails to cause the secured party of record to file or send a termination statement as required by Section 7-9A-513(a) or (c);
(5) fails to comply with Section 7-9A-616(b)(1) and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or
(6) fails to comply with Section 7-9A-616(b)(2).
(f) Statutory damages: Noncompliance with Section 7-9A-210. A debtor or consumer obligor may recover damages under subsection (b) and, in addition, $500 in each case from a person that, without reasonable cause, fails to comply with a request under Section 7-9A-210. A recipient of a request under Section 7-9A-210 which never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.
(g) Limitation of security interest: Noncompliance with Section 7-9A-210. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under Section 7-9A-210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-2/section-7-9a-626/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 2 - Noncompliance With Article.›Section 7-9A-626 - Action in Which Deficiency or Surplus Is in Issue.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 2 - Noncompliance With Article. › Section 7-9A-626 - Action in Which Deficiency or Surplus Is in Issue.
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Section 7-9A-626
Action in which deficiency or surplus is in issue.
(a) Applicable rules if amount of deficiency or surplus in issue. In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply:
(1) A secured party need not prove compliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in issue.
(2) If the secured party's compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this part.
(3) Except as otherwise provided in Section 7-9A-628, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:
(A) the proceeds of the collection, enforcement, disposition, or acceptance; or
(B) the amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance.
(4) For purposes of paragraph (3)(B), the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum.
(5) If a deficiency or surplus is calculated under Section 7-9A-615(f), the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
(b) Non-consumer transactions; no inference. The limitation of the rules in subsection (a) to transactions other than consumer transactions is intended to leave to the court the determination of the proper rules in consumer transactions. The court may not infer from that limitation the nature of the proper rule in consumer transactions and may continue to apply established approaches.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-2/section-7-9a-627/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 2 - Noncompliance With Article.›Section 7-9A-627 - Determination of Whether Conduct Was Commercially Reasonable.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 2 - Noncompliance With Article. › Section 7-9A-627 - Determination of Whether Conduct Was Commercially Reasonable.
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Section 7-9A-627
Determination of whether conduct was commercially reasonable.
(a) Greater amount obtainable under other circumstances; no preclusion of commercial reasonableness. The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner.
(b) Dispositions that are commercially reasonable. A disposition of collateral is made in a commercially reasonable manner if the disposition is made:
(1) in the usual manner on any recognized market;
(2) at the price current in any recognized market at the time of the disposition; or
(3) otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.
(c) Approval by court or on behalf of creditors. A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:
(1) in a judicial proceeding;
(2) by a bona fide creditors' committee;
(3) by a representative of creditors; or
(4) by an assignee for the benefit of creditors.
(d) Approval under subsection (c) not necessary; absence of approval has no effect. Approval under subsection (c) need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-6/division-2/section-7-9a-628/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 6 - Default.›Division 2 - Noncompliance With Article.›Section 7-9A-628 - Nonliability and Limitation on Liability of Secured Party; Liability of Secondary...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 6 - Default. › Division 2 - Noncompliance With Article. › Section 7-9A-628 - Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor.
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Section 7-9A-628
Nonliability and limitation on liability of secured party; liability of secondary obligor.
(a) Limitation of liability of secured party for noncompliance with article. Unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person:
(1) the secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with this article; and
(2) the secured party's failure to comply with this article does not affect the liability of the person for a deficiency.
(b) Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party:
(1) to a person that is a debtor or obligor, unless the secured party knows:
(A) that the person is a debtor or obligor;
(B) the identity of the person; and
(C) how to communicate with the person; or
(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A) that the person is a debtor; and
(B) the identity of the person.
(c) Limitation of liability if reasonable belief that transaction not a consumer-goods transaction or consumer transaction. A secured party is not liable to any person, and a person's liability for a deficiency is not affected, because of any act or omission arising out of the secured party's reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party's belief is based on its reasonable reliance on:
(1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or
(2) an obligor's representation concerning the purpose for which a secured obligation was incurred.
(d) Limitation of liability for statutory damages. A secured party is not liable to any person under Section 7-9A-625(c)(2) for its failure to comply with Section 7-9A-616.
(e) Limitation of multiple liability for statutory damages. A secured party is not liable under Section 7-9A-625(c)(2) more than once with respect to any one secured obligation.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-701/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-701 - Effective Date.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-701 - Effective Date.
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Section 7-9A-701
Effective date.
This article is effective January 1, 2002, except Section 7-9A-525 is effective July 1, 2001.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-702/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-702 - Savings Clause.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-702 - Savings Clause.
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Section 7-9A-702
Savings clause.
(a) Pre-effective-date transactions or liens. Except as otherwise provided in this part, this article applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before this article takes effect.
(b) Continuing validity. Except as otherwise provided in subsection (c) and Sections 7-9A-703 through 7-9A-709:
(1) transactions and liens that were not governed by former Article 9, were validly entered into or created before January 1, 2002, and would be subject to this article if they had been entered into or created after January 1, 2002, and the rights, duties, and interests flowing from those transactions and liens remain valid after January 1, 2002; and
(2) the transactions and liens may be terminated, completed, consummated, and enforced as required or permitted by this article or by the law that otherwise would apply if this article had not taken effect.
(c) Pre-effective-date proceedings. This article does not affect an action, case, or proceeding commenced before January 1, 2002.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-703/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-703 - Security Interest Perfected Before January 1, 2002.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-703 - Security Interest Perfected Before January 1, 2002.
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Section 7-9A-703
Security interest perfected before January 1, 2002.
(a) Continuing priority over lien creditor: Perfection requirements satisfied. A security interest that is enforceable immediately before January 1, 2002, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under this article if, on January 1, 2002, the applicable requirements for enforceability and perfection under this article are satisfied without further action.
(b) Continuing priority over lien creditor: Perfection requirements not satisfied. Except as otherwise provided in Section 7-9A-705, if, immediately before January 1, 2002, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under this article are not satisfied on January 1, 2002, the security interest:
(1) is a perfected security interest for one year after January 1, 2002;
(2) remains enforceable thereafter only if the security interest becomes enforceable under Section 7-9A-203 before the year expires; and
(3) remains perfected thereafter only if the applicable requirements for perfection under this article are satisfied before the year expires.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-704/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-704 - Security Interest Unperfected Before January 1, 2002.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-704 - Security Interest Unperfected Before January 1, 2002.
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Section 7-9A-704
Security interest unperfected before January 1, 2002.
A security interest that is enforceable immediately before January 1, 2002, but which would be subordinate to the rights of a person that becomes a lien creditor at that time:
(1) remains an enforceable security interest for one year after January 1, 2002;
(2) remains enforceable thereafter if the security interest becomes enforceable under Section 7-9A-203 on January 1, 2002, or within one year thereafter; and
(3) becomes perfected:
(A) without further action, on January 1, 2002, if the applicable requirements for perfection under this article are satisfied before or at that time; or
(B) when the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-705/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-705 - Effectiveness of Action Taken Before January 1, 2002.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-705 - Effectiveness of Action Taken Before January 1, 2002.
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Section 7-9A-705
Effectiveness of action taken before January 1, 2002.
(a) Pre-effective-date action; one-year perfection period unless reperfected. If action, other than the filing of a financing statement, is taken before January 1, 2002, and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before January 1, 2002, the action is effective to perfect a security interest that attaches under this article within one year after January 1, 2002. An attached security interest becomes unperfected one year after January 1, 2002, unless the security interest becomes a perfected security interest under this article before the expiration of that period.
(b) Pre-effective-date filing. The filing of a financing statement before January 1, 2002, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this article.
(c) Pre-effective-date filing in jurisdiction formerly governing perfection. This article does not render ineffective an effective financing statement that, before January 1, 2002, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in former Section 7-9-103. However, except as otherwise provided in subsections (d) and (e) and Section 7-9A-706, the financing statement ceases to be effective at the earlier of:
(1) the time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or
(2) December 31, 2006.
(d) Continuation statement. The filing of a continuation statement after January 1, 2002, does not continue the effectiveness of the financing statement filed before January 1, 2002. However, upon the timely filing of a continuation statement after January 1, 2002, and in accordance with the law of the jurisdiction governing perfection as provided in Part 3, the effectiveness of a financing statement filed in the same office in that jurisdiction before January 1, 2002, continues for the period provided by the law of that jurisdiction.
(e) Application of subsection (c)(2) to transmitting utility financing statement. Subsection (c)(2) applies to a financing statement that, before January 1, 2002, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in former Section 7-9-103 only to the extent that Part 3 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.
(f) Application of Part 5. A financing statement that includes a financing statement filed before January 1, 2002, and a continuation statement filed after January 1, 2002, is effective only to the extent that it satisfies the requirements of Part 5 for an initial financing statement.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-706/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-706 - When Initial Financing Statement Suffices to Continue Effectiveness of Financing...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-706 - When Initial Financing Statement Suffices to Continue Effectiveness of Financing Statement.
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Section 7-9A-706
When initial financing statement suffices to continue effectiveness of financing statement.
(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in Section 7-9A-501 continues the effectiveness of a financing statement filed before January 1, 2002, if:
(1) the filing of an initial financing statement in that office would be effective to perfect a security interest under this article;
(2) the pre-effective-date financing statement was filed in an office in another State or another office in this State; and
(3) the initial financing statement satisfies subsection (c).
(b) Period of continued effectiveness. The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective-date financing statement:
(1) if the initial financing statement is filed before January 1, 2002, for the period provided in former Section 7-9-403 with respect to a financing statement; and
(2) if the initial financing statement is filed after January 1, 2002, for the period provided in Section 7-9A-515 with respect to an initial financing statement.
(c) Requirements for initial financing statement under subsection (a). To be effective for purposes of subsection (a), an initial financing statement must:
(1) satisfy the requirements of Part 5 for an initial financing statement;
(2) identify the pre-effective-date financing statement 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 remains effective.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-707/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-707 - Amendment of Pre-Effective-Date Financing Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-707 - Amendment of Pre-Effective-Date Financing Statement.
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Section 7-9A-707
Amendment of pre-effective-date financing statement.
(a) "Pre-effective-date financing statement". In this section, "pre-effective-date financing statement" means a financing statement filed before January 1, 2002.
(b) Applicable law. After January 1, 2002, 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 Part 3. 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) Method of amending: General rule. Except as otherwise provided in subsection (d), if the law of this State governs perfection of a security interest, the information in a pre-effective-date financing statement may be amended after January 1, 2002, only if:
(1) the pre-effective-date financing statement and an amendment are filed in the office specified in Section 7-9A-501;
(2) an amendment is filed in the office specified in Section 7-9A-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies Section 7-9A-706(c); or
(3) an initial financing statement that provides the information as amended and satisfies Section 7-9A-706(c) is filed in the office specified in Section 7-9A-501.
(d) Method of amending: Continuation. 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 Section 7-9A-705(d) and (f) or 7-9A-706.
(e) Method of amending: Additional termination rule. 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 after January 1, 2002, 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 Section 7-9A-706(c) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in Part 3 as the office in which to file a financing statement.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-708/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-708 - Persons Entitled to File Initial Financing Statement or Continuation Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-708 - Persons Entitled to File Initial Financing Statement or Continuation Statement.
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Section 7-9A-708
Persons 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 January 1, 2002; or
(B) to perfect or continue the perfection of a security interest.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-7/section-7-9a-709/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 7 - Transition.›Section 7-9A-709 - Priority.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 7 - Transition. › Section 7-9A-709 - Priority.
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Section 7-9A-709
Priority.
(a) Law governing priority. This article determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before January 1, 2002, former Article 9 determines priority.
(b) Priority if security interest becomes enforceable under Section 7-9A-203. For purposes of Section 7-9A-322(a), the priority of a security interest that becomes enforceable under Section 7-9A-203 of this article dates from January 1, 2002 if the security interest is perfected under this article by the filing of a financing statement before January 1, 2002, which would not have been effective to perfect the security interest under former Article 9. This subsection does not apply to conflicting security interests each of which is perfected by the filing of such a financing statement.
(Act 2001-481, p. 647, §1.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-801/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-801 - Effective Date.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-801 - Effective Date.
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Section 7-9A-801
Effective date.
Act 2014-374 takes effect on July 1, 2014.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-802/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-802 - Savings Clause.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-802 - Savings Clause.
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Section 7-9A-802
Savings clause.
(a) Pre-effective date transactions or liens. Except as otherwise provided in this part, Act 2014-374 applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before July 1, 2014.
(b) Pre-effective date proceedings. Act 2014-374 does not affect an action, case, or proceeding commenced before Act 2014-374 takes effect.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-803/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-803 - Security Interest Perfected Before July 1, 2014.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-803 - Security Interest Perfected Before July 1, 2014.
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Section 7-9A-803
Security interest perfected before July 1, 2014.
(a) Continuing perfection: perfection requirements satisfied. A security interest that is a perfected security interest immediately before July 1, 2014, is a perfected security interest under Article 9A as amended by Act 2014-374 if, when Act 2014-374 takes effect, the applicable requirements for attachment and perfection under Article 9A as amended by Act 2014-374 are satisfied without further action.
(b) Continuing perfection: perfection requirements not satisfied. Except as otherwise provided in Section 7-9A-805, if, immediately before July 1, 2014, a security interest is a perfected security interest, but the applicable requirements for perfection under Article 9A as amended by Act 2014-374 are not satisfied before July 1, 2014, the security interest remains perfected thereafter only if the applicable requirements for perfection under Article 9A as amended by Act 2014-374 are satisfied before July 1, 2014.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-804/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-804 - Security Interest Unperfected Before Effective Date.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-804 - Security Interest Unperfected Before Effective Date.
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Section 7-9A-804
Security interest unperfected before effective date.
A security interest that is an unperfected security interest immediately before July 1, 2014, becomes a perfected security interest:
(1) without further action, on July 1, 2014, if the applicable requirements for perfection under Article 9A as amended by Act 2014-374 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.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-805/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-805 - Effectiveness of Action Taken Before Effective Date.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-805 - Effectiveness of Action Taken Before Effective Date.
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Section 7-9A-805
Effectiveness of action taken before effective date.
(a) Pre-effective date filing effective. The filing of a financing statement before July 1, 2014, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under Article 9A as amended by Act 2014-374.
(b) When pre-effective date filing becomes ineffective. Act 2014-374 does not render ineffective a financing statement that, before July 1, 2014, is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Article 9A as it existed before amendment. However, except as otherwise provided in subsections (c) and (d) and Section 7-9A-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 Act 2014-374 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, 2019.
(c) Continuation statement. The filing of a continuation statement on or after July 1, 2014, does not continue the effectiveness of the financing statement filed before July 1, 2014. However, upon the timely filing of a continuation statement on or after July 1, 2014, and in accordance with the law of the jurisdiction governing perfection as provided in Article 9A as amended by Act 2014-374, the effectiveness of a financing statement filed in the same office in that jurisdiction before July 1, 2014, continues for the period provided by the law of that jurisdiction.
(d) Application of subsection (b)(2)(B) to transmitting utility financing statement. Subsection (b)(2)(B) applies to a financing statement that, before July 1, 2014, is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in Article 9A as it existed before the amendment by Act 2014-374, only to the extent that Article 9A as amended by Act 2014-374 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) Application of Part 5. A financing statement that includes a financing statement filed before July 1, 2014, and a continuation statement filed on or after July 1, 2014, is effective only to the extent that it satisfies the requirements of Part 5 as amended by Act 2014-374 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 Section 7-9A-503(a)(2) as amended by Act 2014-374. 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 Section 7-9A-503(a)(3) as amended by Act 2014-374.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-806/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-806 - When Initial Financing Statement Suffices to Continue Effectiveness of Financing...
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-806 - When Initial Financing Statement Suffices to Continue Effectiveness of Financing Statement.
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Section 7-9A-806
When initial financing statement suffices to continue effectiveness of financing statement.
(a) Initial financing statement in lieu of continuation statement. The filing of an initial financing statement in the office specified in Section 7-9A-501 continues the effectiveness of a financing statement filed before July 1, 2014, if:
(1) the filing of an initial financing statement in that office would be effective to perfect a security interest under Article 9A as amended by Act 2014-374;
(2) the pre-effective date financing statement was filed in an office in another state; and
(3) the initial financing statement satisfies subsection (c).
(b) Period of continued effectiveness. The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective date financing statement:
(1) if the initial financing statement is filed before July 1, 2014, for the period provided in unamended Section 7-9A-515 with respect to an initial financing statement; and
(2) if the initial financing statement is filed after July 1, 2014, for the period provided in Section 7-9A-515, as amended by Act 2014-374, with respect to an initial financing statement.
(c) Requirements for initial financing statement under subsection (a). To be effective for purposes of subsection (a), an initial financing statement must:
(1) satisfy the requirements of Part 5 as amended by Act 2014-374 for an initial financing statement;
(2) identify the pre-effective date financing statement 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 remains effective.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-807/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-807 - Amendment of Pre-Effective Date Financing Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-807 - Amendment of Pre-Effective Date Financing Statement.
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Section 7-9A-807
Amendment of pre-effective date financing statement.
(a) Pre-effective date financing statement. In this section, pre-effective date financing statement means a financing statement filed before July 1, 2014.
(b) Applicable law. After July 1, 2014, 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 Article 9A as amended by Act 2014-374. 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) Method of amending: general rule. Except as otherwise provided in subsection (d), if the law of this state governs perfection of security interest, the information in a pre-effective date financing statement may be amended after Act 2014-374 takes effect only if:
(1) the pre-effective date financing statement and an amendment are filed in the office specified in Section 7-9A-501;
(2) an amendment is filed in the office specified in Section 7-9A-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies Section 7-9A-806(c); or
(3) an initial financing statement that provides the information as amended and satisfies Section 7-9A-806(c) is filed in the office specified in Section 7-9A-501.
(d) Method of amending: continuation. 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 Section 7-9A-805(c) and (e) or Section 7-9A-806.
(e) Method of amending: additional termination rule. 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 after Act 2014-374 takes effect 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 Section 7-9A-806(c) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in Article 9A as amended by Act 2014-374 as the office in which to file a financing statement.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-808/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-808 - Person Entitled to File Initial Financing Statement or Continuation Statement.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-808 - Person Entitled to File Initial Financing Statement or Continuation Statement.
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Section 7-9A-808
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 Act 2014-374 takes effect; or
(B) to perfect or continue the perfection of a security interest.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-9a/part-8/section-7-9a-809/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 9A - Secured Transactions.›Part 8 - Transition for 2014 Amendments.›Section 7-9A-809 - Priority.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 9A - Secured Transactions. › Part 8 - Transition for 2014 Amendments. › Section 7-9A-809 - Priority.
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Section 7-9A-809
Priority.
Act 2014-374 determines the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before July 1, 2014, Article 9A as it existed before amendment determines priority.
(Act 2014-374, p. 1339, §2.)
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https://law.justia.com/codes/alabama/title-7/article-10/section-7-10-101/
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Justia›US Law›US Codes and Statutes›Code of Alabama›2023 Code of Alabama›Title 7 - Commercial Code.›Article 10 - Effective Date and Repealer.›Section 7-10-101 - Effective Date.
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2023 Code of Alabama › Title 7 - Commercial Code. › Article 10 - Effective Date and Repealer. › Section 7-10-101 - Effective Date.
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Section 7-10-101
Effective date.
This title shall become effective at midnight on December 31, 1966. It applies to transactions entered into and events occurring after that date.
(Acts 1965, No. 549, p. 811.)
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