AB111: Bill Text

AB111,32,16 1. The merchant:

AB111,32,18 a. Deals in goods of that kind under a name other than the name of the person making delivery;

AB111,32,19 b. Is not an auctioneer; and

AB111,32,21 c. Is not generally known by its creditors to be substantially engaged in selling the goods of others;

AB111,32,23 2. With respect to each delivery, the aggregate value of the goods is $1,000 or more at the time of delivery;

AB111,32,24 3. The goods are not consumer goods immediately before delivery; and

AB111,32,25 4. The transaction does not create a security interest that secures an obligation.

AB111,33,2 (f) "Consignor" means a person that delivers goods to a consignee in a consignment.

AB111,33,3 (fg) "Consumer debtor" means a debtor in a consumer transaction.

AB111,33,5 (fm) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.

AB111,33,6 (fs) "Consumer-goods transaction" means a consumer transaction in which:

AB111,33,8 1. An individual incurs an obligation primarily for personal, family, or household purposes; and

AB111,33,9 2. A security interest in consumer goods secures the obligation.

AB111,33,12 (g) "Consumer obligor" means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes.

AB111,33,17 (gg) "Consumer transaction" means a transaction in which an individual incurs an obligation primarily for personal, family, or household purposes; a security interest secures the obligation; and the collateral is held or acquired primarily for personal, family, or household purposes. The term includes consumer-goods transactions.

AB111,33,19 (gm) "Continuation statement" means an amendment of a financing statement which:

AB111,33,21 1. Identifies, by its file number, the initial financing statement to which it relates; and

AB111,33,23 2. Indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.

AB111,33,24 (gs) "Debtor" means:

AB111,34,2 1. A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

AB111,34,4 2. A seller of accounts, chattel paper, payment intangibles, or promissory notes; or

AB111,34,5 3. A consignee.

AB111,34,8 (h) "Deposit account" means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument.

AB111,34,10 (hg) "Document" means a document of title or a receipt of the type described in s. 407.201 (2).

AB111,34,12 (hm) "Electronic chattel paper" means chattel paper evidenced by a record or records consisting of information stored in an electronic medium.

AB111,34,14 (hs) "Encumbrance" means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.

AB111,34,16 (i) "Equipment" means goods other than inventory, farm products, or consumer goods.

AB111,34,18 (ig) "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are:

AB111,34,19 1. Crops grown, growing, or to be grown, including:

AB111,34,20 a. Crops produced on trees, vines, and bushes; and

AB111,34,21 b. Aquatic goods produced in aquacultural operations;

AB111,34,23 2. Livestock, born or unborn, including aquatic goods produced in aquacultural operations;

AB111,34,24 3. Supplies used or produced in a farming operation; or

AB111,34,25 4. Products of crops or livestock in their unmanufactured states.

AB111,35,2 (im) "Farming operation" means raising, cultivating, propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.

AB111,35,4 (is) "File number" means the number assigned to an initial financing statement pursuant to s. 409.519 (1).

AB111,35,6 (j) "Filing office" means an office designated in s. 409.501 as the place to file a financing statement.

AB111,35,7 (jg) "Filing-office rule" means a rule promulgated pursuant to s. 409.526.

AB111,35,9 (jm) "Financing statement" means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement.

AB111,35,13 (js) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying s. 409.502 (1) and (2). The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.

AB111,35,15 (k) "Fixtures" means goods that have become so related to particular real property that an interest in them arises under real property law.

AB111,35,20 (kg) "General intangible" means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. The term includes payment intangibles and software.

AB111,35,22 (km) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.

AB111,36,11 (ks) "Goods" means all things that are movable when a security interest attaches. The term includes fixtures; standing timber that is to be cut and removed under a conveyance or contract for sale; the unborn young of animals; crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes; and manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if the program is associated with the goods in such a manner that it customarily is considered part of the goods, or by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.

AB111,36,16 (L) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.

AB111,36,19 (Lg) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance which is a right to payment of a monetary obligation for health-care goods or services provided.

AB111,37,2 (Lm) "Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease, and is of a type that in ordinary course of business is transferred by delivery with any necessary endorsement or assignment. The term does not include investment property; letters of credit; or writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.

AB111,37,3 (Ls) "Inventory" means goods, other than farm products, which:

AB111,37,4 1. Are leased by a person as lessor;

AB111,37,6 2. Are held by a person for sale or lease or to be furnished under a contract of service;

AB111,37,7 3. Are furnished by a person under a contract of service; or

AB111,37,9 4. Consist of raw materials, work in process, or materials used or consumed in a business.

AB111,37,12 (m) "Investment property" means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account.

AB111,37,15 (mcm) "Issuer" means a bank or other person that issues a letter of credit, but does not include an individual who makes an engagement for personal, family, or household purposes.

AB111,37,17 (mg) "Jurisdiction of organization", with respect to a registered organization, means the jurisdiction under whose law the organization is organized.

AB111,37,22 (mkm) "Letter of credit" means a definite undertaking that satisfies the requirements of s. 405.104 by an issuer to a beneficiary at the request or for the account of an applicant or, in the case of a financial institution, to itself or for its own account, to honor a documentary presentation by payment or delivery of an item of value.

AB111,38,2 (mm) "Letter-of-credit right" means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.

AB111,38,3 (ms) "Lien creditor" means:

AB111,38,5 1. A creditor that has acquired a lien on the property involved by attachment, levy, or the like;

AB111,38,6 2. An assignee for benefit of creditors from the time of assignment;

AB111,38,7 3. A trustee in bankruptcy from the date of the filing of the petition; or

AB111,38,8 4. A receiver in equity from the time of appointment.

AB111,38,18 (n) "Manufactured home" means a structure, transportable in one or more sections, which, in the traveling mode, is 8 body feet or more in width or 40 body feet or more in length, or, when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air-conditioning, and electrical systems contained therein. The term includes any structure that meets all of the requirements of this paragraph except the size requirements and with respect to which the manufacturer voluntarily files a certification required by the U.S. secretary of housing and urban development and complies with the standards established under title 42 of the U.S. code.

AB111,38,19 (ng) "Manufactured-home transaction" means a secured transaction:

AB111,38,21 1. That creates a purchase-money security interest in a manufactured home, other than a manufactured home held as inventory; or

AB111,38,23 2. In which a manufactured home, other than a manufactured home held as inventory, is the primary collateral.

AB111,38,25 (nm) "Mortgage" means a consensual interest in real property, including fixtures, which secures payment or performance of an obligation.

AB111,39,2 (ns) "New debtor" means a person that becomes bound as debtor under s. 409.203 (4) by a security agreement previously entered into by another person.

AB111,39,6 (o) "New value" means money; money's worth in property, services, or new credit; or release by a transferee of an interest in property previously transferred to the transferee. The term does not include an obligation substituted for another obligation.

AB111,39,7 (odm) "Nominated person" means a person whom the issuer:

AB111,39,9 1. Designates or authorizes to pay, accept, negotiate, or otherwise give value under a letter of credit; and

AB111,39,10 2. Undertakes by agreement or custom and practice to reimburse.

AB111,39,11 (og) "Noncash proceeds" means proceeds other than cash proceeds.

AB111,39,17 (om) "Obligor" means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, owes payment or other performance of the obligation; has provided property other than the collateral to secure payment or other performance of the obligation; or is otherwise accountable in whole or in part for payment or other performance of the obligation. The term does not include issuers or nominated persons under a letter of credit.

AB111,39,20 (os) "Original debtor", except as used in s. 409.310 (3), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under s. 409.203 (4).

AB111,39,22 (p) "Payment intangible" means a general intangible under which the account debtor's principal obligation is a monetary obligation.

AB111,39,23 (pg) "Person related to", with respect to an individual, means:

AB111,39,24 1. The spouse of the individual;

AB111,39,25 2. A brother, brother-in-law, sister, or sister-in-law of the individual;

AB111,40,2 3. An ancestor or lineal descendant of the individual or the individual's spouse; or

AB111,40,4 4. Any other relative, by blood or marriage, of the individual or the individual's spouse who shares the same home with the individual.

AB111,40,5 (pm) "Person related to", with respect to an organization, means:

AB111,40,7 1. A person directly or indirectly controlling, controlled by, or under common control with the organization;

AB111,40,9 2. An officer or director of, or a person performing similar functions with respect to, the organization;

AB111,40,11 3. An officer or director of, or a person performing similar functions with respect to, a person described in subd. 1.;

AB111,40,12 4. The spouse of an individual described in subd. 1., 2., or 3.; or

AB111,40,14 5. An individual who is related by blood or marriage to an individual described in subd. 1., 2., 3., or 4. and shares the same home with the individual.

AB111,40,15 (ps) "Proceeds", except as used in s. 409.609 (2), means the following property:

AB111,40,17 1. Whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral;