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336.9-105 Definitions and index of definitions.

(1) In this article unless the context otherwise requires:

(a) "Account debtor" means the person who is obligated on an account, chattel paper or general intangible;

(b) "Chattel paper" means a writing or writings which evidence both a monetary obligation and a security interest in or a lease of specific goods, but a charter or other contract involving the use or hire of a vessel is not chattel paper. When a transaction is evidenced both by such a security agreement or a lease and by an instrument or a series of instruments, the group of writings taken together constitutes chattel paper;

(c) "Collateral" means the property subject to a security interest, and includes accounts and chattel paper which have been sold;

(d) "Debtor" means the person who owes payment or other performance of the obligation secured, whether or not the person owns or has rights in the collateral, and includes the seller of accounts or chattel paper. Where the debtor and the owner of the collateral are not the same person, the term "debtor" means the owner of the collateral in any provision of the article dealing with the collateral, the obligor in any provision dealing with the obligation, and may include both where the context so requires;

(e) "Deposit account" means a demand, time, savings, passbook or like account maintained with a bank, savings association, credit union or like organization, other than an account evidenced by a certificate of deposit;

(f) "Document" means document of title as defined in the general definitions of article 1 (section 336.1-201) and a receipt of the kind described in subsection (2) of section 336.7-201;

(g) "Encumbrance" includes real estate mortgages and other liens on real estate and all other rights in real estate that are not ownership interests;

(h) "Goods" includes all things which are movable at the time the security interest attaches or which are fixtures (section 336.9-313), but does not include money, documents, instruments, investment property, accounts, chattel paper, general intangibles, or minerals or the like (including oil and gas) before extraction. "Goods" also include standing timber which is to be cut and removed under a conveyance or contract for sale, the unborn young of animals and growing crops;

(i) "Instrument" means a negotiable instrument (defined in section 336.3-104) or any other writing which evidences a right to the payment of money and is not itself a security agreement or lease and is of a type which is in ordinary course of business transferred by delivery with any necessary endorsement or assignment. The term does not include investment property;

(j) "Mortgage" means a consensual interest created by a real estate mortgage, a trust deed on real estate, or the like;

(k) An advance is made "pursuant to commitment" if the secured party has made a binding promise to make it, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from the obligation;

(l) "Security agreement" means an agreement which creates or provides for a security interest;

(m) "Secured party" means a lender, seller or other person in whose favor there is a security interest, including a person to whom accounts or chattel paper have been sold. When the holders of obligations issued under an indenture of trust, equipment trust agreement or the like are represented by a trustee or other person, the representative is the secured party; and

(n) "Transmitting utility" means any person engaged in the railroad, street railway or trolley bus business, the electric or electronics communications transmission business, the transmission of goods by pipeline, or the transmission or the production and transmission of electricity, steam, gas or water, or the provision of sewer service. Any person filing a financing statement under this article and under authority of the provisions of Minnesota Statutes 1974, Sections 300.111 to 300.115 shall be deemed a "transmitting utility" hereunder.

(2) Other definitions applying to this article and the sections in which they appear are:

"Account," section 336.9-106.

"Attach," section 336.9-203.

"Commodity contract," section 336.9-115.

"Commodity customer," section 336.9-115.

"Commodity intermediary," section 336.9-115.

"Construction mortgage," section 336.9-313(1).

"Consumer goods," section 336.9-109(1).

"Control," section 336.9-115.

"Equipment," section 336.9-109(2).

"Farm products," section 336.9-109(3).

"Fixture," section 336.9-313.

"Fixture filing," section 336.9-313.

"General intangibles," section 336.9-106.

"Inventory," section 336.9-109(4).

"Investment property," section 336.9-115.

"Lien creditor," section 336.9-301(3).

"Motor vehicle," section 336.9-401(7).

"Proceeds," section 336.9-306(1).

"Purchase money security interest," section 336.9-107.

"United States," section 336.9-103.

(3) The following definitions in other articles apply to this article:

"Broker," section 336.8-102.

"Certificated security," section 336.8-102.

"Check," section 336.3-104.

"Clearing corporation," section 336.8-102.

"Contract for sale," section 336.2-106.

"Control," section 336.8-106.

"Delivery," section 336.8-301.

"Entitlement holder," section 336.8-102.

"Financial asset," section 336.8-102.

"Holder in due course," section 336.3-302.

"Letter of credit," section 336.5-102.

"Note," section 336.3-104.

"Proceeds of a letter of credit," section 336.5-114(a).

"Sale," section 336.2-106.

"Securities intermediary," section 336.8-102.

"Security," section 336.8-102.

"Security certificate," section 336.8-102.

"Security entitlement," section 336.8-102.

"Uncertificated security," section 336.8-102.

(4) In addition article 1 contains general definitions and principles of construction and interpretation applicable throughout this article.

HIST: 1965 c 811 s 336.9-105; 1969 c 621 s 7; 1976 c 135 s 8; 1977 c 347 s 47,48; 1978 c 695 s 48; 1986 c 444; 1990 c 426 art 1 s 40; 1995 c 194 art 2 s 2; 1995 c 202 art 1 s 25; 1997 c 11 art 2 s 5

Official Publication of the State of Minnesota
Revisor of Statutes