California

Commercial Code

669 sections, each with the official text and a plain-English explanation of what it means for you.

• § 9514 — (a) Except as otherwise provided in subdivision (c), an initial financing statement may reflect an assignment of all of the secured party’s power to authorize an amendment to the financing statement b
• § 9515 — (a) Except as otherwise provided in subdivisions (b), (e), (f), and (g), a filed financing statement is effective for a period of five years after the date of filing.
• § 9516 — (a) Except as otherwise provided in subdivision (b), communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.
• § 9517 — The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.
• § 9518 — (a) A person may file in the filing office an information statement with respect to a record indexed there under the person’s name if the person believes that the record is inaccurate or was wrongfull
• § 9519 — (a) For each record filed in a filing office, the filing office shall do all of the following: (1) Assign a unique number to the filed record.
• § 9520 — (a) A filing office shall refuse to accept a record for filing for a reason set forth in subdivision (b) of Section 9516 and may refuse to accept a record for filing only for a reason set forth in sub
• § 9521 — (a) A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in subdivision (b) of Sec
• § 9522 — (a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one year after the effectiveness of the financing statement has lapsed under Secti
• § 9523 — (a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursua
• § 9524 — Delay by the filing office beyond a time limit prescribed by this chapter is excused if both of the following conditions are satisfied: (1) The delay is caused by interruption of communication or comp
• § 9525 — (a) Except as otherwise provided in subdivision (d), the fee for filing and indexing a record under this chapter is set forth in subdivisions (a), (b), and (c) of Section 12194 of the Government Code.
• § 9526 — (a) The Secretary of State shall adopt and publish rules to implement this division.
• § 9526.5 — (a) For purposes of this section, the following terms have the following meanings: (1) “Official filing” means the permanent archival filing of all instruments, papers, records, and attachments as acc
• § 9528 — Upon the request of any person, the Secretary of State shall issue a combined certificate showing the information as to financing statements as specified in Section 9523, the information as to state t
• § 9601 — (a) After default, a secured party has the rights provided in this chapter and, except as otherwise provided in Section 9602, those rights provided by agreement of the parties.
• § 9602 — Except as otherwise provided in Section 9624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules sta
• § 9603 — (a) The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in Section 9602 if the sta
• § 9604 — (a) If an obligation secured by a security interest in personal property or fixtures is also secured by an interest in real property or an estate therein: (1) The secured party may do any of the follo
• § 9605 — (a) Except as provided in subdivision (b), a secured party does not owe a duty based on its status as secured party to either of the following persons: (1) To a person that is a debtor or obligor, unl
• § 9606 — For purposes of this chapter, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it
• § 9607 — (a) If so agreed, and in any event after default, a secured party may do all of the following: (1) Notify an account debtor or other person obligated on collateral to make payment or otherwise render
• § 9608 — (a) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: (1) A secured party shall apply or pay over for application the cash proceed
• § 9609 — (a) After default, a secured party may do both of the following: (1) Take possession of the collateral.
• § 9610 — (a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or proce
• § 9611 — (a) In this section, “notification date” means the earlier of the date on which: (1) A secured party sends to the debtor and any secondary obligor a signed notification of disposition.
• § 9612 — (a) Except as otherwise provided in subdivision (b), whether a notification is sent within a reasonable time is a question of fact.
• § 9613 — (a) Except in a consumer-goods transaction, the following rules apply: (1) The contents of a notification of disposition are sufficient if the notification does all of the following: (A) It describes
• § 9614 — (a) In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide all of the following information: (A) The information specified in paragraph (1) of subdi
• § 9615 — (a) A secured party shall apply or pay over for application the cash proceeds of disposition under Section 9610 in the following order to each of the following: (1) The reasonable expenses of retaking
• § 9616 — (a) In this section: (1) “Explanation” means a record that contains all of the following: (A) States the amount of the surplus or deficiency.
• § 9617 — (a) A secured party’s disposition of collateral after default does all of the following: (1) Transfers to a transferee for value all of the debtor’s rights in the collateral.
• § 9618 — (a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after any of the following occurs: (1) The secondary obligor receives an assignment of a se
• § 9619 — (a) In this section, “transfer statement” means a record signed by a secured party stating all of the following: (1) That the debtor has defaulted in connection with an obligation secured by specified
• § 9620 — (a) Except as otherwise provided in subdivision (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if all of the following conditions are sati
• § 9621 — (a) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to all of the following persons: (1) Any person from which th
• § 9622 — (a) A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures does all of the following: (1) It discharges the obligation to the extent consented to by th
• § 9623 — (a) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
• § 9624 — (a) A debtor or secondary obligor may waive the right to notification of disposition of collateral under Section 9611 only by an agreement to that effect entered into and signed after default.
• § 9625 — (a) If it is established that a secured party is not proceeding in accordance with this division, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate ter
• § 9626 — (a) In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply: (1) A secured party need not prov
• § 9627 — (a) The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured part
• § 9628 — (a) Subject to subdivision (e), unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person both of the following
• § 9629 — No renunciation or modification by the debtor of any of his or her rights under this chapter as to consumer goods shall be valid or enforceable unless the renunciation or modification is in considerat
• § 9701 — This division shall become operative on July 1, 2001.
• § 9702 — (a) Except as otherwise provided in this chapter, this division applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before this division take
• § 9703 — (a) A security interest that is enforceable immediately before July 1, 2001, and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security inter
• § 9704 — All of the following rules apply with respect to a security interest that is enforceable immediately before July 1, 2001, but which would be subordinate to the rights of a person that becomes a lien c
• § 9705 — (a) If action, other than the filing of a financing statement, is taken before July 1, 2001, and the action would have resulted in priority of a security interest over the rights of a person that beco
• § 9706 — (a) The filing of an initial financing statement in the office specified in Section 9501 continues the effectiveness of a financing statement filed before July 1, 2001, if all of the following conditi
• § 9707 — (a) In this section, “pre-effective-date financing statement” means a financing statement filed before the date that this section becomes operative.
• § 9708 — A person may file an initial financing statement or a continuation statement under this chapter if both of the following conditions are satisfied: (1) The secured party of record authorizes the filing
• § 9709 — (a) This division determines priority of conflicting claims to collateral.
• § 9801 — The changes to this division made by the act adding this chapter shall become operative on July 1, 2014.
• § 9802 — (a) Except as otherwise provided in this chapter, the changes to this division made by the act adding this chapter apply to a transaction or lien within its scope, even if the transaction or lien was
• § 9803 — (a) A security interest that is a perfected security interest immediately before July 1, 2014, is a perfected security interest under this division as amended by this act if, as of July 1, 2014, the a
• § 9804 — A security interest that is an unperfected security interest immediately before July 1, 2014, becomes a perfected security interest as follows: (a) Without further action, on July 1, 2014, if the appl
• § 9805 — (a) The filing of a financing statement before July 1, 2014, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this di
• § 9806 — (a) The filing of an initial financing statement in the office specified in Section 9501 continues the effectiveness of a financing statement filed before July 1, 2014, if the following conditions are
• § 9807 — (a) In this section, “preeffective-date financing statement” means a financing statement filed before July 1, 2014.
• § 9808 — A person may file an initial financing statement or a continuation statement under this chapter if the following conditions are satisfied: (a) The secured party of record authorizes the filing.
• § 9809 — The changes to this division made by the act adding this chapter determine the priority of conflicting claims to collateral.
• § 9901 — (a) The changes to this division made by the act adding this chapter become operative on January 1, 2015.
• § 9902 — (a) Except as otherwise provided in this chapter, the changes to this division made by the act adding this chapter apply to a transaction or lien within its scope, even if the transaction or lien was
• § 9903 — A security interest that is a perfected security interest immediately before January 1, 2015, is a perfected security interest under this division as amended by this act if, as of January 1, 2015, the
• § 9904 — A security interest that is an unperfected security interest immediately before January 1, 2015, becomes a perfected security interest as follows: (a) Without further action, on January 1, 2015, if th
• § 9905 — (a) The filing of a financing statement before January 1, 2015, is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this
• § 9906 — A person may file an initial financing statement or a continuation statement under this chapter if the following conditions are satisfied: (a) The secured party of record authorizes the filing.
• § 9907 — The changes to this division made by the act adding this chapter determine the priority of conflicting claims to the collateral.