2023 Tennessee Code › Title 47 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS (§§ 47-1-101 — 47-50-121) › Chapter 9 - SECURED TRANSACTIONS (§§ 47-9-101 — 47-9-809) › Part 1 - GENERAL PROVISIONS (§§ 47-9-101 — 47-9-110) › APPLICABILITY OF CHAPTER (§§ 47-9-109 — 47-9-110) › Section 47-9-109 - Scope

(a)
General scope of chapter.
Except as otherwise provided in subsections (c) and (d), this chapter applies to:
(1)
a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
(2)
an agricultural lien;
(3)
a sale of accounts, chattel paper, payment intangibles, or promissory notes;
(4)
a consignment;
(5)
a security interest arising under §
47-2-401
, §
47-2-505
, §
47-2-711(3)
, or §
47-2A-508(5)
, as provided in §
47-9-110
; and
(6)
a security interest arising under §
47-4-210
or §
47-5-118
.
(b)
Security interest in secured obligation.
The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply.
(c)
Extent to which chapter does not apply.
This chapter does not apply to the extent that:
(1)
a statute, regulation, or treaty of the United States preempts this chapter;
(2)
another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state, including, but not limited to, title 9, chapter 22;
(3)
a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
(4)
the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under §
47-5-114
.
(d)
Inapplicability of chapter.
This chapter does not apply to:
(1)
a landlord's lien, other than an agricultural lien;
(2)
a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but §
47-9-333
applies with respect to priority of the lien;
(3)
an assignment of a claim for wages, salary, or other compensation of an employee;
(4)
a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
(5)
an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
(6)
an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
(7)
an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8)
a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but §§
47-9-315
and
47-9-322
apply with respect to proceeds and priorities in proceeds;
(9)
an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
(10)
a right of recoupment or set-off, but:
(A)
§
47-9-340
applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B)
§
47-9-404
applies with respect to defenses or claims of an account debtor;
(11)
the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(A)
liens on real property in §
47-9-203
and §
47-9-308
;
(B)
fixtures in §
47-9-334
;
(C)
fixture filings in §
47-9-501
, §
47-9-502
, §
47-9-512
, §
47-9-516
, and §
47-9-519
; and
(D)
security agreements covering personal and real property in §
47-9-604
;
(12)
an assignment of a claim arising in tort, other than a commercial tort claim, but §§
47-9-315
and
47-9-322
apply with respect to proceeds and priorities in proceeds;
(13)
an assignment of a deposit account in a consumer transaction, but §§
47-9-315
and
47-9-322
apply with respect to proceeds and priorities in proceeds;
(14)
an assignment of a claim or right to receive compensation for injuries or sickness as described in
26 U.S.C. § 104(a)(1) or (2)
, as amended from time to time; or
(15)
an assignment of a claim or right to receive benefits under a special needs trust described in
42 U.S.C. § 1396p(d)(4)
, as amended from time to time.
Acts 2000, ch. 846, § 1; 2001, ch. 143, § 1; 2001, ch. 290, § 2.