TITLE 27

TITLE 27.Â UNIFORM COMMERCIAL CODE

Chapter

Â Â 490 Uniform Commercial Code

CHAPTER 490

UNIFORM COMMERCIAL CODE

ARTICLE 1.Â GENERAL PROVISIONS

Â Â Â Â Â Â Â Part 1.Â General Provisions

Section

Â Â Â 490:1-101 Short title

Â Â Â 490:1-102 Scope of article

Â Â Â 490:1-103 Construction of chapter to promote its purposes

Â Â Â Â Â Â Â Â Â Â Â Â Â and policies; applicability of supplemental

Â Â Â Â Â Â Â Â Â Â Â Â Â principles of law

Â Â Â 490:1-104 Construction against implied repeal

Â Â Â 490:1-105 Severability

Â Â Â 490:1-106 Use of singular and plural; gender

Â Â Â 490:1-107 Section captions

Â Â Â 490:1-108 Relation to Electronic Signatures in Global and

Â Â Â Â Â Â Â Â Â Â Â Â Â National Commerce Act

Â Â Â Â Â Â Â Part 2.Â General Definitions and Principles of

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Interpretation

Â Â Â 490:1-201 General definitions

Â Â Â 490:1-202 Notice; knowledge

Â Â Â 490:1-203 Lease distinguished from security interest

Â Â Â 490:1-204 Value

Â Â Â 490:1-205 Reasonable time; seasonableness

Â Â Â 490:1-206 Presumptions

Â Â Â Â Â Â Â Part 3.Â Territorial Applicability and General Rules

Â Â Â 490:1-301 Territorial applicability; parties' power to

Â Â Â Â Â Â Â Â Â Â Â Â Â choose applicable law

Â Â Â 490:1-302 Variation by agreement

Â Â Â 490:1-303 Course of performance, course of dealing, and

Â Â Â Â Â Â Â Â Â Â Â Â Â usage of trade

Â Â Â 490:1-304 Obligation of good faith

Â Â Â 490:1-305 Remedies to be liberally administered

Â Â Â 490:1-306 Waiver or renunciation of claim or right after

Â Â Â Â Â Â Â Â Â Â Â Â Â breach

Â Â Â 490:1-307 Prima facie evidence by third-party documents

Â Â Â 490:1-308 Performance or acceptance under reservation of

Â Â Â Â Â Â Â Â Â Â Â Â Â rights

Â Â Â 490:1-309 Option to accelerate at will

Â Â Â 490:1-310 Subordinated obligations

ARTICLE 2.Â SALES

Â Â Â Â Â Â Â Part 1.Â Short Title, General Construction and

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Subject Matter

Â Â Â 490:2-101 Short title

Â Â Â 490:2-102 Scope; certain security and other transactions

Â Â Â Â Â Â Â Â Â Â Â Â Â excluded from this article

Â Â Â 490:2-103 Definitions and index of definitions

Â Â Â 490:2-104 Definitions:Â "merchant"; "between merchants";

Â Â Â Â Â Â Â Â Â Â Â Â Â "financing agency"

Â Â Â 490:2-105 Definitions:Â transferability; "goods"; "future"

Â Â Â Â Â Â Â Â Â Â Â Â Â goods; "lot"; "commercial unit"

Â Â Â 490:2-106 Definitions:Â "contract"; "agreement"; "contract

Â Â Â Â Â Â Â Â Â Â Â Â Â for sale"; "sale"; "present sale"; "conforming" to

Â Â Â Â Â Â Â Â Â Â Â Â Â contract; "termination"; "cancellation"; "hybrid

Â Â Â Â Â Â Â Â Â Â Â Â Â transaction"

Â Â Â 490:2-107 Goods to be severed from realty:Â recording

Â Â Â Â Â Â Â Part 2.Â Form, Formation and Readjustment of Contract

Â Â Â 490:2-201 Formal requirements; statute of frauds

Â Â Â 490:2-202 Final expression:Â parol or extrinsic

Â Â Â Â Â Â Â Â Â Â Â Â Â evidence

Â Â Â 490:2-203 Seals inoperative

Â Â Â 490:2-204 Formation in general

Â Â Â 490:2-205 Firm offers

Â Â Â 490:2-206 Offer and acceptance in formation of contract

Â Â Â 490:2-207 Additional terms in acceptance or confirmation

Â Â Â 490:2-208 Repealed

Â Â Â 490:2-209 Modification, rescission, and waiver

Â Â Â 490:2-210 Delegation of performance; assignment of rights

Â Â Â Â Â Â Â Part 3.Â General Obligation and Construction of

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Contract

Â Â Â 490:2-301 General obligation of parties

Â Â Â 490:2-302 Unconscionable contract or clause

Â Â Â 490:2-303 Allocation or division of risks

Â Â Â 490:2-304 Price payable in money, goods, realty or otherwise

Â Â Â 490:2-305 Open price term

Â Â Â 490:2-306 Output, requirements and exclusive dealings

Â Â Â 490:2-307 Delivery in single lot or several lots

Â Â Â 490:2-308 Absence of specified place for delivery

Â Â Â 490:2-309 Absence of specific time provisions; notice of

Â Â Â Â Â Â Â Â Â Â Â Â Â termination

Â Â Â 490:2-310 Open time for payment or running of credit;

Â Â Â Â Â Â Â Â Â Â Â Â Â authority to ship under reservation

Â Â Â 490:2-311 Options and cooperation respecting performance

Â Â Â 490:2-312 Warranty of title and against infringement;

Â Â Â Â Â Â Â Â Â Â Â Â buyer's obligation against infringement

Â Â Â 490:2-313 Express warranties by affirmation, promise,

Â Â Â Â Â Â Â Â Â Â Â Â Â description, sample

Â 490:2-313.1, 313.2 Repealed

Â Â Â 490:2-314 Implied warranty:Â merchantability; usage of trade

Â Â Â 490:2-315 Implied warranty:Â fitness for particular purpose

Â Â Â 490:2-316 Exclusion or modification of warranties

Â Â Â 490:2-317 Cumulation and conflict of warranties express or

Â Â Â Â Â Â Â Â Â Â Â Â Â implied

Â Â Â 490:2-318 Third party beneficiaries of warranties express or

Â Â Â Â Â Â Â Â Â Â Â Â Â implied

Â Â Â 490:2-319 F.O.B. and F.A.S. terms

Â Â Â 490:2-320 C.I.F. and C. & F. terms

Â Â Â 490:2-321 C.I.F. or C. & F.:Â "net landed weights"; "payment

Â Â Â Â Â Â Â Â Â Â Â Â Â on arrival"; warranty of condition on arrival

Â Â Â 490:2-322 Delivery "ex-ship"

Â Â Â 490:2-323 Form of bill of lading required in overseas

Â Â Â Â Â Â Â Â Â Â Â Â Â shipment; "overseas"

Â Â Â 490:2-324 "No arrival, no sale" term

Â Â Â 490:2-325 "Letter of credit" term; "confirmed credit"

Â Â Â 490:2-326 Sale on approval and sale or return;

Â Â Â Â Â Â Â Â Â Â Â Â Â rights of creditors

Â Â Â 490:2-327 Special incidents of sale on approval and

Â Â Â Â Â Â Â Â Â Â Â Â Â sale or return

Â Â Â 490:2-328 Sale by auction

Â Â Â Â Â Â Â Part 4.Â Title, Creditors and Good Faith Purchasers

Â Â Â 490:2-401 Passing of title; reservation for security;

Â Â Â Â Â Â Â Â Â Â Â Â Â limited application of this section

Â Â Â 490:2-402 Rights of seller's creditors against sold goods

Â Â Â 490:2-403 Power to transfer; good faith purchase of goods;

Â Â Â Â Â Â Â Â Â Â Â Â Â "entrusting"

Â Â Â Â Â Â Â Part 5.Â Performance

Â Â Â 490:2-501 Insurable interest in goods; manner of

Â Â Â Â Â Â Â Â Â Â Â Â Â identification of goods

Â Â Â 490:2-502 Buyer's right to goods on seller's repudiation,

Â Â Â Â Â Â Â Â Â Â Â Â Â failure to deliver, or insolvency

Â Â Â 490:2-503 Manner of seller's tender of delivery

Â Â Â 490:2-504 Shipment by seller

Â Â Â 490:2-505 Seller's shipment under reservation

Â Â Â 490:2-506 Rights of financing agency

Â Â Â 490:2-507 Effect of seller's tender; delivery on condition

Â Â Â 490:2-508 Cure by seller of improper tender or delivery;

Â Â Â Â Â Â Â Â Â Â Â Â Â replacement

Â Â Â 490:2-509 Risk of loss in the absence of breach

Â Â Â 490:2-510 Effect of breach on risk of loss

Â Â Â 490:2-511 Tender of payment by buyer; payment by check

Â Â Â 490:2-512 Payment by buyer before inspection

Â Â Â 490:2-513 Buyer's right to inspection of goods

Â Â Â 490:2-514 When documents deliverable on acceptance; when on

Â Â Â Â Â Â Â Â Â Â Â Â Â payment

Â Â Â 490:2-515 Preserving evidence of goods in dispute

Â Â Â Â Â Â Â Part 6.Â Breach, Repudiation and Excuse

Â Â Â 490:2-601 Buyer's rights on improper delivery

Â Â Â 490:2-602 Manner and effect of rightful rejection

Â Â Â 490:2-603 Merchant buyer's duties as to rightfully rejected

Â Â Â Â Â Â Â Â Â Â Â Â Â goods

Â Â Â 490:2-604 Buyer's options as to salvage of rightfully

Â Â Â Â Â Â Â Â Â Â Â Â Â rejected goods

Â Â Â 490:2-605 Waiver of buyer's objections by failure to

Â Â Â Â Â Â Â Â Â Â Â Â Â particularize

Â Â Â 490:2-606 What constitutes acceptance of goods

Â Â Â 490:2-607 Effect of acceptance; notice of breach; burden of

Â Â Â Â Â Â Â Â Â Â Â Â Â establishing breach after acceptance; notice of

Â Â Â Â Â Â Â Â Â Â Â Â Â claim or litigation to person answerable over

Â Â Â 490:2-608 Revocation of acceptance in whole or in part

Â Â Â 490:2-609 Right to adequate assurance of performance

Â Â Â 490:2-610 Anticipatory repudiation

Â Â Â 490:2-611 Retraction of anticipatory repudiation

Â Â Â 490:2-612 "Installment contract"; breach

Â Â Â 490:2-613 Casualty to identified goods

Â Â Â 490:2-614 Substituted performance

Â Â Â 490:2-615 Excuse by failure of presupposed conditions

Â Â Â 490:2-616 Procedure on notice claiming excuse

Â Â Â Â Â Â Â Part 7.Â Remedies

Â Â Â 490:2-701 Remedies for breach of collateral contracts not

Â Â Â Â Â Â Â Â Â Â Â Â Â impaired

Â Â Â 490:2-702 Seller's remedies on discovery of buyer's

Â Â Â Â Â Â Â Â Â Â Â Â Â insolvency

Â Â Â 490:2-703 Seller's remedies in general

Â Â Â 490:2-704 Seller's right to identify goods to the contract

Â Â Â Â Â Â Â Â Â Â Â Â Â notwithstanding breach or to salvage unfinished

Â Â Â Â Â Â Â Â Â Â Â Â Â goods

Â Â Â 490:2-705 Seller's stoppage of delivery in transit or

Â Â Â Â Â Â Â Â Â Â Â Â Â otherwise

Â Â Â 490:2-706 Seller's resale including contract for resale

Â Â Â 490:2-707 "Person in the position of a seller"

Â Â Â 490:2-708 Seller's damages for nonacceptance or repudiation

Â Â Â 490:2-709 Action for the price

Â Â Â 490:2-710 Seller's incidental damages

Â Â Â 490:2-711 Buyer's remedies in general; buyer's security

Â Â Â Â Â Â Â Â Â Â Â Â Â interest in rejected goods

Â Â Â 490:2-712 "Cover"; buyer's procurement of substitute goods

Â Â Â 490:2-713 Buyer's damages for nondelivery or repudiation

Â Â Â 490:2-714 Buyer's damages for breach in regard to accepted

Â Â Â Â Â Â Â Â Â Â Â Â Â goods

Â Â Â 490:2-715 Buyer's incidental and consequential damages

Â Â Â 490:2-716 Buyer's right to specific performance or replevin

Â Â Â 490:2-717 Deduction of damages from the price

Â Â Â 490:2-718 Liquidation or limitation of damages; deposits

Â Â Â 490:2-719 Contractual modification or limitation of remedy

Â Â Â 490:2-720 Effect of "cancellation" or "rescission" on claims

Â Â Â Â Â Â Â Â Â Â Â Â Â for antecedent breach

Â Â Â 490:2-721 Remedies for fraud

Â Â Â 490:2-722 Who can sue third parties for injury to goods

Â Â Â 490:2-723 Proof of market price; time and place

Â Â Â 490:2-724 Admissibility of market quotations

Â Â Â 490:2-725 Statute of limitations in contracts for sale

ARTICLE 2A.Â LEASES

Â Â Â Â Â Â Â Part 1.Â General Provisions

Â Â 490:2A-101 Short title

Â Â 490:2A-102 Scope

Â Â 490:2A-103 Definitions and index of definitions

Â Â Â 490:2A-104 Leases subject to other law

Â Â Â 490:2A-105 Territorial application of article to goods

Â Â Â Â Â Â Â Â Â Â Â Â Â covered by certificate of title

Â Â Â 490:2A-106 Limitation on power of parties to consumer lease

Â Â Â Â Â Â Â Â Â Â Â Â Â to choose applicable law and judicial forum

Â Â Â 490:2A-107 Waiver or renunciation of claim or right after

Â Â Â Â Â Â Â Â Â Â Â Â Â default

Â Â Â 490:2A-108 Unconscionability

Â Â Â 490:2A-109 Option to accelerate at will

Â Â Â Â Â Â Â Part 2.Â Formation and Construction of Lease Contract

Â Â Â 490:2A-201 Statute of frauds

Â Â Â 490:2A-202 Final expression:Â parol or extrinsic

Â Â Â Â Â Â Â Â Â Â Â Â Â evidence

Â Â Â 490:2A-203 Seals inoperative

Â Â 490:2A-204 Formation in general

Â Â 490:2A-205 Firm offers

Â Â 490:2A-206 Offer and acceptance in formation of lease

Â Â Â Â Â Â Â Â Â Â Â Â Â contract

Â Â Â 490:2A-207 Repealed

Â Â Â 490:2A-208 Modification, rescission and waiver

Â Â Â 490:2A-209 Lessee under finance lease as beneficiary of

Â Â Â Â Â Â Â Â Â Â Â Â Â supply contract

Â Â Â 409:2A-210 Express warranties

Â Â 490:2A-211 Warranties against interference and against

Â Â Â Â Â Â Â Â Â Â Â Â Â infringement; lessee's obligation against

Â Â Â Â Â Â Â Â Â Â Â Â Â infringement

Â Â Â 490:2A-212 Implied warranty of merchantability

Â Â 490:2A-213 Implied warranty of fitness for particular purpose

Â Â Â 490:2A-214 Exclusion or modification of warranties

Â Â Â 490:2A-215 Cumulation and conflict of warranties express or

Â Â Â Â Â Â Â Â Â Â Â Â Â implied

Â Â Â 490:2A-216 Third-party beneficiaries of express and implied

Â Â Â Â Â Â Â Â Â Â Â Â Â warranties

Â Â Â 490:2A-217 Identification

Â Â Â 490:2A-218 Insurance and proceeds

Â Â Â 490:2A-219 Risk of loss

Â Â Â 490:2A-220 Effect of default on risk of loss

Â Â Â 490:2A-221 Casualty to identified goods

Â Â Â Â Â Â Â Part 3.Â Effect of Lease Contract

Â Â Â 490:2A-301 Enforceability of lease contract

Â Â Â 490:2A-302 Title to and possession of goods

Â Â 490:2A-303 Alienability of party's interest under lease

Â Â Â Â Â Â Â Â Â Â Â Â Â contract or of lessor's residual interest in

Â Â Â Â Â Â Â Â Â Â Â Â Â goods; delegation of performance; transfer of

Â Â Â Â Â Â Â Â Â Â Â Â Â rights

Â Â Â 490:2A-304 Subsequent lease of goods by lessor

Â Â Â 490:2A-305 Sale or sublease of goods by lessee

Â Â Â 490:2A-306 Priority of certain liens arising by operation of

Â Â Â Â Â Â Â Â Â Â Â Â Â law

Â Â Â 490:2A-307 Priority of liens arising by attachment or levy

Â Â Â Â Â Â Â Â Â Â Â Â Â on, security interests in, and other claims to

Â Â Â Â Â Â Â Â Â Â Â Â Â goods

Â Â Â 490:2A-308 Special rights of creditors

Â Â 490:2A-309 Lessor's and lessee's rights when goods become

Â Â Â Â Â Â Â Â Â Â Â Â Â fixtures

Â Â Â 490:2A-310 Lessor's and lessee's rights when goods become

Â Â Â Â Â Â Â Â Â Â Â Â Â accessions

Â Â Â 490:2A-311 Priority subject to subordination

Â Â Â Â Â Â Â Part 4.Â Performance of Lease Contract:Â Repudiated,

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Substituted, and Excused

Â Â 490:2A-401 Insecurity:Â adequate assurance of performance

Â Â 490:2A-402 Anticipatory repudiation

Â Â Â 490:2A-403 Retraction of anticipatory repudiation

Â Â 490:2A-404 Substituted performance

Â Â 490:2A-405 Excused performance

Â Â 490:2A-406 Procedure on excused performance

Â Â 490:2A-407 Irrevocable promises:Â finance leases

Â Â Â Â Â Â Â Part 5.Â Default

Â Â Â Â Â Â Â Â Â Subpart A.Â In General

Â Â Â 490:2A-501 Default:Â procedure

Â Â Â 490:2A-502 Notice after default

Â Â Â 490:2A-503 Modification or impairment of rights and remedies

Â Â 490:2A-504 Liquidation of damages

Â Â 490:2A-505 Cancellation and termination and effect of

Â Â Â Â Â Â Â Â Â Â Â Â Â cancellation, termination, rescission, or fraud on

Â Â Â Â Â Â Â Â Â Â Â Â Â rights and remedies

Â Â Â 490:2A-506 Statute of limitations

Â Â Â 490:2A-507 Proof of market rent:Â time and place

Â Â Â Â Â Â Â Â Â Subpart B.Â Default by Lessor

Â Â 490:2A-508 Lessee's remedies

Â Â Â 490:2A-509 Lessee's rights on improper delivery; rightful

Â Â Â Â Â Â Â Â Â Â Â Â Â rejection

Â Â Â 490:2A-510 Installment lease contracts:Â rejection and

Â Â Â Â Â Â Â Â Â Â Â Â Â default

Â Â Â 490:2A-511 Merchant lessee's duties as to rightfully rejected

Â Â Â Â Â Â Â Â Â Â Â Â Â goods

Â Â 490:2A-512 Lessee's duties as to rightfully rejected goods

Â Â Â 490:2A-513 Cure by lessor of improper tender or delivery;

Â Â Â Â Â Â Â Â Â Â Â Â Â replacement

Â Â Â 490:2A-514 Waiver of lessee's objections

Â Â Â 490:2A-515 Acceptance of goods

Â Â 490:2A-516 Effect of acceptance of goods; notice of default;

Â Â Â Â Â Â Â Â Â Â Â Â Â burden of establishing default after acceptance;

Â Â Â Â Â Â Â Â Â Â Â Â Â notice of claim or litigation to person answerable

Â Â Â Â Â Â Â Â Â Â Â Â Â over

Â Â Â 490:2A-517 Revocation of acceptance of goods

Â Â Â 490:2A-518 Cover; substitute goods

Â Â 490:2A-519 Lessee's damages for nondelivery, repudiation,

Â Â Â Â Â Â Â Â Â Â Â Â Â default, and breach of warranty in regard to

Â Â Â Â Â Â Â Â Â Â Â Â Â accepted goods

Â Â Â 490:2A-520 Lessee's incidental and consequential damages

Â Â Â 490:2A-521 Lessee's right to specific performance or replevin

Â Â Â 490:2A-522 Lessee's right to goods on lessor's insolvency

Â Â Â Â Â Â Â Â Â Subpart C.Â Default by Lessee

Â Â 490:2A-523 Lessor's remedies

Â Â 490:2A-524 Lessor's right to identify goods to lease contract

Â Â Â 490:2A-525 Lessor's right to possession of goods

Â Â 490:2A-526 Lessor's stoppage of delivery in transit or

Â Â Â Â Â Â Â Â Â Â Â Â Â otherwise

Â Â Â 490:2A-527 Lessor's rights to dispose of goods

Â Â Â 490:2A-528 Lessor's damages for nonacceptance, failure to

Â Â Â Â Â Â Â Â Â Â Â Â Â pay, repudiation, or other default

Â Â Â 490:2A-529 Lessor's action for the rent

Â Â Â 490:2A-530 Lessor's incidental damages

Â Â Â 490:2A-531 Standing to sue third parties for injury to goods

Â Â Â 490:2A-532 Lessor's rights to residual interest

ARTICLE 3.Â NEGOTIABLE INSTRUMENTS

Â Â Â Â Â Â Â Part 1.Â General Provisions and Definitions

Â Â Â 490:3-101 Short title

Â Â Â 490:3-102 Subject matter

Â Â Â 490:3-103 Definitions

Â Â Â 490:3-104 Negotiable instrument

Â Â Â 490:3-105 Issue of instrument

Â Â Â 490:3-106 Unconditional promise or order

Â Â Â 490:3-107 Instrument payable in foreign money

Â Â Â 490:3-108 Payable on demand or at definite time

Â Â Â 490:3-109 Payable to bearer or to order

Â Â Â 490:3-110 Identification of person to whom instrument is

Â Â Â Â Â Â Â Â Â Â Â Â Â payable

Â Â Â 490:3-111 Place of payment

Â Â Â 490:3-112 Interest

Â Â Â 490:3-113 Date of instrument

Â Â Â 490:3-114 Contradictory terms of instrument

Â Â Â 490:3-115 Incomplete instrument

Â Â Â 490:3-116 Joint and several liability; contribution

Â Â Â 490:3-117 Other agreements affecting instrument

Â Â Â 490:3-118 Statute of limitations

Â Â Â 490:3-119 Notice of right to defend action

Â Â Â Â Â Â Â Part 2.Â Negotiation, Transfer, and Indorsement

Â Â Â 490:3-201 Negotiation

Â Â Â 490:3-202 Negotiation subject to rescission

Â Â Â 490:3-203 Transfer of instrument; rights acquired by

Â Â Â Â Â Â Â Â Â Â Â Â Â transfer

Â Â Â 490:3-204 Indorsement

Â Â Â 490:3-205 Special indorsement; blank indorsement; anomalous

Â Â Â Â Â Â Â Â Â Â Â Â Â indorsement

Â Â Â 490:3-206 Restrictive indorsement

Â Â Â 490:3-207 Reacquisition

Â Â Â Â Â Â Â Part 3.Â Enforcement of Instruments

Â Â Â 490:3-301 Person entitled to enforce instrument

Â Â Â 490:3-302 Holder in due course

Â Â Â 490:3-303 Value and consideration

Â Â Â 490:3-304 Overdue instrument

Â Â Â 490:3-305 Defenses and claims in recoupment

Â Â Â 490:3-306 Claims to an instrument

Â Â Â 490:3-307 Notice of breach of fiduciary duty

Â Â Â 490:3-308 Proof of signatures and status as holder in due

Â Â Â Â Â Â Â Â Â Â Â Â Â course

Â Â Â 490:3-309 Enforcement of lost, destroyed, or stolen

Â Â Â Â Â Â Â Â Â Â Â Â Â instrument

Â Â Â 490:3-310 Effect of instrument on obligation for which taken

Â Â Â 490:3-311 Accord and satisfaction by use of instrument

Â Â Â 490:3-312 Lost, destroyed, or stolen cashier's check,

Â Â Â Â Â Â Â Â Â Â Â Â Â teller's check, or certified check

Â Â Â Â Â Â Â Part 4.Â Liability of Parties

Â Â Â 490:3-401 Signature necessary for liability on instrument

Â Â Â 490:3-402 Signature by representative

Â Â Â 490:3-403 Unauthorized signature

Â Â Â 490:3-404 Impostors; fictitious payees

Â Â Â 490:3-405 Employer responsibility for fraudulent indorsement

Â Â Â Â Â Â Â Â Â Â Â Â Â by employee

Â Â Â 490:3-406 Negligence contributing to forged signature or

Â Â Â Â Â Â Â Â Â Â Â Â Â alteration of instrument

Â Â Â 490:3-407 Alteration

Â Â Â 490:3-408 Drawee not liable on unaccepted draft

Â Â Â 490:3-409 Acceptance of draft; certified check

Â Â Â 490:3-410 Acceptance varying draft

Â Â Â 490:3-411 Refusal to pay cashier's checks, teller's checks,

Â Â Â Â Â Â Â Â Â Â Â Â Â and certified checks

Â Â Â 490:3-412 Obligation of issuer of note or cashier's check

Â Â Â 490:3-413 Obligation of acceptor

Â Â Â 490:3-414 Obligation of drawer

Â Â Â 490:3-415 Obligation of indorser

Â Â Â 490:3-416 Transfer warranties

Â Â Â 490:3-417 Presentment warranties

Â Â Â 490:3-418 Payment or acceptance by mistake

Â Â Â 490:3-419 Instruments signed for accommodation

Â Â Â 490:3-420 Conversion of instrument

Â Â Â Â Â Â Â Part 5.Â Dishonor

Â Â Â 490:3-501 Presentment

Â Â Â 490:3-502 Dishonor

Â Â Â 490:3-503 Notice of dishonor

Â Â Â 490:3-504 Excused presentment and notice of dishonor

Â Â Â 490:3-505 Evidence of dishonor

Â Â Â 490:3-506 Dishonored check; action for treble damages;

Â Â Â Â Â Â Â Â Â Â Â Â Â procedures

Â Â 490:3-506.5 Charges for dishonored checks

Â Â Â Â Â Â Â Part 6.Â Discharge and Payment

Â Â Â 490:3-601 Discharge and effect of discharge

Â Â Â 490:3-602 Payment

Â Â Â 490:3-603 Tender of payment

Â Â Â 490:3-604 Discharge by cancellation or renunciation

Â Â Â 490:3-605 Discharge of indorsers and accommodation parties

ARTICLE 4.Â BANK DEPOSITS AND COLLECTIONS

Â Â Â Â Â Â Â Part 1.Â General Provisions and Definitions

Â Â Â 490:4-101 Short title

Â Â Â 490:4-102 Applicability

Â Â Â 490:4-103 Variation by agreement; measure of damages; action

Â Â Â Â Â Â Â Â Â Â Â Â Â constituting ordinary care

Â Â Â 490:4-104 Definitions and index of definitions

Â Â Â 490:4-105 "Bank"; "depositary bank"; "payor bank";

Â Â Â Â Â Â Â Â Â Â Â Â Â "intermediary bank"; "collecting bank";

Â Â Â Â Â Â Â Â Â Â Â Â Â "presenting bank"

Â Â Â 490:4-106 Payable through or payable at bank; collecting

Â Â Â Â Â Â Â Â Â Â Â Â Â bank

Â Â Â 490:4-107 Separate office of a bank

Â Â Â 490:4-108 Time of receipt of items

Â Â Â 490:4-109 Delays

Â Â Â 490:4-110 Electronic presentment

Â Â Â 490:4-111 Statute of limitations

Â Â Â Â Â Â Â Part 2.Â Collection of Items:Â Depositary and Collecting

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Banks

Â Â Â 490:4-201 Status of collecting bank as agent and provisional

Â Â Â Â Â Â Â Â Â Â Â Â Â status of credits; applicability of article; item

Â Â Â Â Â Â Â Â Â Â Â Â Â indorsed "pay any bank"

Â Â Â 490:4-202 Responsibility for collection or return; when

Â Â Â Â Â Â Â Â Â Â Â Â Â action timely

Â Â Â 490:4-203 Effect of instructions

Â Â Â 490:4-204 Methods of sending and presenting; sending

Â Â Â Â Â Â Â Â Â Â Â Â Â directly to payor bank

Â Â Â 490:4-205 Depositary bank holder of unindorsed item

Â Â Â 490:4-206 Transfer between banks

Â Â Â 490:4-207 Transfer warranties

Â Â Â 490:4-208 Presentment warranties

Â Â Â 490:4-209 Encoding and retention warranties

Â Â Â 490:4-210 Security interest of collecting bank in items,

Â Â Â Â Â Â Â Â Â Â Â Â Â accompanying documents and proceeds

Â Â Â 490:4-211 When bank gives value for purposes of holder in

Â Â Â Â Â Â Â Â Â Â Â Â Â due course

Â Â Â 490:4-212 Presentment by notice of item not payable by,

Â Â Â Â Â Â Â Â Â Â Â Â Â through, or at a bank; liability of drawer or

Â Â Â Â Â Â Â Â Â Â Â Â Â indorser

Â Â Â 490:4-213 Medium and time of settlement by bank

Â Â Â 490:4-214 Right of charge back or refund; liability of

Â Â Â Â Â Â Â Â Â Â Â Â Â collecting bank; return of item

Â Â Â 490:4-215 Final payment of item by payor bank; when

Â Â Â Â Â Â Â Â Â Â Â Â Â provisional debits and credits become final; when

Â Â Â Â Â Â Â Â Â Â Â Â Â certain credits become available for withdrawal

Â Â Â 490:4-216 Insolvency and preference

Â Â Â Â Â Â Â Part 3.Â Collection of Items; Payor Banks

Â Â Â 490:4-301 Deferred posting; recovery of payment by return of

Â Â Â Â Â Â Â Â Â Â Â Â Â items; time of dishonor; return of items by payor

Â Â Â Â Â Â Â Â Â Â Â Â Â bank

Â Â Â 490:4-302 Payor bank's responsibility for late return of

Â Â Â Â Â Â Â Â Â Â Â Â Â item

Â Â Â 490:4-303 When items subject to notice, stop-payment order,

Â Â Â Â Â Â Â Â Â Â Â Â Â legal process, or setoff; order in which items may

Â Â Â Â Â Â Â Â Â Â Â Â Â be charged or certified

Â Â Â Â Â Â Â Part 4.Â Relationship Between Payor Bank and its

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Customer

Â Â Â 490:4-401 When bank may charge customer's account

Â Â Â 490:4-402 Bank's liability to customer for wrongful

Â Â Â Â Â Â Â Â Â Â Â Â Â dishonor; time of determining insufficiency of

Â Â Â Â Â Â Â Â Â Â Â Â Â account

Â Â Â 490:4-403 Customer's right to stop payment; burden of proof

Â Â Â Â Â Â Â Â Â Â Â Â Â of loss

Â Â Â 490:4-404 Bank not obligated to pay check more than six

Â Â Â Â Â Â Â Â Â Â Â Â Â months old

Â Â Â 490:4-405 Death or incompetence of customer

Â Â Â 490:4-406 Customer's duty to discover and report

Â Â Â Â Â Â Â Â Â Â Â Â Â unauthorized signature or alteration

Â Â Â 490:4-407 Payor bank's right to subrogation on improper

Â Â Â Â Â Â Â Â Â Â Â Â Â payment

Â Â Â Â Â Â Â Part 5.Â Collection of Documentary Drafts

Â Â Â 490:4-501 Handling of documentary drafts; duty to send for

Â Â Â Â Â Â Â Â Â Â Â Â Â presentment and to notify customer of dishonor

Â Â Â 490:4-502 Presentment of "on arrival" drafts

Â Â Â 490:4-503 Responsibility of presenting bank for documents

Â Â Â Â Â Â Â Â Â Â Â Â Â and goods; report of reasons for dishonor; referee

Â Â Â Â Â Â Â Â Â Â Â Â Â in case of need

Â Â Â 490:4-504 Privilege of presenting bank to deal with goods;

Â Â Â Â Â Â Â Â Â Â Â Â Â security interest for expenses

ARTICLE 4A.Â FUNDS TRANSFERS

Â Â Â Â Â Â Â Part 1.Â Subject Matter and Definitions

Â Â 490:4A-101 Short title

Â Â 490:4A-102 Subject matter

Â Â 490:4A-103 Payment order--definitions

Â Â 490:4A-104 Funds transfer-definitions

Â Â 490:4A-105 Other definitions

Â Â 490:4A-106 Time payment order is received

Â Â 490:4A-107 Federal reserve regulations and operating

Â Â Â Â Â Â Â Â Â Â Â Â Â circulars

Â Â 490:4A-108 Relationship to Electronic Fund Transfer Act

Â Â Â Â Â Â Â Part 2.Â Issue and Acceptance of Payment Order

Â Â 490:4A-201 Security procedure

Â Â 490:4A-202 Authorized and verified payment orders

Â Â Â 490:4A-203 Unenforceability of certain verified payment

Â Â Â Â Â Â Â Â Â Â Â Â Â orders

Â Â Â 490:4A-204 Refund of payment and duty of customer to report

Â Â Â Â Â Â Â Â Â Â Â Â Â with respect to unauthorized payment order

Â Â Â 490:4A-205 Erroneous payment orders

Â Â Â 490:4A-206 Transmission of payment order through

Â Â Â Â Â Â Â Â Â Â Â Â Â funds-transfer or other communication system

Â Â Â 490:4A-207 Misdescription of beneficiary

Â Â Â 490:4A-208 Misdescription of intermediary bank or

Â Â Â Â Â Â Â Â Â Â Â Â Â beneficiary's bank

Â Â Â 490:4A-209 Acceptance of payment order

Â Â Â 490:4A-210 Rejection of payment order

Â Â Â 490:4A-211 Cancellation and amendment of payment order

Â Â Â 490:4A-212 Liability and duty of receiving bank regarding

Â Â Â Â Â Â Â Â Â Â Â Â Â unaccepted payment order

Â Â Â Â Â Â Â Part 3.Â Execution of Sender's Payment Order by

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Receiving Bank

Â Â Â 490:4A-301 Execution and execution date

Â Â Â 490:4A-302 Obligations of receiving bank in execution of

Â Â Â Â Â Â Â Â Â Â Â Â Â payment order

Â Â Â 490:4A-303 Erroneous execution of payment order

Â Â Â 490:4A-304 Duty of sender to report erroneously executed

Â Â Â Â Â Â Â Â Â Â Â Â Â payment order

Â Â Â 490:4A-305 Liability for late or improper execution or

Â Â Â Â Â Â Â Â Â Â Â Â Â failure to execute payment order

Â Â Â Â Â Â Â Part 4.Â Payment

Â Â Â 490:4A-401 Payment date

Â Â Â 490:4A-402 Obligation of sender to pay receiving bank

Â Â Â 490:4A-403 Payment by sender to receiving bank

Â Â Â 490:4A-404 Obligation of beneficiary's bank to pay and give

Â Â Â Â Â Â Â Â Â Â Â Â Â notice to beneficiary

Â Â Â 490:4A-405 Payment by beneficiary's bank to beneficiary

Â Â Â 490:4A-406 Payment by originator to beneficiary; discharge of

Â Â Â Â Â Â Â Â Â Â Â Â Â underlying obligation

Â Â Â Â Â Â Â Part 5.Â Miscellaneous Provisions

Â Â Â 490:4A-501 Variation by agreement and effect of funds-

Â Â Â Â Â Â Â Â Â Â Â Â Â transfer system rule

Â Â Â 490:4A-502 Creditor process served on receiving bank; setoff

Â Â Â Â Â Â Â Â Â Â Â Â Â by beneficiary's bank

Â Â Â 490:4A-503 Injunction or restraining order with respect to

Â Â Â Â Â Â Â Â Â Â Â Â Â funds transfer

Â Â Â 490:4A-504 Order in which items and payment orders may be

Â Â Â Â Â Â Â Â Â Â Â Â Â charged to account; order of withdrawals from

Â Â Â Â Â Â Â Â Â Â Â Â Â account

Â Â 490:4A-505 Preclusion of objection to debit of customer's

Â Â Â Â Â Â Â Â Â Â Â Â Â account

Â Â 490:4A-506 Rate of interest

Â Â Â 490:4A-507 Choice of law

ARTICLE 5.Â LETTERS OF CREDIT

Â Â Â 490:5-101 Short title

Â Â Â 490:5-102 Definitions

Â Â Â 490:5-103 Scope

Â Â Â 490:5-104 Formal requirements

Â Â Â 490:5-105 Consideration

Â Â Â 490:5-106 Issuance, amendment, cancellation, and duration

Â Â Â 490:5-107 Confirmer, nominated person, and advisor

Â Â Â 490:5-108 Issuer's rights and obligations

Â Â Â 490:5-109 Fraud and forgery

Â Â Â 490:5-110 Warranties

Â Â Â 490:5-111 Remedies

Â Â Â 490:5-112 Transfer of letter of credit

Â Â Â 490:5-113 Transfer by operation of law

Â Â Â 490:5-114 Assignment of proceeds

Â Â Â 490:5-115 Statute of limitations

Â Â Â 490:5-116 Choice of law and forum

Â Â Â 490:5-117 Subrogation of issuer, applicant, and

Â Â Â Â Â Â Â Â Â Â Â Â Â nominated person

Â Â Â 490:5-118 Security interest of issuer or nominated

Â Â Â Â Â Â Â Â Â Â Â Â Â person

ARTICLE 6.Â BULK SALES--REPEALED

Â Â Â 490:6-101 to 110 Repealed

ARTICLE 7.Â DOCUMENTS OF TITLE

Â Â Â Â Â Â Â Part 1.Â General

Â Â Â 490:7-101 Short title

Â Â Â 490:7-102 Definitions and index of definitions

Â Â Â 490:7-103 Relation of article to treaty or statute

Â Â Â 490:7-104 Negotiable and nonnegotiable document of title

Â Â Â 490:7-105 Reissuance in alternative medium

Â Â Â 490:7-106 Control of electronic document of title

Â Â Â Â Â Â Â Part 2.Â Warehouse Receipts:Â Special Provisions

Â Â Â 490:7-201 Person that may issue a warehouse receipt; storage

Â Â Â Â Â Â Â Â Â Â Â Â Â under bond

Â Â Â 490:7-202 Form of warehouse receipt; effect of omission

Â Â Â 490:7-203 Liability for nonreceipt or misdescription

Â Â Â 490:7-204 Duty of care; contractual limitation of

Â Â Â Â Â Â Â Â Â Â Â Â Â warehouse's liability

Â Â Â 490:7-205 Title under warehouse receipt defeated in certain

Â Â Â Â Â Â Â Â Â Â Â Â Â cases

Â Â Â 490:7-206 Termination of storage at warehouse's option

Â Â Â 490:7-207 Goods must be kept separate; fungible goods

Â Â Â 490:7-208 Altered warehouse receipts

Â Â Â 490:7-209 Lien of warehouse

Â Â Â 490:7-210 Enforcement of warehouse's lien

Â Â Â Â Â Â Â Part 3.Â Bills of Lading:Â Special Provisions

Â Â Â 490:7-301 Liability for nonreceipt or misdescription; "said

Â Â Â Â Â Â Â Â Â Â Â Â Â to contain"; "shipper's weight, load, and count";

Â Â Â Â Â Â Â Â Â Â Â Â Â improper handling

Â Â Â 490:7-302 Through bills of lading and similar documents of

Â Â Â Â Â Â Â Â Â Â Â Â Â title

Â Â Â 490:7-303 Diversion; reconsignment; change of instructions

Â Â Â 490:7-304 Tangible bills of lading in a set

Â Â Â 490:7-305 Destination bills

Â Â Â 490:7-306 Altered bills of lading

Â Â Â 490:7-307 Lien of carrier

Â Â Â 490:7-308 Enforcement of carrier's lien

Â Â Â 490:7-309 Duty of care; contractual limitation of carrier's

Â Â Â Â Â Â Â Â Â Â Â Â Â liability

Â Â Â Â Â Â Â Part 4.Â Warehouse Receipts and Bills of Lading:

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â General Obligations

Â Â Â 490:7-401 Irregularities in issue of receipt or bill or

Â Â Â Â Â Â Â Â Â Â Â Â Â conduct of issuer

Â Â Â 490:7-402 Duplicate document of title; overissue

Â Â Â 490:7-403 Obligation of bailee to deliver; excuse

Â Â Â 490:7-404 No liability for good-faith delivery pursuant to

Â Â Â Â Â Â Â Â Â Â Â Â Â document of title

Â Â Â Â Â Â Â Part 5.Â Warehouse Receipts and Bills of Lading:

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Negotiation and Transfer

Â Â Â 490:7-501 Form of negotiation and requirements of due

Â Â Â Â Â Â Â Â Â Â Â Â Â negotiation

Â Â Â 490:7-502 Rights acquired by due negotiation

Â Â Â 490:7-503 Document of title to goods defeated in certain

Â Â Â Â Â Â Â Â Â Â Â Â Â cases

Â Â Â 490:7-504 Rights acquired in absence of due negotiation;

Â Â Â Â Â Â Â Â Â Â Â Â Â effect of diversion; stoppage of delivery

Â Â Â 490:7-505 Indorser not guarantor for other parties

Â Â Â 490:7-506 Delivery without indorsement:Â right to compel

Â Â Â Â Â Â Â Â Â Â Â Â Â indorsement

Â Â Â 490:7-507 Warranties on negotiation or delivery of document

Â Â Â Â Â Â Â Â Â Â Â Â Â of title

Â Â Â 490:7-508 Warranties of collecting bank as to documents of

Â Â Â Â Â Â Â Â Â Â Â Â Â title

Â Â Â 490:7-509 Adequate compliance with commercial contract

Â Â Â Â Â Â Â Part 6.Â Warehouse Receipts and Bills of Lading:

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Miscellaneous Provisions

Â Â Â 490:7-601 Lost, stolen, or destroyed documents of title

Â Â Â 490:7-602 Judicial process against goods covered by

Â Â Â Â Â Â Â Â Â Â Â Â Â negotiable document of title

Â Â Â 490:7-603 Conflicting claims; interpleader

Â Â Â Â Â Â Â Part 7.Â Miscellaneous Provisions

Â Â Â 490:7-701 Applicability

Â Â Â 490:7-702 Savings clause

ARTICLE 8.Â INVESTMENT SECURITIES

Â Â Â Â Â Â Â Part 1.Â Short Title and General Matters

Â Â Â 490:8-101 Short title

Â Â Â 490:8-102 Definitions

Â Â Â 490:8-103 Rules for determining whether certain obligations

Â Â Â Â Â Â Â Â Â Â Â Â Â and interests are securities or financial assets

Â Â Â 490:8-104 Acquisition of security or financial asset or

Â Â Â Â Â Â Â Â Â Â Â Â Â interest therein

Â Â Â 490:8-105 Notice of adverse claim

Â Â Â 490:8-106 Control

Â Â Â 490:8-107 Whether indorsement, instruction, or entitlement

Â Â Â Â Â Â Â Â Â Â Â Â Â order is effective

Â Â Â 490:8-108 Warranties in direct holding

Â Â Â 490:8-109 Warranties in indirect holding

Â Â Â 490:8-110 Applicability; choice of law

Â Â Â 490:8-111 Clearing corporation rules

Â Â Â 490:8-112 Creditor's legal process

Â Â Â 490:8-113 Statute of frauds inapplicable

Â Â Â 490:8-114 Evidentiary rules concerning certificated

Â Â Â Â Â Â Â Â Â Â Â Â Â securities

Â Â Â 490:8-115 Securities intermediary and others not liable to

Â Â Â Â Â Â Â Â Â Â Â Â Â adverse claimant

Â Â Â 490:8-116 Securities intermediary as purchaser for value

Â Â Â Â Â Â Â Part 2.Â Issue and Issuer

Â Â Â 490:8-201 Issuer

Â Â Â 490:8-202 Issuer's responsibility and defenses; notice of

Â Â Â Â Â Â Â Â Â Â Â Â Â defect or defense

Â Â Â 490:8-203 Staleness as notice of defect or defense

Â Â Â 490:8-204 Effect of issuer's restriction on transfer

Â Â Â 490:8-205 Effect of unauthorized signature on security

Â Â Â Â Â Â Â Â Â Â Â Â Â certificate

Â Â Â 490:8-206 Completion or alteration of security certificate

Â Â Â 490:8-207 Rights and duties of issuer with respect to

Â Â Â Â Â Â Â Â Â Â Â Â Â registered owners

Â Â Â 490:8-208 Effect of signature of authenticating trustee,

Â Â Â Â Â Â Â Â Â Â Â Â Â registrar, or transfer agent

Â Â Â 490:8-209 Issuer's lien

Â Â Â 490:8-210 Overissue

Â Â Â Â Â Â Â Part 3.Â Transfer of Certificated and Uncertificated

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Securities

Â Â Â 490:8-301 Delivery

Â Â Â 490:8-302 Rights of purchaser

Â Â Â 490:8-303 Protected purchaser

Â Â Â 490:8-304 Indorsement

Â Â Â 490:8-305 Instruction

Â Â Â 490:8-306 Effect of guaranteeing signature, indorsement, or

Â Â Â Â Â Â Â Â Â Â Â Â Â instruction

Â Â Â 490:8-307 Purchaser's right to requisites for registration

Â Â Â Â Â Â Â Â Â Â Â Â Â of transfer

Â Â Â Â Â Â Â Part 4.Â Registration

Â Â Â 490:8-401 Duty of issuer to register transfer

Â Â Â 490:8-402 Assurance that indorsement or instruction is

Â Â Â Â Â Â Â Â Â Â Â Â Â effective

Â Â Â 490:8-403 Demand that issuer not register transfer

Â Â Â 490:8-404 Wrongful registration

Â Â Â 490:8-405 Replacement of lost, destroyed, or wrongfully

Â Â Â Â Â Â Â Â Â Â Â Â Â taken security certificate

Â Â Â 490:8-406 Obligation to notify issuer of lost, destroyed, or

Â Â Â Â Â Â Â Â Â Â Â Â Â wrongfully taken security certificate

Â Â Â 490:8-407 Authenticating trustee, transfer agent, and

Â Â Â Â Â Â Â Â Â Â Â Â Â registrar

Â Â Â Â Â Â Â Part 5.Â Security Entitlements

Â Â Â 490:8-501 Securities account; acquisition of security

Â Â Â Â Â Â Â Â Â Â Â Â Â entitlement from securities intermediary

Â Â Â 490:8-502 Assertion of adverse claim against entitlement

Â Â Â Â Â Â Â Â Â Â Â Â Â holder

Â Â Â 490:8-503 Property interest of entitlement holder in

Â Â Â Â Â Â Â Â Â Â Â Â Â financial asset held by securities intermediary

Â Â Â 490:8-504 Duty of securities intermediary to maintain

Â Â Â Â Â Â Â Â Â Â Â Â Â financial asset

Â Â Â 490:8-505 Duty of securities intermediary with respect to

Â Â Â Â Â Â Â Â Â Â Â Â Â payments and distributions

Â Â Â 490:8-506 Duty of securities intermediary to exercise rights

Â Â Â Â Â Â Â Â Â Â Â Â Â as directed by entitlement holder

Â Â Â 490:8-507 Duty of securities intermediary to comply with

Â Â Â Â Â Â Â Â Â Â Â Â Â entitlement order

Â Â Â 490:8-508 Duty of securities intermediary to change

Â Â Â Â Â Â Â Â Â Â Â Â Â entitlement holder's position to other form of

Â Â Â Â Â Â Â Â Â Â Â Â Â security holding

Â Â Â 490:8-509 Specification of duties of securities intermediary

Â Â Â Â Â Â Â Â Â Â Â Â Â by other statute or regulation; manner of

Â Â Â Â Â Â Â Â Â Â Â Â Â performance of duties of securities intermediary

Â Â Â Â Â Â Â Â Â Â Â Â Â and exercise of rights of entitlement holder

Â Â Â 490:8-510 Rights of purchaser of security entitlement from

Â Â Â Â Â Â Â Â Â Â Â Â Â entitlement holder

Â Â Â 490:8-511 Priority among security interests and entitlement

Â Â Â Â Â Â Â Â Â Â Â Â Â holders

ARTICLE 9.Â SECURED TRANSACTIONS

Â Â Â Â Â Â Â Part 1.Â General Provisions

Â Â Â Â Â Â Â Â Â Subpart 1.Â Short Title, Definitions, and General

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Concepts

Â Â Â 490:9-101 Short title

Â Â Â 490:9-102 Definitions and index of definitions

Â Â Â 490:9-103 Purchase-money security interest; application of

Â Â Â Â Â Â Â Â Â Â Â Â Â payments; burden of establishing

Â Â Â 490:9-104 Control of deposit account

Â Â Â 490:9-105 Control of electronic copy of record evidencing

Â Â Â Â Â Â Â Â Â Â Â Â Â chattel paper

Â Â 490:9-105.5 Control of electronic money

Â Â Â 490:9-106 Control of investment property

Â Â Â 490:9-107 Control of letter-of-credit right

Â Â 490:9-107.5 Control of controllable electronic record,

Â Â Â Â Â Â Â Â Â Â Â Â Â controllable account, or controllable payment

Â Â Â Â Â Â Â Â Â Â Â Â Â intangible

Â Â 490:9-107.6 No requirement to acknowledge or confirm; no

Â Â Â Â Â Â Â Â Â Â Â Â Â duties

Â Â Â 490:9-108 Sufficiency of description

Â Â Â Â Â Â Â Â Â Subpart 2.Â Applicability of Article

Â Â Â 490:9-109 Scope

Â Â Â 490:9-110 Security interests arising under article 2 or 2A

Â Â Â Â Â Â Â Part 2.Â Effectiveness of Security Agreement;

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Attachment of Security Interest; Rights of

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Parties to Security Agreement

Â Â Â Â Â Â Â Â Â Subpart 1.Â Effectiveness and Attachment

Â Â Â 490:9-201 General effectiveness of security agreement

Â Â Â 490:9-202 Title to collateral immaterial

Â Â Â 490:9-203 Attachment and enforceability of security

Â Â Â Â Â Â Â Â Â Â Â Â Â interest; proceeds; supporting obligations; formal

Â Â Â Â Â Â Â Â Â Â Â Â Â requisites

Â Â Â 490:9-204 After-acquired property; future advances

Â Â Â 490:9-205 Use or disposition of collateral permissible

Â Â Â 490:9-206 Security interest arising in purchase or delivery

Â Â Â Â Â Â Â Â Â Â Â Â Â of financial asset

Â Â Â Â Â Â Â Â Â Subpart 2.Â Rights and Duties

Â Â Â 490:9-207 Rights and duties of secured party having

Â Â Â Â Â Â Â Â Â Â Â Â Â possession or control of collateral

Â Â Â 490:9-208 Additional duties of secured party having control

Â Â Â Â Â Â Â Â Â Â Â Â Â of collateral

Â Â Â 490:9-209 Duties of secured party if account debtor has been

Â Â Â Â Â Â Â Â Â Â Â Â Â notified of assignment

Â Â Â 490:9-210 Request for accounting; request regarding list of

Â Â Â Â Â Â Â Â Â Â Â Â Â collateral or statement of account

Â Â Â Â Â Â Â Part 3.Â Perfection and Priority

Â Â Â Â Â Â Â Â Â Subpart 1.Â Law Governing Perfection and Priority

Â Â Â 490:9-301 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interests

Â Â Â 490:9-302 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â agricultural liens

Â Â Â 490:9-303 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interests in goods covered by a

Â Â Â Â Â Â Â Â Â Â Â Â Â certificate of title

Â Â Â 490:9-304 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interests in deposit accounts

Â Â Â 490:9-305 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interests in investment property

Â Â Â 490:9-306 Law governing perfection and priority of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interests in letter-of-credit rights

Â Â 490:9-306.5 Law governing perfection and priority of security

Â Â Â Â Â Â Â Â Â Â Â Â Â interests in chattel paper

Â Â 490:9-306.6 Law governing perfection and priority of security

Â Â Â Â Â Â Â Â Â Â Â Â Â interests in controllable accounts, controllable

Â Â Â Â Â Â Â Â Â Â Â Â Â electronic records, and controllable payment

Â Â Â Â Â Â Â Â Â Â Â Â Â intangibles

Â Â Â 490:9-307 Location of debtor

Â Â Â Â Â Â Â Â Â Subpart 2.Â Perfection

Â Â Â 490:9-308 When security interest or agricultural lien is

Â Â Â Â Â Â Â Â Â Â Â Â Â perfected; continuity of perfection

Â Â Â 490:9-309 Security interest perfected upon attachment

Â Â Â 490:9-310 When filing required to perfect security interest

Â Â Â Â Â Â Â Â Â Â Â Â Â or agricultural lien; security interests and

Â Â Â Â Â Â Â Â Â Â Â Â Â agricultural liens to which filing provisions do

Â Â Â Â Â Â Â Â Â Â Â Â Â not apply

Â Â Â 490:9-311 Perfection of security interests in property

Â Â Â Â Â Â Â Â Â Â Â Â Â subject to certain statutes, regulations, and

Â Â Â Â Â Â Â Â Â Â Â Â Â treaties

Â Â Â 490:9-312 Perfection of security interests in chattel paper,

Â Â Â Â Â Â Â Â Â Â Â Â Â controllable accounts, controllable electronic

Â Â Â Â Â Â Â Â Â Â Â Â Â records, controllable payment intangibles, deposit

Â Â Â Â Â Â Â Â Â Â Â Â Â accounts, documents, goods covered by documents,

Â Â Â Â Â Â Â Â Â Â Â Â Â instruments, investment property, letter-of-credit

Â Â Â Â Â Â Â Â Â Â Â Â Â rights, and money; perfection by permissive

Â Â Â Â Â Â Â Â Â Â Â Â Â filing; temporary perfection without filing or

Â Â Â Â Â Â Â Â Â Â Â Â Â transfer of possession

Â Â Â 490:9-313 When possession by or delivery to secured party

Â Â Â Â Â Â Â Â Â Â Â Â Â perfects security interest without filing

Â Â Â 490:9-314 Perfection by control

Â Â 490:9-314.5 Perfection by possession and control of chattel

Â Â Â Â Â Â Â Â Â Â Â Â Â paper

Â Â Â 490:9-315 Secured party's rights on disposition of

Â Â Â Â Â Â Â Â Â Â Â Â Â collateral and in proceeds

Â Â Â 490:9-316 Effect of change in governing law

Â Â Â Â Â Â Â Â Â Subpart 3.Â Priority

Â Â Â 490:9-317 Interests that take priority over or take free of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interest or agricultural lien

Â Â Â 490:9-318 No interest retained in right to payment that is

Â Â Â Â Â Â Â Â Â Â Â Â Â sold; rights and title of seller of account or

Â Â Â Â Â Â Â Â Â Â Â Â Â chattel paper with respect to creditors and

Â Â Â Â Â Â Â Â Â Â Â Â Â purchasers

Â Â Â 490:9-319 Rights and title of consignee with respect to

Â Â Â Â Â Â Â Â Â Â Â Â Â creditors and purchasers

Â Â Â 490:9-320 Buyer of goods

Â Â Â 490:9-321 Licensee of general intangible and lessee of goods

Â Â Â Â Â Â Â Â Â Â Â Â Â in ordinary course of business

Â Â Â 490:9-322 Priorities among conflicting security interests in

Â Â Â Â Â Â Â Â Â Â Â Â Â and agricultural liens on same collateral

Â Â Â 490:9-323 Future advances

Â Â Â 490:9-324 Priority of purchase-money security interests

Â Â Â 490:9-325 Priority of security interests in transferred

Â Â Â Â Â Â Â Â Â Â Â Â Â collateral

Â Â Â 490:9-326 Priority of security interests created by new

Â Â Â Â Â Â Â Â Â Â Â Â Â debtor

Â Â 490:9-326.5 Priority of security interest in controllable

Â Â Â Â Â Â Â Â Â Â Â Â Â account, controllable electronic record, and

Â Â Â Â Â Â Â Â Â Â Â Â Â controllable payment intangible

Â Â Â 490:9-327 Priority of security interests in deposit account

Â Â Â 490:9-328 Priority of security interests in investment

Â Â Â Â Â Â Â Â Â Â Â Â Â property

Â Â Â 490:9-329 Priority of security interests in letter-of-credit

Â Â Â Â Â Â Â Â Â Â Â Â Â right

Â Â Â 490:9-330 Priority of purchaser of chattel paper or

Â Â Â Â Â Â Â Â Â Â Â Â Â instrument

Â Â Â 490:9-331 Priority of rights of purchasers of controllable

Â Â Â Â Â Â Â Â Â Â Â Â Â accounts, controllable electronic records,

Â Â Â Â Â Â Â Â Â Â Â Â Â controllable payment intangibles, documents,

Â Â Â Â Â Â Â Â Â Â Â Â Â instruments, and securities under other articles;

Â Â Â Â Â Â Â Â Â Â Â Â Â priority of interests in financial assets and

Â Â Â Â Â Â Â Â Â Â Â Â Â security entitlements and protection against

Â Â Â Â Â Â Â Â Â Â Â Â Â assertion of claim under articles 8 and 12

Â Â Â 490:9-332 Transfer of money; transfer of funds from deposit

Â Â Â Â Â Â Â Â Â Â Â Â Â account

Â Â Â 490:9-333 Priority of certain liens arising by operation of

Â Â Â Â Â Â Â Â Â Â Â Â Â law

Â Â Â 490:9-334 Priority of security interests in fixtures and

Â Â Â Â Â Â Â Â Â Â Â Â Â crops

Â Â Â 490:9-335 Accessions

Â Â Â 490:9-336 Commingled goods

Â Â Â 490:9-337 Priority of security interests in goods covered by

Â Â Â Â Â Â Â Â Â Â Â Â Â certificate of title

Â Â Â 490:9-338 Priority of security interest or agricultural lien

Â Â Â Â Â Â Â Â Â Â Â Â Â perfected by filed financing statement providing

Â Â Â Â Â Â Â Â Â Â Â Â Â certain incorrect information

Â Â Â 490:9-339 Priority subject to subordination

Â Â Â Â Â Â Â Â Â Subpart 4.Â Rights of Bank

Â Â Â 490:9-340 Effectiveness of right of recoupment or set-off

Â Â Â Â Â Â Â Â Â Â Â Â Â against deposit account

Â Â Â 490:9-341 Bank's rights and duties with respect to deposit

Â Â Â Â Â Â Â Â Â Â Â Â Â account

Â Â Â 490:9-342 Bank's right to refuse to enter into or disclose

Â Â Â Â Â Â Â Â Â Â Â Â Â existence of control agreement

Â Â Â Â Â Â Â Part 4.Â Rights of Third Parties

Â Â Â 490:9-401 Alienability of debtor's rights

Â Â Â 490:9-402 Secured party not obligated on contract of debtor

Â Â Â Â Â Â Â Â Â Â Â Â Â or in tort

Â Â Â 490:9-403 Agreement not to assert defenses against assignee

Â Â Â 490:9-404 Rights acquired by assignee; claims and defenses

Â Â Â Â Â Â Â Â Â Â Â Â Â against assignee

Â Â Â 409:9-405 Modification of assigned contract

Â Â Â 490:9-406 Discharge of account debtor; notification of

Â Â Â Â Â Â Â Â Â Â Â Â Â assignment; identification and proof of

Â Â Â Â Â Â Â Â Â Â Â Â Â assignment; restrictions on assignment of

Â Â Â Â Â Â Â Â Â Â Â Â Â accounts, chattel paper, payment intangibles, and

Â Â Â Â Â Â Â Â Â Â Â Â Â promissory notes ineffective

Â Â Â 490:9-407 Restrictions on creation or enforcement of

Â Â Â Â Â Â Â Â Â Â Â Â Â security interest in leasehold interest or in

Â Â Â Â Â Â Â Â Â Â Â Â Â lessor's residual interest

Â Â Â 490:9-408 Restrictions on assignment of promissory notes,

Â Â Â Â Â Â Â Â Â Â Â Â Â health-care-insurance receivables, and certain

Â Â Â Â Â Â Â Â Â Â Â Â Â general intangibles ineffective

Â Â Â 490:9-409 Restrictions on assignment of letter-of-credit

Â Â Â Â Â Â Â Â Â Â Â Â Â rights ineffective

Â Â Â Â Â Â Â Part 5.Â Filing

Â Â Â Â Â Â Â Â Â Subpart 1.Â Filing Office; Contents and Effectiveness

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â of Financing Statement

Â Â Â 490:9-501 Filing office

Â Â Â 490:9-502 Contents of financing statement; record of

Â Â Â Â Â Â Â Â Â Â Â Â Â mortgage as financing statement; time of filing

Â Â Â Â Â Â Â Â Â Â Â Â Â financing statement

Â Â Â 490:9-503 Name of debtor and secured party

Â Â Â 490:9-504 Indication of collateral

Â Â Â 490:9-505 Filing and compliance with other statutes and

Â Â Â Â Â Â Â Â Â Â Â Â Â treaties for consignments, leases, other

Â Â Â Â Â Â Â Â Â Â Â Â Â bailments,and other transactions

Â Â Â 490:9-506 Effect of errors or omissions

Â Â Â 490:9-507 Effect of certain events on effectiveness of

Â Â Â Â Â Â Â Â Â Â Â Â Â financing statement

Â Â Â 490:9-508 Effectiveness of financing statement if new debtor

Â Â Â Â Â Â Â Â Â Â Â Â Â becomes bound by security agreement

Â Â Â 490:9-509 Persons entitled to file a record

Â Â Â 490:9-510 Effectiveness of filed record

Â Â Â 490:9-511 Secured party of record

Â Â Â 490:9-512 Amendment of financing statement

Â Â Â 490:9-513 Termination statement

Â Â Â 490:9-514 Assignment of powers of secured party of record

Â Â Â 490:9-515 Duration and effectiveness of financing statement;

Â Â Â Â Â Â Â Â Â Â Â Â Â effect of lapsed financing statement

Â Â Â 490:9-516 What constitutes filing; effectiveness of filing

Â Â Â 490:9-517 Effect of indexing errors

Â Â Â 490:9-518 Claim concerning inaccurate or wrongfully filed

Â Â Â Â Â Â Â Â Â Â Â Â Â record

Â Â Â Â Â Â Â Â Â Subpart 2.Â Duties and Operation of Filing Office

Â Â Â 490:9-519 Numbering, maintaining, and indexing records;

Â Â Â Â Â Â Â Â Â Â Â Â Â communicating information provided in records

Â Â Â 490:9-520 Acceptance and refusal to accept record

Â Â Â 490:9-521 Uniform form of written financing statement and

Â Â Â Â Â Â Â Â Â Â Â Â Â amendment

Â Â Â 490:9-522 Maintenance and destruction of records

Â Â Â 490:9-523 Information from filing office; sale or license of

Â Â Â Â Â Â Â Â Â Â Â Â Â records

Â Â Â 490:9-524 Delay by filing office

Â Â Â 490:9-525 Fees

Â Â Â 490:9-526 Filing-office rules

Â Â Â 490:9-527 Duty to report

Â Â Â Â Â Â Â Part 6.Â Default

Â Â Â Â Â Â Â Â Â Subpart 1.Â Default and Enforcement of Security

Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Interest

Â Â Â 490:9-601 Rights after default; judicial enforcement;

Â Â Â Â Â Â Â Â Â Â Â Â Â consignor or buyer of accounts, chattel paper,

Â Â Â Â Â Â Â Â Â Â Â Â Â payment intangibles, or promissory notes

Â Â Â 490:9-602 Waiver and variance of rights and duties

Â Â Â 490:9-603 Agreement on standards concerning rights and

Â Â Â Â Â Â Â Â Â Â Â Â Â duties

Â Â Â 490:9-604 Procedure if security agreement covers real

Â Â Â Â Â Â Â Â Â Â Â Â Â property or fixtures

Â Â Â 490:9-605 Unknown debtor or secondary obligor

Â Â Â 490:9-606 Time of default for agricultural lien

Â Â Â 490:9-607 Collection and enforcement by secured party

Â Â Â 490:9-608 Application of proceeds of collection or

Â Â Â Â Â Â Â Â Â Â Â Â Â enforcement; liability for deficiency and right to

Â Â Â Â Â Â Â Â Â Â Â Â Â surplus

Â Â Â 490:9-609 Secured party's right to take possession after

Â Â Â Â Â Â Â Â Â Â Â Â Â default

Â Â Â 490:9-610 Disposition of collateral after default

Â Â Â 490:9-611 Notification before disposition of collateral

Â Â Â 490:9-612 Timeliness of notification before disposition of

Â Â Â Â Â Â Â Â Â Â Â Â Â collateral

Â Â Â 490:9-613 Contents and form of notification before

Â Â Â Â Â Â Â Â Â Â Â Â Â disposition of collateral:Â general

Â Â Â 490:9-614 Contents and form of notification before

Â Â Â Â Â Â Â Â Â Â Â Â Â disposition of collateral:Â consumer-goods

Â Â Â Â Â Â Â Â Â Â Â Â Â transaction

Â Â Â 490:9-615 Application of proceeds of disposition; liability

Â Â Â Â Â Â Â Â Â Â Â Â Â for deficiency and right to surplus

Â Â Â 490:9-616 Explanation of calculation of surplus or

Â Â Â Â Â Â Â Â Â Â Â Â Â deficiency

Â Â Â 490:9-617 Rights of transferee of collateral

Â Â Â 490:9-618 Rights and duties of certain secondary obligors

Â Â Â 490:9-619 Transfer of record or legal title

Â Â Â 490:9-620 Acceptance of collateral in full or partial

Â Â Â Â Â Â Â Â Â Â Â Â Â satisfaction of obligation; compulsory disposition

Â Â Â Â Â Â Â Â Â Â Â Â Â of collateral

Â Â Â 490:9-621 Notification of proposal to accept collateral

Â Â Â 490:9-622 Effect of acceptance of collateral

Â Â Â 490:9-623 Right to redeem collateral

Â Â Â 490:9-624 Waiver

Â Â Â Â Â Â Â Â Â Subpart 2.Â Noncompliance with Article

Â Â Â 490:9-625 Remedies for secured party's failure to comply

Â Â Â Â Â Â Â Â Â Â Â Â Â with article

Â Â Â 490:9-626 Action in which deficiency or surplus is in issue

Â Â Â 490:9-627 Determination of whether conduct was commercially

Â Â Â Â Â Â Â Â Â Â Â Â Â reasonable

Â Â Â 490:9-628 Nonliability and limitation on liability of

Â Â Â Â Â Â Â Â Â Â Â Â Â secured party; liability of secondary obligor

Â Â Â Â Â Â Â Part 7.Â Transition

Â Â Â 490:9-701 Effective date

Â Â Â 490:9-702 Savings clause

Â Â Â 490:9-703 Security interest perfected before effective date

Â Â Â 490:9-704 Security interest unperfected before effective

Â Â Â Â Â Â Â Â Â Â Â Â Â date

Â Â Â 490:9-705 Effectiveness of action taken before effective

Â Â Â Â Â Â Â Â Â Â Â Â Â date

Â Â Â 490:9-706 When initial financing statement suffices to

Â Â Â Â Â Â Â Â Â Â Â Â Â continue effectiveness of financing statement

Â Â Â 490:9-707 Amendment of pre-effective-date financing

Â Â Â Â Â Â Â Â Â Â Â Â Â statement

Â Â Â 490:9-708 Persons entitled to file initial financing

Â Â Â Â Â Â Â Â Â Â Â Â Â statement or continuation statement

Â Â Â 490:9-709 Priority

Â Â Â Â Â Â Â Part 8.Â Transition Provisions for 2010 Amendments

Â Â Â 490:9-801 Effective date

Â Â Â 490:9-802 Savings clause

Â Â Â 490:9-803 Security interest perfected prior to

Â Â Â Â Â Â Â Â Â Â Â Â Â July 1, 2013

Â Â Â 490:9-804 Security interest unperfected before

Â Â Â Â Â Â Â Â Â Â Â Â Â July 1, 2013

Â Â Â 490:9-805 Effectiveness of action taken before

Â Â Â Â Â Â Â Â Â Â Â Â Â July 1, 2013

Â Â Â 490:9-806 When initial financing statement suffices to

Â Â Â Â Â Â Â Â Â Â Â Â Â continue effectiveness of financing statement

Â Â Â 490:9-807 Amendment of pre-effective-date financing

Â Â Â Â Â Â Â Â Â Â Â Â Â statement

Â Â Â 490:9-808 Person entitled to file initial financing

Â Â Â Â Â Â Â Â Â Â Â Â Â statement or continuation statement

Â Â Â 490:9-809 Priority

ARTICLE 10.Â EFFECTIVE DATE AND REPEALER

Â Â 490:10-101 Effective date

Â Â Â 490:10-102 Specific repealer; provision for transition

Â Â 490:10-103 General repealer

Â 490:10-103.1 Inconsistent laws

Â Â 490:10-104 Laws not repealed

ARTICLE 11.Â EFFECTIVE DATE AND TRANSITION

PROVISIONS--1978 AMENDATORY ACT

Â Â Â 490:11-101 Effective date

Â Â Â 490:11-102 Preservation of old transition provision

Â Â Â 490:11-103 Transition to new U.C.C.--General Rule

Â Â Â 490:11-104 Transition provision on change of requirement of

Â Â Â Â Â Â Â Â Â Â Â Â Â filing

Â Â Â 490:11-105 Transition provision on change of place of filing

Â Â Â 490:11-106 Required refilings

Â Â Â 490:11-107 Transition provisions as to priorities

Â Â Â 490:11-108 Presumption that rule of law continues unchanged

ARTICLE 12.Â CONTROLLABLE ELECTRONIC RECORDS

Â Â Â 490:12-101 Short title

Â Â Â 490:12-102 Definitions

Â Â Â 490:12-103 Relation to article 9 and consumer laws

Â Â Â 490:12-104 Rights in controllable account, controllable

Â Â Â Â Â Â Â Â Â Â Â Â Â electronic record, and controllable payment

Â Â Â Â Â Â Â Â Â Â Â Â Â intangible

Â Â 490:12-105 Control of controllable electronic record

Â Â Â 490:12-106 Discharge of account debtor on controllable

Â Â Â Â Â Â Â Â Â Â Â Â Â account or controllable payment intangible

Â Â 490:12-107 Governing law

ARTICLE 13.Â TRANSITIONAL PROVISIONS FOR UNIFORM

COMMERCIAL CODE AMENDMENTS (2022)

Â Â Â Â Â Â Â Part 1. Â General Provisions and Definitions

Â Â Â 490:13-101 Short title

Â Â Â 490:13-102 Definitions

Â Â Â Â Â Â Â Part 2. Â General Transitional Provision

Â Â Â 490:13-201 Savings clause

Â Â Â Â Â Â Â Part 3. Â Transitional Provisions for Articles 9 and 12

Â Â 490:13-301 Savings clause

Â Â Â 490:13-302 Security interest perfected before the effective

Â Â Â Â Â Â Â Â Â Â Â Â Â date

Â Â Â 490:13-303 Security interest unperfected before the effective

Â Â Â Â Â Â Â Â Â Â Â Â Â date

Â Â 490:13-304 Effectiveness of actions taken before the

Â Â Â Â Â Â Â Â Â Â Â Â Â effective date

Â Â 490:13-305 Priority

Â Â 490:13-306 Priority of claims when priority rules of article

Â Â Â Â Â Â Â Â Â Â Â Â Â 9 do not apply

Â Â Â Â Â Â Â Part 4. Â Effective Date

Â Â 490:13-401 Effective date

Rules of Court

Â Applicability of District Court Rules of Civil Procedure, see DCRCP rule 81(b)(5).

ARTICLE 1.Â [OLD]

GENERAL PROVISIONS

Â Â Â Â Â§Â§490:1-101 to 490:1-208Â REPEALED.Â L 2004, c 162, Â§18.

ARTICLE 1.

GENERAL PROVISIONS

PART 1.Â GENERAL PROVISIONS

Â Â Â Â Â§490:1-101Â Short title.Â (a)Â This chapter may be cited as the Uniform Commercial Code.

Â Â Â Â (b)Â This article may be cited as Uniform Commercial Code--General Provisions. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-102Â Scope of article.Â This article applies to a transaction to the extent that it is governed by another article of this chapter. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-103Â Construction of chapter to promote its purposes and policies; applicability of supplemental principles of law.Â (a)Â This chapter shall be liberally construed and applied to promote its underlying purposes and policies, which are:

Â Â Â Â (1)Â To simplify, clarify, and modernize the law governing commercial transactions;

Â Â Â Â (2)Â To permit the continued expansion of commercial practices through custom, usage, and agreement of the parties; and

Â Â Â Â (3)Â To make uniform the law among the various jurisdictions.

Â Â Â Â (b)Â Unless displaced by the particular provisions of this chapter, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy, and other validating or invalidating cause shall supplement its provisions. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-104Â Construction against implied repeal.Â This chapter being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-105Â Severability.Â If any provision or clause of this chapter or its application to any person or circumstances is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the provisions of this chapter are declared to be severable. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-106Â Use of singular and plural; gender.Â In this chapter, unless the statutory context otherwise requires:

Â Â Â Â (1)Â Words in the singular number include the plural, and those in the plural include the singular; and

Â Â Â Â (2)Â Words of any gender also refer to any other gender. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-107Â Section captions.Â Section captions are part of this chapter. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-108Â Relation to Electronic Signatures in Global and National Commerce Act.Â This article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, Title 15 United States Code section 7001 et seq., except that nothing in this article modifies, limits, or supersedes section 7001(c) of that Act or authorizes electronic delivery of any of the notices described in section 7003(b) of that Act. [L 2004, c 162, pt of Â§1]

PART 2.Â GENERAL DEFINITIONS AND PRINCIPLES OF INTERPRETATION

Â Â Â Â Â§490:1-201Â General definitions.Â (a)Â Unless the context otherwise requires, words or phrases defined in this section, or in the additional definitions contained in other articles of this chapter that apply to particular articles or parts thereof, have the meanings stated.

Â Â Â Â (b)Â Subject to definitions contained in other articles of this chapter that apply to particular articles or parts thereof:

Â Â Â Â "Action", in the sense of a judicial proceeding, includes recoupment, counterclaim, set-off, suit in equity, and any other proceeding in which rights are determined.

Â Â Â Â "Aggrieved party" means a party entitled to pursue a remedy.

Â Â Â Â "Agreement", as distinguished from "contract", means the bargain of the parties in fact, as found in their language or inferred from other circumstances, including course of performance, course of dealing, or usage of trade as provided in section 490:1-303.

Â Â Â Â "Bank" means a person engaged in the business of banking and includes a savings bank, savings and loan association, credit union, financial services loan company, and trust company.

Â Â Â Â "Bearer" means a person in control of a negotiable electronic document of title or a person in possession of a negotiable instrument, negotiable tangible document of title, or certificated security that is payable to bearer or indorsed in blank.

Â Â Â Â "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.Â "Bill of lading" does not include a warehouse receipt.

Â Â Â Â "Branch" includes a separately incorporated foreign branch of a bank.

Â Â Â Â "Burden of establishing" a fact means the burden of persuading the trier of fact that the existence of the fact is more probable than its nonexistence.

Â Â Â Â "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.Â A person buys goods in the ordinary course 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.Â 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.Â A buyer in ordinary course of business may buy for cash, by exchange of other property, or on secured or unsecured credit, and may acquire goods or documents of title under a preexisting contract for sale.Â Only a buyer that takes possession of the goods or has a right to recover the goods from the seller under article 2 may be a buyer in ordinary course of business.Â "Buyer in the ordinary course of business" does not include a person that acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a money debt.

Â Â Â Â "Conspicuous", with reference to a term, means so written, displayed, or presented that, based on the totality of the circumstances, a reasonable person against which it is to operate ought to have noticed it.Â Whether a term is "conspicuous" or not is a decision for the court.

Â Â Â Â "Consumer" means an individual who enters into a transaction primarily for personal, family, or household purposes.

Â Â Â Â "Contract", as distinguished from "agreement", means the total legal obligation that results from the parties' agreement as determined by this chapter and as supplemented by any other applicable law.

Â Â Â Â "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.

Â Â Â Â "Defendant" includes a person in the position of defendant in a counterclaim, cross-claim, or third-party claim.

Â Â Â Â "Delivery", with respect to an electronic document of title, means voluntary transfer of control and, with respect to an instrument, a tangible document of title, or an authoritative tangible copy of a record evidencing chattel paper, means voluntary transfer of possession.

Â Â Â Â "Document of title" means a record that:

Â Â Â Â (1)Â 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 the record covers; and

Â Â Â Â (2)Â Purports to be issued by or addressed to a bailee and to cover goods in the bailee's possession which are either identified or are fungible portions of an identified mass.

Â Â Â Â "Document of title" includes a bill of lading, transport document, dock warrant, dock receipt, warehouse receipt, and order for delivery of goods.

Â Â Â Â "Electronic" means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

Â Â Â Â "Electronic document of title" means a document of title evidenced by a record consisting of information stored in an electronic medium.Â A tangible document of title means a document of title evidenced by a record consisting of information that is inscribed on a tangible medium.

Â Â Â Â "Fault" means a default, breach, or wrongful act or omission.

Â Â Â Â "Fungible goods" means goods that:

Â Â Â Â (1)Â Any unit, by nature or usage of trade, is the equivalent of any other like unit; or

Â Â Â Â (2)Â By agreement are treated as equivalent.

Â Â Â Â "Genuine" means free of forgery or counterfeiting.

Â Â Â Â "Good faith" means honesty in fact.

Â Â Â Â "Holder" means the person in:

Â Â Â Â (1)Â Possession of a negotiable instrument that is payable either to bearer or to an identified person that is the person in possession;

Â Â Â Â (2)Â 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

Â Â Â Â (3)Â Control, other than pursuant to section 490:7-106(g), of a negotiable electronic document of title.

Â Â Â Â "Insolvency proceeding" includes an assignment for the benefit of creditors or other proceeding intended to liquidate or rehabilitate the estate of the person involved.

Â Â Â Â "Insolvent" means:

Â Â Â Â (1)Â Having generally ceased to pay debts in the ordinary course of business other than as a result of bona fide dispute;

Â Â Â Â (2)Â Being unable to pay debts as they become due; or

Â Â Â Â (3)Â Being insolvent within the meaning of federal bankruptcy law.

Â Â Â Â "Money" means a medium of exchange that is currently authorized or adopted by a domestic or foreign government.Â "Money" includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more countries.Â "Money" does not include an electronic record that is a medium of exchange recorded and transferable in a system that existed and operated for the medium of exchange before the medium of exchange was authorized or adopted by the government.

Â Â Â Â "Organization" means a person other than an individual.

Â Â Â Â "Party", as distinct from a "third party", means a person that has engaged in a transaction or made an agreement subject to this chapter.

Â Â Â Â "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity.Â "Person" includes a protected series, however denominated, of an entity if the protected series is established under any law other than this chapter that limits, or limits if conditions specified under the law are satisfied, the ability of a creditor of the entity or of any other protected series of the entity to satisfy a claim from assets of the protected series.

Â Â Â Â "Present value" means the amount as of a date certain of one or more sums payable in the future, discounted to the date certain by use of either an interest rate specified by the parties if that rate is not manifestly unreasonable at the time the transaction is entered into or, if an interest rate is not so specified, a commercially reasonable rate that takes into account the facts and circumstances at the time the transaction is entered into.

Â Â Â Â "Purchase" means taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property.

Â Â Â Â "Purchaser" means a person that takes by purchase.

Â Â Â Â "Record" 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.

Â Â Â Â "Remedy" means any remedial right to which an aggrieved party is entitled with or without resort to a tribunal.

Â Â Â Â "Representative" means a person empowered to act for another, including an agent, an officer of a corporation or association, and a trustee, executor, or administrator of an estate.

Â Â Â Â "Right" includes remedy.

Â Â Â Â "Security interest" means an interest in personal property or fixtures that secures payment or performance of an obligation.Â "Security interest" 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 article 9.Â "Security interest" does not include the special property interest of a buyer of goods on identification of those goods to a contract for sale under section 490:2-401, but a buyer may also acquire a "security interest" by complying with article 9.Â Except as otherwise provided in section 490:2-505, the right of a seller or lessor of goods under article 2 or 2A 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 article 9.Â The retention or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer under section 490:2-401 is limited in effect to a reservation of a "security interest".Â Whether a transaction in the form of a lease creates a "security interest" is determined pursuant to section 490:1-203.

Â Â Â Â "Send", in connection with a record or notification, means to:

Â Â Â Â (1)Â 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

Â Â Â Â (2)Â Cause the record or notification to be received within the time it would have been received if properly sent under paragraph (1).

Â Â Â Â "Signed", "sign", "signing", or "signature" means, with present intent to authenticate or adopt a record:

Â Â Â Â (1)Â Execute or adopt a tangible symbol; or

Â Â Â Â (2)Â Attach to, or logically associate with, the record an electronic symbol, sound, or process.

Â Â Â Â "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.

Â Â Â Â "Surety" includes a guarantor or other secondary obligor.

Â Â Â Â "Term" means a portion of an agreement that relates to a particular matter.

Â Â Â Â "Unauthorized signature" means a signature made without actual, implied, or apparent authority.Â "Unauthorized signature" includes a forgery.

Â Â Â Â "Warehouse receipt" means a document of title issued by a person engaged in the business of storing goods for hire.

Â Â Â Â "Writing" includes printing, typewriting, or any other intentional reduction to tangible form.Â "Written" has a corresponding meaning. [L 2004, c 162, pt of Â§1 and c 163, Â§3; am L 2023, c 132, Â§2]

Â Â Â Â Â§490:1-202Â Notice; knowledge.Â (a)Â Subject to subsection (f), a person has "notice" of a fact if the person:

Â Â Â Â (1)Â Has actual knowledge of it;

Â Â Â Â (2)Â Has received a notice or notification of it; or

Â Â Â Â (3)Â From all the facts and circumstances known to the person at the time in question, has reason to know that it exists.

Â Â Â Â (b)Â "Knowledge" means actual knowledge.Â "Knows" has a corresponding meaning.

Â Â Â Â (c)Â "Discover", "learn", or words of similar import refer to knowledge rather than to reason to know.

Â Â Â Â (d)Â A person "notifies" or "gives" a notice or notification to another by taking steps reasonably required to inform the other in ordinary course, whether or not the other person actually comes to know of it.

Â Â Â Â (e)Â Subject to subsection (f), a person "receives" a notice or notification when:

Â Â Â Â (1)Â It comes to that person's attention; or

Â Â Â Â (2)Â It is duly delivered in a form reasonable under the circumstances at the place of business through which the contract was made or at another location held out by that person as the place for receipt of such communications.

Â Â Â Â (f)Â Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time it is brought to the attention of the individual conducting that transaction and from the time it would have been brought to the individual's attention if the organization had exercised due diligence.Â 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.Â Due diligence does not require an individual acting for the organization to communicate information unless the communication is part of the individual's regular duties or the individual has reason to know of the transaction and that the transaction would be materially affected by the information. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-203Â Lease distinguished from security interest.Â (a)Â Whether a transaction in the form of a lease creates a lease or security interest is determined by the facts of each case.

Â Â Â Â (b)Â A transaction in the form of a lease creates a security interest if the consideration that 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 and is not subject to termination by the lessee, and:

Â Â Â Â (1)Â The original term of the lease is equal to or greater than the remaining economic life of the goods;

Â Â Â Â (2)Â 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;

Â Â Â Â (3)Â The lessee has an option to renew the lease for the remaining economic life of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement; or

Â Â Â Â (4)Â The lessee has an option to become the owner of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement.

Â Â Â Â (c)Â A transaction in the form of a lease does not create a security interest merely because:

Â Â Â Â (1)Â The present value of the consideration the lessee is obligated to pay the lessor for the right to possession and use of the goods is substantially equal to or is greater than the fair market value of the goods at the time the lease is entered into;

Â Â Â Â (2)Â The lessee assumes risk of loss of the goods;

Â Â Â Â (3)Â The lessee agrees to pay, with respect to the goods, taxes, insurance, filing, recording, or registration fees, or service or maintenance costs;

Â Â Â Â (4)Â The lessee has an option to renew the lease or to become the owner of the goods;

Â Â Â Â (5)Â The lessee has an option to renew the lease for a fixed rent that is equal to or greater than the reasonably predictable fair market rent for the use of the goods for the term of the renewal at the time the option is to be performed; or

Â Â Â Â (6)Â The lessee has an option to become the owner of the goods for a fixed price that is equal to or greater than the reasonably predictable fair market value of the goods at the time the option is to be performed.

Â Â Â Â (d)Â 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.Â Additional consideration is not nominal if:

Â Â Â Â (1)Â 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

Â Â Â Â (2)Â 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.

Â Â Â Â (e)Â The "remaining economic life of the goods" and "reasonably predictable" fair market rent, fair market value, or cost of performing under the lease agreement shall be determined with reference to the facts and circumstances at the time the transaction is entered into. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-204Â Value.Â Except as otherwise provided in articles 3, 4, 5, and 12, a person gives value for rights if the person acquires them:

Â Â Â Â (1)Â 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 charge-back is provided for in the event of difficulties in collection;

Â Â Â Â (2)Â As security for, or in total or partial satisfaction of, a preexisting claim;

Â Â Â Â (3)Â By accepting delivery under a preexisting contract for purchase; or

Â Â Â Â (4)Â In return for any consideration sufficient to support a simple contract. [L 2004, c 162, pt of Â§1; am L 2023, c 132, Â§3]

Â Â Â Â Â§490:1-205Â Reasonable time; seasonableness.Â (a)Â Whether a time for taking an action required by this chapter is reasonable depends on the nature, purpose, and circumstances of the action.

Â Â Â Â (b)Â An action is taken seasonably if it is taken at or within the time agreed or, if no time is agreed, at or within a reasonable time. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-206Â Presumptions.Â Whenever this chapter creates a "presumption" with respect to a fact, or provides that a fact is "presumed", the trier of fact shall find the existence of the fact unless evidence is introduced that supports a finding of its nonexistence. [L 2004, c 162, pt of Â§1]

PART 3.Â TERRITORIAL APPLICABILITY AND GENERAL RULES

Â Â Â Â Â§490:1-301Â Territorial applicability; parties' power to choose applicable law.Â (a)Â Except as otherwise provided in this section, when a transaction bears a reasonable relation to this State and also to another state or nation, the parties may agree that the law either of this State or of such other state or nation shall govern their rights and duties.

Â Â Â Â (b)Â In the absence of an agreement effective under subsection (a), and except as provided in subsection (c), the Uniform Commercial Code applies to transactions bearing an appropriate relation to this State.

Â Â Â Â (c)Â If one of the following provisions of the Uniform Commercial Code specifies the applicable law, that provision shall govern and a contrary agreement shall be effective only to the extent permitted by the law so specified:

Â Â Â Â (1)Â Section 490:2-402;

Â Â Â Â (2)Â Sections 490:2A-105 and 490:2A-106;

Â Â Â Â (3)Â Section 490:4-102;

Â Â Â Â (4)Â Section 490:4A-507;

Â Â Â Â (5)Â Section 490:5-116;

Â Â Â Â (6)Â Section 490:8-110;

Â Â Â Â (7)Â Sections 490:9-301 through 490:9-307; and

Â Â Â Â (8)Â Section 490:12-107. [L 2004, c 162, pt of Â§1; am L 2023, c 132, Â§4]

Â Â Â Â Â§490:1-302Â Variation by agreement.Â (a)Â Except as otherwise provided in subsection (b) or elsewhere in this chapter, the effect of provisions of this chapter may be varied by agreement.

Â Â Â Â (b)Â The obligations of good faith, diligence, reasonableness, and care prescribed by this chapter may not be disclaimed by agreement.Â The parties, by agreement, may determine the standards by which the performance of those obligations is to be measured if those standards are not manifestly unreasonable.Â Whenever this chapter requires an action to be taken within a reasonable time, a time that is not manifestly unreasonable may be fixed by agreement.

Â Â Â Â (c)Â The presence in certain provisions of this chapter of the phrase "unless otherwise agreed", or words of similar import, does not imply that the effect of other provisions may not be varied by agreement under this section. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-303Â Course of performance, course of dealing, and usage of trade.Â (a)Â A "course of performance" is a sequence of conduct between the parties to a particular transaction that exists if:

Â Â Â Â (1)Â The agreement of the parties with respect to the transaction involves repeated occasions for performance by a party; and

Â Â Â Â (2)Â The other party, with knowledge of the nature of the performance and opportunity for objection to it, accepts the performance or acquiesces in it without objection.

Â Â Â Â (b)Â A "course of dealing" is a sequence of conduct concerning previous transactions between the parties to a particular transaction that is fairly to be regarded as establishing a common basis of understanding for interpreting their expressions and other conduct.

Â Â Â Â (c)Â A "usage of trade" is any practice or method of dealing having such regularity of observance in a place, vocation, or trade as to justify an expectation that it will be observed with respect to the transaction in question.Â The existence and scope of a usage of trade shall be proved as facts.Â If it is established that the usage is embodied in a trade code or similar record, the interpretation of the record is a question of law.

Â Â Â Â (d)Â A course of performance or course of dealing between the parties or usage of trade in the vocation or trade in which they are engaged or of which they are or should be aware is relevant in ascertaining the meaning of the parties' agreement, may give particular meaning to specific terms of the agreement, and may supplement or qualify the terms of the agreement.Â A usage of trade applicable in the place in which part of the performance under the agreement is to occur may be so utilized as to that part of the performance.

Â Â Â Â (e)Â Except as otherwise provided in subsection (f), the express terms of an agreement and any applicable course of performance, course of dealing, or usage of trade shall be construed whenever reasonable as consistent with each other.Â If such a construction is unreasonable:

Â Â Â Â (1)Â Express terms prevail over course of performance, course of dealing, and usage of trade;

Â Â Â Â (2)Â Course of performance prevails over course of dealing and usage of trade; and

Â Â Â Â (3)Â Course of dealing prevails over usage of trade.

Â Â Â Â (f)Â Subject to section 490:2-209, a course of performance is relevant to show a waiver or modification of any term inconsistent with the course of performance.

Â Â Â Â (g)Â Evidence of a relevant usage of trade offered by one party is not admissible unless that party has given the other party notice that the court finds sufficient to prevent unfair surprise to the other party. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-304Â Obligation of good faith.Â Every contract or duty within this chapter imposes an obligation of good faith in its performance and enforcement. [L 2004, c 162, pt of Â§1]

Case Notes

Â Where the court predicted that the Hawaii supreme court would interpret Â§490:1-203 (and this section, its successor) to preclude an independent cause of action for failure to perform or enforce a warranty in good faith, plaintiff's claim for breach of the implied covenant of good faith and fair dealing dismissed.Â 459 F. Supp. 2d 1028.

Â Â Â Â Â§490:1-305Â Remedies to be liberally administered.Â (a)Â The remedies provided by this chapter shall be liberally administered so that the aggrieved party is put in as good a position as if the other party had fully performed but neither consequential or special damages nor penal damages may be had except as specifically provided in this chapter or by other rule of law.

Â Â Â Â (b)Â Any right or obligation declared by this chapter is enforceable by action unless the provision declaring it specifies a different and limited effect. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-306Â Waiver or renunciation of claim or right after breach.Â A claim or right arising out of an alleged breach may be discharged in whole or in part without consideration by agreement of the aggrieved party in a signed record. [L 2004, c 162, pt of Â§1; am L 2023, c 132, Â§5]

Â Â Â Â Â§490:1-307Â Prima facie evidence by third-party documents.Â A document in due form purporting to be a bill of lading, policy or certificate of insurance, official weigher's or inspector's certificate, consular invoice, or any other document authorized or required by the contract to be issued by a third party is prima facie evidence of its own authenticity and genuineness and of the facts stated in the document by the third party. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-308Â Performance or acceptance under reservation of rights.Â (a)Â A party that with explicit reservation of rights performs or promises performance or assents to performance in a manner demanded or offered by the other party does not thereby prejudice the rights reserved.Â Such words as "without prejudice", "under protest", or the like are sufficient.

Â Â Â Â (b)Â Subsection (a) does not apply to an accord and satisfaction. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-309Â Option to accelerate at will.Â A term providing that one party or that party's successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or when the party "deems itself insecure", or words of similar import, means that the party has power to do so only if that party in good faith believes that the prospect of payment or performance is impaired.Â The burden of establishing lack of good faith is on the party against which the power has been exercised. [L 2004, c 162, pt of Â§1]

Â Â Â Â Â§490:1-310Â Subordinated obligations.Â An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to performance of an obligation by agreement with either the person obligated or another creditor of the person obligated.Â Subordination does not create a security interest as against either the common debtor or a subordinated creditor. [L 2004, c 162, pt of Â§1]