Does Article 9 apply to bank accounts? (2024)

Does Article 9 apply to bank accounts?

Bank Accounts as Original Collateral

What transactions does Article 9 apply to?

Article 9 of the UCC governs any transaction that is voluntary and commercial and which creates an interest in personal property. Personal property may include fixtures, which are personal property that is attached to real property, such as a furnace.

What does Article 9 cover?

Article 9 covers security interests in all personal property whether tangible or intangible. We will discuss what security interests are, what is required for perfection and the priorities afforded security interests.

What is Article 9 sale of accounts?

Article 9 sets out a framework that permits a secured creditor to repossess and dispose of its collateral efficiently and inexpensively while providing the debtor with various procedural protections. The trigger for the sale is the debtor's default on its obligations to the lender under the applicable loan documents.

What is the jurisdiction of a bank account?

Bank Jurisdiction means, at any time, the jurisdiction of incorporation of the Issuer or any new issuer substituted therefor in accordance with the Conditions.

Who must follow Article 9?

The credit manager must ensure that all requirements of Article 9 are properly met and documented to obtain a legal claim in a debtor's collateral if the debtor does not pay or satisfy its obligations.

What are accounts as defined in the UCC?

(2) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a policy of insurance ...

Does Article 9 apply to all credit transactions?

As noted in Chapter 3 (The Nature of Secured Credit under Article 9), Article 9 generally governs only consensual liens on personal property, i.e., security interests in personal property created by agreement. The creation of most other types of liens is largely outside the scope of Article 9.

Does Article 9 apply to mortgages?

1. The UCC is a model code sponsored by the American Law Institute and the Uniform Law Commission that governs commercial transactions and has been enacted, in one form or another, in each of the 50 states. Generally, Articles 3 and 9 of the UCC are relevant to mortgage loans.

Are accounts receivable personal property?

Tit. 18, § 13303.3 - Intangible Personal Property. The term "intangible personal property" includes stocks, bonds, notes (whether secured or unsecured), bank deposits, accounts receivable, patents, trade-marks, copyrights, good will, partnership interest, life insurance policies, and other choses in action.

What is the definition of accounts in UCC Article 9?

(Article 9) Except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance, • for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of, • for services rendered or to be rendered, • for a policy of insurance issued or to ...

Does UCC Article 9 apply to consumer transactions?

Revised Article 9 will govern security interests in non-consumer deposit accounts, but not security interests in consumer deposit accounts.

Why is Article 9 important?

Article 9 protects your right to freedom of thought, belief and religion. It includes the right to change your religion or beliefs at any time. You also have the right to put your thoughts and beliefs into action.

What are bank accounts protected by?

The FDIC insures your bank account to protect your money in the unlikely event of a bank failure. Bank accounts are insured by the Federal Deposit Insurance Corporation (FDIC), which is part of the federal government. The insurance covers accounts containing $250,000 or less under the same owner or owners.

What is the federal protection for bank accounts?

The FDIC provides deposit insurance to protect your money in the event of a bank failure. Your deposits are automatically insured to at least $250,000 at each FDIC-insured bank.

What type of bank account Cannot be levied?

Bank accounts solely for government benefits

Federal law ensures that creditors cannot touch certain federal benefits, such as Social Security funds and veterans' benefits. If you're receiving these benefits, they would not be subject to garnishment.

How long is Article 9 good for?

How long is the training? This course is approximately 4 hours in length including a break. How long is my certificate valid? Your certificate is valid for 3 years and is accessible for download from your account area.

Who must follow Article 9 in Arizona?

Successful completion of an Article 9 class is a prerequisite of the State of Arizona for anyone who will be providing paid services for an individual through the Division of Developmental Disabilities.

When was Article 9 adopted?

1 First adopted by its co-sponsors -- the National Conference of Commissioners on Uniform State Laws (NCCUSL)2 and the American Law Institute (ALI)3 -- in 1951 (version 1.0) and modified significantly in 1972 (version 2.0), the official text was thoroughly overhauled in 1998 and promulgated in 1999 (version 3.0).

Are accounts receivable accounts under the UCC?

Article 9 of the UCC protects purchasers of accounts receivable by providing a method to record ownership. Recording the sale of the receivable is accomplished by filing a UCC financing statement.

Why would someone file a UCC?

A Uniform Commercial Code filing—or UCC filing—is a form of notice that lenders use when securing a borrower's loan with an asset or group of assets. This enables lenders to seize the listed property as a way of recouping loan funds in the case of borrower default.

What is the legal definition of a bank account?

— The term “account”— (i) means a formal banking or business relationship established to provide regular services, dealings, and other financial transactions; and (ii) includes a demand deposit, savings deposit, or other transaction or asset account and a credit account or other extension of credit.

What is the most important UCC rule?

Article 9, which governs Secured Transactions, is one of the most important sections of the UCC. The rules in Article 9 cover transactions where there is a debt involved and a creditor has an interest in the debtor's property.

How do you perfect a UCC lien?

Security interests for most types of collateral are usually perfected by filing a document simply called a "financing statement." You'll usually file this form with the secretary of state or other public office.

What is a UCC filing for dummies?

What does UCC stand for? UCC stands for Uniform Commercial Code. The UCC is a set of laws concerning commercial transactions, such as the sale of goods. It also covers secured transactions, where a lender gains the right to foreclose on a borrower's collateral should the borrower default on the loan.

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