Bill Text: IN SB0341 | 2011 | Regular Session | Introduced
Bill Title: Secured transactions.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2011-01-11 - First reading: referred to Committee on Judiciary [SB0341 Detail]
Download: Indiana-2011-SB0341-Introduced.html
Citations Affected: IC 26-1.
Synopsis: Secured transactions. Makes changes to the Uniform
Commercial Code pertaining to secured transactions to conform to
recommendations made by the National Conference of Commissioners
on Uniform State Laws. Provides clarification regarding how a name
of an individual debtor is to be provided on a financing statement that
is based on the individual's surname and first personal name. Provides
clarification regarding how a debtor's name should be included on a
financing statement when the debtor is a corporation, limited liability
company, or limited partnership and when the collateral is held in a
statutory or common law trust or in a decedent's estate. Makes changes
regarding the filing of financing statements. Makes changes to assist a
secured party having a security interest in after-acquired property when
the debtor relocates to another state or merges with another entity.
Eliminates the requirement to contain certain information on a
financing statement. Makes technical corrections. Repeals a statute that
contains forms for a financing statement and a financing statement
amendment.
Effective: July 1, 2013.
January 11, 2011, read first time and referred to Committee on Judiciary.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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A BILL FOR AN ACT to amend the Indiana Code concerning
commercial law.
(1) "Action" in the sense of a judicial proceeding includes recoupment, counterclaim, setoff, suit in equity, and any other proceedings in which rights are determined.
(2) "Aggrieved party" means a party entitled to resort to a remedy.
(3) "Agreement" means the bargain of the parties in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance as provided in IC 26-1-1-205. Whether an agreement has legal consequences is determined by the provisions of IC 26-1, if applicable; otherwise by the law of contracts (IC 26-1-1-103). (Compare "Contract".)
(4) "Bank" means a person engaged in the business of banking
and includes a savings bank, savings and loan association, credit
union, and trust company.
(5) "Bearer" means the person:
(A) in control of a negotiable electronic document of title; or
(B) in possession of a negotiable instrument, a negotiable
tangible document of title, or a certificated security payable to
bearer or endorsed in blank.
(6) "Bill of lading" means a document of title evidencing the
receipt of goods for shipment issued by a person engaged in the
business of directly or indirectly transporting or forwarding
goods. The term does not include a warehouse receipt. The term
includes an airbill. "Airbill" means a document serving for air
transportation as a bill of lading does for marine or rail
transportation, and includes an air consignment note or air
waybill.
(7) "Branch" includes a separately incorporated foreign branch of
a bank.
(8) "Burden of establishing" a fact means the burden of
persuading the triers of fact that the existence of the fact is more
probable than its nonexistence.
(9) "Buyer in ordinary course of business" means a person that
buys goods in good faith without knowledge that the sale violates
the rights of another person in the goods, and in the ordinary
course from a person, other than a pawnbroker, in the business of
selling goods of that kind. A person buys goods in the ordinary
course of business if the sale to the person comports with the
usual or customary practices in the kind of business in which the
seller is engaged or with the seller's own usual or customary
practices. A person that sells oil, gas, or other minerals at the
wellhead or minehead is a person in the business of selling goods
of that kind. A buyer in ordinary course of business may buy for
cash, by exchange of other property, or on secured or unsecured
credit, and may require goods or documents of title under a
preexisting contract for sale. Only a buyer that takes possession
of the goods or has a right to recover the goods from that seller
under IC 26-1-2 may be a buyer in ordinary course of business. A
person that acquires goods in a transfer in bulk or as security for
or total or partial satisfaction of a money debt is not a buyer in
ordinary course of business.
(10) "Conspicuous". A term or clause is conspicuous when it is so
written that a reasonable person against whom it is to operate
ought to have noticed it. A printed heading in capitals (as:
NONNEGOTIABLE BILL OF LADING) is conspicuous.
Language in the body of a form is conspicuous if it is in larger or
other contrasting type or color. But in a telegram any stated term
is conspicuous. Whether a term or clause is conspicuous or not is
for decision by the court.
(11) "Contract" means the total legal obligation which results
from the parties' agreement as affected by this Act and any other
applicable rules of law. (Compare "Agreement".)
(12) "Creditor" includes a general creditor, a secured creditor, a
lien creditor and any representative of creditors, including an
assignee for the benefit of creditors, a trustee in bankruptcy, a
receiver in equity, and an executor or administrator of an
insolvent debtor's or assignor's estate.
(13) "Defendant" includes a person in the position of defendant
in a cross-action or counterclaim.
(14) "Delivery" means the following:
(A) With respect to an electronic document of title, voluntary
transfer of control.
(B) With respect to instruments, tangible documents of title,
chattel paper, or certificated securities, voluntary transfer of
possession.
(15) "Document of title" means a record that:
(A) in the regular course of business or financing, is treated as
adequately evidencing that the person in possession or control
of the record is entitled to receive, control, hold, and dispose
of the record and the goods it covers; and
(B) purports to be issued by or addressed to a bailee and
purports to cover goods in the bailee's possession which are
either identified or are fungible portions of an identified mass.
The term includes a bill of lading, transport document, dock
warrant, dock receipt, warehouse receipt, or order for delivery of
goods. An electronic document of title means a document of title
evidenced by a record consisting of information stored in an
electronic medium. A tangible document of title means a
document of title evidenced by a record consisting of information
that is inscribed on a tangible medium.
(16) "Fault" means wrongful act, omission, or breach.
(17) "Fungible" with respect to goods or securities means goods
or securities of which any unit is, by nature or usage of trade, the
equivalent of any other like unit. Goods which are not fungible
shall be deemed fungible for the purposes of IC 26-1 to the extent
that under a particular agreement or document unlike units are
treated as equivalents.
(18) "Genuine" means free of forgery or counterfeiting.
(19) "Good faith", except as otherwise provided by IC 26-1-4 or
IC 26-1-5.1, means honesty in fact and the observance of
reasonable commercial standards of fair dealing.
(20) "Holder" means:
(A) the person in possession of a negotiable instrument that is
payable either to bearer or to an identified person if the
identified person is in possession of the instrument;
(B) the person in possession of a negotiable tangible document
of title if the goods are deliverable either to bearer or to the
order of the person in possession; or
(C) the person in control of a negotiable electronic document
of title.
(21) To "honor" is to pay or to accept and pay or where a credit so
engages to purchase or discount a draft complying with the terms
of the credit.
(22) "Insolvency proceedings" includes any assignment for the
benefit of creditors or other proceedings intended to liquidate or
rehabilitate the estate of the person involved.
(23) A person is "insolvent" who either has ceased to pay the
person's debts in the ordinary course of business or cannot pay the
person's debts as they become due or is insolvent within the
meaning of the federal bankruptcy law.
(24) "Money" means a medium of exchange authorized or
adopted by a domestic or foreign government and includes a
monetary unit of account established by an intergovernmental
organization or by agreement between two (2) or more nations.
(25) A person has "notice" of a fact when:
(a) (A) the person has actual knowledge of it;
(b) (B) the person has received a notice or notification of it; or
(c) (C) from all the facts and circumstances known to the
person at the time in question, the person has reason to know
that it exists.
A person "knows" or has "knowledge" of a fact when the person
has actual knowledge of it. "Discover" or "learn" or a word or
phrase of similar import refers to knowledge rather than to reason
to know. The time and circumstances under which a notice or
notification may cease to be effective are not determined by
IC 26-1.
(26) A person "notifies" or "gives" a notice or notification to
another by taking such steps as may be reasonably required to
inform the other in ordinary course whether or not such other
actually comes to know of it. A person "receives" a notice or
notification when:
(a) (A) it comes to the person's attention; or
(b) (B) it is duly delivered at the place of business through
which the contract was made or at any other place held out by
the person as the place for receipt of such communications.
(27) Notice, knowledge, or a notice of notification received by an
organization is effective for a particular transaction from the time
when it is brought to the attention of the individual conducting
that transaction and, in any event, from the time when it would
have been brought to the person's attention if the organization had
exercised due diligence. An organization exercises due diligence
if it maintains reasonable routines for communicating significant
information to the person conducting the transaction and there is
reasonable compliance with the routines. Due diligence does not
require an individual acting for the organization to communicate
information unless such communication is part of the person's
regular duties or unless the person has reason to know of the
transaction and that the transaction would be materially affected
by the information.
(28) "Organization" includes a corporation, government or
governmental subdivision or agency, business trust, estate, trust,
partnership or association, two (2) or more persons having a joint
or common interest, or any other legal or commercial entity.
(29) "Party", as distinct from "third party", means a person who
has engaged in a transaction or made an agreement within
IC 26-1.
(30) "Person" includes an individual or an organization. (See
IC 26-1-1-102.)
(31) "Presumption" or "presumed" means that the trier of fact
must find the existence of the fact presumed unless and until
evidence is introduced which would support a finding of its
nonexistence.
(32) "Purchase" includes taking by sale, discount, negotiation,
mortgage, pledge, lien, security interest, issue or reissue, gift, or
any other voluntary transaction creating an interest in property.
(33) "Purchaser" means a person who takes by purchase.
(33a) "Registered mail" includes certified mail.
(33b) "Record", except as used in IC 26-1-1.5-2 and
IC 26-1-2.1-309, means information that is inscribed on a tangible
medium or that is stored in an electronic or other medium and is
retrievable in perceivable form.
(34) "Remedy" means any remedial right to which an aggrieved
party is entitled with or without resort to a tribunal.
(35) "Representative" includes an agent, an officer of a
corporation or association, and a trustee, executor, or
administrator of an estate, or any other person empowered to act
for another.
(36) "Rights" includes remedies.
(37) "Security interest" means an interest in personal property or
fixtures which secures payment or performance of an obligation.
The term also includes any interest of a consignor and a buyer of
accounts, chattel paper, a payment intangible, or a promissory
note in a transaction that is subject to IC 26-1-9.1. The special
property interest of a buyer of goods on identification of such
goods to a contract for sale under IC 26-1-2-401 is not a security
interest, but a buyer may also acquire a security interest by
complying with IC 26-1-9.1. Except as otherwise provided in
IC 26-1-2-505, the right of a seller or lessor of goods under
IC 26-1-2 or IC 26-1-2.1 to retain or acquire possession of the
goods is not a "security interest", but a seller or lessor may also
acquire a "security interest" by complying with IC 26-1-9.1. The
retention or reservation of title by a seller of goods
notwithstanding shipment or delivery to the buyer
(IC 26-1-2-401) is limited in effect to a reservation of a "security
interest". Whether a transaction creates a lease or security interest
is determined by the facts of each case. However, a transaction
creates a security interest if the consideration the lessee is to pay
the lessor for the right to possession and use of the goods is an
obligation for the term of the lease not subject to termination by
the lessee and:
(a) (A) the original term of the lease is equal to or greater than
the remaining economic life of the goods;
(b) (B) the lessee is bound to renew the lease for the remaining
economic life of the goods or is bound to become the owner of
the goods;
(c) (C) the lessee has an option to renew the lease for the
remaining economic life of the goods for no additional
consideration or nominal additional consideration upon
compliance with the lease agreement; or
(d) (D) the lessee has an option to become the owner of the
goods for no additional consideration or nominal additional
consideration upon compliance with the lease agreement.
A transaction does not create a security interest merely because it provides that:
For purposes of this subsection:
(i) when the option to renew the lease is granted to the lessee the rent is stated to be the fair market rent for the use of the goods for the term of the renewal determined at the time the option is to be performed; or
(ii) when the option to become the owner of the goods is granted to the lessee the price is stated to be the fair market value of the goods determined at the time the option is to be performed.
Additional consideration is nominal if it is less than the lessee's reasonably predictable cost of performing under the lease agreement if the option is not exercised.
reasonable rate that takes into account the facts and
circumstances of each case at the time the transaction was
entered into.
(38) "Send" in connection with any writing or notice means to
deposit in the mail or deliver for transmission by any other usual
means of communication with postage or cost of transmission
provided for and properly addressed and, in the case of an
instrument, to an address specified thereon or otherwise agreed
or, if there be none, to any address reasonable under the
circumstances. The receipt of any writing or notice within the
time at which it would have arrived if properly sent has the effect
of a proper sending.
(39) "Signed" includes any symbol executed or adopted by a party
with present intention to authenticate a writing.
(40) "Surety" includes guarantor.
(41) "Telegram" includes a message transmitted by radio,
teletype, cable, any mechanical method of transmission, or the
like.
(42) "Term" means that portion of an agreement which relates to
a particular matter.
(43) "Unauthorized" signature means one made without actual,
implied, or apparent authority and includes a forgery.
(44) "Value". Except as otherwise provided with respect to
negotiable instruments and bank collections (IC 26-1-3.1-303,
IC 26-1-4-208, and IC 26-1-4-209) a person gives value for rights
if the person acquires them:
(a) (A) in return for a binding commitment to extend credit or
for the extension of immediately available credit whether or
not drawn upon and whether or not a chargeback is provided
for in the event of difficulties in collection;
(b) (B) as security for or in total or partial satisfaction of a
preexisting claim;
(c) (C) by accepting delivery pursuant to a preexisting contract
for purchase; or
(d) (D) generally, in return for any consideration sufficient to
support a simple contract.
(45) "Warehouse receipt" means a document of title issued by a
person engaged in the business of storing goods for hire.
(46) "Written" or "writing" includes printing, typewriting, or any
other intentional reduction to tangible form.
chapter IC 26-1-9.1-521 may be used for filings under IC 26-1.
(1) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.
(2) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance:
(A) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of;
(B) for services rendered or to be rendered;
(C) for a policy of insurance issued or to be issued;
(D) for a secondary obligation incurred or to be incurred;
(E) for energy provided or to be provided;
(F) for the use or hire of a vessel under a charter or other contract;
(G) arising out of the use of a credit or charge card or information contained on or for use with the card; or
(H) as winnings in a lottery or other game of chance operated or sponsored by a state other than Indiana, a governmental unit of a state, or a person licensed or authorized to operate the game by a state or governmental unit of a state.
The term does not include a right to a payment of a prize awarded by the state lottery commission in the Indiana state lottery established under IC 4-30. The term includes health-care-insurance receivables. The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
(3) "Account debtor" means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
(4) "Accounting", except as used in "accounting for", means a record:
(A) authenticated by a secured party;
(B) indicating the aggregate unpaid secured obligations as of
a date not more than thirty-five (35) days earlier or thirty-five
(35) days later than the date of the record; and
(C) identifying the components of the obligations in
reasonable detail.
(5) "Agricultural lien" means an interest, other than a security
interest, in farm products:
(A) that secures payment or performance of an obligation for:
(i) goods or services furnished in connection with a debtor's
farming operation; or
(ii) rent on real property leased by a debtor in connection
with the debtor's farming operation;
(B) that is created by statute in favor of a person that:
(i) in the ordinary course of its business furnished goods or
services to a debtor in connection with the debtor's farming
operation; or
(ii) leased real property to a debtor in connection with the
debtor's farming operation; and
(C) whose effectiveness does not depend on the person's
possession of the personal property.
(6) "As-extracted collateral" means:
(A) oil, gas, or other minerals that are subject to a security
interest that:
(i) is created by a debtor having an interest in the minerals
before extraction; and
(ii) attaches to the minerals as extracted; or
(B) accounts arising out of the sale at the wellhead or
minehead of oil, gas, or other minerals in which the debtor had
an interest before extraction.
(7) "Authenticate" means:
(A) to sign; or
(B) to execute or otherwise adopt a symbol, or encrypt or
similarly process a record in whole or in part, with the present
intent of the authenticating person to identify the person and
adopt or accept a record.
(B) with present intent to adopt or accept a record, to
attach to or logically associate with the record an
electronic sound, symbol, or process.
(8) "Bank" means an organization that is engaged in the business
of banking. The term includes savings banks, savings and loan
associations, credit unions, and trust companies.
(9) "Cash proceeds" means proceeds that are money, checks,
deposit accounts, or the like.
(10) "Certificate of title" means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.
(11) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this subdivision, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term "chattel paper" does not include: (i) charters or other contracts involving the use or hire of a vessel; or (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:
(A) proceeds to which a security interest attaches;
(B) accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
(C) goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tort with respect to which:
(A) the claimant is an organization; or
(B) the claimant is an individual and the claim:
(i) arose in the course of the claimant's business or profession; and
(ii) does not include damages arising out of personal injury to or the death of an individual.
(14) "Commodity account" means an account maintained by a
commodity intermediary in which a commodity contract is carried
for a commodity customer.
(15) "Commodity contract" means a commodity futures contract,
an option on a commodity futures contract, a commodity option,
or another contract if the contract or option is:
(A) traded on or subject to the rules of a board of trade that has
been designated as a contract market for such a contract
pursuant to federal commodities laws; or
(B) traded on a foreign commodity board of trade, exchange,
or market, and is carried on the books of a commodity
intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a
commodity intermediary carries a commodity contract on its
books.
(17) "Commodity intermediary" means a person that:
(A) is registered as a futures commission merchant under
federal commodities law; or
(B) in the ordinary course of its business provides clearance or
settlement services for a board of trade that has been
designated as a contract market pursuant to federal
commodities law.
(18) "Communicate" means:
(A) to send a written or other tangible record;
(B) to transmit a record by any means agreed upon by the
persons sending and receiving the record; or
(C) in the case of transmission of a record to or by a filing
office, to transmit a record by any means prescribed by
filing-office rule.
(19) "Consignee" means a merchant to which goods are delivered
in a consignment.
(20) "Consignment" means a transaction, regardless of its form,
in which a person delivers goods to a merchant for the purpose of
sale and:
(A) the merchant:
(i) deals in goods of that kind under a name other than the
name of the person making delivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its creditors to be
substantially engaged in selling the goods of others;
(B) with respect to each delivery, the aggregate value of the
goods is one thousand dollars ($1,000) or more at the time of
delivery;
(C) the goods are not consumer goods immediately before delivery; and
(D) the transaction does not create a security interest that secures an obligation.
(21) "Consignor" means a person that delivers goods to a consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer transaction.
(23) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumer transaction in which:
(A) an individual incurs an obligation primarily for personal, family, or household purposes; and
(B) a security interest in consumer goods secures the obligation.
(25) "Consumer obligor" means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes.
(26) "Consumer transaction" means a transaction in which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes. The term includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of a financing statement that:
(A) identifies, by its file number, the initial financing statement to which it relates; and
(B) indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.
(28) "Debtor" means:
(A) a person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(B) a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(C) a consignee.
(29) "Deposit account" means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an
instrument.
(30) "Document" means a document of title or a receipt of the
type described in IC 26-1-7-201(b).
(31) "Electronic chattel paper" means chattel paper evidenced by
a record or records consisting of information stored in an
electronic medium.
(32) "Encumbrance" means a right, other than an ownership
interest, in real property. The term includes mortgages and other
liens on real property.
(33) "Equipment" means goods other than inventory, farm
products, or consumer goods.
(34) "Farm products" means goods, other than standing timber,
with respect to which the debtor is engaged in a farming operation
and which are:
(A) crops grown, growing, or to be grown, including:
(i) crops produced on trees, vines, and bushes; and
(ii) aquatic goods produced in aquacultural operations;
(B) livestock, born or unborn, including aquatic goods
produced in aquacultural operations;
(C) supplies used or produced in a farming operation; or
(D) products of crops or livestock in their unmanufactured
states.
(35) "Farming operation" means raising, cultivating, propagating,
fattening, grazing, or any other farming, livestock, or aquacultural
operation.
(36) "File number" means the number assigned to an initial
financing statement pursuant to IC 26-1-9.1-519(a).
(37) "Filing office" means an office designated in IC 26-1-9.1-501
as the place to file a financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to
IC 26-1-9.1-526.
(39) "Financing statement" means a record or records composed
of an initial financing statement and any filed record relating to
the initial financing statement.
(40) "Fixture filing" means the filing of a financing statement
covering goods that are or are to become fixtures and satisfying
IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b). The term includes the
filing of a financing statement covering goods of a transmitting
utility which are or are to become fixtures.
(41) "Fixtures" means goods that have become so related to
particular real property that an interest in them arises under real
property law.
(42) "General intangible" means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. The term includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(44) "Goods" means all things that are movable when a security interest attaches. The term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
(45) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
(46) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance that is a right to payment of a monetary obligation for health-care goods or services provided.
(47) "Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in the ordinary course of business is transferred by delivery with any necessary endorsement or assignment. The term
does not include (i) investment property, (ii) letters of credit, or
(iii) writings that evidence a right to payment arising out of the
use of a credit or charge card or information contained on or for
use with the card.
(48) "Inventory" means goods, other than farm products, that:
(A) are leased by a person as lessor;
(B) are held by a person for sale or lease or to be furnished
under a contract of service;
(C) are furnished by a person under a contract of service; or
(D) consist of raw materials, work in process, or materials
used or consumed in a business.
(49) "Investment property" means a security, whether certificated
or uncertificated, security entitlement, securities account,
commodity contract, or commodity account.
(50) "Jurisdiction of organization", with respect to a registered
organization, means the jurisdiction under whose law the
organization is formed or organized.
(51) "Letter-of-credit right" means a right to payment or
performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of
a beneficiary to demand payment or performance under a letter of
credit.
(52) "Lien creditor" means:
(A) a creditor that has acquired a lien on the property involved
by attachment, levy, or the like;
(B) an assignee for benefit of creditors from the time of
assignment;
(C) a trustee in bankruptcy from the date of the filing of the
petition; or
(D) a receiver in equity from the time of appointment.
(53) "Manufactured home" means a structure, transportable in one
(1) or more sections, which, in the traveling mode, is eight (8)
body feet or more in width or forty (40) body feet or more in
length, or, when erected on site, is three hundred twenty (320) or
more square feet, and which is built on a permanent chassis and
designed to be used as a dwelling with or without a permanent
foundation when connected to the required utilities, and includes
the plumbing, heating, air conditioning, and electrical systems
contained therein. The term includes any structure that meets all
of the requirements of this subdivision except the size
requirements, and with respect to which the manufacturer
voluntarily files a certification required by the United States
Secretary of Housing and Urban Development and complies with
the standards established under Title 42 of the United States
Code.
(54) "Manufactured-home transaction" means a secured
transaction:
(A) that creates a purchase-money security interest in a
manufactured home, other than a manufactured home held as
inventory; or
(B) in which a manufactured home, other than a manufactured
home held as inventory, is the primary collateral.
(55) "Mortgage" means a consensual interest in real property,
including fixtures, that secures payment or performance of an
obligation.
(56) "New debtor" means a person that becomes bound as debtor
under IC 26-1-9.1-203(d) by a security agreement previously
entered into by another person.
(57) "New value" means (i) money, (ii) money's worth in
property, services, or new credit, or (iii) release by a transferee of
an interest in property previously transferred to the transferee.
The term does not include an obligation substituted for another
obligation.
(58) "Noncash proceeds" means proceeds other than cash
proceeds.
(59) "Obligor" means a person that, with respect to an obligation
secured by a security interest in or an agricultural lien on the
collateral, (i) owes payment or other performance of the
obligation, (ii) has provided property other than the collateral to
secure payment or other performance of the obligation, or (iii) is
otherwise accountable in whole or in part for payment or other
performance of the obligation. The term does not include issuers
or nominated persons under a letter of credit.
(60) "Original debtor", except as used in IC 26-1-9.1-310(c),
means a person that, as debtor, entered into a security agreement
to which a new debtor has become bound under
IC 26-1-9.1-203(d).
(61) "Payment intangible" means a general intangible under
which the account debtor's principal obligation is a monetary
obligation.
(62) "Person related to", with respect to an individual, means:
(A) the spouse of the individual;
(B) a brother, brother-in-law, sister, or sister-in-law of the
individual;
(C) an ancestor or lineal descendant of the individual or the
individual's spouse; or
(D) any other relative, by blood or marriage, of the individual
or the individual's spouse who shares the same home with the
individual.
(63) "Person related to", with respect to an organization, means:
(A) a person directly or indirectly controlling, controlled by,
or under common control with the organization;
(B) an officer or director of, or a person performing similar
functions with respect to, the organization;
(C) an officer or director of, or a person performing similar
functions with respect to, a person described in clause (A);
(D) the spouse of an individual described in clause (A), (B), or
(C); or
(E) an individual who is related by blood or marriage to an
individual described in clause (A), (B), (C), or (D) and shares
the same home with the individual.
(64) "Proceeds", except as used in IC 26-1-9.1-609(b), means the
following property:
(A) Whatever is acquired upon the sale, lease, license,
exchange, or other disposition of collateral.
(B) Whatever is collected on, or distributed on account of,
collateral.
(C) Rights arising out of collateral.
(D) To the extent of the value of collateral, claims arising out
of the loss, nonconformity, or interference with the use of,
defects or infringement of rights in, or damage to, the
collateral.
(E) To the extent of the value of collateral and to the extent
payable to the debtor or the secured party, insurance payable
by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a
promise to pay a monetary obligation, does not evidence an order
to pay, and does not contain an acknowledgment by a bank that
the bank has received for deposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a secured party
that includes the terms on which the secured party is willing to
accept collateral in full or partial satisfaction of the obligation it
secures pursuant to IC 26-1-9.1-620, IC 26-1-9.1-621, and
IC 26-1-9.1-622.
(67) "Public-finance transaction" means a secured transaction in connection with which:
(A) debt securities are issued;
(B) all or a portion of the securities issued have an initial stated maturity of at least twenty (20) years; and
(C) the debtor, obligor, secured party, account debtor, or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.
(68) "Public organic record" means a record that is available to the public for inspection and is:
(A) a record consisting of the record initially filed with or issued by a state or the United States to form or organize an organization and any record filed with or issued by the state or the United States that amends or restates the initial record;
(B) an organic record of a business trust consisting of the record initially filed with a state and any record filed with the state which amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or
(C) a record consisting of legislation enacted by the legislature of a state or the Congress of the United States that forms or organizes an organization, any record amending the legislation, and any record filed with or issued by the state or the United States that amends or restates the name of the organization.
legislation by the state or the United States. The term includes
a business trust that is formed or organized under the law of
a single state if a statute of the state governing business trusts
requires that the business trust's organic record be filed with
the state.
(71) (72) "Secondary obligor" means an obligor to the extent that:
(A) the obligor's obligation is secondary; or
(B) the obligor has a right of recourse with respect to an
obligation secured by collateral against the debtor, another
obligor, or property of either.
(72) (73) "Secured party" means:
(A) a person in whose favor a security interest is created or
provided for under a security agreement, whether or not any
obligation to be secured is outstanding;
(B) a person that holds an agricultural lien;
(C) a consignor;
(D) a person to which accounts, chattel paper, payment
intangibles, or promissory notes have been sold;
(E) a trustee, indenture trustee, agent, collateral agent, or other
representative in whose favor a security interest or agricultural
lien is created or provided for; or
(F) a person that holds a security interest arising under
IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3),
IC 26-1-2.1-508(5), IC 26-1-4-210, or IC 26-1-5.1-118.
(73) (74) "Security agreement" means an agreement that creates
or provides for a security interest.
(74) (75) "Send", in connection with a record or notification,
means:
(A) to deposit in the mail, deliver for transmission, or transmit
by any other usual means of communication, with postage or
cost of transmission provided for, addressed to any address
reasonable under the circumstances; or
(B) to cause the record or notification to be received within the
time that it would have been received if properly sent under
clause (A).
(75) (76) "Software" means a computer program and any
supporting information provided in connection with a transaction
relating to the program. The term does not include a computer
program that is included in the definition of goods.
(76) (77) "State" means a state of the United States, the District
of Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States.
(77) (78) "Supporting obligation" means a letter-of-credit right or
secondary obligation that supports the payment or performance of
an account, chattel paper, a document, a general intangible, an
instrument, or investment property.
(78) (79) "Tangible chattel paper" means chattel paper evidenced
by a record or records consisting of information that is inscribed
on a tangible medium.
(79) (80) "Termination statement" means an amendment of a
financing statement that:
(A) identifies, by its file number, the initial financing
statement to which it relates; and
(B) indicates either that it is a termination statement or that the
identified financing statement is no longer effective.
(80) (81) "Transmitting utility" means a person primarily engaged
in the business of:
(A) operating a railroad, subway, street railway, or trolley bus;
(B) transmitting communications electrically,
electromagnetically, or by light;
(C) transmitting goods by pipeline or sewer; or
(D) transmitting or producing and transmitting electricity,
steam, gas, or water.
(b) "Control" as provided in IC 26-1-7-106 and the following
definitions outside IC 26-1-9.1 apply to IC 26-1-9.1:
"Applicant" IC 26-1-5.1-102.
"Beneficiary" IC 26-1-5.1-102.
"Broker" IC 26-1-8.1-102.
"Certificated security" IC 26-1-8.1-102.
"Check" IC 26-1-3.1-104.
"Clearing corporation" IC 26-1-8.1-102.
"Contract for sale" IC 26-1-2-106.
"Customer" IC 26-1-4-104.
"Entitlement holder" IC 26-1-8.1-102.
"Financial asset" IC 26-1-8.1-102.
"Holder in due course" IC 26-1-3.1-302.
"Issuer" (with respect to a letter of credit or letter-of-credit right)
IC 26-1-5.1-102.
"Issuer" (with respect to a security) IC 26-1-8.1-201.
"Issuer" (with respect to documents of title) IC 26-1-7-102.
"Lease" IC 26-1-2.1-103.
"Lease agreement" IC 26-1-2.1-103.
"Lease contract" IC 26-1-2.1-103.
"Leasehold interest" IC 26-1-2.1-103.
"Lessee" IC 26-1-2.1-103.
"Lessee in ordinary course of business" IC 26-1-2.1-103.
"Lessor" IC 26-1-2.1-103.
"Lessor's residual interest" IC 26-1-2.1-103.
"Letter of credit" IC 26-1-5.1-102.
"Merchant" IC 26-1-2-104.
"Negotiable instrument" IC 26-1-3.1-104.
"Nominated person" IC 26-1-5.1-102.
"Note" IC 26-1-3.1-104.
"Proceeds of a letter of credit" IC 26-1-5.1-114.
"Prove" IC 26-1-3.1-103.
"Sale" IC 26-1-2-106.
"Securities account" IC 26-1-8.1-501.
"Securities intermediary" IC 26-1-8.1-102.
"Security" IC 26-1-8.1-102.
"Security certificate" IC 26-1-8.1-102.
"Security entitlement" IC 26-1-8.1-102.
"Uncertificated security" IC 26-1-8.1-102.
(c) IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-9.1.
(b) A system satisfies subsection (a) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:
(1) a single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5), and (6), unalterable;
(2) the authoritative copy identifies the secured party as the assignee of the record or records;
(3) the authoritative copy is communicated to and maintained by the secured party or its designated custodian;
(4) copies or
(5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy;
and
(6) any revision amendment of the authoritative copy is readily
identifiable as an authorized or unauthorized. revision.
(b) Except as otherwise provided in this section, the following rules determine a debtor's location:
(1) A debtor who is an individual is located at the individual's principal residence.
(2) A debtor that is an organization and has only one (1) place of business is located at its place of business.
(3) A debtor that is an organization and has more than one (1) place of business is located at its chief executive office.
(c) Subsection (b) applies only if a debtor's residence, place of business, or chief executive office, as applicable, is located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to be made generally available in a filing, recording, or registration system as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If subsection (b) does not apply, the debtor is located in the District of Columbia.
(d) A person that ceases to exist, have a residence, or have a place of business continues to be located in the jurisdiction specified by subsections (b) and (c).
(e) A registered organization that is organized under the law of a state is located in that state.
(f) Except as otherwise provided in subsection (i), a registered organization that is organized under the law of the United States and a branch or agency of a bank that is not organized under the law of the United States or a state are located:
(1) in the state that the law of the United States designates, if the law designates a state of location;
(2) in the state that the registered organization, branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location, including by designating its main office, home office, or other comparable office; or
(3) in the District of Columbia, if neither paragraph (1) nor paragraph (2) applies.
(g) A registered organization continues to be located in the jurisdiction specified by subsection (e) or (f) notwithstanding:
(1) the suspension, revocation, forfeiture, or lapse of the registered organization's status as such in its jurisdiction of organization; or
(2) the dissolution, winding up, or cancellation of the existence of the registered organization.
(h) The United States is located in the District of Columbia.
(i) A branch or agency of a bank that is not organized under the law of the United States or a state is located in the state in which the branch or agency is licensed, if all branches and agencies of the bank are licensed in only one (1) state.
(j) A foreign air carrier under the Federal Aviation Act of 1958, as amended, is located at the designated office of the agent upon which service of process may be made on behalf of the carrier.
(k) This section applies only for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342.
(1) a statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt IC 26-1-9.1-310(a);
(2) any Indiana
(3) a
(b) Compliance with the requirements of a statute, regulation, or treaty described in subsection (a) for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under IC 26-1-9.1. Except as otherwise provided in subsection (d), IC 26-1-9.1-313, IC 26-1-9.1-316(d), and IC 26-1-9.1-316(e) for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in subsection (a) may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the
use or transfer of possession of the collateral.
(c) Except as otherwise provided in subsection (d),
IC 26-1-9.1-316(d), and IC 26-1-9.1-316(e), duration and renewal of
perfection of a security interest perfected by compliance with the
requirements prescribed by a statute, regulation, or treaty described in
subsection (a) are governed by the statute, regulation, or treaty. In other
respects, the security interest is subject to IC 26-1-9.1.
(d) During any period in which collateral, subject to a statute
specified in subsection (a)(2), is inventory held for sale or lease by a
person or leased by that person as lessor, and that person is in the
business of selling goods of that kind, this section does not apply to a
security interest in that collateral created by that person, but instead,
the filing provisions of IC 26-1-9.1-501 through IC 26-1-9.1-527 apply.
(1) the time perfection would have ceased under the law of that jurisdiction;
(2) the expiration of four (4) months after a change of the debtor's location to another jurisdiction; or
(3) the expiration of one (1) year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.
(b) If a security interest described in subsection (a) becomes perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
(c) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:
(1) the collateral is located in one (1) jurisdiction and subject to a security interest perfected under the law of that jurisdiction;
(2) thereafter the collateral is brought into another jurisdiction; and
(3) upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.
(d) Except as otherwise provided in subsection (e), a security
interest in goods covered by a certificate of title which is perfected by
any method under the law of another jurisdiction when the goods
become covered by a certificate of title from this state remains
perfected until the security interest would have become unperfected
under the law of the other jurisdiction had the goods not become so
covered.
(e) A security interest described in subsection (d) becomes
unperfected as against a purchaser of the goods for value and is deemed
never to have been perfected as against a purchaser of the goods for
value if the applicable requirements for perfection under
IC 26-1-9.1-311(b) or IC 26-1-9.1-313 are not satisfied before the
earlier of:
(1) the time the security interest would have become unperfected
under the law of the other jurisdiction had the goods not become
covered by a certificate of title from this state; or
(2) the expiration of four (4) months after the goods had become
so covered.
(f) A security interest in deposit accounts, letter-of-credit rights, or
investment property which is perfected under the law of the bank's
jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction,
the securities intermediary's jurisdiction, or the commodity
intermediary's jurisdiction, as applicable, remains perfected until the
earlier of:
(1) the time the security interest would have become unperfected
under the law of that jurisdiction; or
(2) the expiration of four (4) months after a change of the
applicable jurisdiction to another jurisdiction.
(g) If a security interest described in subsection (f) becomes
perfected under the law of the other jurisdiction before the earlier of the
time or the end of the period described in that subsection, it remains
perfected thereafter. If the security interest does not become perfected
under the law of the other jurisdiction before the earlier of that time or
the end of that period, it becomes unperfected and is deemed never to
have been perfected as against a purchaser of the collateral for value.
(h) The following rules apply to collateral to which a security
interest attaches within four (4) months after the debtor changes
its location to another jurisdiction:
(1) A financing statement filed before the change under the
law of the jurisdiction designated in IC 26-1-9.1-301(1) or
IC 26-1-9.1-305(c) is effective to perfect a security interest in
the collateral if the financing statement would have been
effective to perfect a security interest in the collateral had the
debtor not changed its location.
(2) If a security interest perfected by a financing statement
that is effective under subdivision (1) becomes perfected
under the law of the other jurisdiction before the earlier of the
time the financing statement would have become ineffective
under the law of the jurisdiction designated in
IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of
the four (4) month period, it remains perfected thereafter. If
the security interest does not become perfected under the law
of the other jurisdiction before the earlier time or event, it
becomes unperfected and is deemed never to have been
perfected as against a purchaser of the collateral for value.
(i) If a financing statement naming an original debtor is filed
under the law of the jurisdiction designated in IC 26-1-9.1-301(1)
or IC 26-1-9.1-305(c) and the new debtor is located in another
jurisdiction, the following rules apply:
(1) The financing statement is effective to perfect a security
interest in collateral acquired by the new debtor before, and
within four (4) months after, the new debtor becomes bound
under IC 26-1-9.1-203(d), if the financing statement would
have been effective to perfect a security interest in the
collateral had the collateral been acquired by the original
debtor.
(2) A security interest perfected by the financing statement
and that becomes perfected under the law of the other
jurisdiction before the earlier of the time the financing
statement would have become ineffective under the law of the
jurisdiction designated in IC 26-1-9.1-301(1) or
IC 26-1-9.1-305(c) or the expiration of the four (4) month
period remains perfected thereafter. A security interest that
is perfected by the financing statement but does not become
perfected under the law of the other jurisdiction before the
earlier time or event becomes unperfected and is considered
never to have been perfected as against a purchaser of the
collateral for value.
(1) a person entitled to priority under IC 26-1-9.1-322; and
(2) except as provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:
(A) the security interest or agricultural lien is perfected; or
(B) one (1) of the conditions specified in IC 26-1-9.1-203(b)(3) is met;
and a financing statement covering the collateral is filed.
(b) Except as otherwise provided in subsection (e), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security
(c) Except as otherwise provided in subsection (e), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(d) A licensee of a general intangible or a buyer, other than a secured party, of
(e) Except as otherwise provided in IC 26-1-9.1-320 and IC 26-1-9.1-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty (20) days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.
(b) The other provisions of IC 26-1-9.1-301 through IC 26-1-9.1-342 determine the priority among conflicting security interests in the same collateral perfected by filed financing statements
(a). However, if the security agreements to which a new debtor became
bound as a 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.
(b) 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 IC 26-1-9.1; 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) 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) Except as otherwise provided in subsection (e) and IC 26-1-2.1-303 and IC 26-1-9.1-407, 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) Subsection (d) does not apply to the sale of a payment intangible
or promissory note, other than a sale pursuant to a disposition under
IC 26-1-9.1-610 or an acceptance of collateral under
IC 26-1-9.1-620.
(f) Except as provided in IC 26-1-2.1-303 and IC 26-1-9-407,
IC 25-1-9.1-407, 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, right of recoupment, claim, defense,
termination, right of termination, or remedy under the account or
chattel paper.
(g) Subject to subsection (h), an account debtor may not waive or
vary its option under subsection (b)(3).
(h) This section is subject to law other than IC 26-1-9.1 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) This section does not apply to an assignment of a
health-care-insurance receivable.
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, transfer, 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) 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
under a disposition under IC 26-1-9.1-610 or an acceptance of
collateral under IC 26-1-9.1-620.
(c) A rule of law, statute, or regulation, which 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, transfer, 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) 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 IC 26-1-9.1 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) This section prevails over any inconsistent provision in statute,
administrative rule, or regulation.
(1) except as otherwise provided in subdivision (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
(2) subject to subsection (f), if the
(3) if the
documents or, if no name is specified, provides the name of
the settlor and additional information sufficient to distinguish
the debtor from other trusts having one (1) or more of the same
settlors; and
(B) indicates, in the debtor's name or otherwise, that the debtor
is a trust or is a trustee acting with respect to property held in
trust; and
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 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 clause
(A)(i), indicates that the collateral is held in a trust; or
(ii) if the name is provided in accordance with clause
(A)(ii), provides additional information sufficient to
distinguish the trust from other trusts having one (1) or
more of the same settlors of the same testator and
indicates that the collateral is held in a trust, unless the
additional information so indicates;
(4) if the debtor is an individual, only if:
(A) it provides the individual name of the debtor; or
(B) it provides the surname and first personal name of the
debtor; and
(4) (5) in other cases:
(A) if the debtor has a name, only if it provides the individual
or 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) 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)(4)(B), (a)(5)(B), names
of partners, members, associates, or other persons comprising the
debtor.
(c) A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.
(d) 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) A financing statement may provide the name of more than one (1) debtor and the name of more than one (1) secured party.
(f) 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) In this section, 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.
(b) Except as otherwise provided in subsections (e), (f), and (g), an initial financing statement filed in connection with a public-finance transaction or manufactured-home transaction is effective for a period of thirty (30) years after the date of filing if it indicates that it is filed in connection with a public-finance transaction or manufactured-home transaction.
(c) 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 considered never to have been perfected as against a purchaser of the collateral for value.
(d) A continuation statement may be filed only within six (6) months before the expiration of the five (5) year period specified in subsection (a) or the thirty (30) year period specified in subsection (b),
whichever is applicable.
(e) Except as otherwise provided in IC 26-1-9.1-510, upon timely
filing of a continuation statement, the effectiveness of the initial
financing statement continues for a period of five (5) 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 (5) 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) 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) A record of a mortgage that is effective as a financing statement
filed as a fixture filing under IC 26-1-9.1-502(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.
(b) 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
(i) does not identify the initial financing statement as required by IC 26-1-9.1-512 or IC 26-1-9.1-518, as applicable; or
(ii) identifies an initial financing statement whose effectiveness has lapsed under IC 26-1-9.1-515;
(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 last name; surname; or
(D) in the case of a record recorded in the filing office
described in IC 26-1-9.1-501(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 that 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; or
(C) if the financing statement indicates that the debtor is an
organization, provide:
(i) a type of organization for the debtor;
(ii) a jurisdiction of organization for the debtor; or
(iii) an organizational identification number for the debtor
or indicate that the debtor has none;
(6) in the case of an assignment reflected in an initial financing
statement under IC 26-1-9.1-514(a) or an amendment filed under
IC 26-1-9.1-514(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 (6) month period prescribed by IC 26-1-9.1-515(d).
(c) 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 IC 26-1-9.1-512, IC 26-1-9.1-514, or IC 26-1-9.1-518,
is an initial financing statement.
(d) 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 (1) 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.
(b)
(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
(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) 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 IC 26-1-9.1-509(d).
(d) 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 IC 26-1-9.1-509(d).
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)
______________________________________________
FILING OFFICE USE ONLY
1a . ORGANIZATION'S NAME
________________________________________________________
OR
1b . INDIVIDUAL'S SURNAME FIRST PERSONAL NAME
__________________________ ________________________
ADDITIONAL NAME(S)/INITIAL(S) THAT ARE SUFFIX
PART OF THE NAME OF THIS DEBTOR
_____________________________________ ________
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 word in the Debtor's name)
2a. ORGANIZATION'S NAME
_____________________________________________________________________
OR
2b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME
_______________________________ ___________________________
ADDITIONAL NAME(S)/INITIAL(S) THAT
ARE PART OF THE NAME OF THIS DEBTOR 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 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
_____________________________________________________________________
FOLLOW INSTRUCTIONS
9. NAME OF FIRST DEBTOR (same as item 1a or 1b on Financing Statement)
9a. ORGANIZATION'S NAME
_____________________________________________________________________
OR
9b. INDIVIDUAL'S SURNAME
_______________________________________________
FIRST PERSONAL NAME
_______________________________________________
ADDITIONAL NAME(S)/INITIAL(S) SUFFIX
________________________________________ ______
FILING OFFICE USE ONLY
10a. ORGANIZATION'S NAME
__________________________________________________________________
OR
10b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME
____________________________________ _______________________
ADDITIONAL NAME(S)/INITIAL(S) THAT
ARE PART OF THE NAME OF THIS DEBTOR 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:
____________________________________________________________________
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)
_________________________________________
FILING OFFICE USE ONLY
____________________________________________________________________
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) (use exact, full name; do not omit, modify, or
abbreviate any word in the Debtor's name)
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 word in the Debtor's name)
7a. ORGANIZATION'S NAME
____________________________________________________________________
OR
7b. INDIVIDUAL'S SURNAME FIRST PERSONAL NAME
__________________________________ _________________________
ADDITIONAL NAME(S)/INITIAL(S) THAT ARE
PART OF THE NAME OF THIS DEBTOR 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
_____________________________________________________________________
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
_______________________________________ _______
FILING OFFICE USE ONLY
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:
_____________________________________________________________________
(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 IC 26-1-9.1-315;
(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 IC 26-1-9.1-104(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 IC 26-1-9.1-104(a)(2) or IC 26-1-9.1-104(a)(3), may instruct the bank to pay the balance of the deposit account to
or for the benefit of the secured party.
(b) 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) 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) 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) This section does not determine whether an account debtor,
bank, or other person obligated on collateral owes a duty to a secured
party.
(b) The amendments to this chapter made by legislation enacted during the 2011 session of the general assembly do not affect an action, case, or proceeding commenced before the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013).
CODE AS A NEW SECTION TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2013]: Sec. 802. (a) A security interest that
is a perfected security interest immediately before the amendments
to this chapter made by legislation enacted during the 2011 session
of the general assembly take effect (July 1, 2013) is a perfected
security interest under this chapter, as amended by legislation
enacted during the 2011 session of the general assembly if, when
the amendments to this chapter made by legislation enacted during
the 2011 session of the general assembly take effect (July 1, 2013),
the applicable requirements for attachment and perfection under
this chapter, as amended by legislation enacted during the 2011
session of the general assembly, are satisfied without further
action.
(b) Except as otherwise provided in IC 26-1-9.1-804, if,
immediately before the amendments to this chapter made by
legislation enacted during the 2011 session of the general assembly
take effect (July 1, 2013), a security interest is a perfected security
interest, but the applicable requirements for perfection under this
chapter, as amended by legislation enacted during the 2011 session
of the general assembly, are not satisfied when the amendments to
this chapter made by legislation enacted during the 2011 session of
the general assembly take effect (July 1, 2013), the security interest
remains perfected thereafter only if the applicable requirements
for perfection under this chapter, as amended by legislation
enacted during the 2011 session of the general assembly, are
satisfied within one (1) year after the amendments to this chapter
made by legislation enacted during the 2011 session of the general
assembly take effect (July 1, 2013).
(1) without further action, when the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013) if the applicable requirements for perfection under this chapter, as amended by legislation enacted during the 2011 session of the general assembly, are satisfied before or at that time; or
(2) when the applicable requirements for perfection are
satisfied if the requirements are satisfied after this time.
(b) The amendments to this chapter made by legislation enacted during the 2011 session of the general assembly do not render ineffective an effective financing statement that, before the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013), is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection provided in this chapter as it existed before it was amended by legislation enacted during the 2011 session of the general assembly. However, except as otherwise provided in subsections (c) and (d) and IC 26-1-9.1-805, 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 the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly 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, 2018.
(c) The filing of a continuation statement after the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013) does not continue the effectiveness of a financing statement filed before the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013). However, upon the timely filing of a continuation statement after the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013) and in accordance with the law of the jurisdiction governing perfection as provided in this chapter as amended by legislation
enacted during the 2011 session of the general assembly, the
effectiveness of a financing statement filed in the same office in that
jurisdiction before the amendments to this chapter made by
legislation enacted during the 2011 session of the general assembly
take effect (July 1, 2013) continues for the period provided by the
law of that jurisdiction.
(d) Subsection (b)(2)(B) applies to a financing statement that,
before the amendments to this chapter made by legislation enacted
during the 2011 session of the general assembly take effect (July 1,
2013), is filed against a transmitting utility and satisfies the
applicable requirements for perfection under the law of the
jurisdiction governing perfection as provided in this chapter as it
existed before it was amended by legislation enacted during the
2011 session of the general assembly, only to the extent that this
chapter, as amended by legislation enacted during the 2011 session
of the general assembly, 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) A financing statement that includes a financing statement
filed before the amendments to this chapter made by legislation
enacted during the 2011 session of the general assembly take effect
(July 1, 2013) and a continuation statement filed after the
amendments to this chapter made by legislation enacted during the
2011 session of the general assembly take effect (July 1, 2013) is
effective only to the extent that it satisfies the requirements of
IC 26-1-9.1-501 through IC 26-1-9.1-527, as amended by legislation
enacted during the 2011 session of the general assembly, 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 IC 26-1-9.1-503(a)(2), as amended by legislation
enacted during the 2011 session of the general assembly. 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
IC 26-1-9.1-503(a)(3), as amended by legislation enacted during the
2011 session of the general assembly.
continues the effectiveness of a financing statement filed before the
amendments to this chapter made by legislation enacted during the
2011 session of the general assembly take effect (July 1, 2013) if:
(1) the filing of an initial financing statement in that office
would be effective to perfect a security interest under this
chapter, as amended by legislation enacted during the 2011
session of the general assembly;
(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) 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 the
amendments to this chapter made by legislation enacted
during the 2011 session of the general assembly take effect
(July 1, 2013), for the period provided in IC 26-1-9.1-515,
before it was amended by legislation enacted during the 2011
session of the general assembly, with respect to an initial
financing statement; and
(2) if the initial financing statement is filed after the
amendments to this chapter made by legislation enacted
during the 2011 session of the general assembly take effect
(July 1, 2013), for the period provided in IC 26-1-9.1-515, as
amended by legislation enacted during the 2011 session of the
general assembly with respect to an initial financing
statement.
(c) To be effective for purposes of subsection (a), an initial
financing statement must:
(1) satisfy the requirements of IC 26-1-9.1-501 through
IC 26-1-9.1-527, as amended by legislation enacted during the
2011 session of the general assembly 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.
[EFFECTIVE JULY 1, 2013]: Sec. 806. (a) In this section,
"pre-effective-date financing statement" means a financing
statement filed before the amendments to this chapter made by
legislation enacted during the 2011 session of the general assembly
take effect (July 1, 2013).
(b) After the amendments to this chapter made by legislation
enacted during the 2011 session of the general assembly take effect
(July 1, 2013), 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 this chapter, as amended by legislation
enacted during the 2011 session of the general assembly. 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) 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
the amendments to this chapter made by legislation enacted during
the 2011 session of the general assembly take effect (July 1, 2013)
only if:
(1) the pre-effective-date financing statement and an
amendment are filed in the office specified in IC 26-1-9.1-501;
(2) an amendment is filed in the office specified in
IC 26-1-9.1-501 concurrently with, or after the filing in that
office of, an initial financing statement that satisfies
IC 26-1-9.1-805(c); or
(3) an initial financing statement that provides the
information as amended and satisfies IC 26-1-9.1-805(c) is
filed in the office specified in IC 26-1-9.1-501.
(d) 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 IC 26-1-9.1-804(c) and
IC 26-1-9.1-804(e) or IC 26-1-9.1-805.
(e) 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 the
amendments to this chapter made by legislation enacted during the
2011 session of the general assembly take effect (July 1, 2013) 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 IC 26-1-9.1-805(c) has been filed
in the office specified by the law of the jurisdiction governing
perfection as provided in this chapter, as amended by legislation
enacted during the 2011 session of the general assembly, as the
office in which to file a financing statement.
(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 the amendments to this chapter made by legislation enacted during the 2011 session of the general assembly take effect (July 1, 2013); or
(B) to perfect or continue the perfection of a security interest.
