§ 9-102 — Definitions And Index of Definitions

Section 9--102. Definitions And Index of Definitions.\n (a) Article 9 definitions. In this article:\n (1) "Accession" means goods that are physically united with other\n goods in such a manner that the identity of the original\n goods is not lost.\n * (2) "Account", except as used in "account for", means a right\n to payment of a monetary obligation, whether or not earned by\n performance, (i) for property that has been or is to be sold,\n leased, licensed, assigned, or otherwise disposed of, (ii)\n for services rendered or to be rendered, (iii) for a policy\n of insurance issued or to be issued, (iv) for a secondary\n obligation incurred or to be incurred, (v) for energy\n provided or to be provided, (vi) for the use or hire of a\n vessel under a charter or other contract, (vii) arising out\n of the use of a credit or charge card or information\n contained on or for use with the card, or (viii) as winnings\n in a lottery or other game of chance operated or sponsored by\n a state, governmental unit of a State, or person licensed or\n authorized to operate the game by a State or governmental\n unit of a State. The term includes health-care-insurance\n receivables. The term does not include (i) rights to payment\n evidenced by chattel paper or an instrument, (ii) commercial\n tort claims, (iii) deposit accounts, (iv) investment\n property, (v) letter-of-credit rights or letters of credit,\n or (vi) rights to payment for money or funds advanced or\n sold, other than rights arising out of the use of a credit or\n charge card or information contained on or for use with the\n card.\n * NB Effective until June 3, 2026\n * (2) "Account", except as used in "account for", "account\n statement", "account to", "commodity account" in paragraph\n (14), "customer account", "deposit account" in paragraph\n (29), "on account of", and "statement of account", means a\n right to payment of a monetary obligation, whether or not\n earned by performance, (i) for property that has been or is\n to be sold, leased, licensed, assigned, or otherwise disposed\n of, (ii) for services rendered or to be rendered, (iii) for a\n policy of insurance issued or to be issued, (iv) for a\n secondary obligation incurred or to be incurred, (v) for\n energy provided or to be provided, (vi) for the use or hire\n of a vessel under a charter or other contract, (vii) arising\n out of the use of a credit or charge card or information\n contained on or for use with the card, or (viii) as winnings\n in a lottery or other game of chance operated or sponsored by\n a state, governmental unit of a State, or person licensed or\n authorized to operate the game by a State or governmental\n unit of a State. The term includes controllable accounts and\n health-care-insurance receivables. The term does not include\n (i) chattel paper, (ii) commercial tort claims, (iii) deposit\n accounts, (iv) investment property, (v) letter-of-credit\n rights or letters of credit, (vi) rights to payment for money\n or funds advanced or sold, other than rights arising out of\n the use of a credit or charge card or information contained\n on or for use with the card, or (vii) rights to payment\n evidences by an instrument.\n * NB Effective June 3, 2026\n * (3) "Account debtor" means a person obligated on an account,\n chattel paper, or general intangible. The term does not\n include persons obligated to pay a negotiable instrument,\n even if the instrument constitutes part of chattel paper.\n * NB Effective until June 3, 2026\n * (3) "Account debtor" means a person obligated on an account,\n chattel paper, or general intangible. The term does not\n include persons obligated to pay a negotiable instrument,\n even if the instrument evidences chattel paper.\n * NB Effective June 3, 2026\n * (4) "Accounting", except as used in "accounting for", means a\n record:\n (A) authenticated by a secured party;\n (B) indicating the aggregate unpaid secured obligations as of\n a date not more than 35 days earlier or 35 days later\n than the date of the record; and\n (C) identifying the components of the obligations in\n reasonable detail.\n * NB Effective until June 3, 2026\n * (4) "Accounting", except as used in "accounting for", means a\n record:\n (A) signed by a secured party;\n (B) indicating the aggregate unpaid secured obligations as of\n a date not more than 35 days earlier or 35 days later\n than the date of the record; and\n (C) identifying the components of the obligations in\n reasonable detail.\n * NB Effective June 3, 2026\n (5) "Agricultural lien" means an interest in farm products:\n (A) which secures payment or performance of an obligation\n for:\n (i) goods or services furnished in connection with a\n debtor's farming operation; or\n (ii) rent on real property leased by a debtor in\n connection with its farming operation; and\n (B) which is created by statute in favor of a person that:\n (i) in the ordinary course of its business furnished\n goods or services to a debtor in connection with a\n debtor's farming operation; or\n (ii) leased real property to a debtor in connection with\n the debtor's farming operation; and\n (C) whose effectiveness does not depend on the person's\n possession of the personal property.\n (6) "As-extracted collateral" means:\n (A) oil, gas, or other minerals that are subject to a\n security interest that:\n (i) is created by a debtor having an interest in the\n minerals before extraction; and\n (ii) attaches to the minerals as extracted; or\n (B) accounts arising out of the sale at the wellhead or\n minehead of oil, gas, or other minerals in which the\n debtor had an interest before extraction.\n * (7) "Authenticate" means:\n (A) to sign; or\n (B) with present intent to adopt or accept a record, to\n attach to or logically associate with the record an\n electronic sound, symbol, or process.\n * NB Effective until June 3, 2026\n * (7) Reserved.\n * NB Effective June 3, 2026\n * (7-a) "Assignee", except as used in "assignee for benefit of\n creditors", means a person (A) in whose favor a security\n interest that secures an obligation is created or provided\n for under a security agreement, whether or not the\n obligation is outstanding or (B) to which an account,\n chattel paper, payment intangible, or promissory note has\n been sold. The term includes a person to which a security\n interest has been transferred by a secured party.\n * NB Effective June 3, 2026\n * (7-b) "Assignor" means a person that (A) under a security\n agreement creates or provides for a security interest that\n secures an obligation or (B) sells an account, chattel paper,\n payment intangible, or promissory note. The term includes a\n secured party that has transferred a security interest to\n another person.\n * NB Effective June 3, 2026\n (8) "Bank" means an organization that is engaged in the business\n of banking. The term includes savings banks, savings and loan\n associations, credit unions, and trust companies.\n (9) "Cash proceeds" means proceeds that are money, checks,\n deposit accounts, or the like.\n (10) "Certificate of title" means a certificate of title with\n respect to which a statute provides for the security\n interest in question to be indicated on the certificate as a\n condition or result of the security interest's obtaining\n priority over the rights of a lien creditor with respect to\n the collateral. Such term includes another record maintained\n as an alternative to a certificate of title by the\n governmental unit that issues certificates of title if a\n statute permits the security interest in question to be\n indicated on the record as a condition or result of the\n security interest's obtaining priority over the rights of a\n lien creditor with respect to the collateral.\n * (11) "Chattel paper" means a record or records that evidence\n both a monetary obligation and a security interest in\n specific goods, a security interest in specific goods and\n software used in the goods, a security interest in specific\n goods and license of software used in the goods, a lease of\n specific goods, or a lease of specific goods and license of\n software used in the goods. In this paragraph, "monetary\n obligation" means a monetary obligation secured by the goods\n or owed under a lease of the goods and includes a monetary\n obligation with respect to software used in the goods. The\n term does not include (i) charters or other contracts\n involving the use or hire of a vessel or (ii) records that\n evidence a right to payment arising out of the use of a\n credit or charge card or information contained on or for use\n with the card. If a transaction is evidenced by records that\n include an instrument or series of instruments, the group of\n records taken together constitutes chattel paper.\n * NB Effective until June 3, 2026\n * (11) "Chattel paper" means:\n (A) a right to payment of a monetary obligation secured by\n specific goods, if the right to payment and security\n agreement are evidenced by a record; or\n (B) a right to payment of a monetary obligation owed by a\n lessee under a lease agreement with respect to specific\n goods and a monetary obligation owed by the lessee in\n connection with the transaction giving rise to the lease,\n if:\n (i) the right to payment and lease agreement are evidenced by\n a record; and\n (ii) the predominant purpose of the transaction giving rise\n to the lease was to give the lessee the right to\n possession and use of the goods; but\n (C) does not include a right to payment arising out of a\n charter or other contract involving the use or hire of a\n vessel or a right to payment arising out of the use of a\n credit or charge card or information contained on or for\n use with the card.\n * NB Effective June 3, 2026\n (11-a) "Check" means (i) a draft, other than a documentary draft,\n payable on demand and drawn on a bank or (ii) a cashier's\n check or a teller's check. An instrument may be a check\n even though it is described on its face by another term,\n such as "money order". An instrument that (i) meets all of\n the requirements stated in Article 3 of this chapter to be\n a negotiable instrument other than stating that it is\n payable to order or bearer and (ii) otherwise qualifies as\n a check is a negotiable instrument and a check.\n (12) "Collateral" means the property subject to a security\n interest or agricultural lien. The term includes:\n (A) proceeds to which a security interest attaches;\n (B) accounts, chattel paper, payment intangibles, and\n promissory notes that have been sold; and\n (C) goods that are the subject of a consignment.\n (13) "Commercial tort claim" means a claim arising in tort with\n respect to which:\n (A) the claimant is an organization; or\n (B) the claimant is an individual and the claim:\n (i) arose in the course of the claimant's business or\n profession; and\n (ii) does not include damages arising out of personal\n injury to or the death of an individual.\n (14) "Commodity account" means an account maintained by a\n commodity intermediary in which a commodity contract is\n carried for a commodity customer.\n (15) "Commodity contract" means a commodity futures contract, an\n option on a commodity futures contract, a commodity option,\n or another contract if the contract or option is:\n (A) traded on or subject to the rules of a board of trade\n that has been designated as a contract market for such a\n contract pursuant to federal commodities laws; or\n (B) traded on a foreign commodity board of trade, exchange,\n or market, and is carried on the books of a commodity\n intermediary for a commodity customer.\n (16) "Commodity customer" means a person for which a commodity\n intermediary carries a commodity contract on its books.\n (17) "Commodity intermediary" means a person that:\n (A) is registered as a futures commission merchant under\n federal commodities law; or\n (B) in the ordinary course of its business provides clearance\n or settlement services for a board of trade that has been\n designated as a contract market pursuant to federal\n commodities law.\n (18) "Communicate" means:\n (A) to send a written or other tangible record;\n (B) to transmit a record by any means agreed upon by the\n persons sending and receiving the record; or\n (C) in the case of transmission of a record to or by a filing\n office, to transmit a record by any means prescribed by\n filing-office rule.\n (19) "Consignee" means a merchant to which goods are delivered in\n a consignment.\n (20) "Consignment" means a transaction, regardless of its form,\n in which a person delivers goods to a merchant for the\n purpose of sale and:\n (A) the merchant:\n (i) deals in goods of that kind under a name other than\n the name of the person making delivery;\n (ii) is not an auctioneer; and\n (iii) is not generally known by its creditors to be\n substantially engaged in selling the goods of\n others;\n (B) with respect to each delivery, the aggregate value of the\n goods is $1,000 or more at the time of delivery;\n (C) the goods are not consumer goods immediately before\n delivery; and\n (D) the transaction does not create a security interest that\n secures an obligation.\n (21) "Consignor" means a person that delivers goods to a\n consignee in a consignment.\n (22) "Consumer debtor" means a debtor in a consumer transaction.\n (23) "Consumer goods" means goods that are used or bought for use\n primarily for personal, family, or household purposes.\n (24) "Consumer-goods transaction" means a consumer transaction in\n which:\n (A) an individual incurs an obligation primarily for\n personal, family, or household purposes; and\n (B) a security interest in consumer goods secures the\n obligation.\n (25) "Consumer obligor" means an obligor who is an individual and\n who incurred the obligation as part of a transaction entered\n into primarily for personal, family, or household purposes.\n (26) "Consumer transaction" means a transaction in which (i) an\n individual incurs an obligation primarily for personal,\n family, or household purposes, (ii) a security interest\n secures the obligation, and (iii) the collateral is held or\n acquired primarily for personal, family, or household\n purposes. The term includes consumer-goods transactions.\n (27) "Continuation statement" means an amendment of a financing\n statement which:\n (A) identifies, by its file number, the initial financing\n statement to which it relates; and\n (B) indicates that it is a continuation statement for, or\n that it is filed to continue the effectiveness of, the\n identified financing statement.\n * (27-a) "Cooperative addendum" means a record that satisfies\n Section 9--502(e).\n * NB Effective until June 3, 2026\n * (27-a) "Controllable account" means an account evidenced by a\n controllable electronic record that provides that the\n account debtor undertakes to pay the person that has\n control under Section 12--105 of the controllable\n electronic record.\n * NB Effective June 3, 2026\n * (27-b) "Cooperative interest" means an ownership interest in a\n cooperative organization, which interest, when created, is\n coupled with possessory rights of a proprietary nature in\n identified physical space belonging to the cooperative\n organization. A subsequent termination of the possessory\n rights shall not cause an ownership interest to cease\n being a cooperative interest.\n * NB Effective until June 3, 2026\n * (27-b) "Controllable payment intangible" means a payment\n intangible evidenced by a controllable electronic record\n that provides that the account debtor undertakes to pay\n the person that has control under Section 12--105 of the\n controllable electronic record.\n * NB Effective June 3, 2026\n * (27-c) "Cooperative organization" means an organization which\n has as its principal asset an interest in real property in\n this state and in which organization all ownership\n interests are cooperative interests.\n * NB Effective until June 3, 2026\n * (27-c) "Cooperative addendum" means a record that satisfies\n Section 9--502(e).\n * NB Effective June 3, 2026\n * (27-d) "Cooperative organization security interest" means a\n security interest which is in a cooperative interest, is\n in favor of the cooperative organization, is created by\n the cooperative record, and secures only obligations\n incident to ownership of that cooperative interest.\n * NB Effective until June 3, 2026\n * (27-d) "Cooperative interest" means an ownership interest in a\n cooperative organization, which interest, when created, is\n coupled with possessory rights of a proprietary nature in\n identified physical space belonging to the cooperative\n organization. A subsequent termination of the possessory\n rights shall not cause an ownership interest to cease\n being a cooperative interest.\n * NB Effective June 3, 2026\n * (27-e) "Cooperative record" means those records which, as a\n whole, evidence cooperative interests and define the\n mutual rights and obligations of the owners of the\n cooperative interests and the cooperative organization.\n * NB Effective until June 3, 2026\n * (27-e) "Cooperative organization" means an organization which\n has as its principal asset an interest in real property in\n this state and in which organization all ownership\n interests are cooperative interests.\n * NB Effective June 3, 2026\n * (27-f) "Cooperative unit" means the physical space associated\n with a cooperative interest.\n * NB Effective until June 3, 2026\n * (27-f) "Cooperative organization security interest" means a\n security interest which is in a cooperative interest, is\n in favor of the cooperative organization, is created by\n the cooperative record, and secures only obligations\n incident to ownership of that cooperative interest.\n * NB Effective June 3, 2026\n * (27-g) "Cooperative record" means those records which, as a\n whole, evidence cooperative interests and define the\n mutual rights and obligations of the owners of the\n cooperative interests and the cooperative organization.\n * NB Effective June 3, 2026\n * (27-h) "Cooperative unit" means the physical space associated\n with a cooperative interest.\n * NB Effective June 3, 2026\n (28) "Debtor" means:\n (A) a person having an interest, other than a security\n interest or other lien, in the collateral, whether or not\n the person is an obligor;\n (B) a seller of accounts, chattel paper, payment intangibles,\n or promissory notes; or\n (C) a consignee.\n (29) "Deposit account" means a demand, time, savings, passbook,\n or similar account maintained with a bank. The term does not\n include investment property or accounts evidenced by an\n instrument.\n (30) "Document" means a document of title or a receipt of the\n type described in Section 7--201 (b).\n * (31) "Electronic chattel paper" means chattel paper evidenced\n by a record or records consisting of information stored in\n an electronic medium.\n * NB Effective until June 3, 2026\n * (31) Reserved.\n * NB Effective June 3, 2026\n * (31-a) "Electronic money" means money in an electronic form.\n * NB Effective June 3, 2026\n (32) "Encumbrance" means a right, other than an ownership\n interest, in real property. The term includes mortgages and\n other liens on real property.\n (33) "Equipment" means goods other than inventory, farm products,\n or consumer goods.\n (34) "Farm products" means goods, other than standing timber,\n with respect to which the debtor is engaged in a farming\n operation and which are:\n (A) crops grown, growing, or to be grown, including:\n (i) crops produced on trees, vines, and bushes; and\n (ii) aquatic goods produced in aquacultural operations;\n (B) livestock, born or unborn, including aquatic goods\n produced in aquacultural operations;\n (C) supplies used or produced in a farming operation; or\n (D) products of crops or livestock in their unmanufactured\n states.\n (35) "Farming operation" means raising, cultivating, propagating,\n fattening, grazing, or any other farming, livestock, or\n aquacultural operation.\n (36) "File number" means the number assigned to an initial\n financing statement pursuant to Section 9--519(a).\n (37) "Filing office" means an office designated in Section 9--501\n as the place to file a financing statement.\n (38) "Filing-office rule" means a rule adopted pursuant to\n Section 9--526.\n (39) "Financing statement" means a record or records composed of\n an initial financing statement and any filed record relating\n to the initial financing statement.\n (40) "Fixture filing" means the filing of a financing statement\n covering goods that are or are to become fixtures and\n satisfying Section 9--502(a) and (b). The term includes the\n filing of a financing statement covering goods of a\n transmitting utility which are or are to become fixtures.\n (41) "Fixtures" means goods that have become so related to\n particular real property that an interest in them arises\n under real property law.\n * (42) "General intangible" means any personal property,\n including things in action, other than accounts, chattel\n paper, commercial tort claims, deposit accounts, documents,\n goods, instruments, investment property, letter-of-credit\n rights, letters of credit, money, and oil, gas, or other\n minerals before extraction. The term includes payment\n intangibles and software.\n * NB Effective until June 3, 2026\n * (42) "General intangible" means any personal property,\n including things in action, other than accounts, chattel\n paper, commercial tort claims, deposit accounts, documents,\n goods, instruments, investment property, letter-of-credit\n rights, letters of credit, money, and oil, gas, or other\n minerals before extraction. The term includes controllable\n electronic records, payment intangibles and software.\n * NB Effective June 3, 2026\n (43) "Good faith" means honesty in fact and the observance of\n reasonable commercial standards of fair dealing.\n (44) "Goods" means all things that are movable when a security\n interest attaches. The term includes (i) fixtures, (ii)\n standing timber that is to be cut and removed under a\n conveyance or contract for sale, (iii) the unborn young of\n animals, (iv) crops grown, growing, or to be grown, even if\n the crops are produced on trees, vines, or bushes, and (v)\n manufactured homes. The term also includes a computer\n program embedded in goods and any supporting information\n provided in connection with a transaction relating to the\n program if (i) the program is associated with the goods in\n such a manner that it customarily is considered part of the\n goods, or (ii) by becoming the owner of the goods, a person\n acquires a right to use the program in connection with the\n goods. The term does not include a computer program embedded\n in goods that consists solely of the medium in which the\n program is embedded. The term also does not include\n accounts, chattel paper, commercial tort claims, deposit\n accounts, documents, general intangibles, instruments,\n investment property, letter-of-credit rights, letters of\n credit, money, or oil, gas, or other minerals before\n extraction.\n (45) "Governmental unit" means a subdivision, agency, department,\n county, parish, municipality, or other unit of the\n government of the United States, a state, or a foreign\n country. The term includes an organization having a separate\n corporate existence if the organization is eligible to issue\n debt on which interest is exempt from income taxation under\n the laws of the United States.\n (46) "Health-care-insurance receivable" means an interest in or\n claim under a policy of insurance which is a right to\n payment of a monetary obligation for health-care goods or\n services provided or to be provided.\n * (47) "Instrument" means a negotiable instrument or any other\n writing that evidences a right to the payment of a monetary\n obligation, is not itself a security agreement or lease, and\n is of a type that in ordinary course of business is\n transferred by delivery with any necessary indorsement or\n assignment. The term does not include (i) investment\n property, (ii) letters of credit, or (iii) writings that\n evidence a right to payment arising out of the use of a\n credit or charge card or information contained on or for use\n with the card.\n * NB Effective until June 3, 2026\n * (47) "Instrument" means a negotiable instrument or any other\n writing that evidences a right to the payment of a monetary\n obligation, is not itself a security agreement or lease, and\n is of a type that in ordinary course of business is\n transferred by delivery with any necessary indorsement or\n assignment. The term does not include (i) investment\n property, (ii) letters of credit, (iii) writings that\n evidence a right to payment arising out of the use of a\n credit or charge card or information contained on or for use\n with the card, or (iv) writings that evidence chattel paper.\n * NB Effective June 3, 2026\n (48) "Inventory" means goods, other than farm products, which:\n (A) are leased by a person as lessor;\n (B) are held by a person for sale or lease or to be furnished\n under a contract of service;\n (C) are furnished by a person under a contract of service; or\n (D) consist of raw materials, work in process, or materials\n used or consumed in a business.\n (49) "Investment property" means a security, whether certificated\n or uncertificated, security entitlement, securities account,\n commodity contract, or commodity account.\n (50) "Jurisdiction of organization", with respect to a registered\n organization, means the jurisdiction under whose law the\n organization is formed or organized.\n (51) "Letter-of-credit right" means a right to payment or\n performance under a letter of credit, whether or not the\n beneficiary has demanded or is at the time entitled to\n demand payment or performance. The term does not include the\n right of a beneficiary to demand payment or performance\n under a letter of credit.\n (52) "Lien creditor" means:\n (A) a creditor that has acquired a lien on the property\n involved by attachment, levy, or the like;\n (B) an assignee for benefit of creditors from the time of\n assignment;\n (C) a trustee in bankruptcy from the date of the filing of\n the petition; or\n (D) a receiver in equity from the time of appointment.\n (53) "Manufactured home" means a structure, transportable in one\n or more sections, which, in the traveling mode, is eight\n body feet or more in width or 40 body feet or more in\n length, or, when erected on site, is 320 or more square\n feet, and which is built on a permanent chassis and designed\n to be used as a dwelling with or without a permanent\n foundation when connected to the required utilities, and\n includes the plumbing, heating, air-conditioning, and\n electrical systems contained therein. The term includes any\n structure that meets all of the requirements of this\n paragraph except the size requirements and with respect to\n which the manufacturer voluntarily files a certification\n required by the United States Secretary of Housing and Urban\n Development and complies with the standards established\n under Title 42 of the United States Code.\n (54) "Manufactured-home transaction" means a secured transaction:\n (A) that creates a purchase-money security interest in a\n manufactured home, other than a manufactured home held as\n inventory; or\n (B) in which a manufactured home, other than a manufactured\n home held as inventory, is the primary collateral.\n * (54-a) "Money" has the same meaning as in Section\n 1--201(b)(24), but does not include (A) a deposit account or\n (B) money in an electronic form that cannot be subjected to\n control under Section 9-105A.\n * NB Effective June 3, 2026\n (55) "Mortgage" means a consensual interest in real property,\n including fixtures, which secures payment or performance of\n an obligation.\n (56) "New debtor" means a person that becomes bound as debtor\n under Section 9--203(d) by a security agreement previously\n entered into by another person.\n (57) "New value" means (i) money, (ii) money's worth in property,\n services, or new credit, or (iii) release by a transferee of\n an interest in property previously transferred to the\n transferee. The term does not include an obligation\n substituted for another obligation.\n (58) "Noncash proceeds" means proceeds other than cash proceeds.\n (59) "Obligor" means a person that, with respect to an obligation\n secured by a security interest in or an agricultural lien on\n the collateral, (i) owes payment or other performance of the\n obligation, (ii) has provided property other than the\n collateral to secure payment or other performance of the\n obligation, or (iii) is otherwise accountable in whole or in\n part for payment or other performance of the obligation. The\n term does not include issuers or nominated persons under a\n letter of credit.\n (60) "Original debtor", except as used in Section 9--310(c),\n means a person that, as debtor, entered into a security\n agreement to which a new debtor has become bound under\n Section 9--203(d).\n (60-a) "Payment assurance device" means any device installed in a\n vehicle that can be used to remotely disable the vehicle.\n * (61) "Payment intangible" means a general intangible under\n which the account debtor's principal obligation is a\n monetary obligation.\n * NB Effective until June 3, 2026\n * (61) "Payment intangible" means a general intangible under\n which the account debtor's principal obligation is a\n monetary obligation. The term includes a controllable\n payment intangible.\n * NB Effective until June 3, 2026\n (62) "Person related to", with respect to an individual, means:\n (A) the spouse of the individual;\n (B) a brother, brother-in-law, sister, or sister-in-law of\n the individual;\n (C) an ancestor or lineal descendant of the individual or the\n individual's spouse; or\n (D) any other relative, by blood or marriage, of the\n individual or the individual's spouse who shares the same\n home with the individual.\n (63) "Person related to", with respect to an organization, means:\n (A) a person directly or indirectly controlling, controlled\n by, or under common control with the organization;\n (B) an officer or director of, or a person performing similar\n functions with respect to, the organization;\n (C) an officer or director of, or a person performing similar\n functions with respect to, a person described in\n subparagraph (A);\n (D) the spouse of an individual described in subparagraph\n (A), (B), or (C); or\n (E) an individual who is related by blood or marriage to an\n individual described in subparagraph (A), (B), (C), or\n (D) and shares the same home with the individual.\n (64) "Proceeds", except as used in Section 9--609(b), means the\n following property:\n (A) Whatever is acquired upon the sale, lease, license,\n exchange, or other disposition of collateral;\n (B) whatever is collected on, or distributed on account of,\n collateral;\n (C) rights arising out of collateral;\n (D) to the extent of the value of collateral, claims arising\n out of the loss, nonconformity, or interference with the\n use of, defects or infringement of rights in, or damage\n to, the collateral; or\n (E) to the extent of the value of collateral and to the\n extent payable to the debtor or the secured party,\n insurance payable by reason of the loss or nonconformity\n of, defects or infringement of rights in, or damage to,\n the collateral.\n (65) "Promissory note" means an instrument that evidences a\n promise to pay a monetary obligation, does not evidence an\n order to pay, and does not contain an acknowledgment by a\n bank that the bank has received for deposit a sum of money\n or funds.\n * (66) "Proposal" means a record authenticated by a secured party\n which includes the terms on which the secured party is\n willing to accept collateral in full or partial satisfaction\n of the obligation it secures pursuant to Sections 9--620,\n 9--621, and 9--622.\n * NB Effective until June 3, 2026\n * (66) "Proposal" means a record signed by a secured party which\n includes the terms on which the secured party is willing to\n accept collateral in full or partial satisfaction of the\n obligation it secures pursuant to Sections 9--620, 9--621,\n and 9--622.\n * NB Effective June 3, 2026\n * (66-a) "Prove" with respect to a fact means to meet the burden\n of establishing the fact (Section 1-201(8)).\n * NB Effective until June 3, 2026\n * (66-a) "Prove" with respect to a fact means to meet the burden\n of establishing the fact (Section 1--201(b)(8)).\n * NB Effective June 3, 2026\n (67) "Public-finance transaction" means a secured transaction in\n connection with which:\n (A) debt securities are issued;\n (B) all or a portion of the securities issued have an initial\n stated maturity of at least 20 years; and\n (C) the debtor, obligor, secured party, account debtor or\n other person obligated on collateral, assignor or\n assignee of a secured obligation, or assignor or assignee\n of a security interest is a state or a governmental unit\n of a state.\n (68) "Public organic record" means a record that is available to\n the public for inspection and is:\n (A) a record consisting of the record initially filed with or\n issued by a state or the United States to form or\n organize an organization and any record filed with or\n issued by the state or the United States which amends or\n restates the initial record;\n (B) an organic record of a business trust consisting of the\n record initially filed with a state and any record filed\n with the state which amends or restates the initial\n record, if a statute of the state governing business\n trusts requires that the record be filed with the state;\n or\n (C) a record consisting of legislation enacted by the\n legislature of a state or the Congress of the United\n States which forms or organizes an organization, any\n record amending the legislation, and any record filed\n with or issued by the state or the United States which\n amends or restates the name of the organization.\n (69) "Pursuant to commitment", with respect to an advance made or\n other value given by a secured party, means pursuant to the\n secured party's obligation, whether or not a subsequent\n event of default or other event not within the secured\n party's control has relieved or may relieve the secured\n party from its obligation.\n (70) "Record", except as used in "for record", "of record",\n "record or legal title", and "record owner", means\n information that is inscribed on a tangible medium or which\n is stored in an electronic or other medium and is\n retrievable in perceivable form.\n (71) "Registered organization" means an organization formed or\n organized solely under the law of a single state or the\n United States by the filing of a public organic record with,\n the issuance of a public organic record by, or the enactment\n of legislation by the state or the United States. The term\n includes a business trust that is formed or organized under\n the law of a single state if a statute of the state\n governing business trusts requires that the business trust's\n organic record be filed with the state.\n (72) "Secondary obligor" means an obligor to the extent that:\n (A) the obligor's obligation is secondary; or\n (B) the obligor has a right of recourse with respect to an\n obligation secured by collateral against the debtor,\n another obligor, or property of either.\n (73) "Secured party" means:\n (A) a person in whose favor a security interest is created or\n provided for under a security agreement, whether or not\n any obligation to be secured is outstanding;\n (B) a person that holds an agricultural lien;\n (C) a consignor;\n (D) a person to which accounts, chattel paper, payment\n intangibles, or promissory notes have been sold;\n (E) a trustee, indenture trustee, agent, collateral agent, or\n other representative in whose favor a security interest\n or agricultural lien is created or provided for; or\n (F) a person that holds a security interest arising under\n Section 2--401, 2--505, 2--711(3), 2-A-508(5), 4--210, or\n 5--118.\n (74) "Security agreement" means an agreement that creates or\n provides for a security interest. A cooperative record that\n provides that the owner of a cooperative interest has an\n obligation to pay amounts to the cooperative organization\n incident to ownership of that cooperative interest and which\n states that the cooperative organization has a direct remedy\n against that cooperative interest if such amounts are not\n paid is a security agreement creating a cooperative\n organization security interest.\n * (75) "Send", in connection with a record or notification,\n means:\n (A) to deposit in the mail, deliver for transmission, or\n transmit by any other usual means of communication, with\n postage or cost of transmission provided for, addressed\n to any address reasonable under the circumstances; or\n (B) to cause the record or notification to be received within\n the time that it would have been received if properly\n sent under subparagraph (A).\n * NB Effective until June 3, 2026\n * (75) Reserved.\n * NB Effective June 3, 2026\n (76) "Software" means a computer program and any supporting\n information provided in connection with a transaction\n relating to the program. The term does not include a\n computer program that is included in the definition of\n goods.\n (77) "State" means a state of the United States, the District of\n Columbia, Puerto Rico, the United States Virgin Islands, or\n any territory or insular possession subject to the\n jurisdiction of the United States.\n (78) "Supporting obligation" means a letter-of-credit right or\n secondary obligation that supports the payment or\n performance of an account, chattel paper, a document, a\n general intangible, an instrument, or investment property.\n * (79) "Tangible chattel paper" means chattel paper evidenced by\n a record or records consisting of information that is\n inscribed on a tangible medium.\n * NB Effective until June 3, 2026\n * (79) Reserved.\n * NB Effective June 3, 2026\n * (79-a) "Tangible money" means money in a tangible form.\n * NB Effective June 3, 2026\n (80) "Termination statement" means an amendment of a financing\n statement which:\n (A) identifies, by its file number, the initial financing\n statement to which it relates; and\n (B) indicates either that it is a termination statement or\n that the identified financing statement is no longer\n effective.\n (81) "Transmitting utility" means a person primarily engaged in\n the business of:\n (A) operating a railroad, subway, street railway, or trolley\n bus;\n (B) transmitting communications electrically,\n electromagnetically, or by light;\n (C) transmitting goods by pipeline or sewer; or\n (D) transmitting or producing and transmitting electricity,\n steam, gas, or water.\n (b) Definitions in other articles. The following definitions in other\narticles apply to this article:\n "Applicant" Section 5--102.\n "Beneficiary" Section 5--102.\n "Broker" Section 8--102.\n "Certificated security" Section 8--102.\n "Clearing corporation" Section 8--102.\n "Contract for sale" Section 2--106.\n "Control" (with respect to a document Section 7--106.\n of title)\n * "Controllable electronic record" Section 12--102.\n * NB Effective June 3, 2026\n "Customer" Section 4--104.\n "Entitlement holder" Section 8--102.\n "Financial asset" Section 8--102.\n "Holder in due course" Section 3--302.\n "Issuer" (with respect to a letter of\n credit or letter-of-credit right) Section 5--102.\n "Issuer" (with respect to a security) Section 8--201.\n "Issuer" (with respect to document of title) Section 7--102.\n "Lease" Section 2-A-103.\n "Lease agreement" Section 2-A-103.\n "Lease contract" Section 2-A-103.\n "Leasehold interest" Section 2-A-103.\n "Lessee" Section 2-A-103.\n "Lessee in ordinary course of business" Section 2-A-103.\n "Lessor" Section 2-A-103.\n "Lessor's residual interest" Section 2-A-103.\n "Letter of credit" Section 5--102.\n "Merchant" Section 2--104.\n "Negotiable instrument" Section 3--104.\n "Nominated person" Section 5--102.\n "Note" Section 3--104.\n "Proceeds of a letter of credit" Section 5--114.\n * "Protected purchaser" Section 8--303.\n * NB Effective June 3, 2026\n "Prove" Section 4-A-105.\n * "Qualifying purchaser" Section 12--102.\n * NB Effective June 3, 2026\n "Sale" Section 2--106.\n "Securities account" Section 8--501.\n "Securities intermediary" Section 8--102.\n "Security" Section 8--102.\n "Security certificate" Section 8--102.\n "Security entitlement" Section 8--102.\n "Uncertificated security" Section 8--102.\n (c) Article 1 definitions and principles. Article 1 contains general\ndefinitions and principles of construction and interpretation applicable\nthroughout this article.\n