Oklahoma 2024 Regular Session

Oklahoma House Bill HB3323 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3323 Page 1 1
	3	+	HB3323 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3323 By: Staires and Maynard of the
30		-	House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
31	30
32		-	~~and~~
	31	+	STATE OF OKLAHOMA
33	32
34		-	Coleman of the Senate
	33	+	2nd Session of the 59th Legislature (2024)
	34	+
	35	+	COMMITTEE SUBSTITUTE
	36	+	FOR
	37	+	HOUSE BILL NO. 3323 By: Staires
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	42	+
	43	+	COMMITTEE SUBSTITUTE
39	44
40	45		An Act relating to the Uniform Commercial Code;
41	46		amending 12A O.S. 2021, Section 1 -201, which relates
42	47		to general definitions; defining central bank digital
43	48		currency; modifying definition; amending 12A O.S.
44	49		2021, Section 1-9-102, which relates to de finitions;
45	50		modifying definition; and providing an effective
46	51		date.
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52	57		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	58		SECTION 1. AMENDATORY 12A O.S. 2021, Section 1 -201, is
54	59		amended to read as follow s:
55	60		Section 1-201. General Definitions and Principles of
56	61		Interpretation.
57	62		(a) Unless the context otherwise re quires, words or phrases
58	63		defined in this section, or in the additional definitions contained
59	64		in other articles of the Uniform Commercial Code that apply to
60	65		particular articles or parts thereof, have the meanings stated.
61		-	(b) Subject to definitions containe d in other articles of the
62		-	Uniform Commercial Code that apply to particular articles or parts
63		-	thereof:
64	66
65		-	ENGR. H. B. NO. 3323 Page 2 1
	67	+	HB3323 HFLR Page 2
	68	+	BOLD FACE denotes Committee Amendments. 1
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	93	+	(b) Subject to definitions containe d in other articles of the
	94	+	Uniform Commercial Code that apply to particular articles or parts
	95	+	thereof:
90	96		(1) "Action" in the sense of a judicial pro ceeding includes a
91	97		recoupment, counterclaim, s etoff, suit in equity, and a ny other
92	98		proceedings in which right s are determined.
93	99		(2) "Aggrieved party" means a party entitled to pursue a
94	100		remedy.
95	101		(3) "Agreement", as distinguished from "contract", means the
96	102		bargain of the parties in fact as found in thei r language or
97	103		inferred from other circumstances including course of performance,
98	104		course of dealing, or usage of trade as provided in Section 1 -303 of
99	105		this title.
100	106		(4) "Bank" means a person engaged in the busine ss of banking
101	107		and includes a savings bank, sav ings and loan association, c redit
102	108		union, and trust company.
103	109		(5) "Bearer" means a person in control of a negotiable
104	110		electronic document of title or a person in possession of an
105	111		instrument, negotiable tangible document of title, or certificated
106	112		security payable to bearer or endorsed i n blank.
107	113		(6) "Bill of lading" means a document of title evidencing the
108	114		receipt of goods for shipment issued by a person engaged in t he
109	115		business of directly or indirectly transporting or forwarding goods .
110	116		The term does not incl ude a warehouse receipt.
111		-	(7) "Branch" includes a separately in corporated foreign branch
112		-	of a bank.
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114		-	ENGR. H. B. NO. 3323 Page 3 1
	118	+	HB3323 HFLR Page 3
	119	+	BOLD FACE denotes Committee Amendments. 1
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	144	+	(7) "Branch" includes a separately in corporated foreign branch
	145	+	of a bank.
139	146		(8) "Burden of establishing " means the burden of persuading the
140	147		trier of fact that the existence of the fact is more probable than
141	148		its nonexistence.
142	149		(9) "Buyer in ordinary course of business" means a person that
143	150		buys goods in good faith, without knowledge that the sale violates
144	151		the rights of another person in the goods, and in the ordinary
145	152		course from a person, other than a pawnbroker, in the business of
146	153		selling goods of that kind. A person buys goods in the ordinary
147	154		course if the sale to the person comports with the usual or
148	155		customary practices in the kind of bus iness in which the seller is
149	156		engaged or with the seller's own usual or customary practices. A
150	157		person that sells oil, gas, or other minerals at the wellhead o r
151	158		minehead is a person in the business of selling goods of that kind.
152	159		A buyer in ordinary course of business may buy for cash, by exchange
153	160		of other property, or on secured or unsecured credit, and may
154	161		acquire goods or documents of title under a preexistin g contract for
155	162		sale. Only a buyer that takes possession of the goods or has a
156	163		right to recover the goods from the seller under Article 2 may be a
157	164		buyer in ordinary course of business. "Buyer in ordinary course of
158	165		business" does not include a person that acquires goods in a
159	166		transfer in bulk or as security for or total or partial satisfaction
160	167		of a money debt.
161		-	(10) "Central bank digital curren cy" means a digital currency,
162		-	a digital medium of exc hange, or a digital monetary unit of account
163	168
164		-	ENGR. H. B. NO. 3323 Page 4 1
	169	+	HB3323 HFLR Page 4
	170	+	BOLD FACE denotes Committee Amendments. 1
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	195	+	(10) "Central bank digital curren cy" means a digital currency,
	196	+	a digital medium of exc hange, or a digital monetary unit of account
189	197		issued by the United States Federal Reserve System, a federal
190	198		agency, a foreign government, a for eign central bank, or a foreign
191	199		reserve system that is made directly available to a consumer by such
192	200		entities. The term includes a digital currency, a digital medium of
193	201		exchange, or a digital monetary unit of account issued by the United
194	202		States Federal Reserve System, a federal agency , a foreign
195	203		government, a foreign central bank, or a foreign reserve system that
196	204		is processed or validated directly by such entities.
197	205		(11) "Conspicuous", with reference to a term means so written,
198	206		displayed, or presented that a reasonable person ag ainst whom it is
199	207		to operate ought to have not iced it. Whether a term is
200	208		"conspicuous" or not is a decision for the court . Conspicuous terms
201	209		include the following:
202	210		(A) a heading in capitals equal to or greater in size than
203	211		the surrounding text, or in contrasting type, font, or
204	212		color to the surrounding text of same or lesser size;
205	213		and
206	214		(B) language in the body of a record or display in larger
207	215		type than the surrounding text of the same size, or
208	216		set off from surrounding text of the same size by
209	217		symbols or other marks that call attention to the
210	218		language.
211		-	(11) (12) "Consumer" means an individual who enters into a
212		-	transaction primarily for personal, family, or household purposes.
213	219
214		-	ENGR. H. B. NO. 3323 Page 5 1
	220	+	HB3323 HFLR Page 5
	221	+	BOLD FACE denotes Committee Amendments. 1
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	246	+	(11) (12) "Consumer" means an individual who enters into a
	247	+	transaction primarily for personal, family, or household purposes.
239	248		(12) (13) "Contract", as distinguished from "agreement", means
240	249		the total legal obligation that results from the parties ' agreement
241	250		as determined by the provisions of the Uniform Commercial Code as
242	251		supplemented by any other applicable laws.
243	252		(13) (14) "Creditor" includes a general creditor, a secured
244	253		creditor, a lien creditor, and any representative of creditors,
245	254		including an assignee for the benefit of cre ditors, a trustee in
246	255		bankruptcy, a receiver in equi ty, and an executor or administrator
247	256		of an insolvent debtor's or assignor's estate.
248	257		(14) (15) "Defendant" includes a person in the position of
249	258		defendant in a counterclaim, cross-claim, or third-party claim.
250	259		(15) (16) "Delivery" with respect to an electronic document of
251	260		title means voluntary transfer of control and with respect to an
252	261		instrument, a tangible document of title, or chattel paper means
253	262		voluntary transfer of possession.
254	263		(16) (17) "Document of title" means a record that in the
255	264		regular course of business or financing is treated as adequately
256	265		evidencing that the person in possession or control of the record is
257	266		entitled to receive, control, hold, and dispose of the record and
258	267		the goods the record covers and that purports to be issued by or
259	268		addressed to a bailee and to cover goods in the bailee's possession
260	269		which are either identified or are fungible portions of an
261		-	identified mass. The term includes a bill of lading, transport
262		-	document, dock warrant, dock receipt, warehouse receipt, and order
263	270
264		-	ENGR. H. B. NO. 3323 Page 6 1
	271	+	HB3323 HFLR Page 6
	272	+	BOLD FACE denotes Committee Amendments. 1
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	297	+	identified mass. The term includes a bill of l ading, transport
	298	+	document, dock warrant, dock receipt, warehouse receipt, and order
289	299		for delivery of goods. An electronic document of title means a
290	300		document of title evidenced by a record consisting of information
291	301		stored in an electronic medium. A tangibl e document of title means
292	302		a document of title evidenced by a record consisting of information
293	303		that is inscribed on a tangible medium.
294	304		(17) (18) "Fault" means a default, breach, or wrongful act or
295	305		omission.
296	306		(18) (19) "Fungible goods" means:
297	307		(A) goods of which any unit, by nature or usage of trade,
298	308		is the equivalent of any other like unit; or
299	309		(B) goods that by agreement are treated as equivalent.
300	310		(19) (20) "Genuine" means free of forgery or counterfeiting.
301	311		(20) (21) "Good faith", except as otherwise provi ded in Article
302	312		5 of this title, means honesty in fact and the observance of
303	313		reasonable commercial standards of fair dealing.
304	314		(21) (22) "Holder" means:
305	315		(A) the person in possession of a negotiable instrument
306	316		that is payable either to bearer or to an identified
307	317		person that is the person in possession;
308	318		(B) the person in possession of a document of title if the
309	319		goods are deliverable either to bearer or to the order
310	320		of the person in possession ; or
311		-	(C) the person in control of a negotiable electron ic
312		-	document of title.
313	321
314		-	ENGR. H. B. NO. 3323 Page 7 1
	322	+	HB3323 HFLR Page 7
	323	+	BOLD FACE denotes Committee Amendments. 1
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	348	+	(C) the person in control of a negotiable electronic
	349	+	document of title.
339	350		(22) (23) "Insolvency proceeding" includes any assignment for
340	351		the benefit of creditors or other proceeding intended to liquidate
341	352		or rehabilitate the estat e of the person involved.
342	353		(23) (24) "Insolvent" means:
343	354		(A) having generally ceased to pay debts in the ordinary
344	355		course of business other than as a result of bona fide
345	356		dispute;
346	357		(B) being unable to pay debts as they become due; or
347	358		(C) being insolvent within the meaning of the federal
348	359		bankruptcy law.
349	360		(24) (25) "Money" means a medium of exchange aut horized or
350	361		adopted by a domestic or fore ign government. The term includes a
351	362		monetary unit of account established by an intergovernmental
352	363		organization or by agreement betwee n two or more countries. The
353	364		term does not include central bank digital currenc y.
354	365		(25) (26) "Organization" means a person other than an
355	366		individual.
356	367		(26) (27) "Party", as distinguished from "third party", means a
357	368		person who has engaged in a transaction or made an agreement subject
358	369		to the Uniform Commercial Code.
359	370		(27) (28) "Person" means an individual, corporation, business
360	371		trust, estate, trust, partnership, limited liability company,
361		-	association, joint venture, government, governmental subdivision,
362	372
363		-	ENGR. H. B. NO. 3323 Page 8 1
	373	+	HB3323 HFLR Page 8
	374	+	BOLD FACE denotes Committee Amendments. 1
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	399	+	association, joint venture, government, governmental subdivision,
388	400		agency, or instrumentality, public corporat ion, or any other legal
389	401		or commercial entity.
390	402		(28) (29) "Present value" means the amount as of a date cer tain
391	403		of one or more sums payable in the future, discounted to the date
392	404		certain by use of either an interest rate specified by the parties
393	405		if that rate is not manifestly unreasonable at the t ime the
394	406		transaction is entered into or, if an interest rate is not so
395	407		specified, a commercially reasonable rate that takes into account
396	408		the facts and circumstances at the time the transaction is entered
397	409		into.
398	410		(29) (30) "Purchase" means taking by sale, discount ,
399	411		negotiation, mortgage, pledge, lien, security interest, iss ue or
400	412		reissue, gift, or any other voluntary transaction creating an
401	413		interest in property.
402	414		(30) (31) "Purchaser" means a person who takes by purchase.
403	415		(31) (32) "Record" means information that i s inscribed on a
404	416		tangible medium or that is stored in an elec tronic or other medium
405	417		and is retrievable in perceivable form.
406	418		(32) (33) "Remedy" means any remedial right to which an
407	419		aggrieved party is entitled with or without resort to a tribunal.
408	420		(33) (34) "Representative" means a person empowe red to act for
409	421		another, including an agent, an officer of a corporation or
410	422		association, and a trustee, executor, or administrator of an estate.
411		-	(34) (35) "Right" includes remedy.
412	423
413		-	ENGR. H. B. NO. 3323 Page 9 1
	424	+	HB3323 HFLR Page 9
	425	+	BOLD FACE denotes Committee Amendments. 1
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	450	+	(34) (35) "Right" includes remedy.
438	451		(35) (36) "Security interest" means an interest in personal
439	452		property or fixtures which secures payment or performance of an
440	453		obligation. "Security interest" includes any interest of a
441	454		consignor and a buyer of accounts, chattel paper, a payment
442	455		intangible, or a promissory note in a trans action that is subject to
443	456		Article 9 of this title. "Security interest" does not include the
444	457		special property interest of a buyer of goods on identification of
445	458		those goods to a contract for sale under Section 2 -401 of this
446	459		title, but a buyer may also acqui re a "security interest" by
447	460		complying with the provisio ns of Article 9 of this title. Except as
448	461		otherwise provided in Section 2-505 of this title, the right of a
449	462		seller or lessor of goods under Article 2 or 2A of this title to
450	463		retain or acquire possession of the goods is not a "security
451	464		interest", but a seller or lessor may also acquire a "security
452	465		interest" by complying with Article 9 of this title. The retention
453	466		or reservation of title by a seller of goods notwithstanding
454	467		shipment or delivery to the buy er under Section 2-401 of this title
455	468		is limited in effect to a reservation of a "security interest".
456	469		Whether a transaction in the form of a lease creates security
457	470		interest is determined pursuant to Section 1 -203 of this title.
458	471		(36) (37) "Send" in connection with any writing, record, or
459	472		notice means:
460		-	(A) to deposit in the mail or deliver for transmission by
461		-	any other usual means of communication with postage or
462	473
463		-	ENGR. H. B. NO. 3323 Page 10 1
	474	+	HB3323 HFLR Page 10
	475	+	BOLD FACE denotes Committee Amendments. 1
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	500	+	(A) to deposit in the mail or deliver for transmission by
	501	+	any other usual means of communication with postage or
488	502		cost of transmission provided for and properly
489	503		addressed and, in the case of an instrument, to an
490	504		address specified thereon or otherwise agreed, or if
491	505		there be none, to any address reasonable under the
492	506		circumstances; or
493	507		(B) in any other way to cause to be received any record or
494	508		notice within the time at which it would have arrived
495	509		if properly sent.
496	510		(37) (38) "Signed" includes any symbol execut ed or adopted with
497	511		present intention to adopt or accept a writing.
498	512		(38) (39) "State" means a state of the United States, the
499	513		District of Columbia, Puerto Rico, the United States Virgin Islands,
500	514		or any territory or insular possession subject to the jurisdiction
501	515		of the United States.
502	516		(39) (40) "Surety" includes guarantor or other secondary
503	517		obligor.
504	518		(40) (41) "Term" means a portion of an agreement which relates
505	519		to a particular matter.
506	520		(41) (42) "Unauthorized signature" means a signature made
507	521		without actual, implied or apparen t authority. The term includes a
508	522		forgery.
509		-	(42) (43) "Warehouse receipt" means a document of title issued
510		-	by a person engaged in the business of storing goods for hire.
511	523
512		-	ENGR. H. B. NO. 3323 Page 11 1
	524	+	HB3323 HFLR Page 11
	525	+	BOLD FACE denotes Committee Amendments. 1
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	550	+	(42) (43) "Warehouse receipt" means a document of title issued
	551	+	by a person engaged in the business of storing goods for hire.
537	552		(43) (44) "Writing" includes printing, typewriting, or any
538	553		other intentional reductio n to tangible form. "Written" has a
539	554		corresponding meaning.
540	555		SECTION 2. AMENDATORY 12A O.S. 2021, Section 1 -9-102, is
541	556		amended to read as follows:
542		-	Section 1-9-102.
	557	+	Section 1-9-102. Definitions and index of definitions.
543	558		DEFINITIONS AND INDEX OF DEFI NITIONS
544	559		(a) In this article:
545	560		(1) "Accession" means goods that are physically united with
546	561		other goods in such a manner that the identity of the original goods
547	562		is not lost.
548	563		(2) (A) "Account", except as used in "account for", means a
549	564		right to payment of a m onetary obligation, whether or
550	565		not earned by performance:
551	566		(i) for property that has been or is to be sold,
552	567		leased, licensed, assigned, or otherwise disposed
553	568		of;
554	569		(ii) for services rendered or to be r endered;
555	570		(iii) for a policy of insurance issued or to be i ssued;
556	571		(iv) for a secondary obligation incurred or to be
557	572		incurred;
558	573		(v) for energy provided or to be provided ;
559		-	(vi) for the use or hire of a vessel under a char ter
560		-	or other contract;
561	574
562		-	ENGR. H. B. NO. 3323 Page 12 1
	575	+	HB3323 HFLR Page 12
	576	+	BOLD FACE denotes Committee Amendments. 1
563	577		2
564	578		3
565	579		4
566	580		5
567	581		6
568	582		7
569	583		8
570	584		9
571	585		10
572	586		11
573	587		12
574	588		13
575	589		14
576	590		15
577	591		16
578	592		17
579	593		18
580	594		19
581	595		20
582	596		21
583	597		22
584	598		23
585	599		24
586	600
	601	+	(vi) for the use or hire of a vessel under a char ter
	602	+	or other contract;
587	603		(vii) arising out of the use of a credit or charge card
588	604		or information contained on or for use with the
589	605		card; or
590	606		(viii) as winnings in a lottery or other game of chance
591	607		operated or sponsored by a state, governmental
592	608		unit of a state, or a person licensed or
593	609		authorized to operate the game by a state or
594	610		governmental unit of a state .
595	611		(B) The term includes health -care-insurance receivables.
596	612		(C) The term does not include:
597	613		(i) rights to payment evidenced by chattel paper or
598	614		an instrument;
599	615		(ii) commercial tort claims;
600	616		(iii) deposit accounts;
601	617		(iv) investment property;
602	618		(v) letter-of-credit rights or letters of credit; or
603	619		(vi) rights to payment for mon ey or funds advanced or
604	620		sold, other than righ ts arising out of the use of
605	621		a credit or charge car d or information contained
606	622		on or for use with the card.
607	623		(3) "Account debtor" means a person obligated on an account,
608	624		chattel paper, or general intangible. The term does not include
609		-	persons obligated to p ay a negotiable instrument, even if the
610		-	instrument constitutes part of chattel paper.
611	625
612		-	ENGR. H. B. NO. 3323 Page 13 1
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	627	+	BOLD FACE denotes Committee Amendments. 1
613	628		2
614	629		3
615	630		4
616	631		5
617	632		6
618	633		7
619	634		8
620	635		9
621	636		10
622	637		11
623	638		12
624	639		13
625	640		14
626	641		15
627	642		16
628	643		17
629	644		18
630	645		19
631	646		20
632	647		21
633	648		22
634	649		23
635	650		24
636	651
	652	+	persons obligated to p ay a negotiable instrument, even if the
	653	+	instrument constitutes part of chattel paper.
637	654		(4) "Accounting", except as used in "accounting for", means a
638	655		record:
639	656		(A) authenticated by a secured party;
640	657		(B) indicating the aggregate unpaid secured obligations as
641	658		of a date not more than thirty -five (35) days earlier
642	659		or thirty-five (35) days later than th e date of the
643	660		record; and
644	661		(C) identifying the components o f the obligations in
645	662		reasonable detail.
646	663		(5) "Agricultural lien" means an interest in farm products:
647	664		(A) which secures payment or performance of an obligation
648	665		for:
649	666		(i) goods or services furnished in connection with a
650	667		debtor's farming operation; or
651	668		(ii) rent on real property leased by a debtor i n
652	669		connection with its fa rming operation;
653	670		(B) which is created by stat ute in favor of a person that:
654	671		(i) in the ordinary course of its business furnished
655	672		goods or services to a debtor in connection with
656	673		a debtor's farming operation; or
657	674		(ii) leased real property to a debtor in conn ection
658	675		with the debtor's farming operation; a nd
659		-	(C) whose effectiveness does not depend on the p erson's
660		-	possession of the personal property.
661	676
662		-	ENGR. H. B. NO. 3323 Page 14 1
	677	+	HB3323 HFLR Page 14
	678	+	BOLD FACE denotes Committee Amendments. 1
663	679		2
664	680		3
665	681		4
666	682		5
667	683		6
668	684		7
669	685		8
670	686		9
671	687		10
672	688		11
673	689		12
674	690		13
675	691		14
676	692		15
677	693		16
678	694		17
679	695		18
680	696		19
681	697		20
682	698		21
683	699		22
684	700		23
685	701		24
686	702
	703	+	(C) whose effectiveness does not depend on the p erson's
	704	+	possession of the personal prop erty.
687	705		(6) "As-extracted collateral " means:
688	706		(A) oil, gas, or other minerals that are subject to a
689	707		security interest that:
690	708		(i) is created by a debtor having an interes t in the
691	709		minerals before extraction; and
692	710		(ii) attaches to the minerals as extracted; or
693	711		(B) accounts arising out of the sale at the wellhead or
694	712		minehead of oil, gas, or other minerals in which the
695	713		debtor had an interest before extraction.
696	714		(7) "Authenticate" means:
697	715		(A) to sign; or
698	716		(B) with present intent t o adopt or accept a record, to
699	717		attach to or logically associate with the record an
700	718		electronic sound, symbol, or process.
701	719		(8) "Bank" means an organization that is engaged in the
702	720		business of banking. The t erm includes savings banks, savings and
703	721		loan associations, credit unions, and trust compan ies.
704	722		(9) "Cash proceeds" means proceeds that are money, c hecks,
705	723		deposit accounts, or the like.
706	724		(10) "Certificate of title" means a certificate of title with
707	725		respect to which a statute provides for the security inter est in
708	726		question to be indicated on the certificate as a condition or result
709		-	of the security inter est's obtaining priority over the right s of a
710		-	lien creditor with respect to the collateral. The term includ es
711	727
712		-	ENGR. H. B. NO. 3323 Page 15 1
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713	730		2
714	731		3
715	732		4
716	733		5
717	734		6
718	735		7
719	736		8
720	737		9
721	738		10
722	739		11
723	740		12
724	741		13
725	742		14
726	743		15
727	744		16
728	745		17
729	746		18
730	747		19
731	748		20
732	749		21
733	750		22
734	751		23
735	752		24
736	753
	754	+	of the security inter est's obtaining priority over the right s of a
	755	+	lien creditor with respect to the collateral. The term includ es
737	756		another record maintained as an alternative to a certificate of
738	757		title by the government al unit that issues certificates of title if
739	758		a statute permits the security interest in question to be indicated
740	759		on the record as a condition or result of the securit y interest's
741	760		obtaining priority over the rights of a lien creditor with respect
742	761		to the collateral.
743	762		(11) "Chattel paper" means a record or records t hat evidence
744	763		both a monetary obligation and a security interest in specific
745	764		goods, a security interest in sp ecific goods and software used in
746	765		the goods, a security interest in specific goods and lic ense of
747	766		software used in the goods, a lease of specific go ods, or a lease of
748	767		specific goods and l icense of software used in the goods. In this
749	768		paragraph, "monetary obligation" means a monetary obligation secured
750	769		by the goods or owed under a lease of goods and includes a monetary
751	770		obligation with respect to softwa re used in the goods. The term
752	771		does not include charters or ot her contracts involving the use or
753	772		hire of a vessel. If a transaction is evidenced by records t hat
754	773		include an instrument or series of instruments, the group of records
755	774		taken together constitut es chattel paper.
756	775		(12) "Collateral" means the property subject to a security
757	776		interest or agricultural lien. The term includes:
758	777		(A) proceeds to which a securi ty interest attaches;
759		-	(B) accounts, chattel paper, payment intangibles, and
760		-	promissory notes that have been sold; and
761	778
762		-	ENGR. H. B. NO. 3323 Page 16 1
	779	+	HB3323 HFLR Page 16
	780	+	BOLD FACE denotes Committee Amendments. 1
763	781		2
764	782		3
765	783		4
766	784		5
767	785		6
768	786		7
769	787		8
770	788		9
771	789		10
772	790		11
773	791		12
774	792		13
775	793		14
776	794		15
777	795		16
778	796		17
779	797		18
780	798		19
781	799		20
782	800		21
783	801		22
784	802		23
785	803		24
786	804
	805	+	(B) accounts, chattel paper, payment intangibles, and
	806	+	promissory notes that have been sold; and
787	807		(C) goods that are the subject of a consig nment.
788	808		(13) "Commercial tort claim" means a claim arising in tort with
789	809		respect to which:
790	810		(A) the claimant is an organization; or
791	811		(B) the claimant is an individual and the claim:
792	812		(i) arose in the course of the claimant's business or
793	813		profession; and
794	814		(ii) does not include damages arising out of persona l
795	815		injury to or the death of an individual.
796	816		(14) "Commodity account" means an account main tained by a
797	817		commodity intermediary in which a commodity co ntract is carried for
798	818		a commodity customer.
799	819		(15) "Commodity contract" means a commodity futures contract,
800	820		an option on a commodity futures contract, a commodi ty option, or
801	821		another contract if the c ontract or option is:
802	822		(A) traded on or subject to the rule s of a board of trade
803	823		that has been designated as a contract ma rket for such
804	824		a contract pursuant to federal commodities laws; or
805	825		(B) traded on a foreign commod ity board of trade,
806	826		exchange, or market, and is carried on the books of a
807	827		commodity intermediary for a commodity customer.
808		-	(16) "Commodity customer" means a person for which a commodity
809		-	intermediary carries a commodity contract on its books.
810		-	(17) "Commodity intermediary" means a person that:
811	828
812		-	ENGR. H. B. NO. 3323 Page 17 1
	829	+	HB3323 HFLR Page 17
	830	+	BOLD FACE denotes Committee Amendments. 1
813	831		2
814	832		3
815	833		4
816	834		5
817	835		6
818	836		7
819	837		8
820	838		9
821	839		10
822	840		11
823	841		12
824	842		13
825	843		14
826	844		15
827	845		16
828	846		17
829	847		18
830	848		19
831	849		20
832	850		21
833	851		22
834	852		23
835	853		24
836	854
	855	+	(16) "Commodity customer" means a person for which a commodity
	856	+	intermediary carries a commodity contract on its books.
	857	+	(17) "Commodity intermediary" means a person that:
837	858		(A) is registered as a futures commission merchant under
838	859		federal commodities law; or
839	860		(B) in the ordinary course of its bu siness provides
840	861		clearance or settlement servi ces for a board of trade
841	862		that has been designated a s a contract market pursuant
842	863		to federal commodities law.
843	864		(18) "Communicate" means:
844	865		(A) to send a written or other tangible record;
845	866		(B) to transmit a record by any means agreed upon by the
846	867		persons sending and receiving the record; or
847	868		(C) in the case of transmission of a record to or by a
848	869		filing office, to transmit a record by any means
849	870		prescribed by filing-office rule.
850	871		(19) "Consignee" means a merchant to which goods are delivered
851	872		in a consignment.
852	873		(20) "Consignment" means a transaction, regardless of its form,
853	874		in which a person delivers goods to a merchant for the purpose of
854	875		sale and:
855	876		(A) the merchant:
856	877		(i) deals in goods of that kind und er a name other
857	878		than the name of the person making delivery;
858		-	(ii) is not an auctioneer; and
859	879
860		-	ENGR. H. B. NO. 3323 Page 18 1
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	881	+	BOLD FACE denotes Committee Amendments. 1
861	882		2
862	883		3
863	884		4
864	885		5
865	886		6
866	887		7
867	888		8
868	889		9
869	890		10
870	891		11
871	892		12
872	893		13
873	894		14
874	895		15
875	896		16
876	897		17
877	898		18
878	899		19
879	900		20
880	901		21
881	902		22
882	903		23
883	904		24
884	905
	906	+	(ii) is not an auctioneer; and
885	907		(iii) is not generally known by its creditors to be
886	908		substantially engaged in selling the goods of
887	909		others;
888	910		(B) with respect to each delivery, the aggregate value of
889	911		the goods is One Thousan d Dollars ($1,000.00) or more
890	912		at the time of delivery;
891	913		(C) the goods are not consumer goods imme diately before
892	914		delivery; and
893	915		(D) the transaction does not create a security interest
894	916		that secures an obligation.
895	917		(21) "Consignor" means a person that delivers goods to a
896	918		consignee in a consignment.
897	919		(22) "Consumer debtor" means a debtor in a consumer
898	920		transaction.
899	921		(23) "Consumer goods" means goods that are used or bought for
900	922		use primarily for persona l, family, or household purposes.
901	923		(24) "Consumer-goods transaction" means a consumer transaction
902	924		in which:
903	925		(A) an individual incurs an obligation primarily fo r
904	926		personal, family, or household purpos es; and
905	927		(B) a security interest in consumer goods secures the
906	928		obligation.
907	929
908		-	ENGR. H. B. NO. 3323 Page 19 1
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909	932		2
910	933		3
911	934		4
912	935		5
913	936		6
914	937		7
915	938		8
916	939		9
917	940		10
918	941		11
919	942		12
920	943		13
921	944		14
922	945		15
923	946		16
924	947		17
925	948		18
926	949		19
927	950		20
928	951		21
929	952		22
930	953		23
931	954		24
932	955
933	956		(25) "Consumer obligor" means an obligor who i s an individual
934	957		and who incurred the obligati on as part of a transaction entered
935	958		into primarily for personal, family, or household purp oses.
936	959		(26) "Consumer transaction " means a transaction in which (i) an
937	960		individual incurs an oblig ation primarily for pers onal, family, or
938	961		household purposes, (ii) a s ecurity interest secures the obligation,
939	962		and (iii) the collateral is held or acquired prim arily for personal,
940	963		family, or household purposes. The te rm includes consumer-goods
941	964		transactions.
942	965		(27) "Continuation statement" means an amendment of a financing
943	966		statement which:
944	967		(A) identifies, by its file number, the initial financing
945	968		statement to which it relates; and
946	969		(B) indicates that it is a continuation statement for, or
947	970		that it is filed to c ontinue the effectivenes s of, the
948	971		identified financing statement.
949	972		(28) "Debtor" means:
950	973		(A) a person having an interest, other than a security
951	974		interest or other lien, in the collateral, whether or
952	975		not the person is an obligor;
953	976		(B) a seller of accounts, cha ttel paper, payment
954	977		intangibles, or promissory notes; or
955	978		(C) a consignee.
956	979
957		-	ENGR. H. B. NO. 3323 Page 20 1
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	981	+	BOLD FACE denotes Committee Amendments. 1
958	982		2
959	983		3
960	984		4
961	985		5
962	986		6
963	987		7
964	988		8
965	989		9
966	990		10
967	991		11
968	992		12
969	993		13
970	994		14
971	995		15
972	996		16
973	997		17
974	998		18
975	999		19
976	1000		20
977	1001		21
978	1002		22
979	1003		23
980	1004		24
981	1005
982	1006		(29) "Deposit account" means a demand, time, savings, passbook,
983	1007		or similar account m aintained with a bank as defined in paragraph
984	1008		(8) of this subsection. The term does not include investment
985	1009		property or a deposit account evidenced by an instrument or a United
986	1010		States central bank digital currency .
987	1011		(30) "Document" means a document of titl e or a receipt of the
988	1012		type described in subsection (b) of Section 7-201 of this title.
989	1013		(31) "Electronic chattel paper " means chattel paper evidenced
990	1014		by a record or records consisting of information stored in an
991	1015		electronic medium.
992	1016		(32) "Encumbrance" means a right, other than an ownership
993	1017		interest, in real proper ty. The term includes mortgages and ot her
994	1018		liens on real proper ty.
995	1019		(33) "Equipment" means goods other than inventory, farm
996	1020		products, or consumer goods.
997	1021		(34) "Farm products" means goods, other than standing timber,
998	1022		with respect to which the debtor is enga ged in a farming operation
999	1023		and which are:
1000	1024		(A) crops grown, growing, or to be grown, including:
1001	1025		(i) crops produced on trees, vines, and bushes; and
1002	1026		(ii) aquatic goods produced in aquacultural
1003	1027		operations;
1004	1028		(B) livestock, born or unborn, including aquatic good s
1005	1029		produced in aquacultural operations;
1006	1030
1007		-	ENGR. H. B. NO. 3323 Page 21 1
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1008	1033		2
1009	1034		3
1010	1035		4
1011	1036		5
1012	1037		6
1013	1038		7
1014	1039		8
1015	1040		9
1016	1041		10
1017	1042		11
1018	1043		12
1019	1044		13
1020	1045		14
1021	1046		15
1022	1047		16
1023	1048		17
1024	1049		18
1025	1050		19
1026	1051		20
1027	1052		21
1028	1053		22
1029	1054		23
1030	1055		24
1031	1056
1032	1057		(C) supplies used or pro duced in a farming operation; or
1033	1058		(D) products of crops or livestock in their unmanufactured
1034	1059		states.
1035	1060		(35) "Farming operation" means raising, cultivating,
1036	1061		propagating, fattening, grazing, or any other farming, livestock, or
1037	1062		aquacultural operation.
1038	1063		(36) "File number" means the number assigned to an in itial
1039	1064		financing statement pursuant to subsection (a ) of Section 1-9-519 of
1040	1065		this title.
1041	1066		(37) "Filing office" means an office designated in Section 1 -9-
1042	1067		501 as the place to file a financing statement.
1043	1068		(38) "Filing-office rule" means a rule adopted pursuant to
1044	1069		Sections 1-9-526 and 1-9-526.1 of this title.
1045	1070		(39) "Financing statement" means a record or records composed
1046	1071		of an initial financing statement an d any filed record relating to
1047	1072		the initial financing statement.
1048	1073		(40) "Fixture filing" means the filing of a financing statement
1049	1074		covering goods that are or are to become fixtures and satisfying
1050	1075		subsections (a) and (b) of S ection 1-9-502 of this title. The term
1051	1076		includes the filing of a financin g statement covering goo ds of a
1052	1077		transmitting utility which are or are to become fixtures.
1053	1078		(41) "Fixtures" means goods that have become so related to
1054	1079		particular real property that an interest in them arises under real
1055	1080		property law.
1056	1081
1057		-	ENGR. H. B. NO. 3323 Page 22 1
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1058	1084		2
1059	1085		3
1060	1086		4
1061	1087		5
1062	1088		6
1063	1089		7
1064	1090		8
1065	1091		9
1066	1092		10
1067	1093		11
1068	1094		12
1069	1095		13
1070	1096		14
1071	1097		15
1072	1098		16
1073	1099		17
1074	1100		18
1075	1101		19
1076	1102		20
1077	1103		21
1078	1104		22
1079	1105		23
1080	1106		24
1081	1107
1082	1108		(42) "General intangible" means any personal pr operty,
1083	1109		including things in action, other tha n accounts, chattel paper,
1084	1110		commercial tort claims, deposit accounts, documents, goods,
1085	1111		instruments, investment pro perty, letter-of-credit rights, letters
1086	1112		of credit, money, and oil, gas, o r other minerals before extraction.
1087	1113		The term includes payment intang ibles and software.
1088	1114		(43) "Good faith" means honesty in fact and the observance of
1089	1115		reasonable commercial standards of fair dealing.
1090	1116		(44) (A) "Goods" means all things that are movable when a
1091	1117		security interest att aches.
1092	1118		(B) The term includes:
1093	1119		(i) fixtures;
1094	1120		(ii) standing timber that is to be cut and removed
1095	1121		under a conveyance or contract for sale;
1096	1122		(iii) the unborn young of animals;
1097	1123		(iv) crops grown, growing, or to be grown, even if the
1098	1124		crops are produced on trees, v ines, or bushes;
1099	1125		and
1100	1126		(v) manufactured homes.
1101	1127		(C) The term also includes a computer program embed ded in
1102	1128		goods and any supporting informa tion provided in
1103	1129		connection with a transaction relating to the program
1104	1130		if:
1105	1131
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1107	1134		2
1108	1135		3
1109	1136		4
1110	1137		5
1111	1138		6
1112	1139		7
1113	1140		8
1114	1141		9
1115	1142		10
1116	1143		11
1117	1144		12
1118	1145		13
1119	1146		14
1120	1147		15
1121	1148		16
1122	1149		17
1123	1150		18
1124	1151		19
1125	1152		20
1126	1153		21
1127	1154		22
1128	1155		23
1129	1156		24
1130	1157
1131	1158		(i) the program is associated with the goods i n such
1132	1159		a manner that it customarily is consid ered part
1133	1160		of the goods; or
1134	1161		(ii) by becoming the owner of the goods, a person
1135	1162		acquires a right to use the program i n connection
1136	1163		with the goods.
1137	1164		(D) The term does not include a computer pro gram which is
1138	1165		embedded in goods and that consist solely of the
1139	1166		medium in which the program is embedded.
1140	1167		(E) The term also does not include accounts, chattel
1141	1168		paper, commercial tort cla ims, deposit accounts,
1142	1169		documents, general intangibles, instruments,
1143	1170		investment property, letter -of-credit rights, letters
1144	1171		of credit, money, or oil, gas, or other minerals
1145	1172		before extraction.
1146	1173		(45) "Governmental unit" means a subdivision, agency,
1147	1174		department, county, parish, municipality, or other unit of the
1148	1175		government of the Uni ted States, a state, or a foreign country. The
1149	1176		term includes an orga nization having a separate corporate existence
1150	1177		if the organization is eligible to issue de bt on which interest is
1151	1178		exempt from income taxation under the laws of the United States.
1152	1179		(46) "Health-care-insurance receivable" means an interest in or
1153	1180		claim under a policy of insurance which is a right to payment o f a
1154	1181
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1156	1184		2
1157	1185		3
1158	1186		4
1159	1187		5
1160	1188		6
1161	1189		7
1162	1190		8
1163	1191		9
1164	1192		10
1165	1193		11
1166	1194		12
1167	1195		13
1168	1196		14
1169	1197		15
1170	1198		16
1171	1199		17
1172	1200		18
1173	1201		19
1174	1202		20
1175	1203		21
1176	1204		22
1177	1205		23
1178	1206		24
1179	1207
1180	1208		monetary obligation for health -care goods or services provi ded or to
1181	1209		be provided.
1182	1210		(47) (A) "Instrument" means a negotiable instrumen t or any
1183	1211		other writing that evidences a right to the payment of
1184	1212		a monetary obligation, is not itself a security
1185	1213		agreement or lease, and is of a type that in or dinary
1186	1214		course of business is transferred by delivery with any
1187	1215		necessary endorsement or assignment .
1188	1216		(B) "Instrument" includes:
1189	1217		(i) an instrument as defined in subparag raph (A) of
1190	1218		this paragraph, whether the instrument is subject
1191	1219		to Section 3-104 of this title because it is not
1192	1220		payable to order; and
1193	1221		(ii) a writing that contains both an acknowledgment by
1194	1222		a bank as defined in pa ragraph (8) of this
1195	1223		subsection that a sum of money has been received
1196	1224		by the bank and its promise to repay the sum of
1197	1225		money, which is considered a certificate o f
1198	1226		deposit by the bank issuing it, even if the
1199	1227		writing provides that it is nontransferable or
1200	1228		uses similar language.
1201	1229		(C) The term does not incl ude:
1202	1230		(i) investment property;
1203	1231		(ii) letters of credit; or
1204	1232
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1206	1235		2
1207	1236		3
1208	1237		4
1209	1238		5
1210	1239		6
1211	1240		7
1212	1241		8
1213	1242		9
1214	1243		10
1215	1244		11
1216	1245		12
1217	1246		13
1218	1247		14
1219	1248		15
1220	1249		16
1221	1250		17
1222	1251		18
1223	1252		19
1224	1253		20
1225	1254		21
1226	1255		22
1227	1256		23
1228	1257		24
1229	1258
1230	1259		(iii) writings that evidence a ri ght to payment arising
1231	1260		out of the use of a credit or charg e card or
1232	1261		information contained on or f or use with the
1233	1262		card.
1234	1263		(48) "Inventory" means goods, other than farm products, which:
1235	1264		(A) are leased by a person as less or;
1236	1265		(B) are held by a person for sale o r lease or to be
1237	1266		furnished under a contract of service;
1238	1267		(C) are furnished by a person under a con tract of service;
1239	1268		or
1240	1269		(D) consist of raw materials, work in process, o r
1241	1270		materials used or consumed in a business.
1242	1271		(49) "Investment property" means a security, whether
1243	1272		certificated or uncertificated, security entitleme nt, securities
1244	1273		account, commodity contr act, or commodity accoun t.
1245	1274		(50) "Jurisdiction of organization ", with respect to a
1246	1275		registered organization, means the ju risdiction under whose law the
1247	1276		organization is formed or organi zed.
1248	1277		(51) "Letter-of-credit right" means a right to payment or
1249	1278		performance under a letter of cre dit, whether or not the beneficiary
1250	1279		has demanded or is at the time entitled to demand payment or
1251	1280		performance. The term does not includ e the right of a benefic iary
1252	1281		to demand payment or performa nce under a letter of credit.
1253	1282		(52) "Lien creditor" means:
1254	1283
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1256	1286		2
1257	1287		3
1258	1288		4
1259	1289		5
1260	1290		6
1261	1291		7
1262	1292		8
1263	1293		9
1264	1294		10
1265	1295		11
1266	1296		12
1267	1297		13
1268	1298		14
1269	1299		15
1270	1300		16
1271	1301		17
1272	1302		18
1273	1303		19
1274	1304		20
1275	1305		21
1276	1306		22
1277	1307		23
1278	1308		24
1279	1309
1280	1310		(A) a creditor that has acquired a lien on the pr operty
1281	1311		involved by attachment, levy, or the like;
1282	1312		(B) an assignee for benefit of creditors from the time of
1283	1313		assignment;
1284	1314		(C) a trustee in bankruptcy from the date of the filing of
1285	1315		the petition; or
1286	1316		(D) a receiver in equity from the time of appointment.
1287	1317		(53) (A) "Manufactured home" means a structure, transpor table
1288	1318		in one or more sections, which:
1289	1319		(i) in the traveling mode , is eight (8) body feet or
1290	1320		more in width or forty (40) body feet or more in
1291	1321		length, or, when ere cted on site, is three
1292	1322		hundred twenty (320) o r more square feet;
1293	1323		(ii) is built on a permanent ch assis;
1294	1324		(iii) is designed to be used as a dwelling with or
1295	1325		without a permanent foundation when con nected to
1296	1326		the required utilities; and
1297	1327		(iv) includes the plumbin g, heating, air-conditioning,
1298	1328		and electrical systems contained therein.
1299	1329		(B) The term includes an y structure that meets all of the
1300	1330		requirements of this paragrap h except the size
1301	1331		requirements and with respect to which the
1302	1332		manufacturer voluntarily files a cer tification
1303	1333		required by the United States Secr etary of Housing and
1304	1334
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1306	1337		2
1307	1338		3
1308	1339		4
1309	1340		5
1310	1341		6
1311	1342		7
1312	1343		8
1313	1344		9
1314	1345		10
1315	1346		11
1316	1347		12
1317	1348		13
1318	1349		14
1319	1350		15
1320	1351		16
1321	1352		17
1322	1353		18
1323	1354		19
1324	1355		20
1325	1356		21
1326	1357		22
1327	1358		23
1328	1359		24
1329	1360
1330	1361		Urban Development and complies with the standards
1331	1362		established under Title 42 of the United St ates Code.
1332	1363		(54) "Manufactured-home transaction" means a secured
1333	1364		transaction:
1334	1365		(A) that creates a purchase-money security interest in a
1335	1366		manufactured home, other than a manufactured home held
1336	1367		as inventory; or
1337	1368		(B) in which a manufactur ed home, other than a
1338	1369		manufactured home held as inventory, is the primary
1339	1370		collateral.
1340	1371		(55) "Mortgage" means a consensual interest in real property,
1341	1372		including fixtures, which secures payment or performance of an
1342	1373		obligation.
1343	1374		(56) "New debtor" means a person that becomes bound as a debtor
1344	1375		under subsection (d) of S ection 1-9-203 of this title by a secur ity
1345	1376		agreement previously entered into by another person.
1346	1377		(57) (A) "New value" means:
1347	1378		(i) money;
1348	1379		(ii) money's worth in property, services, or new
1349	1380		credit; or
1350	1381		(iii) release by a transfer ee of an interest in
1351	1382		property previously transferred to the
1352	1383		transferee.
1353	1384
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1355	1387		2
1356	1388		3
1357	1389		4
1358	1390		5
1359	1391		6
1360	1392		7
1361	1393		8
1362	1394		9
1363	1395		10
1364	1396		11
1365	1397		12
1366	1398		13
1367	1399		14
1368	1400		15
1369	1401		16
1370	1402		17
1371	1403		18
1372	1404		19
1373	1405		20
1374	1406		21
1375	1407		22
1376	1408		23
1377	1409		24
1378	1410
1379	1411		(B) The term does not inc lude an obligation substituted
1380	1412		for another obligation.
1381	1413		(58) "Noncash proceeds" means proceeds other than cash
1382	1414		proceeds.
1383	1415		(59) (A) "Obligor" means a person that, with respect to an
1384	1416		obligation secured by a security interest in or an
1385	1417		agricultural lien on the collateral:
1386	1418		(i) owes payment or other perform ance of the
1387	1419		obligation;
1388	1420		(ii) has provided property other than the collateral
1389	1421		to secure payment or other performanc e of the
1390	1422		obligation; or
1391	1423		(iii) is otherwise accountable in whole or in par t for
1392	1424		payment or other performance of the obligation.
1393	1425		(B) The term does not include issuers or nominated persons
1394	1426		under a letter of credit.
1395	1427		(60) "Original debtor" means a person that, as debtor, entered
1396	1428		into a security agreement to which a new debtor has b ecome bound
1397	1429		under subsection (d) of Section 1-9-203 of this title.
1398	1430		(61) "Payment intangible" means a general intangible under
1399	1431		which the account debtor 's principal obligation is a mon etary
1400	1432		obligation.
1401	1433		(62) "Person related to", with respect to an individua l, means:
1402	1434		(A) the spouse of the individual;
1403	1435
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1405	1438		2
1406	1439		3
1407	1440		4
1408	1441		5
1409	1442		6
1410	1443		7
1411	1444		8
1412	1445		9
1413	1446		10
1414	1447		11
1415	1448		12
1416	1449		13
1417	1450		14
1418	1451		15
1419	1452		16
1420	1453		17
1421	1454		18
1422	1455		19
1423	1456		20
1424	1457		21
1425	1458		22
1426	1459		23
1427	1460		24
1428	1461
1429	1462		(B) a brother, brother-in-law, sister, or sister -in-law of
1430	1463		the individual;
1431	1464		(C) an ancestor or lineal descendant of the individual or
1432	1465		the individual's spouse; or
1433	1466		(D) any other relative, by blood or marriage, of th e
1434	1467		individual or the indi vidual's spouse who shares the
1435	1468		same home with the individual.
1436	1469		(63) "Person related to", with respect to an organization,
1437	1470		means:
1438	1471		(A) a person directly or indir ectly controlling,
1439	1472		controlled by, or under common control with the
1440	1473		organization;
1441	1474		(B) an officer or director of, or a person performing
1442	1475		similar functions with respect to, the organization;
1443	1476		(C) an officer or director of, or a person p erforming
1444	1477		similar functions with respect to, a person desc ribed
1445	1478		in subparagraph (A);
1446	1479		(D) the spouse of an individual desc ribed in subparagraph
1447	1480		(A), (B), or (C) of thi s paragraph; or
1448	1481		(E) an individual who is related by blood or marriage to
1449	1482		an individual described in subparagraph ( A), (B), (C),
1450	1483		or (D) of this parag raph and who shares the same home
1451	1484		with the individual.
1452	1485		(64) "Proceeds" means the following property:
1453	1486
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1455	1489		2
1456	1490		3
1457	1491		4
1458	1492		5
1459	1493		6
1460	1494		7
1461	1495		8
1462	1496		9
1463	1497		10
1464	1498		11
1465	1499		12
1466	1500		13
1467	1501		14
1468	1502		15
1469	1503		16
1470	1504		17
1471	1505		18
1472	1506		19
1473	1507		20
1474	1508		21
1475	1509		22
1476	1510		23
1477	1511		24
1478	1512
1479	1513		(A) whatever is acquired upon the sale, lease, license,
1480	1514		exchange, or other disposition of collat eral;
1481	1515		(B) whatever is collected on, or distributed on acco unt
1482	1516		of, collateral;
1483	1517		(C) rights arising out of collateral;
1484	1518		(D) to the extent of the value of collateral, clai ms
1485	1519		arising out of the loss, nonconformity, or
1486	1520		interference with the use of, defects or inf ringement
1487	1521		of rights in, or damage to, the collateral; or
1488	1522		(E) to the extent of the value of collat eral and to the
1489	1523		extent payable to the debtor or the secured party,
1490	1524		insurance payable by reason of the loss or
1491	1525		nonconformity of, defects or infringement of righ ts
1492	1526		in, or damage to, the collateral.
1493	1527		(65) "Promissory note" means an instrument that evidences a
1494	1528		promise to pay a moneta ry obligation, does not evidence an order to
1495	1529		pay, and does not contain an acknowledgment by a ba nk that the bank
1496	1530		has received for depos it a sum of money or fun ds.
1497	1531		(66) "Proposal" means a record authenticated by a secured party
1498	1532		which includes the terms on which the secured party is willing to
1499	1533		accept collateral in full or partial satisfaction of the o bligation
1500	1534		it secures pursuant to Sectio ns 1-9-620, 1-9-621, and 1-9-622 of
1501	1535		this title.
1502	1536
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1504	1539		2
1505	1540		3
1506	1541		4
1507	1542		5
1508	1543		6
1509	1544		7
1510	1545		8
1511	1546		9
1512	1547		10
1513	1548		11
1514	1549		12
1515	1550		13
1516	1551		14
1517	1552		15
1518	1553		16
1519	1554		17
1520	1555		18
1521	1556		19
1522	1557		20
1523	1558		21
1524	1559		22
1525	1560		23
1526	1561		24
1527	1562
1528	1563		(67) "Public-finance transaction" means a secured transaction
1529	1564		in connection with which:
1530	1565		(A) debt securities are issue d;
1531	1566		(B) all or a portion of the securities issued ha ve an
1532	1567		initial stated maturity of at lea st twenty (20) years;
1533	1568		and
1534	1569		(C) the debtor, obligor, secured party, account debtor or
1535	1570		other person obligated on collateral, assignor or
1536	1571		assignee of a secured obligation , or assignor or
1537	1572		assignee of a security interest is a state or a
1538	1573		governmental unit of a st ate.
1539	1574		(68) "Public organic record" means a record that is available
1540	1575		to the public for inspection and that is:
1541	1576		(A) a record consisting of the record initially filed wi th
1542	1577		or issued by a state or the United States to for m or
1543	1578		organize an organization and any r ecord filed with or
1544	1579		issued by the state or the United Stat es which amends
1545	1580		or restates the initial record;
1546	1581		(B) an organic record of a business trust consisting of
1547	1582		the record initially filed with a state and any record
1548	1583		filed with the state which amends or re states the
1549	1584		initial record, if a statute of the state gover ning
1550	1585		business trusts requires that the record be filed with
1551	1586		the state; or
1552	1587
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1554	1590		2
1555	1591		3
1556	1592		4
1557	1593		5
1558	1594		6
1559	1595		7
1560	1596		8
1561	1597		9
1562	1598		10
1563	1599		11
1564	1600		12
1565	1601		13
1566	1602		14
1567	1603		15
1568	1604		16
1569	1605		17
1570	1606		18
1571	1607		19
1572	1608		20
1573	1609		21
1574	1610		22
1575	1611		23
1576	1612		24
1577	1613
1578	1614		(C) a record consisting of legisla tion enacted by the
1579	1615		Legislature of a state or the C ongress of the United
1580	1616		States which forms or organizes an organi zation, any
1581	1617		record amending the le gislation, and any record filed
1582	1618		with or issued by the state or United States which
1583	1619		amends or restates the na me of the organization.
1584	1620		(69) "Pursuant to commitme nt", with respect to an advance made
1585	1621		or other value given by a secured party, means pursuant to t he
1586	1622		secured party's obligation, whether or not a subsequent even t of
1587	1623		default or other event not within the se cured party's control has
1588	1624		relieved or may relieve t he secured party from its obligation.
1589	1625		(70) "Record", except as used in "for record", "of record",
1590	1626		"record or legal title", and "record owner", means information that
1591	1627		is inscribed on a tangible medium or w hich is stored in an
1592	1628		electronic or other medium and is retrievable in perceivable form.
1593	1629		(71) "Registered organization" means an organization formed or
1594	1630		organized solely under the law of a single state or the Uni ted
1595	1631		States by the filing of a public organic record with, the issuance
1596	1632		of a public organic recor d by, or the enactment of legislation b y
1597	1633		the state or United St ates. The term includes a busines s trust that
1598	1634		is formed or organized und er the law of a single s tate if a statute
1599	1635		of the state governing busi ness trusts requires that the business
1600	1636		trusts' organic record be filed with the state.
1601	1637		(72) "Secondary obligor" means an obligor to the extent that :
1602	1638
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1604	1641		2
1605	1642		3
1606	1643		4
1607	1644		5
1608	1645		6
1609	1646		7
1610	1647		8
1611	1648		9
1612	1649		10
1613	1650		11
1614	1651		12
1615	1652		13
1616	1653		14
1617	1654		15
1618	1655		16
1619	1656		17
1620	1657		18
1621	1658		19
1622	1659		20
1623	1660		21
1624	1661		22
1625	1662		23
1626	1663		24
1627	1664
1628	1665		(A) the obligor's obligation is secon dary; or
1629	1666		(B) the obligor has a right of recourse with respect to an
1630	1667		obligation secured by collateral against the debtor,
1631	1668		another obligor, or property of either .
1632	1669		(73) "Secured party" means:
1633	1670		(A) a person in whose favor a security interest is created
1634	1671		or provided for under a securit y agreement, whether or
1635	1672		not any obligation to be secured is outstanding;
1636	1673		(B) a person that holds an agricultural lien;
1637	1674		(C) a consignor;
1638	1675		(D) a person to which accounts, chattel paper, payment
1639	1676		intangibles, or promissory notes have bee n sold;
1640	1677		(E) a trustee, indenture trustee, agent, collateral agent,
1641	1678		or other representative in whose favor a security
1642	1679		interest or agricultural lien is created o r provided
1643	1680		for; or
1644	1681		(F) a person that holds a security inte rest arising under
1645	1682		Section 2-401, 2-505, paragraph (3) of Secti on 2-711,
1646	1683		paragraph (5) of Section 2A -508, 4-210, or 5-118 of
1647	1684		this title.
1648	1685		(74) "Security agreement" means an agreement that creates or
1649	1686		provides for a security interest.
1650	1687		(75) "Send", in connection with a record or notification,
1651	1688		means:
1652	1689
1653		-	ENGR. H. B. NO. 3323 Page 34 1
	1690	+	HB3323 HFLR Page 34
	1691	+	BOLD FACE denotes Committee Amendments. 1
1654	1692		2
1655	1693		3
1656	1694		4
1657	1695		5
1658	1696		6
1659	1697		7
1660	1698		8
1661	1699		9
1662	1700		10
1663	1701		11
1664	1702		12
1665	1703		13
1666	1704		14
1667	1705		15
1668	1706		16
1669	1707		17
1670	1708		18
1671	1709		19
1672	1710		20
1673	1711		21
1674	1712		22
1675	1713		23
1676	1714		24
1677	1715
1678	1716		(A) to deposit in the mail, deliver for transmission, or
1679	1717		transmit by any other usual means of communication,
1680	1718		with postage or cost of transmission provided for,
1681	1719		addressed to any address reasonable under the
1682	1720		circumstances; or
1683	1721		(B) to cause the record or n otification to be receiv ed
1684	1722		within the time that it would have been re ceived if
1685	1723		properly sent under subparagraph (A) of t his
1686	1724		paragraph.
1687	1725		(76) "Software" means a computer program and an y supporting
1688	1726		information provided in connection with a transaction relati ng to
1689	1727		the program. The term does not include a computer program that is
1690	1728		included in the definition of goods.
1691	1729		(77) "State" means a state of the United States, the District
1692	1730		of Columbia, Puerto Rico, the United States Virgin Islands, or any
1693	1731		territory or insular possession subject to the jurisdiction of the
1694	1732		United States.
1695	1733		(78) "Supporting obligation " means a letter-of-credit right or
1696	1734		secondary obligation that sup ports the payment or per formance of an
1697	1735		account, chattel paper, a document, a general intangible, an
1698	1736		instrument, or invest ment property.
1699	1737		(79) "Tangible chattel paper " means chattel paper evidenced by
1700	1738		a record or records consisting of information that is in scribed on a
1701	1739		tangible medium.
1702	1740
1703		-	ENGR. H. B. NO. 3323 Page 35 1
	1741	+	HB3323 HFLR Page 35
	1742	+	BOLD FACE denotes Committee Amendments. 1
1704	1743		2
1705	1744		3
1706	1745		4
1707	1746		5
1708	1747		6
1709	1748		7
1710	1749		8
1711	1750		9
1712	1751		10
1713	1752		11
1714	1753		12
1715	1754		13
1716	1755		14
1717	1756		15
1718	1757		16
1719	1758		17
1720	1759		18
1721	1760		19
1722	1761		20
1723	1762		21
1724	1763		22
1725	1764		23
1726	1765		24
1727	1766
1728	1767		(80) "Termination statement " means an amendment of a financing
1729	1768		statement which:
1730	1769		(A) identifies, by its file number, the initial financi ng
1731	1770		statement to which it relates; and
1732	1771		(B) indicates either that it is a termination statem ent or
1733	1772		that the identified financing statement is no longe r
1734	1773		effective.
1735	1774		(81) "Transmitting utility" means a person primar ily engaged in
1736	1775		the business of:
1737	1776		(A) operating a railroad, subway, street railway, or
1738	1777		trolley bus;
1739	1778		(B) transmitting communications elect rically,
1740	1779		electromagnetically, or by light;
1741	1780		(C) transmitting goods by pipeline or sewer; or
1742	1781		(D) transmitting or producing and transmitting
1743	1782		electricity, steam, gas, or water.
1744	1783		(b) "Control" as provided in Section 7 -106 of this title and
1745	1784		the following definit ions in other articles o f this title apply to
1746	1785		this article:
1747	1786		"Applicant" - Section 5-102 of this title.
1748	1787		"Beneficiary" - Section 5-102 of this title.
1749	1788		"Broker" - Section 8-102 of this title.
1750	1789		"Certificated security " - Section 8-102 of this title.
1751	1790		"Check" - Section 3-104 of this title.
1752	1791
1753		-	ENGR. H. B. NO. 3323 Page 36 1
	1792	+	HB3323 HFLR Page 36
	1793	+	BOLD FACE denotes Committee Amendments. 1
1754	1794		2
1755	1795		3
1756	1796		4
1757	1797		5
1758	1798		6
1759	1799		7
1760	1800		8
1761	1801		9
1762	1802		10
1763	1803		11
1764	1804		12
1765	1805		13
1766	1806		14
1767	1807		15
1768	1808		16
1769	1809		17
1770	1810		18
1771	1811		19
1772	1812		20
1773	1813		21
1774	1814		22
1775	1815		23
1776	1816		24
1777	1817
1778	1818		"Clearing corporation " - Section 8-102 of this title.
1779	1819		"Contract for sale" - Section 2-106 of this title.
1780	1820		"Customer" - Section 4-104 of this title.
1781	1821		"Entitlement holder" - Section 8-102 of this title.
1782	1822		"Financial asset" - Section 8-102 of this title.
1783	1823		"Holder in due course" - Section 3-302 of this title.
1784	1824		"Issuer" (with respect to a letter of credit or l etter-of-credit
1785	1825		right)- Section 5-102 of this title.
1786	1826		"Issuer" – (with respect to a security) – Section 8-201 of this
1787	1827		title.
1788	1828		"Issuer" – (with respect to documen ts of title) – Section 7-102
1789	1829		of this title.
1790	1830		"Lease" - Section 2A-103 of this title.
1791	1831		"Lease agreement" - Section 2A-103 of this title.
1792	1832		"Lease contract" - Section 2A-103 of this title.
1793	1833		"Leasehold interest" - Section 2A-103 of this title.
1794	1834		"Lessee" - Section 2A-103 of this title.
1795	1835		"Lessee in ordinary course of business" - Section 2A-103 of this
1796	1836		title.
1797	1837		"Lessor" - Section 2A-103 of this title.
1798	1838		"Lessor's residual interest" - Section 2A-103 of this title.
1799	1839		"Letter of credit" - Section 5-102 of this title.
1800	1840		"Merchant" - Section 2-104 of this title.
1801	1841		"Negotiable instrument" - Section 3-104 of this title.
1802	1842
1803		-	ENGR. H. B. NO. 3323 Page 37 1
	1843	+	HB3323 HFLR Page 37
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1804	1845		2
1805	1846		3
1806	1847		4
1807	1848		5
1808	1849		6
1809	1850		7
1810	1851		8
1811	1852		9
1812	1853		10
1813	1854		11
1814	1855		12
1815	1856		13
1816	1857		14
1817	1858		15
1818	1859		16
1819	1860		17
1820	1861		18
1821	1862		19
1822	1863		20
1823	1864		21
1824	1865		22
1825	1866		23
1826	1867		24
1827	1868
1828	1869		"Nominated person" - Section 5-102 of this title.
1829	1870		"Note" - Section 3-104 of this title.
1830	1871		"Proceeds of a letter of credit" - Section 5-114 of this title.
1831	1872		"Prove" - Section 3-103 of this title.
1832	1873		"Sale" - Section 2-106 of this title.
1833	1874		"Securities account" - Section 8-501 of this title.
1834	1875		"Securities intermediary " - Section 8-102 of this title.
1835	1876		"Security" - Section 8-102 of this title.
1836	1877		"Security certificate " - Section 8-102 of this title.
1837	1878		"Security entitlement " - Section 8-102 of this title.
1838	1879		"Uncertificated security" - Section 8-102 of this title.
1839	1880		(c) Article 1 of this title contains general definitions and
1840	1881		principles of construction and interpretation appli cable throughout
1841	1882		this article.
1842	1883		SECTION 3. This act shall become effective November 1, 2024.
1843		-	Passed the House of Representatives the 12th day of March, 2024.
	1884	+
	1885	+	COMMITTEE REPORT BY: COMMITTEE ON BANKING, FINANCIAL SERVICES AND
	1886	+	PENSIONS, dated 02/13/2024 - DO PASS, As Amended.
1844	1887
1845	1888
1846		-
1847		-
1848		-	Presiding Officer of the House
1849		-	of Representatives
1850		-
1851		-
1852		-
1853		-	Passed the Senate the ___ day of __________, 2024.
1854		-
1855		-
1856		-
1857		-
1858		-	Presiding Officer of the Senate