1. (a) Except as otherwise provided in subsections (c) and (d), this chapter applies to:

   1. (1) a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
   2. (2) an agricultural lien;
   3. (3) a sale of accounts, chattel paper, payment intangibles, or promissory notes;
   4. (4) a consignment;
   5. (5) a security interest arising under Section 36-2-401, 36-2-505, 36-2-711(3), or 36-2A-508(5), as provided in Section 36-9-110; and
   6. (6) a security interest arising under Section 36-4-208 or 36-5-118.
2. (b) The application of this chapter 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 chapter does not apply.

3. (c) This chapter does not apply to the extent that:

   1. (1) a statute, regulation, or treaty of the United States preempts this chapter; or
   2. (2) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 36-5-114.

4. (d) This chapter does not apply to:

   1. (1) a landlord's lien, other than an agricultural lien, but Section 36-9-317 applies as to the priority of the landlord's lien;
   2. (2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 36-9-333 applies with respect to priority of the lien;
   3. (3) an assignment of a claim for wages, salary, or other compensation of an employee;
   4. (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. (5) an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
   6. (6) an assignment of a right to payment under a contract to an assignee that also is obligated to perform under the contract;
   7. (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. (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 36-9-315 and 36-9-322 apply with respect to proceeds and priorities in proceeds;
   9. (9) an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

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

       1. (A) Section 36-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
       2. (B) Section 36-9-404 applies with respect to defenses or claims of an account debtor;

   11. (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:

       1. (A) liens on real property in Sections 36-9-203 and 36-9-308;
       2. (B) fixtures in Section 36-9-334;
       3. (C) fixture filings in Sections 36-9-501 , 36-9-502, 36-9-512, 36-9-516, and 36-9-519; and
       4. (D) security agreements covering personal and real property in Section 36-9-604;
   12. (12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 36-9-315 and 36-9-322 apply with respect to proceeds and priorities in proceeds;
   13. (13) an assignment of a deposit account in a consumer transaction, but Sections 36-9-315 and 36-9-322 apply with respect to proceeds and priorities in proceeds; or
   14. (14) a transfer by a government or governmental unit.

HISTORY: 1962 Code Section 10.9-109; 1966 (54) 2716; 1988 Act No. 494, Section 5; 2001 Act No. 67, Section 12; 2002 Act No. 192, Section 1, eff March 22, 2002. "Account" Section 36-9-102(a)(2) "Agricultural Lien" Section 36-9-102(a)(6) "Chattel Paper" Section 36-9-102(a)(11) "Commercial Tort Claim" Section 36-9-102(a)(13) "Consignment" Section 36-9-102(a)(20) "Deposit Account" Section 36-9-102(a)(29) "Fixture" Section 36-9-102(a)(41) "Health Care Insurance Receivable" Section 36-9-102(a)(46) "Letter of Credit" Section 36-5-103(1)(a) [Section 36-5-102(a)(10) 1995 Revision] "Nominated Person" [Section 36-5-102(a)(11) 1995 Revision] "Payment Intangible" Section 36-9-102(a)(61) "Promissory Note" Section 36-9-102(a)(65) "Transferee Beneficiary" See Section 36-6-116 [See Sections 36-5-112 and 36-5-114(e) 1995 Revision]