text:
(a) As used in this section, “creditor process” means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.

(b) This subdivision applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.

(c) If a beneficiary’s bank has received a payment order for payment to the beneficiary’s account in the bank, the following rules apply:

(1) The bank may credit the beneficiary’s account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.

(2) The bank may credit the beneficiary’s account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.

(3) If creditor process with respect to the beneficiary’s account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.

(d) Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary’s bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.


kind: section

code: COM

text: For proper cause and in compliance with applicable law, a court may restrain (i) a person from issuing a payment order to initiate a funds transfer, (ii) an originator’s bank from executing the payment order of the originator, or (iii) the beneficiary’s bank from releasing funds to the beneficiary or the beneficiary from withdrawing the funds. A court may not otherwise restrain a person from issuing a payment order, paying or receiving payment of a payment order, or otherwise acting with respect to a funds transfer.

history: (History: Added by Stats. 1990, Ch. 125, Sec. 2.)

division: 11. FUNDS TRANSFERS

chapter: 5. Miscellaneous Provisions

path: 11. FUNDS TRANSFERS > 5. Miscellaneous Provisions


text:
(a) If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender’s account, the bank may charge the sender’s account with respect to the various orders and items in any sequence.

(b) In determining whether a credit to an account has been withdrawn by the holder of the account or applied to a debt of the holder of the account, credits first made to the account are first withdrawn or applied.


text: If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that the bank is not entitled to retain the payment unless the customer notifies the bank of the customer’s objection to the payment within one year after the notification was received by the customer.


text:
(a) If, under this division, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.

(b) If the amount of interest is not determined by an agreement or rule as stated in subdivision (a), the amount is calculated by multiplying the applicable federal funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable federal funds rate is the average of the federal funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable divided by 360. The federal funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.


text:
(a) The following rules apply unless the affected parties otherwise agree or subdivision (c) applies:

(1) The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.

(2) The rights and obligations between the beneficiary’s bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary’s bank is located.

(3) The issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary’s bank is located.

(b) If the parties described in each paragraph of subdivision (a) have made an agreement selecting the law of a particular jurisdiction to govern rights and obligations between each other, the law of that jurisdiction governs those rights and obligations, whether or not the payment order or the funds transfer bears a reasonable relation to that jurisdiction.

(c) A funds-transfer system rule may select the law of a particular jurisdiction to govern (i) rights and obligations between participating banks with respect to payment orders transmitted or processed through the system, or (ii) the rights and obligations of some or all parties to a funds transfer any part of which is carried out by means of the system. A choice of law made pursuant to clause (i) is binding on participating banks. A choice of law made pursuant to clause (ii) is binding on the originator, other sender, or a receiving bank having notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system when the originator, other sender, or receiving bank issued or accepted a payment order. The beneficiary of a funds transfer is bound by the choice of law if, when the funds transfer is initiated, the beneficiary has notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subdivision may govern, whether or not that law bears a reasonable relation to the matter in issue.

(d) In the event of inconsistency between an agreement under subdivision (b) and a choice-of-law rule under subdivision (c), the agreement under subdivision (b) prevails.

(e) If a funds transfer is made by use of more than one funds-transfer system and there is inconsistency between choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most significant relationship to the matter in issue.


text: This division may be cited as Uniform Commercial Code—Controllable Electronic Records.

history: (History: Added by Stats. 2023, Ch. 210, Sec. 90. (SB 95) Effective January 1, 2024.)

division: 12. CONTROLLABLE ELECTRONIC RECORDS

path: 12. CONTROLLABLE ELECTRONIC RECORDS


text:
(a) In this division, the following definitions apply:

(1) “Controllable electronic record” means a record stored in an electronic medium that can be subjected to control under Section 12105. The term does not include a controllable account, a controllable payment intangible, a deposit account, an electronic copy of a record evidencing chattel paper, an electronic document of title, electronic money, investment property, or a transferable record.

(2) “Qualifying purchaser” means a purchaser of a controllable electronic record or an interest in a controllable electronic record that obtains control of the controllable electronic record for value, in good faith, and without notice of a claim of a property right in the controllable electronic record.

(3) “Transferable record” has the meaning provided for that term in either of the following:

(A) Paragraph (1) of subsection (a) of Section 7021 of Title 15 of the United States Code.

(B) Subsection (a) of Section 16 of the Uniform Electronic Transactions Act of any state whose law is applicable.

(4) “Value” has the meaning provided in subdivision (a) of Section 3303, as if references in that subdivision to an “instrument” were references to a controllable account, controllable electronic record, or controllable payment intangible.

(b) The definitions in Division 9 (commencing with Section 9101) of “account debtor,” “controllable account,” “controllable payment intangible,” “chattel paper,” “deposit account,” “electronic money,” and “investment property” apply to this division.

(c) Division 1 (commencing with Section 1101) contains general definitions and principles of construction and interpretation applicable throughout this division.


text:
(a) If there is conflict between this division and Division 9 (commencing with Section 9101), Division 9 governs.

(b) A transaction subject to this division is subject to all of the following:

(1) Any applicable rule of law that establishes a different rule for consumers.

(2) Any other statute or regulation that regulates the rates, charges, agreements, and practices for loans, credit sales, or other extensions of credit.

(3) Any consumer-protection statute or regulation.


text:
(a) This section applies to the acquisition and purchase of rights in a controllable account or controllable payment intangible, including the rights and benefits under subdivisions (c), (d), (e), (g), and (h) of a purchaser and qualifying purchaser, in the same manner this section applies to a controllable electronic record.

(b) To determine whether a purchaser of a controllable account or a controllable payment intangible is a qualifying purchaser, the purchaser obtains control of the account or payment intangible if it obtains control of the controllable electronic record that evidences the account or payment intangible.

(c) Except as provided in this section, law other than this division determines whether a person acquires a right in a controllable electronic record and the right the person acquires.

(d) A purchaser of a controllable electronic record acquires all rights in the controllable electronic record that the transferor had or had power to transfer, except that a purchaser of a limited interest in a controllable electronic record acquires rights only to the extent of the interest purchased.

(e) A qualifying purchaser acquires its rights in the controllable electronic record free of a claim of a property right in the controllable electronic record.

(f) Except as provided in subdivisions (a) and (e) for a controllable account and a controllable payment intangible or law other than this division, a qualifying purchaser takes a right to payment, right to performance, or other interest in property evidenced by the controllable electronic record subject to a claim of a property right in the right to payment, right to performance, or other interest in property.

(g) An action may not be asserted against a qualifying purchaser based on both a purchase by the qualifying purchaser of a controllable electronic record and a claim of a property right in another controllable electronic record, whether the action is framed in conversion, replevin, constructive trust, equitable lien, or other theory.

(h) Filing of a financing statement under Division 9 (commencing with Section 9101) is not notice of a claim of a property right in a controllable electronic record.


text:
(a) A person has control of a controllable electronic record if the electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded, satisfies each of the following conditions:

(1) It gives the person both of the following:

(A) Power to avail itself of substantially all the benefit from the electronic record.

(B) Exclusive power, subject to subdivision (b), to do both of the following:

(i) Prevent others from availing themselves of substantially all the benefit from the electronic record.

(ii) Transfer control of the electronic record to another person or cause another person to obtain control of another controllable electronic record as a result of the transfer of the electronic record.

(2) It enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as having the powers specified in paragraph (1).

(b) Subject to subdivision (c), a power is exclusive under clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a) even if either of the following is true:

(1) The controllable electronic record, a record attached to or logically associated with the electronic record, or a system in which the electronic record is recorded limits the use of the electronic record or has a protocol programmed to cause a change, including a transfer or loss of control or a modification of benefits afforded by the electronic record.

(2) The power is shared with another person.

(c) A power of a person is not shared with another person under paragraph (2) of subdivision (b) and the person’s power is not exclusive if each of the following conditions is satisfied:

(1) The person can exercise the power only if the power also is exercised by the other person.

(2) Either of the following is true:

(A) The other person can exercise the power without exercise of the power by the person.

(B) The other person is the transferor to the person of an interest in the controllable electronic record or a controllable account or controllable payment intangible evidenced by the controllable electronic record.

(d) If a person has the powers specified in clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a), the powers are presumed to be exclusive.

(e) A person has control of a controllable electronic record if another person, other than the transferor to the person of an interest in the controllable electronic record or a controllable account or controllable payment intangible evidenced by the controllable electronic record, satisfies either of the following conditions:

(1) The other person has control of the electronic record and acknowledges that it has control on behalf of the person.

(2) The other person obtains control of the electronic record after having acknowledged that it will obtain control of the electronic record on behalf of the person.

(f) A person that has control under this section is not required to acknowledge that it has control on behalf of another person.

(g) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this division or Division 9 (commencing with Section 9101) otherwise provides, the person does not owe any duty to the other person and is not required to confirm the acknowledgment to any other person.

history: (History: Amended by Stats. 2024, Ch. 80, Sec. 27. (SB 1525) Effective January 1, 2025.)


text:
(a) An account debtor on a controllable account or controllable payment intangible may discharge its obligation by paying either of the following:

(1) The person having control of the controllable electronic record that evidences the controllable account or controllable payment intangible.

(2) Except as provided in subdivision (b), a person that formerly had control of the controllable electronic record.

(b) Subject to subdivision (d), the account debtor shall not discharge its obligation by paying a person that formerly had control of the controllable electronic record if the account debtor receives a notification that meets all of the following:

(1) Is signed by a person that formerly had control or the person to which control was transferred.

(2) Reasonably identifies the controllable account or controllable payment intangible.

(3) Notifies the account debtor that control of the controllable electronic record that evidences the controllable account or controllable payment intangible was transferred.

(4) Identifies the transferee, in any reasonable way, including by name, identifying number, cryptographic key, office, or account number.

(5) Provides a commercially reasonable method by which the account debtor is to pay the transferee.

(c) After receipt of a notification that complies with subdivision (b), the account debtor may discharge its obligation by paying in accordance with the notification and shall not discharge the obligation by paying a person that formerly had control.

(d) Subject to subdivision (h), notification is ineffective under subdivision (b) if any of the following apply:

(1) Unless, before the notification is sent, the account debtor and the person that, at that time, had control of the controllable electronic record that evidences the controllable account or controllable payment intangible agree in a signed record to a commercially reasonable method by which a person may furnish reasonable proof that control has been transferred.

(2) To the extent an agreement between the account debtor and seller of a payment intangible limits the account debtor’s duty to pay a person other than the seller and the limitation is effective under law other than this division.

(3) At the option of the account debtor, if the notification notifies the account debtor to do any of the following:

(A) Divide the payment.

(B) Make less than the full amount of an installment or other periodic payment.

(C) Pay any part of a payment by more than one method or to more than one person.

(e) Subject to subdivision (h), if requested by the account debtor, the person giving the notification under subdivision (b) seasonably shall furnish reasonable proof, using the method in the agreement referred to in paragraph (1) of subdivision (d), that control of the controllable electronic record has been transferred. Unless the person complies with the request, the account debtor may discharge its obligation by paying a person that formerly had control, even if the account debtor has received a notification under subdivision (b).

(f) A person furnishes reasonable proof under subdivision (e) that control has been transferred if the person demonstrates, using the method in the agreement referred to in paragraph (1) of subdivision (d), that the transferee has the power to do all of the following:

(1) Avail itself of substantially all the benefit from the controllable electronic record.

(2) Prevent others from availing themselves of substantially all the benefit from the controllable electronic record.

(3) Transfer the powers specified in paragraphs (1) and (2) to another person.

(g) Subject to subdivision (h), an account debtor may not waive or vary its rights under paragraph (1) of subdivision (d) or under subdivision (e), or its option under paragraph (3) of subdivision (d).

(h) This section is subject to law other than this division which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.


text:
(a) Except as provided in subdivision (b), the local law of a controllable electronic record’s jurisdiction governs a matter covered by this division.

(b) For a controllable electronic record that evidences a controllable account or controllable payment intangible, the local law of the controllable electronic record’s jurisdiction governs a matter covered by Section 12106 unless an effective agreement determines that the local law of another jurisdiction governs.

(c) The following rules determine a controllable electronic record’s jurisdiction under this section:

(1) If the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of this division or this code, that jurisdiction is the controllable electronic record’s jurisdiction.

(2) If paragraph (1) does not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that a particular jurisdiction is the controllable electronic record’s jurisdiction for purposes of this division or this code, that jurisdiction is the controllable electronic record’s jurisdiction.

(3) If paragraphs (1) and (2) do not apply and the controllable electronic record, or a record attached to or logically associated with the controllable electronic record and readily available for review, expressly provides that the controllable electronic record is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction.

(4) If paragraphs (1) to (3), inclusive, do not apply and the rules of the system in which the controllable electronic record is recorded are readily available for review and expressly provide that the controllable electronic record or the system is governed by the law of a particular jurisdiction, that jurisdiction is the controllable electronic record’s jurisdiction.

(5) If paragraphs (1) to (4), inclusive, do not apply, the controllable electronic record’s jurisdiction is the District of Columbia.

(d) If paragraph (5) of subdivision (c) and Article 12 is not in effect in the District of Columbia without material modification, the governing law for a matter covered by this division is the law of the District of Columbia as though Article 12 were in effect in the District of Columbia without material modification. In this subdivision, “Article 12” means Article 12 of Uniform Commercial Code Amendments (2022).

(e) To the extent subdivisions (a) and (b) provide that the local law of the controllable electronic record’s jurisdiction governs a matter covered by this division, that law governs even if the matter or a transaction to which the matter relates does not bear any relation to the controllable electronic record’s jurisdiction.

(f) The rights acquired under Section 12104 by a purchaser or qualifying purchaser are governed by the law applicable under this section at the time of purchase.


text: This code shall become effective on January 1, 1965. It applies to transactions entered into and events occurring after that date.

history: (History: Added by Stats. 1988, Ch. 1359, Sec. 8. Operative January 1, 1990, by Sec. 11 of Ch. 1359.)

division: 13. EFFECTIVE DATE AND REPEALER

path: 13. EFFECTIVE DATE AND REPEALER


text: Transactions validly entered into before January 1, 1965, and the rights, duties, and interests flowing from them remain valid thereafter and may be terminated, completed, consummated, or enforced as required or permitted by any statute or other law amended or repealed by this act as though such repeal or amendment had not occurred; provided, however, that the perfection of a security interest (other than a security interest (i) in a motor vehicle or vessel required to be registered under the Vehicle Code unless such vehicle or vessel is inventory or (ii) in personal property, including fixtures, which constitutes a portion of the properties included in an agreement which is a mortgage or deed of trust of both real and personal property made to secure the payment of bonds or other evidences of indebtedness authorized or permitted to be issued by the Commissioner of Corporations, or made by a public utility as defined in the Public Utilities Code), as defined in this code (Section 1201), and however denominated in any law repealed by this act, (a) Which was perfected on or before January 1, 1965, by a filing or recording under a law repealed by this act and requiring a further filing or recording to continue its perfection, continues until and will lapse on the date provided by the law so repealed for such further filing or recording.(b) Which was perfected on or before January 1, 1965, by a filing or recording under a law repealed by this act and requiring no further filing or recording to continue its perfection, continues until and will lapse 12 months after January 1, 1965.(c) Which was perfected on or before January 1, 1965, without any filing or recording, but with respect to which a financing statement is required to be filed in order for it to be perfected under this code, continues until and will lapse 12 months after January 1, 1965;unless, in each case, a continuation statement is filed by the secured party within 12 months before the perfection of the security interest would otherwise lapse. Any such continuation statement must be signed by the secured party, identify the original security agreement, however denominated, state the office where and the date when last filed or refiled, or recorded or rerecorded, and the filing number or recordation data and further state that the original security agreement is still effective. Subdivision (1) of Section 9501 determines the proper place to file such a continuation statement. Except as herein specified the provisions of Sections 9515 and 9522 apply to such a continuation statement.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 40. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text: Except as provided in the following section, all acts and parts of acts inconsistent with this act are hereby repealed.


text:
(1) A financing statement or a continuation thereof, properly filed and effective pursuant to Section 9401 as it existed prior to January 1, 1971, remains valid and effective after January 1, 1971, until expiration of the usual five-year period from date of filing. Any termination, release, assignment, or amendment of the financing statement prior to expiration of the five-year period of effectiveness shall be filed, as previously required, with the county recorder who has filed the financing statement.

(2) After January 1, 1971, any continuation of a financing statement which had been properly filed with a county recorder prior to January 1, 1971, and which now would be required to be filed with the Secretary of State, shall be filed with the Secretary of State in accordance with Sections 9515 and 9516. The continuation statement shall be accompanied by a certified copy of the entire record of the county recorder related to the financing statement. After filing of the continuation statement with the Secretary of State, any termination, release, assignment, amendment, or continuation of the financing statement shall also be filed with the Secretary of State and any documents affecting the financing statement that are not filed with the Secretary of State shall not be effective.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 41. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text: The amendments to this code, as adopted by the Legislature at the 1973–74 Regular Session, shall become effective at 12:01 a.m. on January 1, 1976.

history: (History: Added by Stats. 1988, Ch. 1359, Sec. 9. Operative January 1, 1990, by Sec. 11 of Ch. 1359.)

division: 14. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: The provisions of Division 13 shall continue to apply to this code, as amended by the Legislature at the 1973–74 Regular Session, and for this purpose this code as it existed prior to January 1, 1976, and this code, as amended by the Legislature at the 1973–74 Regular Session, shall be considered one continuous statute.

path: 14. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: Transactions validly entered into after January 1, 1965, and before January 1, 1976, and which were subject to the provisions of this code and which would be subject to this code as amended by the Legislature at the 1973–74 Regular Session if they had been entered into after January 1, 1976, and the rights, duties, and interests flowing from the transactions remain valid after January 1, 1976, and may be terminated, completed, consummated, or enforced as required or permitted by this code as amended by the Legislature at the 1972 Regular Session. Security interests arising out of these transactions which are perfected on January 1, 1976, shall remain perfected until they lapse as provided in this code as amended by the Legislature at the 1973–74 Regular Session, and may be continued as permitted by this code as amended by the Legislature at the 1973–74 Regular Session, except as stated in Section 14105.


text: A security interest for the perfection of which filing or the taking of possession was required under this code and which attached prior to January 1, 1976, but was not perfected shall be deemed perfected on January 1, 1975, if this code as amended by the Legislature at the 1973–74 Regular Session permits perfection without filing or authorizes filing in the office or offices where a prior ineffective filing was made.


text:
(1) A financing statement or continuation statement filed prior to January 1, 1976, which shall not have lapsed prior to January 1, 1976, shall remain effective for the period provided in this code as it existed prior to January 1, 1976, but not less than five years after the filing.

(2) With respect to any collateral acquired by the debtor subsequent to January 1, 1976, any effective financing statement or continuation statement described in this section shall apply only if the filing or filings are in the office or offices that would be appropriate to perfect the security interests in the new collateral under this code as amended by the Legislature at the 1973–74 Regular Session.

(3) The effectiveness of any financing statement or continuation statement filed prior to January 1, 1976, may be continued by a continuation statement as permitted by this code as amended by the Legislature at the 1973–74 Regular Session, except that if this code, as amended by the Legislature at the 1973–74 Regular Session, requires a filing in an office where there was no previous financing statement, a new financing statement conforming to Section 14106 shall be filed in that office.


text:
(1) If a security interest is perfected or has priority on January 1, 1976, as to all persons or as to certain persons without any filing or recording, and if the filing of a financing statement would be required for the perfection or priority of the security interest against those persons under this code, as amended by the Legislature at the 1973–74 Regular Session, the perfection and priority rights of the security interest continue until January 1, 1979. The perfection will then lapse unless a financing statement is filed as provided in subdivision (4) or unless the security interest is perfected otherwise than by filing.

(2) If a security interest is perfected on January 1, 1976, under a law other than this code which requires no further filing, refiling or recording to continue its perfection, perfection continues until and will lapse January 1, 1979, unless a financing statement is filed as provided in subdivision (4) or unless the security interest is perfected otherwise than by filing, or unless under Section 9311 the other law continues to govern filing.

(3) If a security interest is perfected by a filing, refiling or recording under a law repealed by this code as amended by the Legislature at the 1973–74 Regular Session which required further filing, refiling or recording to continue its perfection, perfection continues and will lapse on the date provided by the law so repealed for a further filing, refiling, or recording unless a financing statement is filed as provided in subdivision (4) or unless the security interest is perfected otherwise than by filing.

(4) A financing statement may be filed within six months before the perfection of a security interest would otherwise lapse. Any such financing statement may be signed by either the debtor or the secured party. It must identify the security agreement, statement, or notice (however denominated in any statute or other law repealed or modified by this code as amended by the Legislature at the 1973–74 Regular Session), state the office where and the date when the last filing, refiling, or recording, if any, was made with respect thereto, and the filing number, if any, was made with respect thereto, and the filing number, if any, or book and page, if any, of recording and further state that the security agreement, statement, or notice, however denominated, in another filing office under this code or under any statute or other law repealed or modified by this code as amended by the Legislature at the 1973–74 Regular Session is still effective. Section 9501 and Sections 9301, 9303, 9304, 9305, 9306, 9307, 9316, and 9337 determine the proper place to file such a financing statement. Except as specified in this subdivision, the provisions of Sections 9515 and 9522 for continuation statements apply to such a financing statement.

history: (History: Amended by Stats. 1999, Ch. 991, Sec. 42. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)


text: Except as otherwise provided in this division, this code as it existed prior to January 1, 1976, shall apply to any questions of priority if the positions of the parties were fixed prior to January 1, 1976. In other cases questions of priority shall be determined by this code as amended by the Legislature at the 1973–74 Regular Session.


text: Unless a change in law has clearly been made, the provisions of this code as amended by the Legislature at the 1973–74 Regular Session shall be deemed declaratory of the meaning of this code as it existed prior to January 1, 1976. The amendments to subdivision (38) of Section 1201 and to subdivision (j) of Section 9104 of this code as amended by the Legislature at the 1973–74 Regular Session shall be deemed declaratory of the meaning of this code as it existed prior to January 1, 1976.


text:
(1) The amendments to this code relating to fixtures adopted by the Legislature at the 1979–1980 Regular Session shall apply to security interests which attach on or after January 1, 1981, in goods which become fixtures on or after January 1, 1981.

(2) If the record of a mortgage of real estate would have been effective as a fixture filing of goods described therein if the amendments to this code relating to fixtures adopted by the Legislature at the 1979–1980 Regular Session had been in effect on the date of recording the mortgage, the mortgage shall be deemed effective as a fixture filing as to such goods under subdivision (6) of Section 9402 as of January 1, 1981.


text: The repeal and addition of Division 8 (commencing with Section 8101) made at the 1984 portion of the 1983–84 Regular Session shall become effective on January 1, 1985.

history: (History: Added by Stats. 1988, Ch. 1359, Sec. 10. Operative January 1, 1990, by Sec. 11 of Ch. 1359.)

division: 15. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: The provisions of Division 13 (commencing with Section 13101) and Division 14 (commencing with Section 14101) shall continue to apply to this code, as revised by the Legislature at the 1983–84 Regular Session, and for this purpose, this code as it existed prior to January 1, 1985, and this code, as revised by the Legislature at the 1984 portion of the 1983–84 Regular Session, shall be considered one continuous statute.

path: 15. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: The owner of an interest (other than a security interest) in an uncertificated security (paragraph (b) of subdivision (1) of Section 8102) whose interest was acquired prior to January 1, 1985, or was acquired after January 1, 1985, in an uncertificated security issued in respect of a security in which the owner had such an interest, shall not be required to take any action under Section 8313 or otherwise to preserve or protect that ownership interest, which shall remain effective and enforceable to the same extent it was prior to January 1, 1985, in the absence of that action. However, if a security interest first attaches to the security or any other interest in the security first becomes effective after that date, the provisions of Division 8 (commencing with Section 8101) as revised shall govern the rights and obligations of all persons with respect to those interests. Except as otherwise provided in this division, the rights and obligations of all persons with respect to uncertificated securities issued prior to January 1, 1985, shall be governed by Division 8 (commencing with Section 8101) as revised by Chapter 927 of the Statutes of 1984. All references in this section to Division 8 (commencing with Section 8101) or a section thereof are references to Division 8 (commencing with Section 8101) as revised by Chapter 927 of the Statutes of 1984.

history: (History: Amended by Stats. 1996, Ch. 497, Sec. 23. Effective January 1, 1997.)


text: A secured party who has a security interest in an uncertificated security (paragraph (b) of subdivision (1) of Section 8102), which security interest attached to that uncertificated security (a) prior to January 1, 1985, or (b) after that date in an uncertificated security issued in respect of a security in which the secured party had the pre-January 1, 1985, security interest, shall not be required to take any action under Division 8 (commencing with Section 8101) to protect, preserve, or perfect that security interest, which shall remain attached and perfected to the same extent it was prior to that date in the absence of any such action. The priority and perfection of those security interests shall continue to be governed by Division 9 (commencing with Section 9101) as it existed prior to that date. However, on or before the last date on which any action is required under Division 9 (commencing with Section 9101) (as it existed prior to that date) to continue the perfection of the security interest, in order to continue the perfection of the security interest the secured party, rather than complying with Division 9 (commencing with Section 9101), shall furnish to a party described in subparagraph (i), (iii), or (iv) of paragraph (h) of subdivision (1) of Section 8313, or if none of those is applicable, then to the issuer of the uncertificated security, either (x) a copy of either the financing statement previously filed to perfect the security interest or the security agreement that created the security interest, in either case bearing a copy or an original of the debtor’s signature, or (y) a written notification from the registered owner under paragraph (b) of subdivision (7) of Section 8403. Any such notice to an issuer shall be deemed a written notification under paragraph (b) of subdivision (7) of Section 8403, subject to the limitation that there can be no more than one registered pledge of an uncertificated security at any time (Section 8108). Except as otherwise provided in this division, the provisions of Division 8 (commencing with Section 8101) as revised shall govern the rights and obligations of all persons with respect to a security interest in an uncertificated security that first attaches after January 1, 1985. All references in this section to Division 8 (commencing with Section 8101) or a section thereof are references to Division 8 (commencing with Section 8101) as revised by Chapter 927 of the Statutes of 1984.

history: (History: Amended by Stats. 1996, Ch. 497, Sec. 24. Effective January 1, 1997.)


text: The repeal and addition of Division 3 (commencing with Section 3101) and the repeal and addition, the amendment, and the addition of provisions of Division 4 (commencing with Section 4101), and the amendment of related sections, adopted by the Legislature in Chapter 914 of the Statutes of 1992, shall become effective on January 1, 1993. The Legislature intends that this action be construed as an amendment of Division 3 (commencing with Section 3101) and Division 4 (commencing with Section 4101), notwithstanding that the action took the form of a repeal and addition of Division 3 (commencing with Section 3101), and a repeal and addition to, and amendment of, or an addition to the provisions of Division 4 (commencing with Section 4101).

history: (History: Amended by Stats. 2006, Ch. 538, Sec. 77. Effective January 1, 2007.)

division: 16. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: The provisions of Division 13 (commencing with Section 13101), Division 14 (commencing with Section 14101), and Division 15 (commencing with Section 15101) shall continue to apply to this code, as this code existed on January 1, 1993, and for this purpose, this code, as it existed prior to January 1, 1993, and this code, as it existed on January 1, 1993, shall be considered one continuous statute.

history: (History: Added by Stats. 1994, Ch. 668, Sec. 15. Effective January 1, 1995.)

path: 16. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: Nothing in this division shall have the effect of (a) reviving a cause of action barred by limitation before January 1, 1993, or (b) applying Section 3118 or 4111 on limitation of actions to an action commenced before January 1, 1993.


text: Unless a change in law, as contrasted with a clarification, has clearly been made, this code, as it existed on January 1, 1993, shall be deemed declaratory of the meaning of this code as it existed prior to January 1, 1993.


text: This division may be cited as Transitional Provisions for Uniform Commercial Code Amendments (2022).

history: (History: Added by Stats. 2023, Ch. 210, Sec. 91. (SB 95) Effective January 1, 2024.)

chapter: 1. General Provisions and Definitions

path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 1. General Provisions and Definitions


text:
(a) In this division, the following definitions apply.

(1) “Adjustment date” means July 1, 2025, or the date that is one year after the effective date of the act adding this division, whichever is later.

(2) “Division 12” means Division 12 (commencing with Section 12101).

(3) “Division 12 property” means a controllable account, controllable electronic record, or controllable payment intangible.

(b) The following definitions in other divisions apply to this division:

“Controllable account”Section 9102.“Controllable electronic record”Section 12102.“Controllable payment intangible”Section 9102.“Electronic money”Section 9102.“Financing statement”Section 9102.

(c) Division 1 (commencing with Section 1101) contains general definitions and principles of construction and interpretation applicable throughout this division.

division: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS


text: Except as provided in Chapter 3 (commencing with Section 17301), a transaction validly entered into before the effective date of the act adding this division and the rights, duties, and interests flowing from the transaction remain valid thereafter and may be terminated, completed, consummated, or enforced as required or permitted by law other than this code or, if applicable, this code, as though the act adding this division had not taken effect.

chapter: 2. General Transition Provisions

path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 2. General Transition Provisions


text:
(a) Except as provided in this chapter, Division 9 (commencing with Section 9101), as amended by the act adding this division, and Division 12 apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before the effective date of the act adding this division.

(b) Except as provided in subdivision (c), Sections 17302 to 17306, inclusive, the following rules apply:

(1) A transaction, lien, or interest in property that was validly entered into, created, or transferred before the effective date of the act adding this division and was not governed by this code, but would be subject to Division 9 (commencing with Section 9101), as amended by the act adding this division, or Division 12 if it had been entered into, created, or transferred on or after the effective date of the act adding this division, including the rights, duties, and interests flowing from the transaction, lien, or interest, remains valid on and after the effective date of the act adding this division.

(2) The transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by the act adding this division or by the law that would apply if the act adding this division had not taken effect.

(c) The act adding this division does not affect an action, case, or proceeding commenced before the effective date of the act adding this division.

history: (History: Amended by Stats. 2024, Ch. 80, Sec. 28. (SB 1525) Effective January 1, 2025.)

path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 3. Transitional Provisions for Divisions 9 and 12


text:
(a) A security interest that is enforceable and perfected immediately before the effective date of the act adding this division is a perfected security interest under the act adding this division if, on the effective date of the act adding this division, the requirements for enforceability and perfection under the act adding this division are satisfied without further action.

(b) If a security interest is enforceable and perfected immediately before the effective date of the act adding this division, but the requirements for enforceability or perfection under the act adding this division are not satisfied on the effective date of the act adding this division, the following rules apply to the security interest:

(1) The security interest is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before the effective date of the act adding this division or the adjustment date.

(2) The security interest remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under Section 9203, as amended by the act adding this division, before the adjustment date.

(3) The security interest remains perfected thereafter only if the requirements for perfection under the act adding this division are satisfied before the time specified in paragraph (1).

chapter: 3. Transitional Provisions for Divisions 9 and 12


text:
A security interest that is enforceable immediately before the effective date of the act adding this division but is unperfected at that time:

(a) remains an enforceable security interest until the adjustment date;

(b) remains enforceable thereafter if the security interest becomes enforceable under Section 9203, as amended by the act adding this division, on the effective date of the act adding this division or before the adjustment date; and

(c) becomes perfected:

(1) without further action, on the effective date of the act adding this division if the requirements for perfection under the act adding this division are satisfied before or at that time; or

(2) when the requirements for perfection are satisfied if the requirements are satisfied after that time.


text:
(a) If action, other than the filing of a financing statement, is taken before the effective date of the act adding this division and the action would have resulted in perfection of the security interest had the security interest become enforceable before the effective date of the act adding this division, the action is effective to perfect a security interest that attaches under the act adding this division before the adjustment date. An attached security interest becomes unperfected on the adjustment date unless the security interest becomes a perfected security interest under the act adding this division before the adjustment date.

(b) The filing of a financing statement before the effective date of the act adding this division is effective to perfect a security interest on the effective date of the act adding this division to the extent the filing would satisfy the requirements for perfection under the act adding this division.

(c) The taking of an action before the effective date of the act adding this division is sufficient for the enforceability of a security interest on the effective date of the act adding this division if the action would satisfy the requirements for enforceability under the act adding this division.


text:
(a) Subject to subdivisions (b) and (c), the act adding this division determines the priority of conflicting claims to collateral.

(b) Subject to subdivision (c), if the priorities of claims to collateral were established before the effective date of the act adding this division, Division 9 (commencing with Section 9101) as in effect before the effective date of the act adding this division determines priority.

(c) On the adjustment date, to the extent the priorities determined by Division 9 (commencing with Section 9101), as amended by the act adding this division, modify the priorities established before the effective date of the act adding this division, the priorities of claims to Division 12 property and electronic money established before the effective date of the act adding this division cease to apply.


text:
(a) Subject to subdivisions (b) and (c), Division 12 determines the priority of conflicting claims to Division 12 property when the priority rules of Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply.

(b) Subject to subdivision (c), when the priority rules of Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply and the priorities of claims to Division 12 property were established before the effective date of the act adding this division, law other than Division 12 determines priority.

(c) When the priority rules of Division 9 (commencing with Section 9101) as amended by the act adding this division do not apply, to the extent the priorities determined by the act adding this division modify the priorities established before the effective date of the act adding this division, the priorities of claims to Division 12 property established before the effective date of the act adding this division cease to apply on the adjustment date.


kind: division

title: GENERAL PROVISIONS

path: 1. GENERAL PROVISIONS


kind: chapter

path: 1. GENERAL PROVISIONS > 1. Short Title, Construction, Application and Subject Matter of the Code


path: 1. GENERAL PROVISIONS > 2. General Definitions and Principles of Interpretation


path: 1. GENERAL PROVISIONS > 3. Territorial Applicability and General Rules


title: SALES

path: 2. SALES


path: 2. SALES > 1. Short Title, General Construction and Subject Matter


path: 2. SALES > 2. Form, Formation and Readjustment of Contract


path: 2. SALES > 3. General Obligation and Construction of Contract


path: 2. SALES > 4. Title, Creditors and Good Faith Purchasers


title: Performance

path: 2. SALES > 5. Performance


title: Breach, Repudiation and Excuse

path: 2. SALES > 6. Breach, Repudiation and Excuse


title: Remedies

path: 2. SALES > 7. Remedies


title: Retail Sales

path: 2. SALES > 8. Retail Sales


title: NEGOTIABLE INSTRUMENTS

path: 3. NEGOTIABLE INSTRUMENTS


title: General Provisions and Definitions

path: 3. NEGOTIABLE INSTRUMENTS > 1. General Provisions and Definitions


title: Negotiation, Transfer, and Indorsement

path: 3. NEGOTIABLE INSTRUMENTS > 2. Negotiation, Transfer, and Indorsement


title: Enforcement of Instruments

path: 3. NEGOTIABLE INSTRUMENTS > 3. Enforcement of Instruments


title: Liability of Parties

path: 3. NEGOTIABLE INSTRUMENTS > 4. Liability of Parties


title: Dishonor

path: 3. NEGOTIABLE INSTRUMENTS > 5. Dishonor


title: Discharge and Payment

path: 3. NEGOTIABLE INSTRUMENTS > 6. Discharge and Payment


title: BANK DEPOSITS AND COLLECTIONS

path: 4. BANK DEPOSITS AND COLLECTIONS


title: General Provisions and Definitions

path: 4. BANK DEPOSITS AND COLLECTIONS > 1. General Provisions and Definitions


path: 4. BANK DEPOSITS AND COLLECTIONS > 2. Collection of Items: Depositary and Collecting Banks


title: Collection of Items: Payor Banks

path: 4. BANK DEPOSITS AND COLLECTIONS > 3. Collection of Items: Payor Banks


path: 4. BANK DEPOSITS AND COLLECTIONS > 4. Relationship Between Payor Bank and Its Customer


title: Collection of Documentary Drafts

path: 4. BANK DEPOSITS AND COLLECTIONS > 5. Collection of Documentary Drafts


title: LETTERS OF CREDIT

path: 5. LETTERS OF CREDIT


title: BULK SALES

path: 6. BULK SALES


title: DOCUMENTS OF TITLE

path: 7. DOCUMENTS OF TITLE


title: General

path: 7. DOCUMENTS OF TITLE > 1. General


title: Warehouse Receipts: Special Provisions

path: 7. DOCUMENTS OF TITLE > 2. Warehouse Receipts: Special Provisions


title: Bills of Lading: Special Provisions

path: 7. DOCUMENTS OF TITLE > 3. Bills of Lading: Special Provisions


path: 7. DOCUMENTS OF TITLE > 4. Warehouse Receipts and Bills of Lading: General Obligations


path: 7. DOCUMENTS OF TITLE > 5. Warehouse Receipts and Bills of Lading: Negotiation and Transfer


path: 7. DOCUMENTS OF TITLE > 6. Warehouse Receipts and Bills Of Lading: Miscellaneous Provisions


title: INVESTMENT SECURITIES

path: 8. INVESTMENT SECURITIES


title: Short Title and General Matters

path: 8. INVESTMENT SECURITIES > 1. Short Title and General Matters


title: Issue and Issuer

path: 8. INVESTMENT SECURITIES > 2. Issue and Issuer


path: 8. INVESTMENT SECURITIES > 3. Transfer of Certificated and Uncertificated Securities


title: Registration

path: 8. INVESTMENT SECURITIES > 4. Registration


title: Security Entitlements

path: 8. INVESTMENT SECURITIES > 5. Security Entitlements


title: Transition Provisions

path: 8. INVESTMENT SECURITIES > 6. Transition Provisions


title: SECURED TRANSACTIONS

path: 9. SECURED TRANSACTIONS


title: General Provisions

path: 9. SECURED TRANSACTIONS > 1. General Provisions


path: 9. SECURED TRANSACTIONS > 2. Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement


title: Perfection and Priority

path: 9. SECURED TRANSACTIONS > 3. Perfection and Priority


title: Rights of Third Parties

path: 9. SECURED TRANSACTIONS > 4. Rights of Third Parties


title: Filing

path: 9. SECURED TRANSACTIONS > 5. Filing


title: Default

path: 9. SECURED TRANSACTIONS > 6. Default


title: Transition

path: 9. SECURED TRANSACTIONS > 7. Transition


path: 9. SECURED TRANSACTIONS > 8. Transition Provisions for 2010 Amendments


path: 9. SECURED TRANSACTIONS > 9. Transition Provisions for 2014 Amendments


title: PERSONAL PROPERTY LEASES

path: 10. PERSONAL PROPERTY LEASES


title: General Provisions

path: 10. PERSONAL PROPERTY LEASES > 1. General Provisions


path: 10. PERSONAL PROPERTY LEASES > 2. Formation and Construction of Lease Contract


title: Effect of Lease Contract

path: 10. PERSONAL PROPERTY LEASES > 3. Effect of Lease Contract


path: 10. PERSONAL PROPERTY LEASES > 4. Performance of Leased Contract: Repudiated, Substituted, and Excused


title: Default

path: 10. PERSONAL PROPERTY LEASES > 5. Default


kind: article

title: In General

path: 10. PERSONAL PROPERTY LEASES > 5. Default > 1. In General


title: Default by Lessor

path: 10. PERSONAL PROPERTY LEASES > 5. Default > 2. Default by Lessor


title: Default by Lessee

path: 10. PERSONAL PROPERTY LEASES > 5. Default > 3. Default by Lessee


title: Transition Provisions

path: 10. PERSONAL PROPERTY LEASES > 6. Transition Provisions


title: FUNDS TRANSFERS

path: 11. FUNDS TRANSFERS


title: Subject Matter and Definitions

path: 11. FUNDS TRANSFERS > 1. Subject Matter and Definitions


title: Issue and Acceptance of Payment Order

path: 11. FUNDS TRANSFERS > 2. Issue and Acceptance of Payment Order


path: 11. FUNDS TRANSFERS > 3. Execution of Sender’s Payment Order by Receiving Bank


title: Payment

path: 11. FUNDS TRANSFERS > 4. Payment


title: Miscellaneous Provisions

path: 11. FUNDS TRANSFERS > 5. Miscellaneous Provisions


title: CONTROLLABLE ELECTRONIC RECORDS

path: 12. CONTROLLABLE ELECTRONIC RECORDS


title: EFFECTIVE DATE AND REPEALER

path: 13. EFFECTIVE DATE AND REPEALER


path: 14. EFFECTIVE DATE AND TRANSITION PROVISIONS


path: 15. EFFECTIVE DATE AND TRANSITION PROVISIONS


path: 16. EFFECTIVE DATE AND TRANSITION PROVISIONS


path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS


title: General Provisions and Definitions

path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 1. General Provisions and Definitions


title: General Transition Provisions

path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 2. General Transition Provisions


path: 17. EFFECTIVE DATE AND TRANSITION PROVISIONS > 3. Transitional Provisions for Divisions 9 and 12