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The Vermont Statutes Online

 

Title 9A : Uniform Commercial Code

Article 009 : SECURED TRANSACTIONS

(Cite as: 9A V.S.A. § 9-109)
  • § 9-109. Scope

    (a) Except as otherwise provided in subsections (c) and (d) of this section, this article applies to:

    (1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

    (2) an agricultural lien;

    (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;

    (4) a consignment;

    (5) a security interest arising under section 2- 401, 2- 505 of this title or subsection 2- 711(3), or 2A- 508(5) of this title, as provided in section 9- 110 of this title; and

    (6) a security interest arising under section 4- 210 or 5- 118 of this title.

    (b) The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.

    (c) This article does not apply to the extent that:

    (1) a statute, regulation, or treaty of the United States preempts this article;

    (2) a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

    (3) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 5- 114 of this title.

    (d) This article does not apply to:

    (1) a landlord's lien, other than an agricultural lien;

    (2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 9- 333 of this title applies with respect to priority of the lien;

    (3) an assignment of a claim for wages, salary, or other compensation of an employee;

    (4) a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

    (5) an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;

    (6) an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

    (7) an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

    (8) a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care-insurance receivable and any subsequent assignment of the right to payment, but sections 9- 315 and 9- 322 of this title apply with respect to proceeds and priorities in proceeds;

    (9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

    (10) a right of recoupment or set-off, but:

    (A) section 9- 340 of this title applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

    (B) section 9- 404 of this title applies with respect to defenses or claims of an account debtor;

    (11) the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

    (A) liens on real property in sections 9- 203 of this title and 9- 308 of this title;

    (B) fixtures in section 9- 334 of this title;

    (C) fixture filings in sections 9- 501, 9- 502, 9- 512, 9- 516, and 9- 519 of this title; and

    (D) security agreements covering personal and real property in section 9- 604 of this title;

    (12) an assignment of a claim arising in tort, other than a commercial tort claim, but sections 9- 315 and 9- 322 of this title apply with respect to proceeds and priorities in proceeds;

    (13) an assignment of a deposit account in a consumer transaction, but sections 9- 315 and 9- 322 of this title apply with respect to proceeds and priorities in proceeds;

    (14) a transfer by this State or a subdivision, agency, department, county, municipality, or other unit of the government of this State;

    (15) a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2); or

    (16) a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. § 1396p(d)(4). (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2001, No. 46, §§ 1a, 1b.)