reglab/statecodes huggingface dataset:
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8505.

8505. (a) A securities intermediary shall take action to obtain a payment or distribution made by the issuer of a financial asset. A securities intermediary satisfies the duty if it does either of the following:
(1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to attempt to obtain the payment or distribution.
(b) A securities intermediary is obligated to its entitlement holder for a payment or distribution made by the issuer of a financial asset if the payment or distribution is received by the securities intermediary.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8506.

8506. A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if it does either of the following:
(1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(2) In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8507.

8507. (a) A securities intermediary shall comply with an entitlement order if the entitlement order is originated by the appropriate person, the securities intermediary has had reasonable opportunity to assure itself that the entitlement order is genuine and authorized, and the securities intermediary has had reasonable opportunity to comply with the entitlement order. A securities intermediary satisfies the duty if it does either of the following:
(1) The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary.
(2) In the absence of agreement, the securities intermediary exercises due care in accordance with reasonable commercial standards to comply with the entitlement order.
(b) If a securities intermediary transfers a financial asset pursuant to an ineffective entitlement order, the securities intermediary shall reestablish a security entitlement in favor of the person entitled to it, and pay or credit any payments or distributions that the person did not receive as a result of the wrongful transfer. If the securities intermediary does not reestablish a security entitlement, the securities intermediary is liable to the entitlement holder for damages.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8508.

8508. 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 it does either of the following:
(1) The securities intermediary acts as agreed upon by the entitlement holder and the securities intermediary.
(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.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8509.

8509. (a) If the substance of a duty imposed upon a securities intermediary by Sections 8504 to 8508, inclusive, is the subject of a federal statute, regulation, or rule, compliance with that statute, regulation, or rule satisfies the duty.
(b) 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.
(c) The obligation of a securities intermediary to perform the duties imposed by Sections 8504 to 8508, inclusive, is subject to the following:
(1) Rights of the securities intermediary arising out of a security interest under a security agreement with the entitlement holder or otherwise.
(2) 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.
(d) Sections 8504 to 8508, inclusive, do not require a securities intermediary to take any action that is prohibited by other statute, regulation, or rule.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8510.

8510. (a) In a case not covered by the priority rules in Division 9 (commencing with Section 9101) or the rules stated in subdivision (c), an action based on an adverse claim to a financial asset or security entitlement, whether framed in conversion, replevin, constructive trust, equitable lien, or other theory, may not be asserted against a person who purchases a security entitlement, or an interest therein, from an entitlement holder if the purchaser gives value, does not have notice of the adverse claim, and obtains control.
(b) If an adverse claim could not have been asserted against an entitlement holder under Section 8502, the adverse claim cannot be asserted against a person who purchases a security entitlement, or an interest therein, from the entitlement holder.
(c) In a case not covered by the priority rules in Division 9 (commencing with Section 9101), a purchaser for value of a security entitlement, or an interest therein, who obtains control has priority over a purchaser of a security entitlement, or an interest therein, who does not obtain control. Except as otherwise provided in subdivision (d), purchasers who have control rank according to priority in time of any of the following:
(1) The purchaser’s becoming the person for whom the securities account, in which the security entitlement is carried, is maintained, if the purchaser obtained control under paragraph (1) of subdivision (d) of Section 8106.
(2) The securities intermediary’s agreement to comply with the purchaser’s entitlement orders with respect to security entitlements carried or to be carried in the securities account in which the security entitlement is carried, if the purchaser obtained control under paragraph (2) of subdivision (d) of Section 8106.
(3) If the purchaser obtained control through another person under paragraph (3) of subdivision (d) of Section 8106, the time on which priority would be based under this subdivision if the other person were the secured party.
(d) A securities intermediary as purchaser has priority over a conflicting purchaser who has control unless otherwise agreed by the securities intermediary.
(Amended by Stats. 1999, Ch. 991, Sec. 33.41. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 5 - Security Entitlements › Section 8511.

8511. (a) Except as otherwise provided in subdivisions (b) and (c), if a securities intermediary does not have sufficient interests in a particular financial asset to satisfy both its obligations to entitlement holders who have security entitlements to that financial asset and its obligation to a creditor of the securities intermediary who has a security interest in that financial asset, the claims of entitlement holders, other than the creditor, have priority over the claim of the creditor.
(b) A claim of a creditor of a securities intermediary who has a security interest in a financial asset held by a securities intermediary has priority over claims of the securities intermediary’s entitlement holders who have security entitlements with respect to that financial asset if the creditor has control over the financial asset.
(c) If a clearing corporation does not have sufficient financial assets to satisfy both its obligations to entitlement holders who have security entitlements with respect to a financial asset and its obligation to a creditor of the clearing corporation who has a security interest in that financial asset, the claim of the creditor has priority over the claims of entitlement holders.
(Added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.)
2023 California Code › Commercial Code - COM › DIVISION 8 - INVESTMENT SECURITIES › CHAPTER 6 - Transition Provisions › Section 8603.

8603. (a) This division does not affect an action or proceeding commenced before this division becomes operative.
(b) If a security interest in a security is perfected at the date this division becomes operative, and the action by which the security interest was perfected would suffice to perfect a security interest under this division, no further action is required to continue perfection. If a security interest in a security is perfected at the date this division takes effect but the action by which the security interest was perfected would not suffice to perfect a security interest under this division, the security interest remains perfected for a period of four months after the operative date and continues perfected thereafter if appropriate action to perfect under this division is taken within that period. If a security interest is perfected at the date this division becomes operative and the security interest can be perfected by filing under Division 9 (commencing with Section 9101), a financing statement signed by the secured party instead of the debtor may be filed within that period to continue perfection or thereafter to perfect and that financing statement shall contain a statement that it is being filed pursuant to this section.
(Amended by Stats. 1999, Ch. 991, Sec. 33.5. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9101.

9101. This division may be cited as the Uniform Commercial Code-Secured Transactions.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9104.

9104. (a) A secured party has control of a deposit account if any of the following conditions is satisfied:
(1) The secured party is the bank with which the deposit account is maintained.
(2) The debtor, secured party, and bank have agreed in a signed 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.
(3) The secured party becomes the bank’s customer with respect to the deposit account.
(4) Another person, other than the debtor, satisfies either of the following conditions:
(A) The person has control of the deposit account and acknowledges that it has control on behalf of the secured party.
(B) The person obtains control of the deposit account after having acknowledged that it will obtain control of the deposit account on behalf of the secured party.
(b) A secured party that has satisfied subdivision (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
(Amended by Stats. 2023, Ch. 210, Sec. 25. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9105.1.

9105.1. (a) A person has control of electronic money if each of the following conditions is satisfied:
(1) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded gives the person all of the following:
(A) Power to avail itself of substantially all the benefit from the electronic money.
(B) Exclusive power, subject to subdivision (b), to do both of the following:
(i) Prevent others from availing themselves of substantially all the benefit from the electronic money.
(ii) Transfer control of the electronic money to another person or cause another person to obtain control of other electronic money as a result of the transfer of the electronic money.
(2) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded enables the person readily to identify itself in any way, including by name, identifying number, cryptographic key, office, or account number, as having the powers under paragraph (1).
(b) Subject to subdivision (c), a power is exclusive under clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a) even if either of the following is true:
(1) The electronic money, a record attached to or logically associated with the electronic money, or a system in which the electronic money is recorded limits the use of the electronic money or has a protocol programmed to cause a change, including a transfer or loss of control.
(2) The power is shared with another person.
(c) A power of a person is not shared with another person under paragraph (2) of subdivision (b) and the person’s power is not exclusive if each of the following conditions is satisfied:
(1) The person can exercise the power only if the power also is exercised by the other person.
(2) Either of the following is true:
(A) The other person can exercise the power without exercise of the power by the person.
(B) The other person is the transferor to the person of an interest in the electronic money.
(d) If a person has the powers specified in clauses (i) and (ii) of subparagraph (B) of paragraph (1) of subdivision (a), the powers are presumed to be exclusive.
(e) A person has control of electronic money if another person, other than the transferor to the person of an interest in the electronic money, satisfies either of the following conditions:
(1) The other person has control of the electronic money and acknowledges that it has control on behalf of the person.
(2) The other person obtains control of the electronic money after having acknowledged that it will obtain control of the electronic money on behalf of the person.
(Added by Stats. 2023, Ch. 210, Sec. 27. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9106.

9106. (a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in Section 8106.
(b) A secured party has control of a commodity contract if either of the following conditions is satisfied:
(1) The secured party is the commodity intermediary with which the commodity contract is carried.
(2) The commodity customer, secured party, and commodity intermediary have agreed that the commodity intermediary will apply any value distributed on account of the commodity contract as directed by the secured party without further consent by the commodity customer.
(c) A secured party having control of all security entitlements or commodity contracts carried in a securities account or commodity account has control over the securities account or commodity account.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9107.

9107. A secured party has control of a letter-of-credit right to the extent of any right to payment or performance by the issuer or any nominated person if the issuer or nominated person has consented to an assignment of proceeds of the letter of credit under subdivision (c) of Section 5114 or otherwise applicable law or practice.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9107.1.

9107.1. (a) A secured party has control of a controllable electronic record as provided in Section 12105.
(b) A secured party has control of a controllable account or controllable payment intangible if the secured party has control of the controllable electronic record that evidences the controllable account or controllable payment intangible.
(Added by Stats. 2023, Ch. 210, Sec. 28. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9107.2.

9107.2. (a) A person that has control under Section 9104, 9105, or 9105.1 is not required to acknowledge that it has control on behalf of another person.
(b) If a person acknowledges that it has or will obtain control on behalf of another person, unless the person otherwise agrees or law other than this division otherwise provides, the person does not owe any duty to the other person and is not required to confirm the acknowledgment to any other person.
(Added by Stats. 2023, Ch. 210, Sec. 29. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9108.

9108. (a) Except as otherwise provided in subdivisions (c), (d), and (e), a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described.
(b) Except as otherwise provided in subdivision (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by any of the following:
(1) Specific listing.
(2) Category.
(3) Except as otherwise provided in subdivision (e), a type of collateral defined in this code.
(4) Quantity.
(5) Computational or allocational formula or procedure.
(6) Except as otherwise provided in subdivision (c), any other method, if the identity of the collateral is objectively determinable.
(c) A description of collateral as “all the debtor’s assets” or “all the debtor’s personal property” or using words of similar import does not reasonably identify the collateral.
(d) Except as otherwise provided in subdivision (e), a description of a security entitlement, securities account, or commodity account is sufficient if it describes either of the following:
(1) The collateral by those terms or as investment property.
(2) The underlying financial asset or commodity contract.
(e) A description only by type of collateral defined in this code is an insufficient description of either of the following:
(1) A commercial tort claim.
(2) In a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.
(f) A description of investment property collateral also shall meet the applicable requirements of Section 1799.103 of the Civil Code. A description of consumer goods also shall meet the applicable requirements of Section 1799.100 of the Civil Code.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 1 - General Provisions › Section 9110.

9110. A security interest arising under Section 2401 or 2505, or under subdivision (3) of Section 2711, or subdivision (e) of Section 10508 is subject to this division. However, until the debtor obtains possession of the goods, all of the following apply:
(1) The security interest is enforceable, even if paragraph (3) of subdivision (b) of Section 9203 has not been satisfied.
(2) Filing is not required to perfect the security interest.
(3) The rights of the secured party after default by the debtor are governed by Division 2 (commencing with Section 2101) or Division 10 (commencing with Section 10101).
(4) The security interest has priority over a conflicting security interest created by the debtor.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9202.

9202. Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this article with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9204.

9204. (a) Except as otherwise provided in subdivision (b), a security agreement may create or provide for a security interest in after-acquired collateral.
(b) Subject to subdivision (c), a security interest does not attach under a term constituting an after-acquired property clause to either of the following:
(1) Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within 10 days after the secured party gives value.
(2) A commercial tort claim.
(c) Subdivision (b) does not prevent a security interest from attaching to any of the following:
(1) Consumer goods as proceeds under subdivision (a) of Section 9315 or commingled goods under subdivision (c) of Section 9336.
(2) A commercial tort claim as proceeds under subdivision (a) of Section 9315.
(3) Property that is the proceeds of consumer goods or a commercial tort claim under an after-acquired property clause.
(d) 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.
(Amended by Stats. 2023, Ch. 210, Sec. 31. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9205.

9205. (a) A security interest is not invalid or fraudulent against creditors solely because either of the following applies:
(1) The debtor has the right or ability to do any of the following:
(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.
(D) Use, commingle, or dispose of proceeds.
(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.
(Amended (as to be added by Stats. 1999, Ch. 991) by Stats. 2000, Ch. 1003, Sec. 8. Effective January 1, 2001. Addition and amendment operative July 1, 2001, by Stats. 1999, Ch. 991, Sec. 75, and Stats. 2000, Ch. 1003, Sec. 56.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9206.

9206. (a) A security interest in favor of a securities intermediary attaches to a person’s security entitlement if both of the following conditions are satisfied:
(1) The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase.
(2) The securities intermediary credits the financial asset to the buyer’s securities account before the buyer pays the securities intermediary.
(b) The security interest described in subdivision (a) secures the person’s obligation to pay for the financial asset.
(c) A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if both of the following conditions are satisfied:
(1) The security or other financial asset satisfies both of the following:
(A) In the ordinary course of business it is transferred by delivery with any necessary endorsement or assignment.
(B) It is delivered under an agreement between persons in the business of dealing with those securities or financial assets.
(2) The agreement calls for delivery against payment.
(d) The security interest described in subdivision (c) secures the obligation to make payment for the delivery.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9207.

9207. (a) Except as otherwise provided in subdivision (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party’s possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b) Except as otherwise provided in subdivision (d), if a secured party has possession of collateral, all of the following apply:
(1) Reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral.
(2) The risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage.
(3) The secured party shall keep the collateral identifiable, but fungible collateral may be commingled.
(4) The secured party may use or operate the collateral for any of the following purposes:
(A) For the purpose of preserving the collateral or its value.
(B) As permitted by an order of a court having competent jurisdiction.
(C) Except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(c) Except as otherwise provided in subdivision (d), a secured party having possession of collateral or control of collateral under Section 7106, 9104, 9105, 9105.1, 9106, 9107, or 9107.1 may or shall, as the case may be, do all of the following:
(1) May hold as additional security any proceeds, except money or funds, received from the collateral.
(2) Shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor.
(3) May create a security interest in the collateral.
(d) If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor, both of the following apply:
(1) Subdivision (a) does not apply unless the secured party is entitled under an agreement to either of the following:
(A) To charge back uncollected collateral.
(B) Otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral.
(2) Subdivisions (b) and (c) do not apply.
(Amended by Stats. 2023, Ch. 210, Sec. 32. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9208.

9208. (a) This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value.
(b) Within 10 days after receiving a signed demand by the debtor, all of the following apply:
(1) A secured party having control of a deposit account under paragraph (2) of subdivision (a) of Section 9104 shall send to the bank with which the deposit account is maintained a signed record that releases the bank from any further obligation to comply with instructions originated by the secured party.
(2) A secured party having control of a deposit account under paragraph (3) of subdivision (a) of Section 9104 shall do either of the following:
(A) Pay the debtor the balance on deposit in the deposit account.
(B) Transfer the balance on deposit into a deposit account in the debtor’s name.
(3) A secured party, other than a buyer, having control under Section 9105 of an authoritative electronic copy of a record evidencing chattel paper shall transfer control of the electronic copy to the debtor or a person designated by the debtor.
(4) A secured party having control of investment property under paragraph (2) of subdivision (d) of Section 8106 or under subdivision (b) of Section 9106 shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained a signed record that releases the securities intermediary or commodity intermediary from any further obligation to comply with entitlement orders or directions originated by the secured party.
(5) A secured party having control of a letter-of-credit right under Section 9107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party a signed release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party.
(6) A secured party having control under Section 7106 of an authoritative electronic copy of an electronic document of title shall transfer control of the electronic copy to the debtor or a person designated by the debtor.
(7) A secured party having control under Section 9105.1 of electronic money shall transfer control of the electronic money to the debtor or a person designated by the debtor.
(8) A secured party having control under Section 12105 of a controllable electronic record, other than a buyer of a controllable account or controllable payment intangible evidenced by the controllable electronic record, shall transfer control of the controllable electronic record to the debtor or a person designated by the debtor.
(Amended by Stats. 2023, Ch. 210, Sec. 33. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 2 - Effectiveness of Security Agreement: Attachment of Security Interest: Rights of Parties to Security Agreement › Section 9209.

9209. (a) Except as otherwise provided in subdivision (c), this section applies if both of the following conditions are satisfied:
(1) There is no outstanding secured obligation.
(2) The secured party is not committed to make advances, incur obligations, or otherwise give value.
(b) Within 10 days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under subdivision (a) of Section 9406 or subdivision (b) of Section 12106 of an assignment to the secured party as assignee a signed 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.
(Amended by Stats. 2023, Ch. 210, Sec. 34. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9301.

9301. Except as otherwise provided in Sections 9303 to 9306.2, inclusive, the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral:
(1) Except as otherwise provided in this section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral.
(2) While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral.
(3) Except as otherwise provided in paragraph (4), while negotiable tangible documents, goods, instruments, or tangible money is located in a jurisdiction, the local law of that jurisdiction governs all of the following:
(A) Perfection of a security interest in the goods by filing a fixture filing.
(B) Perfection of a security interest in timber to be cut.
(C) The effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral.
(4) The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
(Amended by Stats. 2023, Ch. 210, Sec. 36. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9302.

9302. While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9303.

9303. (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.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9304.

9304. (a) The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank’s jurisdiction.
(b) The following rules determine a bank’s jurisdiction for purposes of this chapter:
(1) If an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank’s jurisdiction for purposes of this chapter, this division, or this code, that jurisdiction is the bank’s jurisdiction.
(2) If paragraph (1) does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(3) If neither paragraph (1) nor paragraph (2) applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank’s jurisdiction.
(4) If none of the preceding paragraphs applies, the bank’s jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer’s account is located.
(5) If none of the preceding paragraphs applies, the bank’s jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
(Amended by Stats. 2023, Ch. 210, Sec. 37. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9306.

9306. (a) Subject to subdivision (c), the local law of the issuer’s jurisdiction or a nominated person’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter-of-credit right if the issuer’s jurisdiction or nominated person’s jurisdiction is a state.
(b) For purposes of this chapter, an issuer’s jurisdiction or nominated person’s jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter-of-credit right as provided in Section 5116.
(c) This section does not apply to a security interest that is perfected only under subdivision (d) of Section 9308.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9306.1.

9306.1. (a) Except as provided in subdivision (d), if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, the local law of the chattel paper’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in the chattel paper, even if the transaction does not bear any relation to the chattel paper’s jurisdiction.
(b) The following rules determine the chattel paper’s jurisdiction under this section:
(1) If the authoritative electronic copy of the record evidencing chattel paper, or a record attached to or logically associated with the electronic copy and readily available for review, expressly provides that a particular jurisdiction is the chattel paper’s jurisdiction for purposes of this chapter, division, or code, that jurisdiction is the chattel paper’s jurisdiction.
(2) If paragraph (1) does not apply and the rules of the system in which the authoritative electronic copy is recorded are readily available for review and expressly provide that a particular jurisdiction is the chattel paper’s jurisdiction for purposes of this chapter, this division, or this code, that jurisdiction is the chattel paper’s jurisdiction.
(3) If paragraphs (1) and (2) do not apply and the authoritative electronic copy, or a record attached to or logically associated with the electronic copy and readily available for review, expressly provides that the chattel paper is governed by the law of a particular jurisdiction, that jurisdiction is the chattel paper’s jurisdiction.
(4) If paragraphs (1) to (3), inclusive, do not apply and the rules of the system in which the authoritative electronic copy is recorded are readily available for review and expressly provide that the chattel paper or the system is governed by the law of a particular jurisdiction, that jurisdiction is the chattel paper’s jurisdiction.
(5) If paragraphs (1) to (4), inclusive, do not apply, the chattel paper’s jurisdiction is the jurisdiction in which the debtor is located.
(c) If an authoritative tangible copy of a record evidences chattel paper and the chattel paper is not evidenced by an authoritative electronic copy, while the authoritative tangible copy of the record evidencing chattel paper is located in a jurisdiction, the local law of that jurisdiction governs both of the following:
(1) Perfection of a security interest in the chattel paper by possession under Section 9314.1.
(2) The effect of perfection or nonperfection and the priority of a security interest in the chattel paper.
(d) The local law of the jurisdiction in which the debtor is located governs perfection of a security interest in chattel paper by filing.
(Added by Stats. 2023, Ch. 210, Sec. 39. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9306.2.

9306.2. (a) Except as provided in subdivision (b), the local law of the controllable electronic record’s jurisdiction specified in subdivisions (c) and (d) of Section 12107 governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
(b) The local law of the jurisdiction in which the debtor is located governs both of the following:
(1) Perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing.
(2) Automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.
(Added by Stats. 2023, Ch. 210, Sec. 40. (SB 95) Effective January 1, 2024.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9308.

9308. (a) Except as otherwise provided in this section and in Section 9309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in Sections 9310 to 9316, inclusive, have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(b) An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in Section 9310 have been satisfied. An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.
(c) A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this division and is later perfected by another method under this division, without an intermediate period when it was unperfected.
(d) Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(e) Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.
(f) Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(g) Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
(Repealed and added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)
2023 California Code › Commercial Code - COM › DIVISION 9 - SECURED TRANSACTIONS › CHAPTER 3 - Perfection and Priority › Section 9309.

9309. The following security interests are perfected when they attach:
(1) A purchase money security interest in consumer goods, except as otherwise provided in subdivision (b) of Section 9311 with respect to consumer goods that are subject to a statute or treaty described in subdivision (a) of Section 9311.
(2) An assignment of accounts or payment intangibles which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor’s outstanding accounts or payment intangibles.
(3) A sale of a payment intangible.
(4) A sale of a promissory note.
(5) A security interest created by the assignment of a health care insurance receivable to the provider of the health care goods or services.
(6) A security interest arising under Section 2401 or 2505, under subdivision (3) of Section 2711, or under subdivision (5) of Section 10508, until the debtor obtains possession of the collateral.
(7) A security interest of a collecting bank arising under Section 4210.
(8) A security interest of an issuer or nominated person arising under Section 5118.
(9) A security interest arising in the delivery of a financial asset under subdivision (c) of Section 9206.
(10) A security interest in investment property created by a broker or securities intermediary.
(11) A security interest in a commodity contract or a commodity account created by a commodity intermediary.
(12) An assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder.
(13) A security interest created by an assignment of a beneficial interest in a decedent’s estate.
(14) A sale by an individual of an account that is a right to payment of winnings in a lottery or other game of chance.
(Amended by Stats. 2003, Ch. 235, Sec. 3. Effective January 1, 2004.)