Idaho Code § 28-9-622 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-622
28-9-622 EFFECT OF ACCEPTANCE OF COLLATERAL.
Status: in_force

PART 6.

DEFAULT

28-9-622. Effect of acceptance of collateral. (a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:

(1) Discharges the obligation to the extent consented to by the debtor;

(2) Transfers to the secured party all of a debtor's rights in the collateral;

(3) Discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and

(4) Terminates any other subordinate interest.

(b) A subordinate interest is discharged or terminated under subsection (a) of this section, even if the secured party fails to comply with this chapter.

History:

[28-9-622, added 2001, ch. 208, sec. 2, p. 793.]
Idaho Code § 28-45-104 — Idaho Code / Title 28 / Chapter 45 / Section 28-45-104
28-45-104 LIMITATION ON GARNISHMENT.
Status: in_force

PART 1.

LIMITATIONS ON CREDITORS' REMEDIES

28-45-104. Limitation on garnishment. (1) For the purposes of this part:

(a) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of amounts required by law to be withheld; and

(b) "Garnishment" means any legal or equitable procedure through which the earnings of an individual are required to be withheld for payment of a debt.

(2) The maximum part of the aggregate disposable earnings of an individual for any work week which is subject to garnishment to enforce payment of a judgment arising from a regulated consumer credit sale or regulated consumer loan may not exceed the lesser of:

(a) Twenty-five percent (25%) of his disposable earnings for that week; or

(b) The amount by which his disposable earnings for that week exceed thirty (30) times the federal minimum hourly wage prescribed by section 6(a)(1) of the Fair Labor Standards Act of 1938, U.S.C. title 29, section 206(a)(1), in effect at the time the earnings are payable.

(c) In the case of earnings for a pay period other than a week, the director of the department of labor shall prescribe by rule a multiple of the federal minimum hourly wage equivalent in effect to that set forth in paragraph (b).

(3) No court may make, execute, or enforce an order or process in violation of this section.

History:

[28-45-104, added 1983, ch. 119, sec. 3, p. 295; am. 1996, ch. 421, sec. 22, p. 1421; am. 2000, ch. 267, sec. 1, p. 754.]
Idaho Code § 28-9-320 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-320
28-9-320 BUYER OF GOODS.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-320. Buyer of goods. (a) Except as otherwise provided in subsection (e) of this section, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence. A buyer who, in the ordinary course of business, buys farm products from a person engaged in farming operations or a commission merchant or selling agent who in the ordinary course of business sells farm products for a person engaged in farming operations shall take and sell free of a security interest created by his seller, even though the security interest is perfected and the buyer or commission merchant or selling agent knows of the existence of such interest, if he has registered with the secretary of state pursuant to section 28-9-523(h) and the security interest is not listed on the most recent master list or cumulative supplement distributed by the secretary of state pursuant to section 28-9-523(i), unless he has received written notification, as that term is used in applicable federal law and regulation, of the security interest from the secretary of state, his seller or the secured party.

(b) Except as otherwise provided in subsection (e) of this section, a buyer of goods from a person who used or bought the goods for use primarily for personal, family or household purposes takes free of a security interest, even if perfected, if the buyer buys:

(1) Without knowledge of the security interest;

(2) For value;

(3) Primarily for the buyer's personal, family or household purposes; and

(4) Before the filing of a financing statement covering the goods.

(c) To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b) of this section, the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by section 28-9-316(a) and (b).

(d) A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.

(e) Subsections (a) and (b) of this section do not affect a security interest in goods in the possession of the secured party under section 28-9-313.

History:

[28-9-320, added 2001, ch. 208, sec. 2, p. 740.]
Idaho Code § 28-12-403 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-403
28-12-403 RETRACTION OF ANTICIPATORY REPUDIATION.
Status: in_force

PART 4.

PERFORMANCE OF LEASE CONTRACT — REPUDIATED, SUBSTITUTED AND EXCUSED

28-12-403. Retraction of anticipatory repudiation. (1) Until the repudiating party's next performance is due, the repudiating party can retract the repudiation unless, since the repudiation, the aggrieved party has cancelled the lease contract or materially changed the aggrieved party's position or otherwise indicated that the aggrieved party considers the repudiation final.

(2) Retraction may be by any method that clearly indicates to the aggrieved party that the repudiating party intends to perform under the lease contract and includes any assurance demanded under section 28-12-401.

(3) Retraction reinstates a repudiating party's rights under a lease contract with due excuse and allowance to the aggrieved party for any delay occasioned by the repudiation.

History:

[28-12-403, added 1993, ch. 287, sec. 1, p. 997.]
Idaho Code § 28-2-105 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-105
28-2-105 DEFINITIONS — TRANSFERABILITY — “GOODS” — “FUTURE” GOODS — “LOT” — “COMMERCIAL UNIT.”
Status: in_force

PART 1.

SHORT TITLE, GENERAL CONSTRUCTION AND SUBJECT MATTER

28-2-105. Definitions — Transferability — "Goods" — "Future" goods — "Lot" — "Commercial unit." (1) "Goods" means all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities (chapter 8) and things in action. "Goods" also includes the unborn young of animals and growing crops and other identified things attached to realty as described in the section on goods to be severed from realty (section 28-2-107).

(2) Goods must be both existing and identified before any interest in them can pass. Goods which are not both existing and identified are "future" goods. A purported present sale of future goods or of any interest therein operates as a contract to sell.

(3) There may be a sale of a part interest in existing identified goods.

(4) An undivided share in an identified bulk of fungible goods is sufficiently identified to be sold although the quantity of the bulk is not determined. Any agreed proportion of such a bulk or any quantity thereof agreed upon by number, weight or other measure may to the extent of the seller's interest in the bulk be sold to the buyer who then becomes an owner in common.

(5) "Lot" means a parcel or a single article which is the subject matter of a separate sale or delivery, whether or not it is sufficient to perform the contract.

(6) "Commercial unit" means such a unit of goods as by commercial usage is a single whole for purposes of sale and division of which materially impairs its character or value on the market or in use. A commercial unit may be a single article (as a machine) or a set of articles (as a suite of furniture or an assortment of sizes) or a quantity (as a bale, gross, or carload) or any other unit treated in use or in the relevant market as a single whole.

History:

[28-2-105, added 1967, ch. 161, sec. 2-105, p. 351.]
Idaho Code § 28-50-118 — Idaho Code / Title 28 / Chapter 50 / Section 28-50-118
28-50-118 ACCEPTANCE AND DISTRIBUTION OF ELECTRONIC RECORDS BY GOVERNMENTAL AGENCIES.
Status: in_force

28-50-118. Acceptance and distribution of electronic records by governmental agencies. (a) Except as otherwise provided in section 28-50-112(f), Idaho Code, each governmental agency of this state shall determine whether, and the extent to which, it will send and accept electronic records and electronic signatures to and from other persons and otherwise create, generate, communicate, store, process, use and rely upon electronic records and electronic signatures.

(b) To the extent that a governmental agency uses electronic records and electronic signatures under subsection (a) of this section, the governmental agency, giving due consideration to security, may specify:

(1) The manner and format in which the electronic records must be created, generated, sent, communicated, received and stored and the systems established for those purposes;

(2) If electronic records must be signed by electronic means, the type of electronic signature required, the manner and format in which the electronic signature must be affixed to the electronic record, and the identity of, or criteria that must be met by, any third party used by a person filing a document to facilitate the process;

(3) Control processes and procedures as appropriate to ensure adequate preservation, disposition, integrity, security, confidentiality and auditability of electronic records; and

(4) Any other required attributes for electronic records which are specified for corresponding nonelectronic records or reasonably necessary under the circumstances.

(c) Except as otherwise provided in section 28-50-112(f), Idaho Code, this chapter does not require a governmental agency of this state to use or permit the use of electronic records or electronic signatures.

History:

[28-50-118, added 2000, ch. 286, sec. 1, p. 967.]
Idaho Code § 28-7-508 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-508
28-7-508 WARRANTIES OF COLLECTING BANK AS TO DOCUMENTS OF TITLE.
Status: in_force

PART 5.

WAREHOUSE RECEIPTS AND BILLS OF LADING — NEGOTIATION AND TRANSFER

28-7-508. Warranties of collecting bank as to documents of title. A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by the delivery of the documents only its own good faith and authority even if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected.

History:

[28-7-508, added 2004, ch. 42, sec. 2, p. 95.]
Idaho Code § 28-21-102 — Idaho Code / Title 28 / Chapter 21 / Section 28-21-102
28-21-102 LIABILITY OF INDORSER.
Status: in_force

28-21-102. Liability of indorser. Every assignor, his heirs, executors or administrators, of every such instrument in writing, is liable to the action of the assignee thereof, his executors, or administrators, if such assignee has used diligence, by the institution and prosecution of a suit against the maker of such instrument, or against his heirs, executors or administrators, for recovery of the money or property due thereon, or damages in lieu thereof; but if the institution of such suit would have been unavailing, or the maker had absconded or left, or was absent from the state when such assigned instrument became due, or absconds within twenty (20) days thereafter, such assignee, his heirs, executors or administrators, may recover against the assignor, or his heirs, executors or administrators, as if due diligence by suit had been used. By "due diligence" shall be understood the institution of suit within sixty (60) days after the maturity of the obligation.

History:

[(28-21-102) R.S., sec. 3601; reen. R.C. & C.L., sec. 3655; C.S., sec. 6064; I.C.A., sec. 26-1802.]
Idaho Code § 28-8-208 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-208
28-8-208 EFFECT OF SIGNATURE OF AUTHENTICATING TRUSTEE, REGISTRAR OR TRANSFER AGENT.
Status: in_force

PART 2.

ISSUE AND ISSUER

28-8-208. Effect of signature of authenticating trustee, registrar or transfer agent. (1) A person signing a security certificate as authenticating trustee, registrar, transfer agent, or the like, warrants to a purchaser for value of the certificated security, if the purchaser is without notice of a particular defect, that:

(a) The certificate is genuine;

(b) The person's own participation in the issue of the security is within the person's capacity and within the scope of the authority received by the person from the issuer; and

(c) The person has reasonable grounds to believe that the certificated security is in the form and within the amount the issuer is authorized to issue.

(2) Unless otherwise agreed, a person signing under subsection (1) of this section does not assume responsibility for the validity of the security in other respects.

History:

[28-8-208, added 1995, ch. 272, sec. 2, p. 888.]
Idaho Code § 28-46-301 — Idaho Code / Title 28 / Chapter 46 / Section 28-46-301
28-46-301 AUTHORITY TO MAKE REGULATED CONSUMER LOANS — EXEMPTION FROM LICENSING.
Status: in_force

PART 3.

REGULATED LENDERS — LICENSING AND RELATED PROVISIONS

28-46-301. Authority to make regulated consumer loans — exemption from licensing. (1) The administrator shall receive and act on all applications for licenses to make regulated consumer loans under this act. Applications shall be filed in the manner prescribed by the administrator and shall contain such information as the administrator may reasonably require. Unless a person is exempt under federal law or under this section or has first obtained a license from the administrator authorizing him to make regulated consumer loans, he shall not engage in the business of:

(a) Making regulated consumer loans; or

(b) Taking assignments of and undertaking direct collection of payments from or enforcement of rights against debtors arising from regulated consumer loans.

(2) Any "supervised financial organization," as defined in section 28-41-301, Idaho Code, or any person organized, chartered, or holding an authorization certificate under the laws of another state to engage in making loans and receiving deposits, including a savings, share, certificate, or deposit account and who is subject to supervision by an official or agency of the other state, shall be exempt from the licensing requirements of this section.

(3) Mortgage lenders licensed under the Idaho residential mortgage practices act, chapter 31, title 26, Idaho Code, shall be exempt from the licensing requirements of this section as to mortgage lending activities defined in chapter 31, title 26, Idaho Code.

(4) Agencies of the United States and agencies of this state and its political subdivisions shall be exempt from the licensing requirements of this section.

History:

[28-46-301, added 1983, ch. 119, sec. 3, p. 307; am. 1995, ch. 99, sec. 27, p. 324; am. 2006, ch. 122, sec. 7, p. 350; am. 2008, ch. 312, sec. 1, p. 861; am. 2013, ch. 54, sec. 3, p. 114.]
Idaho Code § 28-9-612 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-612
28-9-612 TIMELINESS OF NOTIFICATION BEFORE DISPOSITION OF COLLATERAL.
Status: in_force

PART 6.

DEFAULT

28-9-612. Timeliness of notification before disposition of collateral. (a) Except as otherwise provided in subsection (b) of this section, whether a notification is sent within a reasonable time is a question of fact.

(b) A notification of disposition sent after default and ten (10) days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition.

History:

[28-9-612, added 2001, ch. 208, sec. 2, p. 785.]
Idaho Code § 28-9-321 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-321
28-9-321 LICENSEE OF GENERAL INTANGIBLE AND LESSEE OF GOODS IN ORDINARY COURSE OF BUSINESS.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-321. Licensee of general intangible and lessee of goods in ordinary course of business. (a) In this section, "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor's own usual or customary practices.

(b) A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.

(c) A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.

History:

[28-9-321, added 2001, ch. 208, sec. 2, p. 740.]
Idaho Code § 28-2-301 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-301
28-2-301 GENERAL OBLIGATIONS OF PARTIES.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-301. General obligations of parties. The obligation of the seller is to transfer and deliver and that of the buyer is to accept and pay in accordance with the contract.

History:

[28-2-301, added 1967, ch. 161, sec. 2-301, p. 351.]
Idaho Code § 28-2-203 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-203
28-2-203 SEALS INOPERATIVE.
Status: in_force

PART 2.

FORM, FORMATION AND READJUSTMENT OF CONTRACT

28-2-203. Seals inoperative. The affixing of a seal to a writing evidencing a contract for sale or an offer to buy or sell goods does not constitute the writing a sealed instrument and the law with respect to sealed instruments does not apply to such a contract or offer.

History:

[28-2-203, added 1967, ch. 161, sec. 2-203, p. 351.]
Idaho Code § 28-8-508 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-508
28-8-508 DUTY OF SECURITIES INTERMEDIARY TO CHANGE ENTITLEMENT HOLDER'S POSITION TO OTHER FORM OF SECURITY HOLDING.
Status: in_force

PART 5.

SECURITY ENTITLEMENTS

28-8-508. Duty of securities intermediary to change entitlement holder's position to other form of security holding. A securities intermediary shall act at the direction of an entitlement holder to change a security entitlement into another available form of holding for which the entitlement holder is eligible, or to cause the financial asset to be transferred to a securities account of the entitlement holder with another securities intermediary. A securities intermediary satisfies the duty if:

(1) The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary; or

(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.

History:

[28-8-508, added 1995, ch. 272, sec. 2, p. 898.]
Idaho Code § 28-46-105 — Idaho Code / Title 28 / Chapter 46 / Section 28-46-105
28-46-105 ADMINISTRATIVE POWERS WITH RESPECT TO SUPERVISED FINANCIAL ORGANIZATIONS.
Status: in_force

PART 1.

POWERS AND FUNCTIONS OF ADMINISTRATOR

28-46-105. Administrative powers with respect to supervised financial organizations. (1) With respect to supervised financial organizations, the powers of examination and investigation, sections 28-46-106 and 28-46-305, Idaho Code, and administrative enforcement, section 28-46-108, Idaho Code, shall be exercised by the official or agency to whose supervision the organization is subject. All other powers of the administrator under this act may be exercised by him with respect to a supervised financial organization including nationally chartered financial organizations.

(2) If the administrator receives a complaint or other information concerning noncompliance with this act by a supervised financial organization, he shall inform the official or agency having supervisory authority over the organization concerned. The administrator may request information about supervised financial organizations from the officials or agencies supervising them.

(3) The administrator and any official or agency of this state having supervisory authority over a supervised financial organization are authorized and directed to consult and assist one another in maintaining compliance with this act. They may jointly pursue investigations, prosecute suits, and take other official action, as they deem appropriate, if either of them otherwise is empowered to take the action.

History:

[28-46-105, added 1983, ch. 119, sec. 3, p. 301.]
Idaho Code § 28-2-104 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-104
28-2-104 DEFINITIONS — “MERCHANT” — “BETWEEN MERCHANTS” — “FINANCING AGENCY.”
Status: in_force

PART 1.

SHORT TITLE, GENERAL CONSTRUCTION AND SUBJECT MATTER

28-2-104. Definitions — "Merchant" — "Between merchants" — "Financing agency." (1) "Merchant" means a person who deals in goods of the kind or otherwise by his occupation holds himself out as having knowledge or skill peculiar to the practices or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill.

(2) "Financing agency" means a bank, finance company or other person who in the ordinary course of business makes advances against goods or documents of title or who by arrangement with either the seller or the buyer intervenes in ordinary course to make or collect payment due or claimed under the contract for sale, as by purchasing or paying the seller's draft or making advances against it or by merely taking it for collection whether or not documents of title accompany or are associated with the draft. "Financing agency" includes also a bank or other person who similarly intervenes between persons who are in the position of seller and buyer in respect to the goods (section 28-2-707).

(3) "Between merchants" means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.

History:

[28-2-104, added 1967, ch. 161, sec. 2-104, p. 351; am. 2004, ch. 42, sec. 5, p. 104.]
Idaho Code § 28-2-612 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-612
28-2-612 “INSTALLMENT CONTRACT” — BREACH.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-612. "InstaLlment contract" — Breach. (1) An "installment contract" is one which requires or authorizes the delivery of goods in separate lots to be separately accepted, even though the contract contains a clause "each delivery is a separate contract" or its equivalent.

(2) The buyer may reject any installment which is nonconforming if the nonconformity substantially impairs the value of that installment and cannot be cured or if the nonconformity is a defect in the required documents; but if the nonconformity does not fall within subsection (3) and the seller gives adequate assurance of its cure the buyer must accept that installment.

(3) Whenever nonconformity or default with respect to one or more installments substantially impairs the value of the whole contract there is a breach of the whole. But the aggrieved party reinstates the contract if he accepts a nonconforming installment without seasonably notifying of cancellation or if he brings an action with respect only to past installments or demands performance as to future installments.

History:

[28-2-612, added 1967, ch. 161, sec. 2-612, p. 351.]
Idaho Code § 28-7-105 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-105
28-7-105 REISSUANCE IN ALTERNATIVE MEDIUM.
Status: in_force

PART 1.

GENERAL

28-7-105. Reissuance in alternative medium. (a) Upon request of a person entitled under an electronic document of title, the issuer of the electronic document may issue a tangible document of title as a substitute for the electronic document if:

(1) The person entitled under the electronic document surrenders control of the document to the issuer; and

(2) The tangible document when issued contains a statement that it is issued in substitution for the electronic document.

(b) Upon issuance of a tangible document of title in substitution for an electronic document of title in accordance with subsection (a) of this section:

(1) The electronic document ceases to have any effect or validity; and

(2) The person that procured issuance of the tangible document warrants to all subsequent persons entitled under the tangible document that the warrantor was a person entitled under the electronic document when the warrantor surrendered control of the electronic document to the issuer.

(c) Upon request of a person entitled under a tangible document of title, the issuer of the tangible document may issue an electronic document of title as a substitute for the tangible document if:

(1) The person entitled under the tangible document surrenders possession of the document to the issuer; and

(2) The electronic document when issued contains a statement that it is issued in substitution for the tangible document.

(d) Upon issuance of an electronic document of title in substitution for a tangible document of title in accordance with subsection (c) of this section:

(1) The tangible document ceases to have any effect or validity; and

(2) The person that procured issuance of the electronic document warrants to all subsequent persons entitled under the electronic document that the warrantor was a person entitled under the tangible document when the warrantor surrendered possession of the tangible document to the issuer.

History:

[28-7-105, added 2004, ch. 42, sec. 2, p. 81.]
Idaho Code § 28-23-106 — Idaho Code / Title 28 / Chapter 23 / Section 28-23-106
28-23-106 EXCEPTIONS.
Status: in_force

28-23-106. Exceptions. This act shall not require the repurchase from a retailer of a repair part where the retailer previously has failed to return the repair part to the wholesaler, manufacturer or distributor after being offered a reasonable opportunity to return the repair part at a price not less than one hundred percent (100%) of the net price of the repair part as listed in the then current price list or catalog, and transportation charges required in section 28-23-102, Idaho Code, which have been paid by the retailer, or invoiced to the retailer's account. This act shall not require the repurchase from a retailer of repair parts the retailer purchased in a set of multiple parts, unless the set is complete and in resalable condition and parts which because of their condition are not resalable without reconditioning.

History:

[28-23-106, added 1975, ch. 97, sec. 6, p. 197; am. 2005, ch. 238, sec. 4, p. 733.]
Idaho Code § 28-4-623 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-623
28-4-623 ERRONEOUS EXECUTION OF PAYMENT ORDER.
Status: in_force

PART 6.

FUNDS TRANSFERS

28-4-623. Erroneous execution of payment order. (1) A receiving bank that:

(a) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender's order, or

(b) issues a payment order in execution of the sender's order and then issues a duplicate order, is entitled to payment of the amount of the sender's order under section 28-4-627(3) if the provisions of that subsection are otherwise satisfied. The bank is entitled to recover from the beneficiary of the erroneous order the excess payment received to the extent allowed by the law governing mistake and restitution.

(2) A receiving bank that executes the payment order of the sender by issuing a payment order in an amount less than the amount of the sender's order is entitled to payment of the amount of the sender's order under section 28-4-627(3) if:

(a) that subsection is otherwise satisfied, and

(b) the bank corrects its mistake by issuing an additional payment order for the benefit of the beneficiary of the sender's order.

If the error is not corrected, the issuer of the erroneous order is entitled to receive or retain payment from the sender of the order it accepted only to the extent of the amount of the erroneous order. The provisions of this subsection do not apply if the receiving bank executes the sender's payment order by issuing a payment order in an amount less than the amount of the sender's order for the purpose of obtaining payment of its charges for services and expenses pursuant to instruction of the sender.

(3) If a receiving bank executes the payment order of the sender by issuing a payment order to a beneficiary different from the beneficiary of the sender's order and the funds transfer is completed on the basis of that error, the sender of the payment order that was erroneously executed and all previous senders in the funds transfer are not obliged to pay the payment orders they issued. The issuer of the erroneous order is entitled to recover from the beneficiary of the order the payment received to the extent allowed by the law governing mistake and restitution.

History:

[28-4-623, added 1991, ch. 135, sec. 1, p. 308.]
Idaho Code § 28-45-301 — Idaho Code / Title 28 / Chapter 45 / Section 28-45-301
28-45-301 LIMITATION ON DEFAULT CHARGES.
Status: in_force

PART 3.

LIMITATIONS ON DEBTORS' LIABILITIES

28-45-301. Limitation on default charges. Except for reasonable expenses incurred in realizing on a security interest, the agreement with respect to a regulated consumer credit transaction may not provide for any charges as a result of default by the debtor except those authorized by this act. A provision in violation of this section is unenforceable.

History:

[28-45-301, added 1983, ch. 119, sec. 3, p. 298.]
Idaho Code § 28-8-301 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-301
28-8-301 DELIVERY.
Status: in_force

PART 3.

TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES

28-8-301. Delivery. (1) Delivery of a certificated security to a purchaser occurs when:

(a) The purchaser acquires possession of the security certificate;

(b) Another person, other than a securities intermediary, either acquires possession of the security certificate on behalf of the purchaser or, having previously acquired possession of the certificate, acknowledges that it holds for the purchaser; or

(c) A securities intermediary acting on behalf of the purchaser acquires possession of the security certificate, only if the certificate is in registered form and is: (i) registered in the name of the purchaser, (ii) payable to the order of the purchaser, or (iii) specially indorsed to the purchaser by an effective indorsement and has not been indorsed to the securities intermediary or in blank.

(2) Delivery of an uncertificated security to a purchaser occurs when:

(a) The issuer registers the purchaser as the registered owner, upon original issue or registration of transfer; or

(b) Another person, other than a securities intermediary, either becomes the registered owner of the uncertificated security on behalf of the purchaser or, having previously become the registered owner, acknowledges that it holds for the purchaser.

History:

[28-8-301, added 1995, ch. 272, sec. 2, p. 889; am. 2001, ch. 208, sec. 17, p. 814.]
Idaho Code § 28-4-303 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-303
28-4-303 WHEN ITEMS SUBJECT TO NOTICE, STOP-PAYMENT ORDER, LEGAL PROCESS OR SETOFF — ORDER IN WHICH ITEMS MAY BE CHARGED OR CERTIFIED.
Status: in_force

PART 3.

COLLECTION OF ITEMS — PAYOR BANKS

28-4-303. When items subject to notice, stop-payment order, legal process or setoff — Order in which items may be charged or certified. (1) Any knowledge, notice or stop-payment order received by, legal process served upon, or setoff exercised by a payor bank comes too late to terminate, suspend or modify the bank's right or duty to pay an item or to charge its customer's account for the item if the knowledge, notice, stop-payment order, or legal process is received or served and a reasonable time for the bank to act thereon expires or the setoff is exercised after the earliest of the following:

(a) the bank accepts or certifies the item;

(b) the bank pays the item in cash;

(c) the bank settles for the item without having a right to revoke the settlement under statute, clearing-house rule or agreement;

(d) the bank becomes accountable for the amount of the item under section 28-4-302 dealing with the payor bank's responsibility for late return of items; or

(e) with respect to checks, a cutoff hour no earlier than one (1) hour after the opening of the next banking day after the banking day on which the bank received the check and no later than the close of that next banking day or, if no cutoff hour is fixed, the close of the next banking day after the banking day on which the bank received the check.

(2) Subject to the provisions of subsection (1) of this section items may be accepted, paid, certified or charged to the indicated account of its customer in any order.

History:

[28-4-303, added 1967, ch. 161, sec. 4-303, p. 351; am. 1993, ch. 288, sec. 35, p. 1068.]
Idaho Code § 28-3-104 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-104
28-3-104 NEGOTIABLE INSTRUMENT.
Status: in_force

PART 1.

GENERAL PROVISIONS AND DEFINITIONS

28-3-104. Negotiable instrument. (1) Except as provided in subsections (3) and (4) of this section, "negotiable instrument" means an unconditional promise or order to pay a fixed amount of money, with or without interest or other charges described in the promise or order, if it:

(a) Is payable to bearer or to order at the time it is issued or first comes into possession of a holder;

(b) Is payable on demand or at a definite time; and

(c) Does not state any other undertaking or instruction by the person promising or ordering payment to do any act in addition to the payment of money, but the promise or order may contain (i) an undertaking or power to give, maintain, or protect collateral to secure payment, (ii) an authorization or power to the holder to confess judgment or realize on or dispose of collateral, or (iii) a waiver of the benefit of any law intended for the advantage or protection of an obligor.

(2) "Instrument" means a negotiable instrument.

(3) An order that meets all of the requirements of subsection (1) of this section, except paragraph (a), and otherwise falls within the definition of "check" in subsection (6) of this section is a negotiable instrument and a check.

(4) A promise or order other than a check is not an instrument if, at the time it is issued or first comes into possession of a holder, it contains a conspicuous statement, however expressed, to the effect that the promise or order is not negotiable or is not an instrument governed by this chapter.

(5) An instrument is a "note" if it is a promise and is a "draft" if it is an order. If an instrument falls within the definition of both "note" and "draft," a person entitled to enforce the instrument may treat it as either.

(6) "Check" means (i) a draft, other than a documentary draft, payable on demand and drawn on a bank, (ii) a cashier's check or teller's check, or (iii) a demand draft. An instrument may be a check even though it is described on its face by another term, such as "money order."

(7) "Cashier's check" means a draft with respect to which the drawer and drawee are the same bank or branches of the same bank.

(8) "Teller's check" means a draft drawn by a bank (i) on another bank, or (ii) payable at or through a bank.

(9) "Traveler's check" means an instrument that (i) is payable on demand, (ii) is drawn on or payable at or through a bank, (iii) is designated by the term "traveler's check" or by a substantially similar term, and (iv) requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the instrument.

(10) "Certificate of deposit" means an instrument containing an acknowledgment by a bank that a sum of money has been received by the bank and a promise by the bank to repay the sum of money. A certificate of deposit is a note of the bank.

(11) "Demand draft" means a writing not signed by the customer that is created by a third party under the purported authority of the customer for the purpose of charging the customer's account with a bank. A demand draft shall contain the customer's account number and may contain any or all of the following:

(a) The customer's printed or typewritten name;

(b) A notation that the customer authorized the draft; or

(c) The statement "no signature required" or words to that effect.

"Demand draft" does not include a check purportedly drawn by and bearing the signature of a fiduciary, as defined in section 68-301, Idaho Code.

History:

[28-3-104, added 1993, ch. 288, sec. 2, p. 1023; am. 2002, ch. 121, sec. 2, p. 340.]
Idaho Code § 28-51-103 — Idaho Code / Title 28 / Chapter 51 / Section 28-51-103
28-51-103 PAYMENT CARD RECEIPTS.
Status: in_force

28-51-103. Payment card receipts. (1) As used in this section, the term:

(a) "Cardholder" means a person or organization named on the face of a payment card to whom or for whose benefit the payment card is issued.

(b) "Merchant" means a person or organization who receives from a cardholder a payment card, or information from a payment card, as the instrument for obtaining, purchasing, or receiving goods, services, money, or anything else of value from the person or organization.

(c) "Payment card" means a credit card, charge card, debit card, or any other card that is issued to a cardholder and that allows the cardholder to obtain, purchase, or receive goods, services, money, or anything else of value from a merchant.

(2) A merchant who accepts a payment card for the transaction of business may not print more than the last five (5) digits of the payment card's account number or print the payment card's expiration date on a receipt provided to the cardholder. This subsection does not apply to a transaction in which the sole means of recording the payment card's account number or expiration date is by handwriting or by an imprint or copy of the payment card. Effective January 1, 2004, this section applies to all receipts that are electronically printed using a cash register or other machine or device that is first used on or after July 1, 2003. Effective January 1, 2005, this section applies to all receipts that are electronically printed, including those printed using a cash register or other machine or device that is first used before July 1, 2003.

(3) A merchant who violates this section shall be subject to a civil penalty of not more than two hundred fifty dollars ($250) for the first violation and one thousand dollars ($1,000) for a second or subsequent violation. An action to recover the civil penalty may be brought by a prosecuting attorney. If the prosecuting attorney does not file an action for such a civil penalty within sixty (60) days from the date the violation is reported by the cardholder whose payment card number was printed on a receipt in violation of this section, the cardholder may file such action. Venue for an action under this section shall be in the county in which the transaction occurred or the county in which the cardholder resides or the county in which the merchant has its principal place of business in this state.

The penalties provided in this section are in addition to any other remedy at law or equity available to a cardholder.

Any civil penalty imposed pursuant to this section shall be deposited in the state general fund. Attorney's fees shall be paid solely to the party successfully bringing the action.

History:

[28-51-103, added 2003, ch. 134, sec. 2, p. 391.]
Idaho Code § 28-44-101 — Idaho Code / Title 28 / Chapter 44 / Section 28-44-101
28-44-101 SHORT TITLE.
Status: in_force

PART 1.

INSURANCE IN GENERAL

28-44-101. Short title. This chapter shall be known and may be cited as Idaho Credit Code – Insurance in Regulated Consumer Credit Transactions.

History:

[28-44-101, added 1983, ch. 119, sec. 3, p. 287.]
Idaho Code § 28-2-606 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-606
28-2-606 WHAT CONSTITUTES ACCEPTANCE OF GOODS.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-606. What constitutes acceptance of goods. (1) Acceptance of goods occurs when the buyer

(a) after a reasonable opportunity to inspect the goods signifies to the seller that the goods are conforming or that he will take or retain them in spite of their nonconformity; or

(b) fails to make an effective rejection (subsection (1) of section 28-2-602), but such acceptance does not occur until the buyer has had a reasonable opportunity to inspect them; or

(c) does any act inconsistent with the seller's ownership; but if such act is wrongful as against the seller it is an acceptance only if ratified by him.

(2) Acceptance of a part of any commercial unit is acceptance of that entire unit.

History:

[28-2-606, added 1967, ch. 161, sec. 2-606, p. 351.]
Idaho Code § 28-4-401 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-401
28-4-401 WHEN BANK MAY CHARGE CUSTOMER'S ACCOUNT.
Status: in_force

PART 4.

RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER

28-4-401. When bank may charge customer's account. (1) A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank.

(2) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.

(3) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in section 28-4-403(2) for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in section 28-4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under section 28-4-402.

(4) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:

(a) the original terms of the altered item; or

(b) the terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.

History:

[28-4-401, added 1967, ch. 161, sec. 4-401, p. 351; am. 1993, ch. 288, sec. 36, p. 1069.]
Idaho Code § 28-12-206 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-206
28-12-206 OFFER AND ACCEPTANCE IN FORMATION OF LEASE CONTRACT.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-206. Offer and acceptance in formation of lease contract. (1) Unless otherwise unambiguously indicated by the language or circumstances, an offer to make a lease contract must be construed as inviting acceptance in any manner and by any medium reasonable in the circumstances.

(2) If the beginning of a requested performance is a reasonable mode of acceptance, an offeror who is not notified of acceptance within a reasonable time may treat the offer as having lapsed before acceptance.

History:

[28-12-206, added 1993, ch. 287, sec. 1, p. 984.]
Idaho Code § 28-7-204 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-204
28-7-204 DUTY OF CARE — CONTRACTUAL LIMITATION OF WAREHOUSE'S LIABILITY.
Status: in_force

PART 2.

WAREHOUSE RECEIPTS — SPECIAL PROVISIONS

28-7-204. Duty of care — Contractual limitation of warehouse's liability. (a) A warehouse is liable for damages for loss of or injury to the goods caused by its failure to exercise care with regard to the goods that a reasonably careful person would exercise under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages that could not have been avoided by the exercise of that care.

(b) Damages may be limited by a term in the warehouse receipt or storage agreement limiting the amount of liability in case of loss or damage beyond which the warehouse is not liable. Such a limitation is not effective with respect to the warehouse's liability for conversion to its own use. On request of the bailor in a record at the time of signing the storage agreement or within a reasonable time after receipt of the warehouse receipt, the warehouse's liability may be increased on part or all of the goods covered by the storage agreement or the warehouse receipt. In this event, increased rates may be charged based on an increased valuation of the goods.

(c) Reasonable provisions as to the time and manner of presenting claims and commencing actions based on the bailment may be included in the warehouse receipt or storage agreement.

History:

[28-7-204, added 2004, ch. 42, sec. 2, p. 84.]
Idaho Code § 28-12-205 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-205
28-12-205 FIRM OFFERS.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-205. Firm offers. An offer by a merchant to lease goods to or from another person in a signed writing that by its terms gives assurance it will be held open is not revocable, for lack of consideration, during the time stated or, if no time is stated, for a reasonable time, but in no event may the period of irrevocability exceed three (3) months. Any such term of assurance on a form supplied by the offeree must be separately signed by the offeror.

History:

[28-12-205, added 1993, ch. 287, sec. 1, p. 984.]
Idaho Code § 28-9-303 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-303
28-9-303 LAW GOVERNING PERFECTION AND PRIORITY OF SECURITY INTERESTS IN GOODS COVERED BY A CERTIFICATE OF TITLE.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-303. Law governing perfection and priority of security interests in goods covered by a certificate of title. (a) This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.

(b) Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.

(c) The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.

History:

[28-9-303, added 2001, ch. 208, sec. 2, p. 728.]
Idaho Code § 28-52-103 — Idaho Code / Title 28 / Chapter 52 / Section 28-52-103
28-52-103 SECURITY FREEZE.
Status: in_force

28-52-103. Security freeze. (1) A consumer may place a security freeze on the consumer's credit report by:

(a) Making a request to a consumer reporting agency in writing by regular or certified mail at an address designated by the consumer reporting agency to receive the request;

(b) Providing proper identification; and

(c) Paying the fee required by the consumer reporting agency in accordance with section 28-52-106, Idaho Code.

(2) Upon receiving a request from a consumer under subsection (1) of this section, the consumer reporting agency shall:

(a) Place a security freeze on the consumer's credit report within three (3) business days after receiving the consumer's request; and

(b) Within five (5) business days after placing the security freeze, send a written confirmation of the security freeze to the consumer and provide the consumer with a unique personal identification number or password to be used by the consumer when providing authorizations for removal or temporary lifts of the security freeze under section 28-52-104, Idaho Code.

(3) If a security freeze is in place, a consumer reporting agency may not release a consumer's credit report, or information from the credit report, to a third party that intends to use the information to determine a consumer's eligibility for credit without prior authorization from the consumer.

(4) Notwithstanding subsection (3) of this section, a consumer reporting agency may communicate to a third party requesting a consumer's credit report that a security freeze is in effect on the consumer's credit report. If a third party requesting a consumer's credit report in connection with the consumer's application for credit is notified of the existence of a security freeze under this section, the third party may treat the consumer's application as incomplete.

(5) A consumer reporting agency shall require proper identification of the consumer requesting to place, remove or temporarily remove a security freeze.

(6) A consumer reporting agency shall develop a contact method to receive and process a consumer's request to permanently remove or temporarily lift a security freeze. The contact method may include: a postal address; an electronic contact method chosen by the consumer reporting agency, which may include the use of fax, internet or other electronic means; or the use of telephone in a manner that is consistent with any federal requirements placed on the consumer reporting agency. By no later than September 1, 2008, a consumer reporting agency shall develop a secure electronic means for a consumer to request the temporary lift of a security freeze.

(7) A security freeze placed under this section may be removed only in accordance with section 28-52-104, Idaho Code.

History:

[28-52-103, added 2008, ch. 177, sec. 2, p. 523.]
Idaho Code § 28-2-607 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-607
28-2-607 EFFECT OF ACCEPTANCE — NOTICE OF BREACH — BURDEN OF ESTABLISHING BREACH AFTER ACCEPTANCE — NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE OVER.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-607. Effect of acceptance — Notice of breach — Burden of establishing breach after acceptance — Notice of claim or litigation to person answerable over. (1) The buyer must pay at the contract rate for any goods accepted.

(2) Acceptance of goods by the buyer precludes rejection of the goods accepted and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured but acceptance does not of itself impair any other remedy provided by this chapter for nonconformity.

(3) Where a tender has been accepted

(a) the buyer must within a reasonable time after he discovers or should have discovered any breach notify the seller of breach or be barred from any remedy; and

(b) if the claim is one for infringement or the like (subsection (3) of section 28-2-312) and the buyer is sued as a result of such a breach he must so notify the seller within a reasonable time after he receives notice of the litigation or be barred from any remedy over for liability established by the litigation.

(4) The burden is on the buyer to establish any breach with respect to the goods accepted.

(5) Where the buyer is sued for breach of a warranty or other obligation for which his seller is answerable over

(a) he may give his seller written notice of the litigation. If the notice states that the seller may come in and defend and that if the seller does not do so he will be bound in any action against him by his buyer by any determination of fact common to the two (2) litigations, then unless the seller after seasonable receipt of the notice does come in and defend he is so bound.

(b) if the claim is one for infringement or the like (subsection (3) of section 28-2-312) the original seller may demand in writing that his buyer turn over to him control of the litigation including settlement or else be barred from any remedy over and if he also agrees to bear all expense and to satisfy any adverse judgment, then unless the buyer after seasonable receipt of the demand does turn over control the buyer is so barred.

(6) The provisions of subsections (3), (4) and (5) apply to any obligation of a buyer to hold the seller harmless against infringement or the like (subsection (3) of section 28-2-312).

History:

[28-2-607, added 1967, ch. 161, sec. 2-607, p. 351.]
Idaho Code § 28-9-209 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-209
28-9-209 DUTIES OF SECURED PARTY IF ACCOUNT DEBTOR HAS BEEN NOTIFIED OF ASSIGNMENT.
Status: in_force

PART 2.

EFFECTIVENESS OF SECURITY AGREEMENT — ATTACHMENT OF SECURITY INTEREST — RIGHTS OF PARTIES TO SECURITY AGREEMENT

28-9-209. Duties of secured party if account debtor has been notified of assignment. (a) Except as otherwise provided in subsection (c), this section applies if:

(1) There is no outstanding secured obligation; and

(2) The secured party is not committed to make advances, incur obligations, or otherwise give value.

(b) Within ten (10) days after receiving an authenticated demand by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under section 28-9-406(a) an authenticated record that releases the account debtor from any further obligation to the secured party.

(c) This section does not apply to an assignment constituting the sale of an account, chattel paper or payment intangible.

History:

[28-9-209, added 2001, ch. 208, sec. 2, p. 727.]
Idaho Code § 28-9-404 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-404
28-9-404 RIGHTS ACQUIRED BY ASSIGNEE — CLAIMS AND DEFENSES AGAINST ASSIGNEE.
Status: in_force

PART 4.

RIGHTS OF THIRD PARTIES

28-9-404. Rights acquired by assignee — Claims and defenses against assignee. (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e) of this section, the rights of an assignee are subject to:

(1) All terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and

(2) Any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.

(b) Subject to subsection (c) of this section and except as otherwise provided in subsection (d) of this section, the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) of this section only to reduce the amount the account debtor owes.

(c) This section is subject to law other than this chapter 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.

(d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter requires that the record include a statement to the effect that the account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.

(e) This section does not apply to an assignment of a health care insurance receivable.

History:

[28-9-404, added 2001, ch. 208, sec. 2, p. 757.]
Idaho Code § 28-12-109 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-109
28-12-109 OPTION TO ACCELERATE AT WILL.
Status: in_force

PART 1.

GENERAL PROVISIONS

28-12-109. Option to accelerate at will. (1) A term providing that one (1) party or his successor in interest may accelerate payment or performance or require collateral or additional collateral "at will" or "when he deems himself insecure" or in words of similar import must be construed to mean that he has power to do so only if he in good faith believes that the prospect of payment or performance is impaired.

(2) With respect to a consumer lease, the burden of establishing good faith under subsection (1) of this section is on the party who exercised the power; otherwise the burden of establishing lack of good faith is on the party against whom the power has been exercised.

History:

[28-12-109, added 1993, ch. 287, sec. 1, p. 983.]
Idaho Code § 28-8-306 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-306
28-8-306 EFFECT OF GUARANTEEING SIGNATURE, INDORSEMENT OR INSTRUCTION.
Status: in_force

PART 3.

TRANSFER OF CERTIFICATED AND UNCERTIFICATED SECURITIES

28-8-306. Effect of guaranteeing signature, indorsement or instruction. (1) A person who guarantees a signature of an indorser of a security certificate warrants that at the time of signing:

(a) The signature was genuine;

(b) The signer was an appropriate person to indorse, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person; and

(c) The signer had legal capacity to sign.

(2) A person who guarantees a signature of the originator of an instruction warrants that at the time of signing:

(a) The signature was genuine;

(b) The signer was an appropriate person to originate the instruction, or if the signature is by an agent, the agent had actual authority to act on behalf of the appropriate person, if the person specified in the instruction as the registered owner was, in fact, the registered owner, as to which fact the signature guarantor does not make a warranty; and

(c) The signer had legal capacity to sign.

(3) A person who specially guarantees the signature of an originator of an instruction makes the warranties of a signature guarantor under subsection (2) of this section and also warrants that at the time the instruction is presented to the issuer:

(a) The person specified in the instruction as the registered owner of the uncertificated security will be the registered owner; and

(b) The transfer of the uncertificated security requested in the instruction will be registered by the issuer free from all liens, security interests, restrictions and claims other than those specified in the instruction.

(4) A guarantor under subsections (1) and (2) of this section, or a special guarantor under subsection (3) of this section, does not otherwise warrant the rightfulness of the transfer.

(5) A person who guarantees an indorsement of a security certificate makes the warranties of a signature guarantor under subsection (1) of this section and also warrants the rightfulness of the transfer in all respects.

(6) A person who guarantees an instruction requesting the transfer of an uncertificated security makes the warranties of a special signature guarantor under subsection (3) of this section and also warrants the rightfulness of the transfer in all respects.

(7) An issuer may not require a special guaranty of signature, a guaranty of indorsement, or a guaranty of instruction as a condition to registration of transfer.

(8) The warranties under this section are made to a person taking or dealing with the security in reliance on the guaranty, and the guarantor is liable to the person for loss resulting from their breach. An indorser or originator of an instruction whose signature, indorsement, or instruction has been guaranteed is liable to a guarantor for any loss suffered by the guarantor as a result of breach of the warranties of the guarantor.

History:

[28-8-306, added 1995, ch. 272, sec. 2, p. 890.]
Idaho Code § 28-43-312 — Idaho Code / Title 28 / Chapter 43 / Section 28-43-312
28-43-312 ATTORNEY'S FEES.
Status: in_force

PART 3.

LIMITATIONS ON AGREEMENTS AND PRACTICES IN REGULATED CONSUMER CREDIT TRANSACTIONS

28-43-312. Attorney's fees. Except as provided by the provisions on limitations on attorney's fees as to certain regulated consumer loans, section 28-43-311, Idaho Code, with respect to a regulated consumer credit transaction the agreement may provide for the payment by the debtor of reasonable attorney's fees after default and referral to an attorney not a salaried employee of the creditor. A provision in violation of this section is unenforceable.

History:

[28-43-312, added 1983, ch. 119, sec. 3, p. 285.]
Idaho Code § 28-3-203 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-203
28-3-203 TRANSFER OF INSTRUMENT — RIGHTS ACQUIRED BY TRANSFER.
Status: in_force

PART 2.

NEGOTIATION, TRANSFER, AND INDORSEMENT

28-3-203. Transfer of instrument — Rights acquired by transfer. (1) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.

(2) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee cannot acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument.

(3) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made.

(4) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this chapter and has only the rights of a partial assignee.

History:

[28-3-203, added 1993, ch. 288, sec. 2, p. 1029.]
Idaho Code § 28-2-720 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-720
28-2-720 EFFECT OF “CANCELLATION” OR “RESCISSION” ON CLAIMS FOR ANTECEDENT BREACH.
Status: in_force

PART 7.

REMEDIES

28-2-720. Effect of "cancellation" or "rescission" on claims for antecedent breach. Unless the contrary intention clearly appears, expressions of "cancellation" or "rescission" of the contract or the like shall not be construed as a renunciation or discharge of any claim in damages for an antecedent breach.

History:

[28-2-720, added 1967, ch. 161, sec. 2-720, p. 351.]
Idaho Code § 28-2-616 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-616
28-2-616 PROCEDURE ON NOTICE CLAIMING EXCUSE.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-616. Procedure on notice claiming excuse. (1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section he may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this chapter relating to breach of installment contracts (section 28-2-612), then also as to the whole,

(a) terminate and thereby discharge any unexecuted portion of the contract; or

(b) modify the contract by agreeing to take his available quota in substitution.

(2) If after receipt of such notification from the seller the buyer fails so to modify the contract within a reasonable time not exceeding thirty (30) days the contract lapses with respect to any deliveries affected.

(3) The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under the preceding section.

History:

[28-2-616, added 1967, ch. 161, sec. 2-616, p. 351.]
Idaho Code § 28-2-613 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-613
28-2-613 CASUALTY TO IDENTIFIED GOODS.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-613. Casualty to identified goods. Where the contract requires for its performance goods identified when the contract is made, and the goods suffer casualty without fault of either party before the risk of loss passes to the buyer, or in a proper case under a "no arrival, no sale" term (section 28-2-324) then

(a) if the loss is total the contract is avoided; and

(b) if the loss is partial or the goods have so deteriorated as no longer to conform to the contract the buyer may nevertheless demand inspection and at his option either treat the contract as avoided or accept the goods with due allowance from the contract price for the deterioration or the deficiency in quantity but without further right against the seller.

History:

[28-2-613, added 1967, ch. 161, sec. 2-613, p. 351.]
Idaho Code § 28-9-104 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-104
28-9-104 CONTROL OF DEPOSIT ACCOUNT.
Status: in_force

PART 1.

GENERAL PROVISIONS

28-9-104. Control of deposit account. (a) A secured party has control of a deposit account if:

(1) The secured party is the bank with which the deposit account is maintained;

(2) The debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the deposit account without further consent by the debtor; or

(3) The secured party becomes the bank's customer with respect to the deposit account.

(b) A secured party that has satisfied subsection (a) of this section has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.

History:

[28-9-104, added 2001, ch. 208, sec. 2, p. 719.]
Idaho Code § 28-3-103 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-103
28-3-103 DEFINITIONS.
Status: in_force

PART 1.

GENERAL PROVISIONS AND DEFINITIONS

28-3-103. Definitions. (1) In this chapter:

(a) "Acceptor" means a drawee who has accepted a draft.

(b) "Drawee" means a person ordered in a draft to make payment.

(c) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.

(d) "Good faith" means honesty in fact in the conduct or transaction concerned.

(e) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.

(f) "Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one (1) or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.

(g) "Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this chapter or chapter 4.

(h) "Party" means a party to an instrument.

(i) "Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation.

(j) "Prove" with respect to a fact means to meet the burden of establishing the fact (section 28-1-201(b)(8)).

(k) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.

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

"Acceptance"

"Accommodated party"

"Accommodation party"

"Alteration"

"Anomalous indorsement"

"Blank indorsement"

"Cashier's check"

"Certificate of deposit"

"Certified check"

"Check"

"Consideration"

"Demand draft"

"Draft"

"Holder in due course"

"Incomplete instrument"

"Indorsement"

"Indorser"

"Instrument"

"Issue"

"Issuer"

"Negotiable instrument"

"Negotiation"

"Note"

"Payable at a definite time"

"Payable on demand"

"Payable to bearer"

"Payable to order"

"Payment"

"Person entitled to enforce"

"Presentment"

"Reacquisition"

"Special indorsement"

"Teller's check"

"Transfer of instrument"

"Traveler's check"

"Value"

(3) The following definitions in other chapters apply to this chapter:

"Bank"

"Banking day"

"Clearing house"

"Collecting bank"

"Depositary bank"

"Documentary draft"

"Intermediary bank"

"Item"

"Payor bank"

"Suspends payments"

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

History:

[28-3-103, added 1993, ch. 288, sec. 2, p. 1021; am. 2002, ch. 121, sec. 1, p. 339; am. 2004, ch. 43, sec. 31, p. 153.]
Idaho Code § 28-1-102 — Idaho Code / Title 28 / Chapter 1 / Section 28-1-102
28-1-102 SCOPE OF CHAPTER.
Status: in_force

PART 1.

GENERAL PROVISIONS

28-1-102. Scope of chapter. This chapter applies to a transaction to the extent that it is governed by another chapter of the uniform commercial code.

History:

[28-1-102, added 2004, ch. 43, sec. 3, p. 138.]
Idaho Code § 28-8-503 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-503
28-8-503 PROPERTY INTEREST OF ENTITLEMENT HOLDER IN FINANCIAL ASSET HELD BY SECURITIES INTERMEDIARY.
Status: in_force

PART 5.

SECURITY ENTITLEMENTS

28-8-503. Property interest of entitlement holder in financial asset held by securities intermediary. (1) To the extent necessary for a securities intermediary to satisfy all security entitlements with respect to a particular financial asset, all interests in that financial asset held by the securities intermediary are held by the securities intermediary for the entitlement holders, are not property of the securities intermediary, and are not subject to claims of creditors of the securities intermediary, except as otherwise provided in section 28-8-511.

(2) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) of this section is a pro rata property interest in all interests in that financial asset held by the securities intermediary, without regard to the time the entitlement holder acquired the security entitlement or the time the securities intermediary acquired the interest in that financial asset.

(3) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) of this section may be enforced against the securities intermediary only by exercise of the entitlement holder's rights under sections 28-8-505 through 28-8-508.

(4) An entitlement holder's property interest with respect to a particular financial asset under subsection (1) of this section may be enforced against a purchaser of the financial asset or interest therein only if:

(a) Insolvency proceedings have been initiated by or against the securities intermediary;

(b) The securities intermediary does not have sufficient interests in the financial asset to satisfy the security entitlements of all of its entitlement holders to that financial asset;

(c) The securities intermediary violated its obligations under section 28-8-504 by transferring the financial asset or interest therein to the purchaser; and

(d) The purchaser is not protected under subsection (5) of this section.

The trustee or other liquidator, acting on behalf of all entitlement holders having security entitlements with respect to a particular financial asset, may recover the financial asset, or interest therein, from the purchaser. If the trustee or other liquidator elects not to pursue that right, an entitlement holder whose security entitlement remains unsatisfied has the right to recover its interest in the financial asset from the purchaser.

(5) An action based on the entitlement holder's property interest with respect to a particular financial asset under subsection (1) of this section, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may not be asserted against any purchaser of a financial asset or interest therein who gives value, obtains control, and does not act in collusion with the securities intermediary in violating the securities intermediary's obligations under section 28-8-504.

History:

[28-8-503, added 1995, ch. 272, sec. 2, p. 895.]
Idaho Code § 28-2-602 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-602
28-2-602 MANNER AND EFFECT OF RIGHTFUL REJECTION.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-602. Manner and effect of rightful rejection. (1) Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller.

(2) Subject to the provisions of the two following sections on rejected goods (sections 28-2-603 and 28-2-604),

(a) after rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and

(b) if the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of this chapter (subsection (3) of section 28-2-711), he is under a duty after rejection to hold them with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but

(c) the buyer has no further obligations with regard to goods rightfully rejected.

(3) The seller's rights with respect to goods wrongfully rejected are governed by the provisions of this chapter on seller's remedies in general (section 28-2-703).

History:

[28-2-602, added 1967, ch. 161, sec. 2-602, p. 351.]
Idaho Code § 28-2-304 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-304
28-2-304 PRICE PAYABLE IN MONEY, GOODS, REALTY, OR OTHERWISE.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-304. Price payable in money, goods, realty, or otherwise. (1) The price can be made payable in money or otherwise. If it is payable in whole or in part in goods each party is a seller of the goods which he is to transfer.

(2) Even though all or part of the price is payable in an interest in realty the transfer of the goods and the seller's obligations with reference to them are subject to this chapter, but not the transfer of the interest in realty or the transferor's obligations in connection therewith.

History:

[28-2-304, added 1967, ch. 161, sec. 2-304, p. 351.]
Idaho Code § 28-9-602 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-602
28-9-602 WAIVER AND VARIANCE OF RIGHTS AND DUTIES.
Status: in_force

PART 6.

DEFAULT

28-9-602. Waiver and variance of rights and duties. Except as otherwise provided in section 28-9-624, 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 stated in the following listed sections:

(1) Section 28-9-207(b)(4)(C), which deals with use and operation of the collateral by the secured party;

(2) Section 28-9-210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account;

(3) Section 28-9-607(c), which deals with collection and enforcement of collateral;

(4) Sections 28-9-608(a) and 28-9-615(c) to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition;

(5) Sections 28-9-608(a) and 28-9-615(d) to the extent that they require accounting for or payment of surplus proceeds of collateral;

(6) Section 28-9-609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace;

(7) Sections 28-9-610(b), 28-9-611, 28-9-613 and 28-9-614, which deal with disposition of collateral;

(8) Section 28-9-615(f), which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor;

(9) Section 28-9-616, which deals with explanation of the calculation of a surplus or deficiency;

(10) Sections 28-9-620, 28-9-621 and 28-9-622, which deal with acceptance of collateral in satisfaction of obligation;

(11) Section 28-9-623, which deals with redemption of collateral;

(12) Section 28-9-624, which deals with permissible waivers; and

(13) Sections 28-9-625 and 28-9-626, which deal with the secured party's liability for failure to comply with this chapter.

History:

[28-9-602, added 2001, ch. 208, sec. 2, p. 780.]
Idaho Code § 28-2-505 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-505
28-2-505 SELLER'S SHIPMENT UNDER RESERVATION.
Status: in_force

PART 5.

PERFORMANCE

28-2-505. Seller's shipment under reservation. (1) Where the seller has identified goods to the contract by or before shipment:

(a) his procurement of a negotiable bill of lading to his own order or otherwise reserves in him a security interest in the goods. His procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the seller's expectation of transferring that interest to the person named.

(b) a nonnegotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection (2) of section 28-2-507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control of the bill of lading.

(2) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the preceding section but impairs neither the rights given to the buyer by shipment and identification of the goods to the contract nor the seller's powers as a holder of a negotiable document of title.

History:

[28-2-505, added 1967, ch. 161, sec. 2-505, p. 351; am. 2004, ch. 42, sec. 10, p. 107.]
Idaho Code § 28-43-309 — Idaho Code / Title 28 / Chapter 43 / Section 28-43-309
28-43-309 RESTRICTIONS ON INTEREST IN LAND AS SECURITY.
Status: in_force

PART 3.

LIMITATIONS ON AGREEMENTS AND PRACTICES IN REGULATED CONSUMER CREDIT TRANSACTIONS

28-43-309. Restrictions on interest in land as security. With respect to a regulated consumer loan in which the principal is one thousand dollars ($1,000) or less, a regulated lender may not contract for an interest in land as security. A security interest taken in violation of this section is void.

History:

[28-43-309, added 1983, ch. 119, sec. 3, p. 285.]
Idaho Code § 28-44-109 — Idaho Code / Title 28 / Chapter 44 / Section 28-44-109
28-44-109 EXISTING INSURANCE — CHOICE OF INSURER.
Status: in_force

PART 1.

INSURANCE IN GENERAL

28-44-109. Existing insurance — Choice of insurer. If a creditor requires insurance, upon notice to the creditor, the debtor, as provided in section 41-2313, Idaho Code, shall have the option of providing the required insurance through an existing policy of insurance owned or controlled by the debtor, or through a policy to be obtained and paid for by the debtor, but the creditor may for reasonable cause, as defined in section 41-1312, Idaho Code, decline the insurance provided by the debtor.

History:

[28-44-109, added 1983, ch. 119, sec. 3, p. 290.]
Idaho Code § 28-2-702 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-702
28-2-702 SELLER'S REMEDIES ON DISCOVERY OF BUYER'S INSOLVENCY.
Status: in_force

PART 7.

REMEDIES

28-2-702. Seller's remedies on discovery of buyer's insolvency. (1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this chapter (section 28-2-705).

(2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten (10) days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three (3) months before delivery the ten (10) day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under this chapter (section 28-2-403). Successful reclamation of goods excludes all other remedies with respect to them.

History:

[28-2-702, added 1967, ch. 161, sec. 2-702, p. 351.]
Idaho Code § 28-4-204 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-204
28-4-204 METHODS OF SENDING AND PRESENTING — SENDING DIRECTLY TO PAYOR BANK.
Status: in_force

PART 2.

COLLECTION OF ITEMS — DEPOSITARY AND COLLECTING BANKS

28-4-204. Methods of sending and presenting — Sending directly to payor bank. (1) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved and the method generally used by it or others to present those items.

(2) A collecting bank may send:

(a) an item directly to the payor bank;

(b) an item to a nonbank payor if authorized by its transferor; and

(c) an item other than documentary drafts to a nonbank payor, if authorized by federal reserve regulation or operating circular, clearing-house rule or the like.

(3) Presentment may be made by a presenting bank at a place where the payor bank or other payor has requested that presentment be made.

History:

[28-4-204, added 1967, ch. 161, sec. 4-204, p. 351; am. 1993, ch. 288, sec. 18, p. 1059.]
Idaho Code § 28-41-102 — Idaho Code / Title 28 / Chapter 41 / Section 28-41-102
28-41-102 PURPOSES — RULES OF CONSTRUCTION.
Status: in_force

PART 1.

SHORT TITLE, CONSTRUCTION, GENERAL PROVISIONS

28-41-102. Purposes — Rules of construction. (1) This act shall be liberally construed and applied to promote its underlying purposes and policies.

(2) The underlying purposes and policies of this act are:

(a) To simplify, clarify and modernize the law governing installment sales, credit, loans and usury;

(b) To further understanding of the terms of credit transactions and to foster competition among suppliers of credit so that debtors may obtain credit at reasonable cost;

(c) To protect debtors against unfair practices by some suppliers of credit, having due regard for the interests of legitimate and scrupulous creditors;

(d) To permit and encourage the development of fair and economically sound credit practices; and

(e) To conform the regulation of those credit transactions to the policies of the Federal Consumer Credit Protection Act, where applicable.

(3) A reference to a requirement imposed by this act includes reference to a related rule of the administrator adopted pursuant to this act.

History:

[28-41-102, added 1983, ch. 119, sec. 3, p. 265.]
Idaho Code § 28-45-101 — Idaho Code / Title 28 / Chapter 45 / Section 28-45-101
28-45-101 SHORT TITLE.
Status: in_force

PART 1.

LIMITATIONS ON CREDITORS' REMEDIES

28-45-101. Short title. This chapter shall be known and may be cited as Idaho Credit Code — Remedies and Penalties.

History:

[28-45-101, added 1983, ch. 119, sec. 3, p. 294.]
Idaho Code § 28-21-101 — Idaho Code / Title 28 / Chapter 21 / Section 28-21-101
28-21-101 INDORSEMENT OF WRITTEN CONTRACT.
Status: in_force

28-21-101. Indorsement of written contract. A nonnegotiable written contract for the payment of money or personal property may be transferred by indorsement, in like manner with negotiable instruments. Such indorsement transfers all the rights of the assignor under the instrument to the assignee, subject to all equities and defenses existing in favor of the maker at the time of the indorsement.

History:

[(28-21-101) R.S., sec. 3600; reen. R.C. & C.L., sec. 3654; C.S., sec. 6063; I.C.A., sec. 26-1801.]
Idaho Code § 28-3-601 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-601
28-3-601 DISCHARGE AND EFFECT OF DISCHARGE.
Status: in_force

PART 6.

DISCHARGE AND PAYMENT

28-3-601. Discharge and effect of discharge. (1) The obligation of a party to pay the instrument is discharged as stated in this chapter or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

(2) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.

History:

[28-3-601, added 1993, ch. 288, sec. 2, p. 1050.]
Idaho Code § 28-12-522 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-522
28-12-522 LESSEE'S RIGHT TO GOODS ON LESSOR'S INSOLVENCY.
Status: in_force

PART 5.

DEFAULT

28-12-522. Lessee's right to goods on lessor's insolvency. (1) Subject to the provisions of subsection (2) of this section and even though the goods have not been shipped, a lessee who has paid a part or all of the rent and security for goods identified to a lease contract (section 28-12-217) on making and keeping good a tender of any unpaid portion of the rent and security due under the lease contract may recover the goods identified from the lessor if the lessor becomes insolvent within ten (10) days after receipt of the first installment of rent and security.

(2) A lessee acquires the right to recover goods identified to a lease contract only if they conform to the lease contract.

History:

[28-12-522, added 1993, ch. 287, sec. 1, p. 1008.]
Idaho Code § 28-36-107 — Idaho Code / Title 28 / Chapter 36 / Section 28-36-107
28-36-107 REINSTATEMENT.
Status: in_force

PART 1.

POWERS AND FUNCTIONS OF ADMINISTRATORS

28-36-107. Reinstatement. (1) A consumer who fails to make a timely rental payment and who fails to voluntarily return or surrender the leased property on or before the renewal date, may reinstate the agreement without losing any rights or options which exist under the agreement, by the payment, within five (5) days after the renewal date, if the consumer pays monthly, or within two (2) days after the renewal date, if the consumer pays more frequently than monthly, of:

(a) All past due rental charges;

(b) If the property has been picked up, the pickup and delivery fees; and

(c) Any applicable reinstatement fee and default fee as set forth in the lease-purchase agreement.

(2) A consumer who voluntarily returned or surrendered the property on or before the renewal date, other than through judicial process, and is current in all payments due under the lease agreement on the renewal date, may reinstate the agreement without losing any rights or options which exist under the agreement:

(a) During a period of not less than twenty-one (21) days after the date of the return of the property if at the time of surrender or voluntary return of the property the consumer had paid less than two-thirds (2/3) of the total of payments necessary to acquire ownership; or

(b) During a period of not less than forty-five (45) days after the date of the return of the property if at the time of surrender or voluntary return of the property the consumer had paid two-thirds (2/3) or more of the total of payments necessary to acquire ownership.

(3) Nothing in this section shall prevent a lessor from attempting to repossess property during the reinstatement period.

(4) Upon reinstatement, the lessor shall provide the consumer with the same property or substitute property of comparable quality and condition.

History:

[28-36-107, added 1993, ch. 232, sec. 1, p. 810.]
Idaho Code § 28-4-203 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-203
28-4-203 EFFECT OF INSTRUCTIONS.
Status: in_force

PART 2.

COLLECTION OF ITEMS — DEPOSITARY AND COLLECTING BANKS

28-4-203. Effect of instructions. Subject to the provisions of chapter 3 concerning conversion of instruments (section 28-3-420) and restrictive indorsements (section 28-3-206), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it and a collecting bank is not liable to prior parties for any action taken pursuant to the instructions or in accordance with any agreement with its transferor.

History:

[28-4-203, added 1967, ch. 161, sec. 4-203, p. 351; am. 1993, ch. 288, sec. 17, p. 1059.]
Idaho Code § 28-9-201 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-201
28-9-201 GENERAL EFFECTIVENESS OF SECURITY AGREEMENT.
Status: in_force

PART 2.

EFFECTIVENESS OF SECURITY AGREEMENT — ATTACHMENT OF SECURITY INTEREST — RIGHTS OF PARTIES TO SECURITY AGREEMENT

28-9-201. General effectiveness of security agreement. (a) Except as otherwise provided in the uniform commercial code, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.

(b) A transaction subject to this chapter is subject to any applicable rule of law which establishes a different rule for consumers, to the Idaho credit code, chapters 41 through 49, title 28, Idaho Code, and any rules promulgated thereunder and to the Idaho credit union act, chapter 21, title 26, Idaho Code, and any rules promulgated thereunder.

(c) In case of conflict between this chapter and a rule of law, statute or rule described in subsection (b) of this section, the rule of law, statute or rule controls. Failure to comply with a statute or rule described in subsection (b) of this section has only the effect the statute or rule specifies.

(d) This chapter does not:

(1) Validate any rate, charge, agreement or practice that violates a rule of law, statute or rule described in subsection (b) of this section; or

(2) Extend the application of the rule of law, statute or rule to a transaction not otherwise subject to it.

History:

[28-9-201, added 2001, ch. 208, sec. 2, p. 722.]
Idaho Code § 28-12-220 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-220
28-12-220 EFFECT OF DEFAULT ON RISK OF LOSS.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-220. Effect of default on risk of loss. (1) Where risk of loss is to pass to the lessee and the time of passage is not stated:

(a) If a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance.

(b) If the lessee rightfully revokes acceptance, he, to the extent of any deficiency in his effective insurance coverage, may treat the risk of loss as having remained with the lessor from the beginning.

(2) Whether or not risk of loss is to pass to the lessee, if the lessee as to conforming goods already identified to a lease contract repudiates or is otherwise in default under the lease contract, the lessor, or, in the case of a finance lease, the supplier, to the extent of any deficiency in his effective insurance coverage may treat the risk of loss as resting on the lessee for a commercially reasonable time.

History:

[28-12-220, added 1993, ch. 287, sec. 1, p. 989.]
Idaho Code § 28-2-303 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-303
28-2-303 ALLOCATION OR DIVISION OF RISKS.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-303. Allocation or division of risks. Where this chapter allocates a risk or a burden as between the parties "unless otherwise agreed," the agreement may not only shift the allocation but may also divide the risk or burden.

History:

[28-2-303, added 1967, ch. 161, sec. 2-303, p. 351.]
Idaho Code § 28-2-512 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-512
28-2-512 PAYMENT BY BUYER BEFORE INSPECTION.
Status: in_force

PART 5.

PERFORMANCE

28-2-512. Payment by buyer before inspection. (1) Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless

(a) the nonconformity appears without inspection; or

(b) despite tender of the required documents the circumstances would justify injunction against honor under the provisions of this act (section 28-5-109(2)).

(2) Payment pursuant to subsection (1) does not constitute an acceptance of goods or impair the buyer's right to inspect or any of his remedies.

History:

[28-2-512, added 1967, ch. 161, sec. 2-512, p. 351; am. 1996, ch. 7, sec. 4, p. 19.]
Idaho Code § 28-8-509 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-509
28-8-509 SPECIFICATION OF DUTIES OF SECURITIES INTERMEDIARY BY OTHER STATUTE OR REGULATION — MANNER OF PERFORMANCE OF DUTIES OF SECURITIES INTERMEDIARY AND EXERCISE OF RIGHTS OF ENTITLEMENT HOLDER.
Status: in_force

PART 5.

SECURITY ENTITLEMENTS

28-8-509. Specification of duties of securities intermediary by other statute or regulation — Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder. (1) If the substance of a duty imposed upon a securities intermediary by sections 28-8-504 through 28-8-508 is the subject of other statute, regulation or rule, compliance with that statute, regulation or rule satisfies the duty.

(2) To the extent that specific standards for the performance of the duties of a securities intermediary or the exercise of the rights of an entitlement holder are not specified by other statute, regulation, or rule or by agreement between the securities intermediary and entitlement holder, the securities intermediary shall perform its duties and the entitlement holder shall exercise its rights in a commercially reasonable manner.

(3) The obligation of a securities intermediary to perform the duties imposed by sections 28-8-504 through 28-8-508 is subject to:

(a) Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise; and

(b) Rights of the securities intermediary under other law, regulation, rule, or agreement to withhold performance of its duties as a result of unfulfilled obligations of the entitlement holder to the securities intermediary.

(4) Sections 28-8-504 through 28-8-508 do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.

History:

[28-8-509, added 1995, ch. 272, sec. 2, p. 898.]
Idaho Code § 28-9-205 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-205
28-9-205 USE OR DISPOSITION OF COLLATERAL PERMISSIBLE.
Status: in_force

PART 2.

EFFECTIVENESS OF SECURITY AGREEMENT — ATTACHMENT OF SECURITY INTEREST — RIGHTS OF PARTIES TO SECURITY AGREEMENT

28-9-205. Use or disposition of collateral permissible. (a) A security interest is not invalid or fraudulent against creditors solely because:

(1) The debtor has the right or ability to:

(A) use, commingle or dispose of all or part of the collateral, including returned or repossessed goods;

(B) collect, compromise, enforce or otherwise deal with collateral;

(C) accept the return of collateral or make repossessions; or

(D) use, commingle or dispose of proceeds; or

(2) The secured party fails to require the debtor to account for proceeds or replace collateral.

(b) This section does not relax the requirements of possession if attachment, perfection or enforcement of a security interest depends upon possession of the collateral by the secured party.

History:

[28-9-205, added 2001, ch. 208, sec. 2, p. 724.]
Idaho Code § 28-12-202 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-202
28-12-202 FINAL WRITTEN EXPRESSION — PAROL OR EXTRINSIC EVIDENCE.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-202. Final written expression — Parol or extrinsic evidence. Terms with respect to which the confirmatory memoranda of the parties agree or which are otherwise set forth in a writing intended by the parties as a final expression of their agreement with respect to such terms as are included therein may not be contradicted by evidence of any prior agreement or of a contemporaneous oral agreement but may be explained or supplemented:

(a) By course of dealing or usage of trade or by course of performance; and

(b) By evidence of consistent additional terms unless the court finds the writing to have been intended also as a complete and exclusive statement of the terms of the agreement.

History:

[28-12-202, added 1993, ch. 287, sec. 1, p. 984.]
Idaho Code § 28-7-104 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-104
28-7-104 NEGOTIABLE AND NONNEGOTIABLE DOCUMENT OF TITLE.
Status: in_force

PART 1.

GENERAL

28-7-104. Negotiable and nonnegotiable document of title. (a) Except as otherwise provided in subsection (c) of this section, a document of title is negotiable if by its terms the goods are to be delivered to bearer or to the order of a named person.

(b) A document of title other than one described in subsection (a) of this section is nonnegotiable. A bill of lading that states that the goods are consigned to a named person is not made negotiable by a provision that the goods are to be delivered only against an order in a record signed by the same or another named person.

(c) A document of title is nonnegotiable if, at the time it is issued, the document has a conspicuous legend, however expressed, that it is nonnegotiable.

History:

[28-7-104, added 2004, ch. 42, sec. 2, p. 81.]
Idaho Code § 28-8-405 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-405
28-8-405 REPLACEMENT OF LOST, DESTROYED, OR WRONGFULLY TAKEN SECURITY CERTIFICATE.
Status: in_force

PART 4.

REGISTRATION

28-8-405. Replacement of lost, destroyed, or wrongfully taken security certificate. (1) If an owner of a certificated security, whether in registered or bearer form, claims that the certificate has been lost, destroyed or wrongfully taken, the issuer shall issue a new certificate if the owner:

(a) So requests before the issuer has notice that the certificate has been acquired by a protected purchaser;

(b) Files with the issuer a sufficient indemnity bond; and

(c) Satisfies other reasonable requirements imposed by the issuer.

(2) If, after the issue of a new security certificate, a protected purchaser of the original certificate presents it for registration of transfer, the issuer shall register the transfer unless an overissue would result. In that case, the issuer's liability is governed by section 28-8-210. In addition to any rights on the indemnity bond, an issuer may recover the new certificate from a person to whom it was issued or any person taking under that person, except a protected purchaser.

History:

[28-8-405, added 1995, ch. 272, sec. 2, p. 894.]
Idaho Code § 28-5305 — Idaho Code / Title 28 / Chapter 53 / Section 28-5305
28-5305 PURCHASE AND SALE.
Status: in_force

28-5305. purchase and sale. (1) Digital assets may be purchased and sold in the same manner and subject to the same laws of this state as other personal property. A purchaser or seller may be identified in any way including by name, identifying number, private key, office, or account number.

(2) Except as provided in subsection (3) of this section, a purchaser takes a right to payment, right to performance or interest in property evidenced by a digital asset subject to a claim of a property right, right to payment, and right to performance or interest in property evidenced by the digital asset.

(3) An action based on a claim of a property right, right to performance, or right of payment may not be asserted against a qualified purchaser. For the purposes of this subsection, a qualified purchaser is a purchaser of a digital asset or an interest in a digital asset that obtains the digital asset for value, in good faith, and without notice of a claim of a property right in the digital asset.

History:

[28-5305, added 2022, ch. 284, sec. 1, p. 903.]
Idaho Code § 28-9-325 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-325
28-9-325 PRIORITY OF SECURITY INTERESTS IN TRANSFERRED COLLATERAL.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-325. Priority of security interests in transferred collateral. (a) Except as otherwise provided in subsection (b) of this section, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(1) The debtor acquired the collateral subject to the security interest created by the other person;

(2) The security interest created by the other person was perfected when the debtor acquired the collateral; and

(3) There is no period thereafter when the security interest is unperfected.

(b) Subsection (a) of this section subordinates a security interest only if the security interest:

(1) Otherwise would have priority solely under section 28-9-322(a) or 28-9-324; or

(2) Arose solely under section 28-2-711(3) or 28-12-508(5).

History:

[28-9-325, added 2001, ch. 208, sec. 2, p. 748.]
Idaho Code § 28-2-310 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-310
28-2-310 OPEN TIME FOR PAYMENT OR RUNNING OF CREDIT — AUTHORITY TO SHIP UNDER RESERVATION.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-310. Open time for payment or running of credit — Authority to ship under reservation. Unless otherwise agreed

(a) Payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery; and

(b) If the seller is authorized to send the goods he may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless such inspection is inconsistent with the terms of the contract (section 28-2-513); and

(c) If delivery is authorized and made by way of documents of title otherwise than by subsection (b) then payment is due regardless of where the goods are to be received (i) at the time and place at which the buyer is to receive delivery of the tangible documents or (ii) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or if none, the seller's residence; and

(d) Where the seller is required or authorized to ship the goods on credit the credit period runs from the time of shipment but post-dating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.

History:

[28-2-310, added 1967, ch. 161, sec. 2-310, p. 351; am. 2004, ch. 42, sec. 6, p. 104.]
Idaho Code § 28-44-106 — Idaho Code / Title 28 / Chapter 44 / Section 28-44-106
28-44-106 UNCONSCIONABILITY.
Status: in_force

PART 1.

INSURANCE IN GENERAL

28-44-106. Unconscionability. (1) In applying the provisions of this act on unconscionability, sections 28-45-106 and 28-46-111, Idaho Code, to a separate charge for insurance, consideration shall be given, among other factors, to:

(a) Potential benefits to the debtor including the satisfaction of his obligations;

(b) The creditor's need for the protection provided by the insurance; and

(c) The relation between the amount and terms of credit granted and the insurance benefits provided.

(2) If credit insurance otherwise complies with this chapter and other applicable law, neither the amount nor the term of the insurance nor the amount of a charge therefor is in itself unconscionable.

History:

[28-44-106, added 1983, ch. 119, sec. 3, p. 288.]
Idaho Code § 28-9-204 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-204
28-9-204 AFTER-ACQUIRED PROPERTY — FUTURE ADVANCES.
Status: in_force

PART 2.

EFFECTIVENESS OF SECURITY AGREEMENT — ATTACHMENT OF SECURITY INTEREST — RIGHTS OF PARTIES TO SECURITY AGREEMENT

28-9-204. After-acquired property — Future advances. (a) Except as otherwise provided in subsection (b) of this section, a security agreement may create or provide for a security interest in after-acquired collateral.

(b) A security interest does not attach under a term constituting an after-acquired property clause to:

(1) Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten (10) days after the secured party gives value; or

(2) A commercial tort claim.

(c) A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.

History:

[28-9-204, added 2001, ch. 208, sec. 2, p. 724.]
Idaho Code § 28-42-402 — Idaho Code / Title 28 / Chapter 42 / Section 28-42-402
28-42-402 MONEY OF OTHER DENOMINATIONS.
Status: in_force

PART 4.

MONEY OF ACCOUNT AND INTEREST

28-42-402. Money of other denominations. The above provisions do not in any manner affect any demand expressed in money of another denomination, but such demand in any suit or proceeding affecting the same must be reduced to the above denominations.

History:

[28-42-402, added 1983, ch. 119, sec. 3, p. 281.]
Idaho Code § 28-3-407 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-407
28-3-407 ALTERATION.
Status: in_force

PART 4.

LIABILITY OF PARTIES

28-3-407. Alteration. (1) "Alteration" means (i) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or (ii) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party.

(2) Except as provided in subsection (3) of this section, an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms.

(3) A payor bank or drawee paying a fraudulently altered instrument or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument (i) according to its original terms, or (ii) in the case of an incomplete instrument altered by unauthorized completion, according to its terms as completed.

History:

[28-3-407, added 1993, ch. 288, sec. 2, p. 1041.]
Idaho Code § 28-22-106 — Idaho Code / Title 28 / Chapter 22 / Section 28-22-106
28-22-106 STATUTORY FORM FOR NOTICE OF DISHONOR.
Status: in_force

28-22-106. Statutory form for notice of dishonor. The notice of dishonor shall be sent either:

(1) By certified mail to the drawer at his last known address, or

(2) By regular mail, supported by an affidavit of service by mailing, to the address printed or written on the check.

(a) The affidavit of service by mailing shall be retained by the payee or holder of the check.

(b) Notice shall be deemed conclusive three (3) days following the date the affidavit is executed.

(c) The affidavit of service shall be substantially in the following form:

STATE OF ) AFFIDAVIT OF SERVICE

) BY MAIL

COUNTY OF )

……………….., being first duly sworn on oath, deposes and states that he/she is of legal age and that on (date)………., …., he/she served the attached Notice of Dishonor, by placing a true and correct copy thereof securely enclosed in an envelope addressed as follows:

…………………………

…………………………

…………………………

…………………………

and deposited the same, with postage prepaid, in the United States mail at ………………….., ………………….

Subscribed and sworn to before me this …. day of …………, …..

(SEAL)

(3) The notice of dishonor shall be substantially in the following form:

NOTICE OF DISHONOR OF CHECK

A check drawn by you and made payable by you to ………. in the amount of ………. has not been accepted for payment by ………., which is the drawee bank designated on your check. This check is dated ………., and it is numbered, No. ………

You are CAUTIONED that unless you pay the amount of this check within fifteen (15) days after the date this letter is postmarked, you may very well have to pay the following additional amounts:

(1) Costs of collecting the amount of the check, including an attorney fee which will be set by the court; and

(2) Interest on the amount of the check which shall accrue at the rate of twelve percent (12%) per annum from the date of dishonor.

You are advised to make your payment to ………. at the following address: ………..

(4) The issuance of a check with an address printed or written on it is a representation by the drawer that the address is the correct address for receipt of mail concerning the check. Failure of the drawer to receive a regular or certified mail notice sent to that address is not a defense to liability under this section provided the drawer has had actual notice for fifteen (15) days that the check has been dishonored.

(5) The check is prima facie evidence of the identity of the drawer if the name, home or work address, and home or work telephone number of the drawer are either recorded by the person receiving the check or printed on the face of the check.

History:

[28-22-106, added 1994, ch. 185, sec. 2, p. 605; am. 2002, ch. 288, sec. 3, p. 835.]
Idaho Code § 28-2-511 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-511
28-2-511 TENDER OF PAYMENT BY BUYER — PAYMENT BY CHECK.
Status: in_force

PART 5.

PERFORMANCE

28-2-511. Tender of payment by buyer — Payment by check. (1) Unless otherwise agreed tender of payment is a condition to the seller's duty to tender and complete any delivery.

(2) Tender of payment is sufficient when made by any means or in any manner current in the ordinary course of business unless the seller demands payment in legal tender and gives any extension of time reasonably necessary to procure it.

(3) Subject to the provisions of this act on the effect of an instrument on an obligation (section 28-3-310), payment by check is conditional and is defeated as between the parties by dishonor of the check on due presentment.

History:

[28-2-511, added 1967, ch. 161, sec. 2-511, p. 351; am. 1993, ch. 288, sec. 51, p. 1079.]
Idaho Code § 28-3-109 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-109
28-3-109 PAYABLE TO BEARER OR TO ORDER.
Status: in_force

PART 1.

GENERAL PROVISIONS AND DEFINITIONS

28-3-109. Payable to bearer or to order. (1) A promise or order is payable to bearer if it:

(a) States that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment;

(b) Does not state a payee; or

(c) States that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.

(2) A promise or order that is not payable to bearer is payable to order if it is payable (i) to the order of an identified person, or (ii) to an identified person or order. A promise or order that is payable to order is payable to the identified person.

(3) An instrument payable to bearer may become payable to an identified person if it is specially indorsed pursuant to section 28-3-205(1). An instrument payable to an identified person may become payable to bearer if it is indorsed in blank pursuant to section 28-3-205(2).

History:

[28-3-109, added 1993, ch. 288, sec. 2, p. 1025.]
Idaho Code § 28-3-102 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-102
28-3-102 SUBJECT MATTER.
Status: in_force

PART 1.

GENERAL PROVISIONS AND DEFINITIONS

28-3-102. Subject matter. (1) This chapter applies to negotiable instruments. It does not apply to money, to payment orders governed by part 6 of chapter 4, or to securities governed by chapter 8.

(2) If there is conflict between this chapter and chapter 4 or 9, chapters 4 and 9 govern.

(3) Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks supersede any inconsistent provision of this chapter to the extent of the inconsistency.

History:

[28-3-102, added 1993, ch. 288, sec. 2, p. 1021.]
Idaho Code § 28-5-106 — Idaho Code / Title 28 / Chapter 5 / Section 28-5-106
28-5-106 ISSUANCE, AMENDMENT, CANCELLATION, AND DURATION.
Status: in_force

28-5-106. Issuance, amendment, cancellation, and duration. (1) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it so provides.

(2) After a letter of credit is issued, rights and obligations of a beneficiary, applicant, confirmer, and issuer are not affected by an amendment or cancellation to which that person has not consented except to the extent the letter of credit provides that it is revocable or that the issuer may amend or cancel the letter of credit without that consent.

(3) If there is no stated expiration date or other provision that determines its duration, a letter of credit expires one (1) year after its stated date of issuance or, if none is stated, after the date on which it is issued.

(4) A letter of credit that states that it is perpetual expires five (5) years after its stated date of issuance, or if none is stated, after the date on which it is issued.

History:

[28-5-106, added 1996, ch. 7, sec. 2, p. 12.]
Idaho Code § 28-12-105 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-105
28-12-105 TERRITORIAL APPLICATION OF ARTICLE TO GOODS COVERED BY CERTIFICATE OF TITLE.
Status: in_force

PART 1.

GENERAL PROVISIONS

28-12-105. Territorial application of article to goods covered by certificate of title. Subject to the provisions of sections 28-12-304(3) and 28-12-305(3), with respect to goods covered by a certificate of title issued under a statute of this state or of another jurisdiction, compliance and the effect of compliance or noncompliance with a certificate of title statute are governed by the law (including the conflict of laws rules) of the jurisdiction issuing the certificate until the earlier of:

(1) Surrender of the certificate; or

(2) Four (4) months after the goods are removed from that jurisdiction and thereafter until a new certificate of title is issued by another jurisdiction.

History:

[28-12-105, added 1993, ch. 287, sec. 1, p. 981.]
Idaho Code § 28-3-412 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-412
28-3-412 OBLIGATION OF ISSUER OF NOTE OR CASHIER'S CHECK.
Status: in_force

PART 4.

LIABILITY OF PARTIES

28-3-412. Obligation of issuer of note or cashier's check. The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in sections 28-3-115 and 28-3-407. The obligation is owed to a person entitled to enforce the instrument or to an indorser who paid the instrument under section 28-3-415.

History:

[28-3-412, added 1993, ch. 288, sec. 2, p. 1043.]
Idaho Code § 28-9-407 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-407
28-9-407 RESTRICTIONS ON CREATION OR ENFORCEMENT OF SECURITY INTEREST IN LEASEHOLD INTEREST OR IN LESSOR'S RESIDUAL INTEREST.
Status: in_force

PART 4.

RIGHTS OF THIRD PARTIES

28-9-407. Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest. (a) Except as otherwise provided in subsection (b) of this section, a term in a lease agreement is ineffective to the extent that it:

(1) Prohibits, restricts or requires the consent of a party to the lease to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, an interest of a party under the lease contract or in the lessor's residual interest in the goods; or

(2) Provides that the assignment or transfer or the creation, attachment, perfection or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.

(b) Except as otherwise provided in section 28-12-303(7), a term described in subsection (a)(2) of this section is effective to the extent that there is:

(1) A transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or

(2) A delegation of a material performance of either party to the lease contract in violation of the term.

(c) The creation, attachment, perfection or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of section 28-12-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.

History:

[28-9-407, added 2001, ch. 208, sec. 2, p. 759.]
Idaho Code § 28-3-503 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-503
28-3-503 NOTICE OF DISHONOR.
Status: in_force

PART 5.

PRESENTMENT, NOTICE OF DISHONOR AND PROTEST

28-3-503. Notice of dishonor. (1) The obligation of an indorser stated in section 28-3-415(1) and the obligation of a drawer stated in section 28-3-414(4) may not be enforced unless, (i) the indorser or drawer is given notice of dishonor of the instrument complying with this section, or (ii) notice of dishonor is excused under section 28-3-504(2).

(2) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.

(3) Subject to section 28-3-504(3) with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument, or (ii) by any other person within thirty (30) days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within thirty (30) days following the day on which dishonor occurs.

History:

[28-3-503, added 1993, ch. 288, sec. 2, p. 1049.]
Idaho Code § 28-2-101 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-101
28-2-101 SHORT TITLE.
Status: in_force

PART 1.

SHORT TITLE, GENERAL CONSTRUCTION AND SUBJECT MATTER

28-2-101. Short title. This chapter shall be known and may be cited as Uniform Commercial Code–Sales.

History:

[28-2-101, added 1967, ch. 161, sec. 2-101, p. 351.]
Idaho Code § 28-2-714 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-714
28-2-714 BUYER'S DAMAGES FOR BREACH IN REGARD TO ACCEPTED GOODS.
Status: in_force

PART 7.

REMEDIES

28-2-714. Buyer's damages for breach in regard to accepted goods. (1) Where the buyer has accepted goods and given notification (subsection (3) of section 28-2-607) he may recover as damages for any nonconformity of tender the loss resulting in the ordinary course of events from the seller's breach as determined in any manner which is reasonable.

(2) The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.

(3) In a proper case any incidental and consequential damages under the next section may also be recovered.

History:

[28-2-714, added 1967, ch. 161, sec. 2-714, p. 351.]
Idaho Code § 28-9-334 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-334
28-9-334 PRIORITY OF SECURITY INTERESTS IN FIXTURES AND CROPS.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-334. Priority of security interests in fixtures and crops. (a) A security interest under this chapter may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials incorporated into an improvement on land.

(b) This chapter does not prevent creation of an encumbrance upon fixtures under real property law.

(c) In cases not governed by subsections (d) through (h) of this section, a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.

(d) Except as otherwise provided in subsection (h) of this section, a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:

(1) The security interest is a purchase-money security interest;

(2) The interest of the encumbrancer or owner arises before the goods become fixtures; and

(3) The security interest is perfected by a fixture filing before the goods become fixtures or within twenty (20) days thereafter.

(e) A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(1) The debtor has an interest of record in the real property or is in possession of the real property and the security interest:

(A) is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and

(B) has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;

(2) Before the goods become fixtures, the security interest is perfected by any method permitted by this chapter and the fixtures are readily removable:

(A) factory or office machines;

(B) equipment that is not primarily used or leased for use in the operation of the real property; or

(C) replacements of domestic appliances that are consumer goods;

(3) The conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this chapter; or

(4) The security interest is:

(A) created in a manufactured home in a manufactured home transaction; and

(B) perfected pursuant to a statute described in section 28-9-311(a)(2).

(f) A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:

(1) The encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or

(2) The debtor has a right to remove the goods as against the encumbrancer or owner.

(g) The priority of the security interest under subsection (f)(2) of this section continues for a reasonable time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.

(h) A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f) of this section, a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.

(i) A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.

History:

[28-9-334, added 2001, ch. 208, sec. 2, p. 752.]
Idaho Code § 28-36-108 — Idaho Code / Title 28 / Chapter 36 / Section 28-36-108
28-36-108 RECEIPTS AND ACCOUNTS.
Status: in_force

PART 1.

POWERS AND FUNCTIONS OF ADMINISTRATORS

28-36-108. Receipts and accounts. The lessor shall provide the consumer a written receipt for each payment made by cash or money order.

History:

[28-36-108, added 1993, ch. 232, sec. 1, p. 810.]
Idaho Code § 28-5-103 — Idaho Code / Title 28 / Chapter 5 / Section 28-5-103
28-5-103 SCOPE.
Status: in_force

28-5-103. Scope. (1) This chapter applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit.

(2) The statement of a rule in this chapter does not by itself require, imply, or negate application of the same or a different rule to a situation not provided for, or to a person not specified, in this chapter.

(3) With the exception of this subsection, subsections (1) and (2), sections 28-5-102(1)(i) and (1)(j), 28-5-106(4) and 28-5-114(4), and except to the extent prohibited in sections 28-1-302 and 28-5-117(4), the effect of this chapter may be varied by agreement or by a provision stated or incorporated by reference in an undertaking. A term in an agreement or undertaking generally excusing liability or generally limiting remedies for failure to perform obligations is not sufficient to vary obligations prescribed by this chapter.

(4) Rights and obligations of an issuer to a beneficiary or a nominated person under a letter of credit are independent of the existence, performance, or nonperformance of a contract or arrangement out of which the letter of credit arises or which underlies it, including contracts or arrangements between the issuer and the applicant and between the applicant and the beneficiary.

History:

[28-5-103, added 1996, ch. 7, sec. 2, p. 11; am. 2004, ch. 43, sec. 35, p. 156.]
Idaho Code § 28-12-211 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-211
28-12-211 WARRANTIES AGAINST INTERFERENCE AND AGAINST INFRINGEMENT — LESSEE'S OBLIGATION AGAINST INFRINGEMENT.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-211. Warranties against interference and against infringement — Lessee's obligation against infringement. (1) There is in a lease contract a warranty that for the lease term no person holds a claim to or interest in the goods that arose from an act or omission of the lessor, other than a claim by way of infringement or the like, which will interfere with the lessee's enjoyment of its leasehold interest.

(2) Except in a finance lease there is, in a lease contract by a lessor who is a merchant regularly dealing in goods of the kind, a warranty that the goods are delivered free of the rightful claim of any person by way of infringement or the like.

(3) A lessee who furnishes specifications to a lessor or a supplier shall hold the lessor and the supplier harmless against any claim by way of infringement or the like that arises out of compliance with the specifications.

History:

[28-12-211, added 1993, ch. 287, sec. 1, p. 986.]
Idaho Code § 28-2-723 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-723
28-2-723 PROOF OF MARKET PRICE — TIME AND PLACE.
Status: in_force

PART 7.

REMEDIES

28-2-723. Proof of market price — Time and place. (1) If an action based on anticipatory repudiation comes to trial before the time for performance with respect to some or all of the goods, any damages based on market price (section 28-2-708 or section 28-2-713) shall be determined according to the price of such goods prevailing at the time when the aggrieved party learned of the repudiation.

(2) If evidence of a price prevailing at the times or places described in this chapter is not readily available the price prevailing within any reasonable time before or after the time described or at any other place which in commercial judgment or under usage of trade would serve as a reasonable substitute for the one described may be used, making any proper allowance for the cost of transporting the goods to or from such other place.

(3) Evidence of a relevant price prevailing at a time or place other than the one described in this chapter offered by one party is not admissible unless and until he has given the other party such notice as the court finds sufficient to prevent unfair surprise.

History:

[28-2-723, added 1967, ch. 161, sec. 2-723, p. 351.]
Idaho Code § 28-8-105 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-105
28-8-105 NOTICE OF ADVERSE CLAIM.
Status: in_force

PART 1.

SHORT TITLE AND GENERAL MATTERS

28-8-105. Notice of adverse claim. (1) A person has notice of an adverse claim if:

(a) The person knows of the adverse claim;

(b) The person is aware of facts sufficient to indicate that there is a significant probability that the adverse claim exists and deliberately avoids information that would establish the existence of the adverse claim; or

(c) The person has a duty, imposed by statute or rule, to investigate whether an adverse claim exists, and the investigation so required would establish the existence of the adverse claim.

(2) Having knowledge that a financial asset or interest therein is or has been transferred by a representative imposes no duty of inquiry into the rightfulness of a transaction and is not notice of an adverse claim. However, a person who knows that a representative has transferred a financial asset or interest therein in a transaction that is, or whose proceeds are being used, for the individual benefit of the representative or otherwise in breach of duty has notice of an adverse claim.

(3) An act or event that creates a right to immediate performance of the principal obligation represented by a security certificate or sets a date on or after which the certificate is to be presented or surrendered for redemption or exchange does not itself constitute notice of an adverse claim except in the case of a transfer more than:

(a) One (1) year after a date set for presentment or surrender for redemption or exchange; or

(b) Six (6) months after a date set for payment of money against presentation or surrender of the certificate, if money was available for payment on that date.

(4) A purchaser of a certificated security has notice of an adverse claim if the security certificate:

(a) Whether in bearer or registered form, has been indorsed "for collection" or "for surrender" or for some other purpose not involving transfer; or

(b) Is in bearer form and has on it an unambiguous statement that it is the property of a person other than the transferor, but the mere writing of a name on the certificate is not such a statement.

(5) Filing of a financing statement under chapter 9, title 28, is not notice of an adverse claim to a financial asset.

History:

[28-8-105, added 1995, ch. 272, sec. 2, p. 878.]
Idaho Code § 28-9-605 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-605
28-9-605 UNKNOWN DEBTOR OR SECONDARY OBLIGOR.
Status: in_force

PART 6.

DEFAULT

28-9-605. Unknown debtor or secondary obligor. A secured party does not owe a duty based on its status as secured party:

(1) To a person that is a debtor or obligor, unless the secured party knows:

(A) That the person is a debtor or obligor;

(B) The identity of the person; and

(C) How to communicate with the person; or

(2) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

(A) That the person is a debtor; and

(B) The identity of the person.

History:

[28-9-605, added 2001, ch. 208, sec. 2, p. 782.]
Idaho Code § 28-24-104B — Idaho Code / Title 28 / Chapter 24 / Section 28-24-104B
28-24-104B WARRANTY CLAIMS.
Status: in_force

PART 1.

AGREEMENTS BETWEEN SUPPLIERS AND DEALERS OF FARM EQUIPMENT

28-24-104B. Warranty claims. (1) An equipment dealer may submit a warranty claim to a supplier if a warranty defect is identified and documented prior to the expiration of a supplier's warranty:

(a) While a dealer agreement is in effect; or

(b) After the termination of a dealer agreement if the claim is for work performed while the dealer agreement was in effect.

(2) A supplier shall accept or reject a warranty claim submitted under subsection (1) of this section, within thirty (30) days of the date the supplier received the claim. A warranty claim not rejected within thirty (30) days of the date the supplier received the claim is considered to be accepted by the supplier.

(3) No later than thirty (30) days after the date a warranty claim is accepted or rejected under subsection (2) of this section, the supplier shall:

(a) Pay an accepted warranty claim; or

(b) Send the dealer written notice of the reason the warranty claim was rejected.

(4) A supplier shall compensate the dealer for the warranty claim as follows:

(a) The dealer's established customer hourly retail labor rate multiplied by the reasonable and customary amount of time required to complete such work by similarly situated dealers, including diagnostic time, and cleanup time, expressed in hours and fractions of an hour;

(b) The dealer's current net price on repair parts reimbursed at not less than net plus twenty percent (20%) of the cost for warranty service performed on behalf of the supplier to compensate for reasonable costs of doing business; and

(c) Extraordinary freight and handling costs. For purposes of this subsection (4)(c), "extraordinary freight and handling costs" means costs that are above and beyond the normal reimbursement policy of the supplier for warranty repair work;

(d) When the repair work is for safety or mandatory modifications ordered by the supplier, the supplier shall reimburse the dealer for transportation costs incurred by the dealer.

(5) After payment of a warranty claim, a supplier may not charge back, off-set or otherwise attempt to recover from the dealer all or part of the amount of the claim unless:

(a) The warranty claim was submitted in error;

(b) The services for which the warranty claim was made were not properly performed or were unnecessary to comply with the warranty; or

(c) The dealer did not substantiate the warranty claim according to the written requirements of the supplier that were in effect when the equipment was delivered to the dealer by the customer for warranty repairs.

(6) If a supplier denies a warranty claim due to a particular item or part of the claim, the denial shall only affect the items or parts in question and not the complete warranty claim.

(7) A supplier may not pass the cost of covering warranty claims under this chapter on to a dealer through any means including:

(a) Surcharges;

(b) Reduction of discounts; or

(c) Certification standards.

History:

[28-24-104B, added 2005, ch. 238, sec. 9, p. 739; am. 2011, ch. 270, sec. 15, p. 736.]
Idaho Code § 28-42-302 — Idaho Code / Title 28 / Chapter 42 / Section 28-42-302
28-42-302 DEFERRAL CHARGES.
Status: in_force

PART 3.

OTHER CHANGES AND MODIFICATIONS

28-42-302. Deferral charges. (1) With respect to a precomputed regulated consumer credit transaction, refinancing, or consolidation, the parties before or after default may agree in writing to a deferral of all or part of one or more unpaid installments, and the creditor may make and collect a charge not exceeding the rate previously stated to the debtor applied to the amount or amounts deferred for the period of deferral calculated without regard to differences in the lengths of months, but proportionally for a part of a month, counting each day as 1/30th of a month. A deferral charge may be collected at the time it is assessed or at any time thereafter.

(2) The parties may agree in writing at the time of a precomputed regulated consumer credit transaction, refinancing, or consolidation that if an installment is not paid within ten (10) days after its due date, the creditor may unilaterally grant a deferral and make charges as provided in this section. No deferral charge may be made for a period after the date that the creditor elects to accelerate the maturity of the agreement.

(3) A delinquency charge made by the creditor on an installment may not be retained if a deferral charge is made pursuant to this section with respect to the period of delinquency.

History:

[28-42-302, added 1983, ch. 119, sec. 3, p. 277.]
Idaho Code § 28-12-218 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-218
28-12-218 INSURANCE AND PROCEEDS.
Status: in_force

PART 2.

FORMATION AND CONSTRUCTION OF LEASE CONTRACT

28-12-218. Insurance and proceeds. (1) A lessee obtains an insurable interest when existing goods are identified to the lease contract even though the goods identified are nonconforming and the lessee has an option to reject them.

(2) If a lessee has an insurable interest only by reason of the lessor's identification of the goods, the lessor, until default or insolvency or notification to the lessee that identification is final, may substitute other goods for those identified.

(3) Notwithstanding a lessee's insurable interest under the provisions of subsections (1) and (2) of this section, the lessor retains an insurable interest until an option to buy has been exercised by the lessee and risk of loss has passed to the lessee.

(4) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.

(5) The parties by agreement may determine that one (1) or more parties have an obligation to obtain and pay for insurance covering the goods and by agreement may determine the beneficiary of the proceeds of the insurance.

History:

[28-12-218, added 1993, ch. 287, sec. 1, p. 988.]
Idaho Code § 28-7-602 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-602
28-7-602 JUDICIAL PROCESS AGAINST GOODS COVERED BY NEGOTIABLE DOCUMENTS OF TITLE.
Status: in_force

PART 6.

WAREHOUSE RECEIPTS AND BILLS OF LADING — MISCELLANEOUS PROVISIONS

28-7-602. Judicial process against goods covered by negotiable documents of title. Unless a document of title was originally issued upon delivery of the goods by a person that did not have power to dispose of them, a lien does not attach by virtue of any judicial process to goods in the possession of a bailee for which a negotiable document of title is outstanding unless possession or control of the document is first surrendered to the bailee or the document's negotiation is enjoined. The bailee may not be compelled to deliver the goods pursuant to process until possession or control of the document is surrendered to the bailee or to the court. A purchaser of the document for value without notice of the process or injunction takes free of the lien imposed by judicial process.

History:

[28-7-602, added 2004, ch. 42, sec. 2, p. 96.]
Idaho Code § 28-9-520 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-520
28-9-520 ACCEPTANCE AND REFUSAL TO ACCEPT RECORD.
Status: in_force

PART 5.

FILING

28-9-520. Acceptance and refusal to accept record. (a) A filing office shall refuse to accept a record for filing for a reason set forth in section 28-9-516(b) and may refuse to accept a record for filing only for a reason set forth in section 28-9-516(b).

(b) If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing office rule but, in the case of a filing office described in section 28-9-501(a)(2), in no event more than two (2) business days after the filing office receives the record.

(c) A filed financing statement satisfying section 28-9-502(a) and (b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a) of this section. However, section 28-9-338 applies to a filed financing statement providing information described in section 28-9-516(b)(5) which is incorrect at the time the financing statement is filed.

(d) If a record communicated to a filing office provides information that relates to more than one (1) debtor, this part applies as to each debtor separately.

History:

[28-9-520, added 2001, ch. 208, sec. 2, p. 772.]
Idaho Code § 28-5306 — Idaho Code / Title 28 / Chapter 53 / Section 28-5306
28-5306 PERFECTION BY POSSESSION OR CONTROL.
Status: in_force

28-5306. perfection by possession or control. (1) Perfection by possession creates a possessory security interest under section 28-9-301, Idaho Code.

(2) A security interest held by a secured party having possession or control has priority over a security interest held by a secured party that does not have possession or control, as applicable. Other provisions of law relating to perfection and priority of security interests, including section 28-9-207, Idaho Code, and priority of control over delivery, shall apply, except that section 28-9-322(a)(1) and (b), Idaho Code, shall not apply.

(3) A person that acquires an interest in and obtains control of a virtual currency without notice of any adverse claim takes the interest in the virtual currency and in any right to payment evidenced by the virtual currency free of any adverse claim.

History:

[28-5306, added 2022, ch. 284, sec. 1, p. 903.]
Idaho Code § 28-9-804 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-804
28-9-804 SECURITY INTEREST UNPERFECTED BEFORE EFFECTIVE DATE.
Status: in_force

PART 8.

TRANSITION PROVISIONS FOR 2011 AMENDMENTS

28-9-804. security interest unperfected before effective date. A security interest that is an unperfected security interest immediately before this act takes effect becomes a perfected security interest:

(1) Without further action, when this act takes effect if the applicable requirements for perfection under this chapter as amended by this act are satisfied before or at that time; or

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

History:

[28-9-804, added 2012, ch. 145, sec. 20, p. 410.]
Idaho Code § 28-2-722 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-722
28-2-722 WHO CAN SUE THIRD PARTIES FOR INJURY TO GOODS.
Status: in_force

PART 7.

REMEDIES

28-2-722. Who can sue third parties for injury to goods. Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract

(a) a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the other;

(b) if at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract;

(c) either party may with the consent of the other sue for the benefit of whom it may concern.

History:

[28-2-722, added 1967, ch. 161, sec. 2-722, p. 351.]
Idaho Code § 28-3-405 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-405
28-3-405 EMPLOYER'S RESPONSIBILITY FOR FRAUDULENT INDORSEMENT BY EMPLOYEE.
Status: in_force

PART 4.

LIABILITY OF PARTIES

28-3-405. Employer's responsibility for fraudulent indorsement by employee. (1) In this section:

(a) "Employee" includes an independent contractor and employee of an independent contractor retained by the employer.

(b) "Fraudulent indorsement" means (i) in the case of an instrument payable to the employer, a forged indorsement purporting to be that of the employer, or (ii) in the case of an instrument with respect to which the employer is the issuer, a forged indorsement purporting to be that of the person identified as payee.

(c) "Responsibility" with respect to instruments means authority (i) to sign or indorse instruments on behalf of the employer, (ii) to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition, (iii) to prepare or process instruments for issue in the name of the employer, (iv) to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer, (v) to control the disposition of instruments to be issued in the name of the employer, or (vi) to act otherwise with respect to instruments in a responsible capacity. "Responsibility" does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.

(2) For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent indorsement of the instrument, the indorsement is effective as the indorsement of the person to whom the instrument is payable if it is made in the name of that person. If the person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.

(3) Under subsection (2) of this section, an indorsement is made in the name of the person to whom an instrument is payable if (i) it is made in a name substantially similar to the name of that person, or (ii) the instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.

History:

[28-3-405, added 1993, ch. 288, sec. 2, p. 1040.]
Idaho Code § 28-2-610 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-610
28-2-610 ANTICIPATORY REPUDIATION.
Status: in_force

PART 6.

BREACH, REPUDIATION AND EXCUSE

28-2-610. Anticipatory repudiation. When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of the contract to the other, the aggrieved party may

(a) for a commercially reasonable time await performance by the repudiating party; or

(b) resort to any remedy for breach (section 28-2-703 or section 28-2-711), even though he has notified the repudiating party that he would await the latter's performance and has urged retraction; and

(c) in either case suspend his own performance or proceed in accordance with the provisions of this chapter on the seller's right to identify goods to the contract notwithstanding breach or to salvage unfinished goods (section 28-2-704).

History:

[28-2-610, added 1967, ch. 161, sec. 2-610, p. 351.]
Idaho Code § 28-4-632 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-632
28-4-632 VARIATION BY AGREEMENT AND EFFECT OF FUNDS-TRANSFER SYSTEM RULE.
Status: in_force

PART 6.

FUNDS TRANSFERS

28-4-632. Variation by agreement and effect of funds-transfer system rule. (1) Except as otherwise provided in this part, the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party.

(2) "Funds-transfer system rule" means a rule of an association of banks:

(a) governing transmission of payment orders by means of a funds-transfer system of the association or rights and obligations with respect to those orders, or

(b) to the extent the rule governs rights and obligations between banks that are parties to a funds transfer in which a Federal Reserve bank, acting as an intermediary bank, sends a payment order to the beneficiary's bank.

Except as otherwise provided in this part, a funds-transfer system rule governing rights and obligations between participating banks using the system may be effective even if the rule conflicts with this part and indirectly affects another party to the funds transfer who does not consent to the rule. A funds-transfer system rule may also govern rights and obligations of parties other than participating banks using the system to the extent stated in sections 28-4-629(3), 28-4-630(4), and 28-4-638(3).

History:

[28-4-632, added 1991, ch. 135, sec. 1, p. 315.]
Idaho Code § 28-2-313 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-313
28-2-313 EXPRESS WARRANTIES BY AFFIRMATION, PROMISE, DESCRIPTION, SAMPLE.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-313. Express warranties by affirmation, promise, description, sample. (1) Express warranties by the seller are created as follows:

(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.

(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.

(c) Any sample or model which is made part of the basis of the bargain creates an express warranty that the whole of the goods shall conform to the sample or model.

(2) It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee" or that he have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the seller's opinion or commendation of the goods does not create a warranty.

History:

[28-2-313, added 1967, ch. 161, sec. 2-313, p. 351.]
Idaho Code § 28-7-509 — Idaho Code / Title 28 / Chapter 7 / Section 28-7-509
28-7-509 ADEQUATE COMPLIANCE WITH COMMERCIAL CONTRACT.
Status: in_force

PART 5.

WAREHOUSE RECEIPTS AND BILLS OF LADING — NEGOTIATION AND TRANSFER

28-7-509. Adequate compliance with commercial contract. Whether a document of title is adequate to fulfill the obligations of a contract for sale, a contract for lease, or the conditions of a letter of credit is determined by chapter 2, 5 or 12, title 28, Idaho Code.

History:

[28-7-509, added 2004, ch. 42, sec. 2, p. 96.]
Idaho Code § 28-23-108 — Idaho Code / Title 28 / Chapter 23 / Section 28-23-108
28-23-108 GUARANTY AND SECURITY AGREEMENT NOTICE REQUIREMENTS.
Status: in_force

28-23-108. Guaranty and security agreement notice requirements. All wholesalers, manufacturers or distributors of farm implements, equipment, machinery, attachments, accessories or repair parts shall give the retailer a minimum of ninety (90) days' notice in writing and obtain consent from the dealer before changing the time and manner of payment of any indebtedness owed by retailer to manufacturer, distributor or wholesaler, and before taking and making any changes in notes or security for any indebtedness, and before releasing or adding additional guarantors, and before granting renewals or extensions of such indebtedness.

History:

[28-23-108, added 1975, ch. 97, sec. 8, p. 197; am. 2005, ch. 238, sec. 5, p. 734; am. 2011, ch. 270, sec. 8, p. 734.]
Idaho Code § 28-46-103 — Idaho Code / Title 28 / Chapter 46 / Section 28-46-103
28-46-103 ADMINISTRATOR.
Status: in_force

PART 1.

POWERS AND FUNCTIONS OF ADMINISTRATOR

28-46-103. Administrator. "Administrator" means the director of the department of finance of the state of Idaho.

History:

[28-46-103, added 1983, ch. 119, sec. 3, p. 300.]
Idaho Code § 28-12-513 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-513
28-12-513 CURE BY LESSOR OF IMPROPER TENDER OR DELIVERY — REPLACEMENT.
Status: in_force

PART 5.

DEFAULT

28-12-513. Cure by lessor of improper tender or delivery — Replacement. (1) If any tender or delivery by the lessor or the supplier is rejected because nonconforming and the time for performance has not yet expired, the lessor or the supplier may seasonably notify the lessee of the lessor's or the supplier's intention to cure and may then make a conforming delivery within the time provided in the lease contract.

(2) If the lessee rejects a nonconforming tender that the lessor or the supplier had reasonable grounds to believe would be acceptable with or without money allowance, the lessor or the supplier may have a further reasonable time to substitute a conforming tender if he seasonably notifies the lessee.

History:

[28-12-513, added 1993, ch. 287, sec. 1, p. 1004.]
Idaho Code § 28-4-612 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-612
28-4-612 REFUND OF PAYMENT AND DUTY OF CUSTOMER TO REPORT WITH RESPECT TO UNAUTHORIZED PAYMENT ORDER.
Status: in_force

PART 6.

FUNDS TRANSFERS

28-4-612. Refund of payment and duty of customer to report with respect to unauthorized payment order. (a) If a receiving bank accepts a payment order issued in the name of its customer as sender which is:

(1) Not authorized and not effective as the order of the customer under section 28-4-610, or

(2) Not enforceable, in whole or in part, against the customer under section 28-4-611, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund. However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding ninety (90) days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.

(b) Reasonable time under subsection (a) of this section may be fixed by agreement as stated in section 28-1-302(b), but the obligation of a receiving bank to refund payment as stated in subsection (a) of this section may not otherwise be varied by agreement.

History:

[28-4-612, added 1991, ch. 135, sec. 1, p. 300; am. 2004, ch. 43, sec. 34, p. 156.]
Idaho Code § 28-43-203 — Idaho Code / Title 28 / Chapter 43 / Section 28-43-203
28-43-203 CHANGE IN TERMS OF OPEN-END CONSUMER CREDIT ACCOUNTS.
Status: in_force

PART 2.

DISCLOSURE

28-43-203. Change in terms of open-end consumer credit accounts. Whether or not a change is authorized by prior agreement, a creditor may change the terms of an open-end consumer credit account applying to any balance incurred before or after the effective date of the change.

History:

[28-43-203, added 1983, ch. 119, sec. 3, p. 282.]
Idaho Code § 28-3-309 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-309
28-3-309 EFFECT OF INSTRUMENT ON OBLIGATION FOR WHICH TAKEN.
Status: in_force

PART 3.

ENFORCEMENT OF INSTRUMENTS

28-3-309. Effect of instrument on obligation for which taken. (1) Unless otherwise agreed, if a certified check, cashier's check or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the obligor may have as an indorser of the instrument.

(2) Unless otherwise agreed and except as provided in subsection (1) of this section, if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken, and the following rules apply:

(a) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.

(b) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.

(c) Except as provided in subsection (2)(d) of this section, if the check or note is dishonored and the obligee of the obligation for which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person which is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.

(d) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee's rights against the obligor are limited to enforcement of the instrument.

(3) If an instrument other than one described in subsection (1) or (2) of this section is taken for an obligation, the effect is (i) that stated in subsection (1) of this section if the instrument is one on which a bank is liable as maker or acceptor, or (ii) that stated in subsection (2) of this section in any other case.

History:

[28-3-309, added 1993, ch. 288, sec. 2, p. 1036.]
Idaho Code § 28-2-308 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-308
28-2-308 ABSENCE OF SPECIFIED PLACE FOR DELIVERY.
Status: in_force

PART 3.

GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT

28-2-308. Absence of specified place for delivery. Unless otherwise agreed

(a) the place for delivery of goods is the seller's place of business or if he has none his residence; but

(b) in a contract for sale of identified goods which to the knowledge of the parties at the time of contracting are in some other place, that place is the place for their delivery; and

(c) documents of title may be delivered through customary banking channels.

History:

[28-2-308, added 1967, ch. 161, sec. 2-308, p. 351.]
Idaho Code § 28-44-203 — Idaho Code / Title 28 / Chapter 44 / Section 28-44-203
28-44-203 FILING AND APPROVAL OF RATES AND FORMS.
Status: in_force

PART 2.

CREDIT INSURANCE

28-44-203. Filing and approval of rates and forms. (1) A creditor may not use a form or a schedule of premium rates or charges, the filing of which is required by this section, if the director of the department of insurance has disapproved the form or schedule and has notified the insurer of his disapproval. A creditor may not use a form or schedule unless:

(a) The form or schedule has been on file with the director of the department of insurance for thirty (30) days, or has earlier been approved by him; and

(b) The insurer has complied with this section with respect to the insurance.

(2) Except as provided in subsection (3) of this section, all policies, certificates of insurance, notices of proposed insurance, applications for insurance, endorsements and riders relating to credit insurance delivered or issued for delivery in this state, and the schedules of premium rates or charges pertaining thereto, shall be filed by the insurer with the director of the department of insurance. Within thirty (30) days after the filing of any form or schedule, he shall disapprove it if the premium rates or charges are unreasonable in relation to the benefits provided under the form, or if the form contains provisions which are unjust, unfair, inequitable, or deceptive, or encourage misrepresentation of the coverage, or are contrary to any provision of the Credit Insurance Act or of any rule or regulation promulgated thereunder.

(3) If a group policy has been delivered in another state, the forms to be filed by the insurer with the director of the department of insurance are the group certificates and notices of proposed insurance. He shall approve them if:

(a) They provide the information that would be required if the group policy were delivered in this state; and

(b) The applicable premium rates or charges do not exceed those established by his rules or regulations.

History:

[28-44-203, added 1983, ch. 119, sec. 3, p. 292.]
Idaho Code § 28-4-633 — Idaho Code / Title 28 / Chapter 4 / Section 28-4-633
28-4-633 CREDITOR PROCESS SERVED ON RECEIVING BANK — SETOFF BY BENEFICIARY'S BANK.
Status: in_force

PART 6.

FUNDS TRANSFERS

28-4-633. Creditor process served on receiving bank — Setoff by beneficiary's bank. (1) 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.

(2) The provisions of this subsection apply 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.

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

(a) 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.

(b) 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.

(c) 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.

(4) 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.

History:

[28-4-633, added 1991, ch. 135, sec. 1, p. 315.]
Idaho Code § 28-3-307 — Idaho Code / Title 28 / Chapter 3 / Section 28-3-307
28-3-307 PROOF OF SIGNATURES AND STATUS AS HOLDER IN DUE COURSE.
Status: in_force

PART 3.

ENFORCEMENT OF INSTRUMENTS

28-3-307. Proof of signatures and status as holder in due course. (1) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature is denied in the pleadings, the burden of establishing validity is on the person claiming validity, but the signature is presumed to be authentic and authorized unless the action is to enforce the liability of the purported signer and the signer is dead or incompetent at the time of trial of the issue of validity of the signature. If an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the instrument as a party to the instrument, the plaintiff has the burden of establishing that the defendant is liable on the instrument as a represented person under section 28-3-402(1).

(2) If the validity of signatures is admitted or proved and there is compliance with subsection (1) of this section, a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under section 28-3-301, unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right to payment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff proves that the plaintiff has rights of a holder in due course which are not subject to the defense or claim.

History:

[28-3-307, added 1993, ch. 288, sec. 2, p. 1035.]
Idaho Code § 28-23-111 — Idaho Code / Title 28 / Chapter 23 / Section 28-23-111
28-23-111 APPLICATION.
Status: in_force

28-23-111. Application. This act shall apply to all franchise agreements, security agreements and guaranty agreements dated prior to July 1, 1975, and all franchise agreements, security agreements and guaranty agreements dated on or after July 1, 1975.

History:

[28-23-111, added 1975, ch. 97, sec. 11, p. 197.]
Idaho Code § 28-2-201 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-201
28-2-201 FORMAL REQUIREMENTS — STATUTE OF FRAUDS.
Status: in_force

PART 2.

FORM, FORMATION AND READJUSTMENT OF CONTRACT

28-2-201. Formal requirements — Statute of frauds. (1) Except as otherwise provided in this section a contract for the sale of goods for the price of $500 or more is not enforceable by way of action or defense unless there is some writing sufficient to indicate that a contract for sale has been made between the parties and signed by the party against whom enforcement is sought or by his authorized agent or broker. A writing is not insufficient because it omits or incorrectly states a term agreed upon but the contract is not enforceable under this paragraph beyond the quantity of goods shown in such writing.

(2) Between merchants if within a reasonable time a writing in confirmation of the contract and sufficient against the sender is received and the party receiving it has reason to know its contents, it satisfies the requirements of subsection (1) against such party unless written notice of objection to its contents is given within ten (10) days after it is received.

(3) A contract which does not satisfy the requirements of subsection (1) but which is valid in other respects is enforceable

(a) if the goods are to be specially manufactured for the buyer and are not suitable for sale to others in the ordinary course of the seller's business and the seller, before notice of repudiation is received and under circumstances which reasonably indicate that the goods are for the buyer, has made either a substantial beginning of their manufacture or commitments for their procurement; or

(b) if the party against whom enforcement is sought admits in his pleading, testimony or otherwise in court that a contract for sale was made, but the contract is not enforceable under this provision beyond the quantity of goods admitted; or

(c) with respect to goods for which payment has been made and accepted or which have been received and accepted (section 28-2-606).

History:

[28-2-201, added 1967, ch. 161, sec. 2-201, p. 351.]
Idaho Code § 28-2-719 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-719
28-2-719 CONTRACTUAL MODIFICATION OR LIMITATION OF REMEDY.
Status: in_force

PART 7.

REMEDIES

28-2-719. Contractual modification or limitation of remedy. (1) Subject to the provisions of subsections (2) and (3) of this section and of the preceding section on liquidation and limitation of damages,

(a) the agreement may provide for remedies in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter, as by limiting the buyer's remedies to return of the goods and repayment of the price or to repair and replacement of non-conforming goods or parts; and

(b) resort to a remedy as provided is optional unless the remedy is expressly agreed to be exclusive, in which case it is the sole remedy.

(2) Where circumstances cause an exclusive or limited remedy to fail of its essential purpose, remedy may be had as provided in this act.

(3) Consequential damages may be limited or excluded unless the limitation or exclusion is unconscionable. Limitation of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation of damages where the loss is commercial is not.

History:

[28-2-719, added 1967, ch. 161, sec. 2-719, p. 351.]
Idaho Code § 28-2-717 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-717
28-2-717 DEDUCTION OF DAMAGES FROM THE PRICE.
Status: in_force

PART 7.

REMEDIES

28-2-717. Deduction of damages from the price. The buyer on notifying the seller of his intention to do so may deduct all or any part of the damages resulting from any breach of the contract from any part of the price still due under the same contract.

History:

[28-2-717, added 1967, ch. 161, sec. 2-717, p. 351.]
Idaho Code § 28-9-505 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-505
28-9-505 FILING AND COMPLIANCE WITH OTHER STATUTES AND TREATIES FOR CONSIGNMENTS, LEASES, OTHER BAILMENTS, AND OTHER TRANSACTIONS.
Status: in_force

PART 5.

FILING

28-9-505. Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions. (a) A consignor, lessor, or other bailor of goods, a licensor, or a buyer of a payment intangible or promissory note may file a financing statement, or may comply with a statute or treaty described in section 28-9-311(a), using the terms "consignor," "consignee," "lessor," "lessee," "bailor," "bailee," "licensor," "licensee," "owner," "registered owner," "buyer," "seller," or words of similar import, instead of the terms "secured party" and "debtor."

(b) This part applies to the filing of a financing statement under subsection (a) of this section and, as appropriate, to compliance that is equivalent to filing a financing statement under section 28-9-311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, licensor, owner or buyer which attaches to the collateral is perfected by the filing or compliance.

History:

[28-9-505, added 2001, ch. 208, sec. 2, p. 764.]
Idaho Code § 28-12-511 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-511
28-12-511 MERCHANT LESSEE'S DUTIES AS TO RIGHTFULLY REJECTED GOODS.
Status: in_force

PART 5.

DEFAULT

28-12-511. Merchant lessee's duties as to rightfully rejected goods. (1) Subject to any security interest of a lessee (section 28-12-508(5)), if a lessor or a supplier has no agent or place of business at the market of rejection, a merchant lessee, after rejection of goods in his possession or control, shall follow any reasonable instructions received from the lessor or the supplier with respect to the goods. In the absence of those instructions, a merchant lessee shall make reasonable efforts to sell, lease, or otherwise dispose of the goods for the lessor's account if they threaten to decline in value speedily. Instructions are not reasonable if on demand indemnity for expenses is not forthcoming.

(2) If a merchant lessee (see subsection (1) of this section) or any other lessee (section 28-12-512) disposes of goods, he is entitled to reimbursement either from the lessor or the supplier or out of the proceeds for reasonable expenses of caring for and disposing of the goods and, if the expenses include no disposition commission, to such commission as is usual in the trade, or if there is none, to a reasonable sum not exceeding ten percent (10%) of the gross proceeds.

(3) In complying with the provisions of this section or section 28-12-512, the lessee is held only to good faith. Good faith conduct hereunder is neither acceptance or conversion nor the basis of an action for damages.

(4) A purchaser who purchases in good faith from a lessee pursuant to the provisions of this section or section 28-12-512 takes the goods free of any rights of the lessor and the supplier even though the lessee fails to comply with one or more of the requirements of this chapter.

History:

[28-12-511, added 1993, ch. 287, sec. 1, p. 1003.]
Idaho Code § 28-9-327 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-327
28-9-327 PRIORITY OF SECURITY INTERESTS IN DEPOSIT ACCOUNT.
Status: in_force

PART 3.

PERFECTION AND PRIORITY

28-9-327. Priority of security interests in deposit account. The following rules govern priority among conflicting security interests in the same deposit account:

(1) A security interest held by a secured party having control of the deposit account under section 28-9-104 has priority over a conflicting security interest held by a secured party that does not have control.

(2) Except as otherwise provided in subsections (3) and (4) of this section, security interests perfected by control under section 28-9-314 rank according to priority in time of obtaining control.

(3) Except as otherwise provided in subsection (4) of this section, a security interest held by the bank with which the deposit account is maintained has priority over a conflicting security interest held by another secured party.

(4) A security interest perfected by control under section 28-9-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.

History:

[28-9-327, added 2001, ch. 208, sec. 2, p. 749.]
Idaho Code § 28-9-403 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-403
28-9-403 AGREEMENT NOT TO ASSERT DEFENSES AGAINST ASSIGNEE.
Status: in_force

PART 4.

RIGHTS OF THIRD PARTIES

28-9-403. Agreement not to assert defenses against assignee. (a) In this section, "value" has the meaning provided in section 28-3-303(1).

(b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:

(1) For value;

(2) In good faith;

(3) Without notice of a claim of a property or possessory right to the property assigned; and

(4) Without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under section 28-3-305(1).

(c) Subsection (b) of this section does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under section 28-3-305(2).

(d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than this chapter requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement:

(1) The record has the same effect as if the record included such a statement; and

(2) The account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.

(e) This section is subject to law other than this chapter 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.

(f) Except as otherwise provided in subsection (d) of this section, this section does not displace law other than this chapter which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.

History:

[28-9-403, added 2001, ch. 208, sec. 2, p. 756.]
Idaho Code § 28-45-106 — Idaho Code / Title 28 / Chapter 45 / Section 28-45-106
28-45-106 UNCONSCIONABILITY.
Status: in_force

PART 1.

LIMITATIONS ON CREDITORS' REMEDIES

28-45-106. Unconscionability. (1) With respect to a regulated consumer credit sale, or regulated consumer loan, if the court as a matter of law finds the agreement or any clause of the agreement to have been unconscionable at the time it was made the court may refuse to enforce the agreement, or it may enforce the remainder of the agreement without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.

(2) If it is claimed or appears to the court that the agreement or any clause thereof may be unconscionable the parties shall be afforded a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making the determination.

(3) For the purpose of this section, a charge or practice expressly permitted by this act is not in itself unconscionable.

History:

[28-45-106, added 1983, ch. 119, sec. 3, p. 295.]
Idaho Code § 28-2-508 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-508
28-2-508 CURE BY SELLER OF IMPROPER TENDER OR DELIVERY — REPLACEMENT.
Status: in_force

PART 5.

PERFORMANCE

28-2-508. Cure by seller of improper tender or delivery — Replacement. (1) Where any tender or delivery by the seller is rejected because nonconforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of his intention to cure and may then within the contract time make a conforming delivery.

(2) Where the buyer rejects a nonconforming tender which the seller had reasonable grounds to believe would be acceptable with or without money allowance the seller may if he seasonably notifies the buyer have a further reasonable time to substitute a conforming tender.

History:

[28-2-508, added 1967, ch. 161, sec. 2-508, p. 351.]
Idaho Code § 28-12-503 — Idaho Code / Title 28 / Chapter 12 / Section 28-12-503
28-12-503 MODIFICATION OR IMPAIRMENT OF RIGHTS AND REMEDIES.
Status: in_force

PART 5.

DEFAULT

28-12-503. Modification or impairment of rights and remedies. (1) Except as otherwise provided in this chapter, the lease agreement may include rights and remedies for default in addition to or in substitution for those provided in this chapter and may limit or alter the measure of damages recoverable under this chapter.

(2) Resort to a remedy provided under this chapter or in the lease agreement is optional unless the remedy is expressly agreed to be exclusive. If circumstances cause an exclusive or limited remedy to fail of its essential purpose, or provision for an exclusive remedy is unconscionable, remedy may be had as provided in this chapter.

(3) Consequential damages may be liquidated under section 28-12-504, or may otherwise be limited, altered, or excluded unless the limitation, alteration, or exclusion is unconscionable. Limitation, alteration, or exclusion of consequential damages for injury to the person in the case of consumer goods is prima facie unconscionable but limitation, alteration, or exclusion of damages where the loss is commercial is not prima facie unconscionable.

(4) Rights and remedies on default by the lessor or the lessee with respect to any obligation or promise collateral or ancillary to the lease contract are not impaired by this chapter.

History:

[28-12-503, added 1993, ch. 287, sec. 1, p. 1000.]
Idaho Code § 28-9-518 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-518
28-9-518 CLAIM CONCERNING INACCURATE OR WRONGFULLY FILED RECORD.
Status: in_force

PART 5.

FILING

28-9-518. Claim concerning inaccurate or wrongfully filed record. (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 wrongfully filed.

(b) An information statement under subsection (a) of this section must:

(1) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;

(2) Indicate that it is an information statement; and

(3) Provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.

(c) A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under section 28-9-509(d), Idaho Code.

(d) An information statement under subsection (c) of this section must:

(1) Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;

(2) Indicate that it is an information statement; and

(3) Provide the basis for the person's belief that the person that filed the record was not entitled to do so under section 28-9-509(d), Idaho Code.

(e) The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record.

(f) An information statement may be filed in connection with the previous filing of a financing statement covering farm products under section 28-9-502, Idaho Code.

History:

[28-9-518, added 2001, ch. 208, sec. 2, p. 770; am. 2007, ch. 317, sec. 2, p. 946; am. 2012, ch. 145, sec. 16, p. 404.]
Idaho Code § 28-45-201 — Idaho Code / Title 28 / Chapter 45 / Section 28-45-201
28-45-201 EFFECT OF VIOLATIONS ON RIGHTS OF PARTIES.
Status: in_force

PART 2.

DEBTORS' REMEDIES

28-45-201. Effect of violations on rights of parties. (1) If a creditor has violated any provision of this act applying to collection of an excess charge or amount or enforcement of rights, subsection (4) of section 28-41-201, Idaho Code, authority to make regulated consumer loans, section 28-46-301, Idaho Code, restrictions on interests in land as security, section 28-43-309, Idaho Code, limitations on the schedule of payments or loan terms for regulated consumer loans, section 28-43-310, Idaho Code, attorney's fees, section 28-43-311, Idaho Code, receipts, statements of account, and evidences of payment, section 28-43-204, Idaho Code, form of insurance premium loan agreement, section 28-43-205, Idaho Code, security in sales, section 28-43-301, Idaho Code, no assignments of earnings, section 28-43-304, Idaho Code, certain negotiable instruments prohibited, section 28-43-306, Idaho Code, referral sales, section 28-43-308, Idaho Code, limitations on default charges, section 28-45-301, Idaho Code, assignees subject to claims and defenses, subsection (3) of section 28-45-302, Idaho Code, or assurance of discontinuance, section 28-46-109, Idaho Code, the debtor has a cause of action to recover actual damages and also a right in an action other than a class action, to recover from the person violating this act a penalty in an amount determined by the court not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). With respect to violations arising from consumer credit sales or consumer loans made pursuant to open-end credit, no action pursuant to this subsection may be brought more than two (2) years after the violations occurred. With respect to violations arising from other regulated consumer credit transactions, no action pursuant to this subsection may be brought more than one (1) year after the scheduled or accelerated maturity of the debt.

(2) A debtor is not obligated to pay a charge in excess of that allowed by this act and has a right of refund of any excess charge paid. A refund may be made by reducing the debtor's obligation by the amount of the excess charge. If the debtor has paid an amount in excess of the lawful obligation under the agreement, the debtor may recover the excess amount from the person who made the excess charge or from an assignee of that person's rights who undertakes direct collection of payments from or enforcement of rights against debtors arising from the debt.

(3) If a creditor has contracted for or received a charge in excess of that allowed by this act, or if a debtor is entitled to a refund and a person liable to the debtor refuses to make a refund within a reasonable time after demand, the debtor may recover from the creditor or the person liable in an action other than a class action a penalty in an amount determined by the court not less than one hundred dollars ($100) nor more than one thousand dollars ($1,000). With respect to excess charges arising from consumer credit sales or consumer loans made pursuant to open-end credit, no action pursuant to this subsection may be brought more than two (2) years after the violation or passage of a reasonable time for refund occurs. With respect to excess charges arising from other regulated consumer credit transactions, no action pursuant to this subsection may be brought more than one (1) year after the scheduled or accelerated maturity of the debt. For purposes of this subsection, a reasonable time is presumed to be thirty (30) days.

(4) Except as otherwise provided, a violation of this act does not impair rights on a debt.

(5) If an employer discharges an employee in violation of the provisions prohibiting discharge, section 28-45-105, Idaho Code, the employee within ninety (90) days may bring a civil action for recovery of wages lost as a result of the violation and for an order requiring reinstatement of the employee. Damages recoverable shall not exceed lost wages for six (6) weeks.

(6) A creditor is not liable for a penalty under subsection (1) or (3) of this section if he notifies the debtor of a violation before the creditor receives from the debtor written notice of the violation or the debtor has brought an action under this section, and the creditor corrects the violation within forty-five (45) days after notifying the debtor. If the violation consists of a prohibited agreement, giving the debtor a corrected copy of the writing containing the violation is sufficient notification and correction. If the violation consists of an excess charge, correction shall be made by an adjustment or refund. The administrator and any official or agency of this state having supervisory authority over a supervised financial organization shall give prompt notice to a creditor of any violation discovered pursuant to an examination or investigation of the transactions, business, records, and acts of the creditor, sections 28-46-305, 28-46-105 and 28-46-106, Idaho Code.

(7) A creditor may not be held liable in an action brought under this section for a violation of this act if the creditor shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error, notwithstanding the maintenance of procedures reasonably adapted to avoid the error.

(8) In an action in which it is found that a creditor has violated this act, the court shall award to the debtor the costs of the action and his attorney's fees. In determining the attorney's fees, the amount of the recovery on behalf of the debtor is not controlling.

History:

[28-45-201, added 1983, ch. 119, sec. 3, p. 296; am. 2002, ch. 301, sec. 3, p. 860.]
Idaho Code § 28-1-203 — Idaho Code / Title 28 / Chapter 1 / Section 28-1-203
28-1-203 LEASE DISTINGUISHED FROM SECURITY INTEREST.
Status: in_force

PART 2.

GENERAL DEFINITIONS AND PRINCIPLES OF INTERPRETATION

28-1-203. Lease distinguished from security interest. (a) Whether a transaction in the form of a lease creates a lease or security interest is determined by the facts of each case.

(b) A transaction in the form of a lease creates a security interest if the consideration that the lessee is to pay the lessor for the right to possession and use of the goods is an obligation for the term of the lease and is not subject to termination by the lessee, and:

(1) The original term of the lease is equal to or greater than the remaining economic life of the goods;

(2) The lessee is bound to renew the lease for the remaining economic life of the goods or is bound to become the owner of the goods;

(3) The lessee has an option to renew the lease for the remaining economic life of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement; or

(4) The lessee has an option to become the owner of the goods for no additional consideration or for nominal additional consideration upon compliance with the lease agreement.

(c) A transaction in the form of a lease does not create a security interest merely because:

(1) The present value of the consideration the lessee is obligated to pay the lessor for the right to possession and use of the goods is substantially equal to or is greater than the fair market value of the goods at the time the lease is entered into;

(2) The lessee assumes risk of loss of the goods;

(3) The lessee agrees to pay, with respect to the goods, taxes, insurance, filing, recording, or registration fees, or service or maintenance costs;

(4) The lessee has an option to renew the lease or to become the owner of the goods;

(5) The lessee has an option to renew the lease for a fixed rent that is equal to or greater than the reasonably predictable fair market rent for the use of the goods for the term of the renewal at the time the option is to be performed; or

(6) The lessee has an option to become the owner of the goods for a fixed price that is equal to or greater than the reasonably predictable fair market value of the goods at the time the option is to be performed.

(d) Additional consideration is nominal if it is less than the lessee's reasonably predictable cost of performing under the lease agreement if the option is not exercised. Additional consideration is not nominal if:

(1) When the option to renew the lease is granted to the lessee, the rent is stated to be the fair market rent for the use of the goods for the term of the renewal determined at the time the option is to be performed; or

(2) When the option to become the owner of the goods is granted to the lessee, the price is stated to be the fair market value of the goods determined at the time the option is to be performed.

(e) The "remaining economic life of the goods" and "reasonably predictable" fair market rent, fair market value, or cost of performing under the lease agreement must be determined with reference to the facts and circumstances at the time the transaction is entered into.

History:

[28-1-203, added 2004, ch. 43, sec. 13, p. 147.]
Idaho Code § 28-8-101 — Idaho Code / Title 28 / Chapter 8 / Section 28-8-101
28-8-101 SHORT TITLE.
Status: in_force

PART 1.

SHORT TITLE AND GENERAL MATTERS

28-8-101. Short title. This chapter may be cited as "Uniform Commercial Code — Investment Securities."

History:

[28-8-101, added 1995, ch. 272, sec. 2, p. 875.]
Idaho Code § 28-2-710 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-710
28-2-710 SELLER'S INCIDENTAL DAMAGES.
Status: in_force

PART 7.

REMEDIES

28-2-710. Seller's incidental damages. Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the buyer's breach, in connection with return or resale of the goods or otherwise resulting from the breach.

History:

[28-2-710, added 1967, ch. 161, sec. 2-710, p. 351.]
Idaho Code § 28-2-502 — Idaho Code / Title 28 / Chapter 2 / Section 28-2-502
28-2-502 BUYER'S RIGHT TO GOODS ON SELLER'S REPUDIATION, FAILURE TO DELIVER, OR INSOLVENCY.
Status: in_force

PART 5.

PERFORMANCE

28-2-502. Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency. (1) Subject to subsections (2) and (3) and even though the goods have not been shipped a buyer who has paid a part or all of the price of goods in which he has a special property under the provisions of section 28-2-501, may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:

(a) In the case of goods bought for personal, family or household purposes, the seller repudiates or fails to deliver as required by the contract; or

(b) In all cases, the seller becomes insolvent within ten (10) days after receipt of the first installment on their price.

(2) The buyer's right to recover the goods under subsection (1)(a) vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.

(3) If the identification creating his special property has been made by the buyer he acquires the right to recover the goods only if they conform to the contract for sale.

History:

[28-2-502, added 1967, ch. 161, sec. 2-502, p. 351; am. 2001, ch. 208, sec. 8, p. 808.]
Idaho Code § 28-1-202 — Idaho Code / Title 28 / Chapter 1 / Section 28-1-202
28-1-202 NOTICE — KNOWLEDGE.
Status: in_force

PART 2.

GENERAL DEFINITIONS AND PRINCIPLES OF INTERPRETATION

28-1-202. Notice — Knowledge. (a) Subject to subsection (f) of this section, a person has "notice" of a fact if the person:

(1) Has actual knowledge of it;

(2) Has received a notice or notification of it; or

(3) From all the facts and circumstances known to the person at the time in question, has reason to know that it exists.

(b) "Knowledge" means actual knowledge. "Knows" has a corresponding meaning.

(c) "Discover," "learn," or words of similar import refer to knowledge rather than to reason to know.

(d) A person "notifies" or "gives" a notice or notification to another person by taking such steps as may be reasonably required to inform the other person in ordinary course, whether or not the other person actually comes to know of it.

(e) Subject to subsection (f) of this section, a person "receives" a notice or notification when:

(1) It comes to that person's attention; or

(2) It is duly delivered in a form reasonable under the circumstances at the place of business through which the contract was made or at another location held out by that person as the place for receipt of such communications.

(f) Notice, knowledge, or a notice or notification received by an organization is effective for a particular transaction from the time it is brought to the attention of the individual conducting that transaction and, in any event, from the time it would have been brought to the individual's attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routines. Due diligence does not require an individual acting for the organization to communicate information unless the communication is part of the individual's regular duties or the individual has reason to know of the transaction and that the transaction would be materially affected by the information.

History:

[28-1-202, added 2004, ch. 43, sec. 12, p. 146.]
Idaho Code § 28-9-508 — Idaho Code / Title 28 / Chapter 9 / Section 28-9-508
28-9-508 EFFECTIVENESS OF FINANCING STATEMENT IF NEW DEBTOR BECOMES BOUND BY SECURITY AGREEMENT.
Status: in_force

PART 5.

FILING

28-9-508. Effectiveness of financing statement if new debtor becomes bound by security agreement. (a) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.

(b) If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) of this section to be seriously misleading under section 28-9-506:

(1) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four (4) months after, the new debtor becomes bound under section 28-9-203(d); and

(2) The financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four (4) months after the new debtor becomes bound under section 28-9-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.

(c) This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under section 28-9-507(a).

History:

[28-9-508, added 2001, ch. 208, sec. 2, p. 765.]