§ 26-1-9.1-102 — Definitions and index of definitions; principles of construction and interpretation

Indiana § 26-1-9.1-102

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) In IC 26-1-9.1:
(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", "account
statement", "account to", "commodity account" in subdivision
(14), "customer's account", "deposit account" in subdivision (29),
"on account of", and "statement of account", 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 controllable
accounts and health-care-insurance receivables. The term does
not include (i) chattel paper, (ii) commercial tort claims, (iii)
deposit accounts, (iv) investment property, (v) letter-of-credit
rights or letters of credit, (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, or (vii) rights to payment evidenced by an instrument.
(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
negotiable instrument evidences chattel paper.
(4) "Accounting", except as used in "accounting for", means a
record:
(A) signed 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) The following terms have the following meanings:
(A) "Assignee", except as used in "assignee for benefit of
creditors", means a person (i) in whose favor a security interest
that secures an obligation is created or provided for under a
security agreement, whether or not the obligation is outstanding
or (ii) to which an account, chattel paper, payment intangible,
or promissory note has been sold. The term includes a person
to which a security interest has been transferred by a secured
party.
(B) "Assignor" means a person that (i) under a security
agreement creates or provides for a security interest that secures
an obligation or (ii) sells an account, chattel paper, payment
intangible, or promissory note. The term includes a secured
party that has transferred a security interest to another person.
(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) a right to payment of a monetary obligation secured by
specific goods, if the right to payment and security interest are
evidenced by a record; or
(B) a right to payment of a monetary obligation owed by a
lessee under a lease agreement with respect to specific goods
and a monetary obligation owed by the lessee in connection
with the transaction giving rise to the lease if:
(i) the right to payment and lease agreement are evidenced by
a record; and
(ii) the predominant purpose of the transaction giving rise to
the lease was to give the lessee the right to possession and
use of the goods.
The term does not include a right to payment arising out of a
charter or other contract involving the use or hire of a vessel, or
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.
(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) The following terms have the following meanings:
(A) "Continuation statement" means an amendment of a
financing statement that:
(i) identifies, by its file number, the initial financing
statement to which it relates; and
(ii) indicates that it is a continuation statement for, or that it
is filed to continue the effectiveness of, the identified
financing statement.
(B) "Controllable account" means an account evidenced by a
controllable electronic record that provides that the account
debtor undertakes to pay the person that has control under IC 26-1-12-105 of the controllable electronic record.
(C) "Controllable payment intangible" means a payment
intangible evidenced by a controllable electronic record that
provides that the account debtor undertakes to pay the person
that has control under IC 26-1-12-105 of the controllable
electronic record.
(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) [Reserved.]
(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 controllable electronic records, 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, (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, or (iv) writings that evidence chattel paper.
(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) The following terms have the following meanings:
(A) "Manufactured-home transaction" means a secured
transaction:
(i) that creates a purchase-money security interest in a
manufactured home, other than a manufactured home held as
inventory; or
(ii) in which a manufactured home, other than a
manufactured home held as inventory, is the primary
collateral.
(B) "Money" has the meaning set forth in IC 26-1-1-201(24),
but does not include a deposit account.
(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. The term includes a controllable payment intangible.
(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 signed 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 which 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 which forms or
organizes an organization, any record amending the legislation,
and any record filed with or issued by the state or the United
States which amends or restates the name of the organization.
(69) "Pursuant to commitment", with respect to an advance made
or other value given by a secured party, means pursuant to the
secured party's obligation, whether or not a subsequent event of
default or other event not within the secured party's control has
relieved or may relieve the secured party from its obligation.
(70) "Record", except as used in "for record", "of record", "record
or legal title", and "record owner", 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.
(71) "Registered organization" means an organization formed or
organized solely under the law of a single state or the United
States by the filing of a public organic record with, the issuance
of a public organic record by, or the enactment of 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.
(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.
(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.
(74) "Security agreement" means an agreement that creates or
provides for a security interest.
(75) [Reserved.]
(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.
(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.
(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.
(79) [Reserved.]
(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.
(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.
"Controllable electronic record" IC 26-1-12-102.
"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.
"Protected purchaser" IC 26-1-8.1-303.
"Prove" IC 26-1-3.1-103.
"Qualifying purchaser" IC 26-1-12-102.
"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.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.65; P.L.108-2009, SEC.3; P.L.54-2011, SEC.3; P.L.110-2022, SEC.1; P.L.199-2023, SEC.40.