reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2251 - Law governing perfection and priority of security interests

Except as otherwise provided in §§ 2253–2256 of this title, 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 subsection (4) of this section, while negotiable documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the local law of that jurisdiction governs:
(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, and
(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.
History —Sept. 19, 1996, No. 241, added as § 9-301 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2252 - Law governing perfection and priority of agricultural liens

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.
History —Sept. 19, 1996, No. 241, added as § 9-302 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2253 - Law governing perfection and priority of security interests in goods covered by a certificate of title

(a) Applicability of section.— 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) When goods covered by certificate of title.— 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) Applicable law.— 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 —Sept. 19, 1996, No. 241, added as § 9-303 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2254 - Law governing perfection and priority of security interests in deposit accounts

(a) Law of bank's jurisdiction governs.— 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.
(b) Bank's jurisdiction.— The following rules determine a bank's jurisdiction for purposes of this part:
(1) If an agreement between the bank and the debtor governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this subchapter, this chapter, or the Commercial Transactions Act, that jurisdiction is the bank's jurisdiction.
(2) If clause (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 clause (1) nor clause (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 clauses applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
History —Sept. 19, 1996, No. 241, added as § 9-304 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2256 - Law governing perfection and priority of security interests in letter-of-credit rights

(a) Governing law: issuer's or nominated person's jurisdiction.— Subject to subsection (c) of this section, 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) Issuer's or nominated person's jurisdiction.— For purposes of this subchapter, 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 § 1235 of this title.
(c) When section not applicable.— This section does not apply to a security interest that is perfected only under § 2258(d) of this title.
History —Sept. 19, 1996, No. 241, added as § 9-306 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2258 - When security interest or agricultural lien is perfected; continuity of perfection

(a) Perfection of security interest.— Except as otherwise provided in this section and § 2259 of this title, a security interest is perfected if it has attached and all of the applicable requirements for perfection in §§ 2260–2266 of this title have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(b) Perfection of agricultural lien.— An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in § 2260 of this title 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) Continuous perfection; perfection by different methods.— A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this chapter and is later perfected by another method under this chapter, without an intermediate period when it was unperfected.
(d) Supporting obligation.— Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(e) Lien securing right to payment.— 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) Security entitlement carried in securities account.— Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(g) Commodity contract carried in commodity account.— Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
History —Sept. 19, 1996, No. 241, added as § 9-308 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2259 - Security interest perfected upon attachment

The following security interests are perfected when they attach:
(1) A purchase-money security interest in consumer goods, except as otherwise provided in § 2261(b) of this title with respect to consumer goods that are subject to a statute or treaty described in § 2261(a) of this title;
(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) [Reserved];
(7) a security interest of a collecting bank arising under § 860 of this title;
(8) a security interest of an issuer or nominated person arising under § 1237 of this title;
(9) a security interest arising in the delivery of a financial asset under § 2236(c) of this title;
(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, and
(13) a security interest created by an assignment of a beneficial interest in a decedent's estate.
History —Sept. 19, 1996, No. 241, added as § 9-309 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2260 - When filing required to perfect security interest or agricultural lien; security or interests and agricultural liens to which filing provisions do not apply

(a) General rule: perfection by filing.— Except as otherwise provided in subsection (b) and § 2262(b) of this title a financing statement must be filed to perfect all security interests and agricultural liens.
(b) Exceptions: filing not necessary.— The filing of a financing statement is not necessary to perfect a security interest:
(1) That is perfected under subsection (d), (e), (f), or (g) of § 2258 of this title;
(2) that is perfected under § 2259 of this title when it attaches;
(3) in property subject to a statute, regulation, or treaty described in § 2261(a) of this title;
(4) in goods in possession of a bailee, which is perfected under clause (1) or (2) of subsection (d) of § 2262 of this title;
(5) in certificated securities, documents, goods, or instruments, which is perfected without filing or possession under subsection (e), (f), or (g) of § 2262 of this title;
(6) in collateral in the secured party's possession under § 2263 of this title;
(7) in a certificated security which is perfected by delivery of the security certificate to the secured party under § 2263 of this title;
(8) in deposit accounts, electronic chattel paper, investment property, or letter-of-credit rights or life insurance policies when the security interest is perfected by control under § 2264 of this title;
(9) in proceeds which is perfected under § 2265 of this title, or
(10) that is perfected under § 2266 of this title.
(c) Assignment of perfected security interest.— If a secured party assigns a perfected security interest or agricultural lien, a filing under this chapter is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
History —Sept. 19, 1996, No. 241, added as § 9-310 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2261 - Perfection of security interests in property subject to certain statutes, regulations, and treaties

(a) Security interest subject to other law.— Except as otherwise provided in subsection (d) of this section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:
(1) A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt §§ 2260(a) of this title, or
(2) a statute of another jurisdiction which provides for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.
(b) Compliance with other law.— Compliance with the requirements of a statute, regulation, or treaty described in subsection (a) of this section for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this chapter. Except as otherwise provided in subsection (d) and § 2263 of this title and subsections (d) and (e) of § 2266 of this title for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in subsection (a) may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.
(c) Duration and renewal of perfection.— Except as otherwise provided in subsection (d) of this section and subsection (d) and (e)of § 2266 of this title, duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation, or treaty described in subsection (a) are governed by the statute, regulation, or treaty. In other respects, the security interest is subject to this chapter.
(d) Inapplicability to certain inventory.— During any period in which collateral subject to a statute specified in subsection (a)(2) is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this section does not apply to a security interest in that collateral created by that person.
History —Sept. 19, 1996, No. 241, added as § 9-311 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2264 - Perfection by control

(a) Perfection by control.— A security interest in investment property, deposit accounts, letter-of-credit rights, or electronic chattel paper or a life insurance policy may be perfected by control of the collateral under § 2214, 2215, 2216, 2217 or 2217a of this title.
(b) Specified collateral: time of perfection by control; continuation of perfection.— A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights or a life insurance policy is perfected by control under § 2214, 2215, 2216, 2217 or 2217a of this title when the secured party obtains control and remains perfected by control only while the secured party retains control.
(c) Investment property: time of perfection by control; continuation of perfection.— A security interest in investment property is perfected by control under § 2216 of this title from the time the secured party obtains control and remains perfected by control until:
(1) The secured party does not have control, and
(2) one of the following occurs:
(A) If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(B) if the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner, or
(C) if the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
—Sept. 19, 1996, No. 241, added as § 9-314 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
History
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2265 - Secured party's rights on disposition of collateral and in proceeds

(a) Disposition of collateral: continuation of security interest or agricultural lien; proceeds.— Except as otherwise provided in this chapter:
(1) A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien;
(2) a security interest attaches to any identifiable proceeds of collateral, and
(3) a person to whom collateral has been disposed incurs no personal liability on account of an unauthorized transfer unless it has failed to act in good faith.
(b) When commingled proceeds identifiable.— Proceeds that are commingled with other property are identifiable proceeds:
(1) If the proceeds are goods, to the extent provided by § 2286 of this title, and
(2) if the proceeds are not goods, to the extent that the secured party identifies the proceeds by an acceptable method of tracing.
(c) Perfection of security interest in proceeds.— A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
(d) Continuation of perfection.— A perfected security interest in proceeds becomes unperfected on the 21st day after the security interest attaches to the proceeds unless:
(1) The following conditions are satisfied:
(A) A filed financing statement covers the original collateral;
(B) the proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed, and
(C) the proceeds are not acquired with cash proceeds;
(2) the proceeds are identifiable cash proceeds; or
(3) the security interest in the proceeds is perfected other than under subsection (c) of this section when the security interest attaches to the proceeds or within twenty (20) days thereafter.
(e) When perfected security interest in proceeds becomes unperfected.— If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under subsection (d)(1) of this section becomes unperfected at the later of:
(1) When the effectiveness of the filed financing statement lapses under § 2335 of this title or is terminated under § 2333 of this title, or
(2) the 21st day after the security interest attaches to the proceeds.
History —Sept. 19, 1996, No. 241, added as § 9-315 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2267 - Interests that take priority over or take free of security interest or agricultural lien

(a) Conflicting security interests and rights of lien creditors.— A security interest or agricultural lien is subordinate to the rights of:
(1) A person entitled to priority under § 2272 of this title, and
(2) except as otherwise provided in subsection (e) of this section, a person that becomes a lien creditor before the earlier of the time:
(A) The security interest or agricultural lien is perfected; or
(B) one of the conditions specified in § 2233(b)(3) of this title is met and a financing statement covering the collateral is filed.
(b) Buyers that receive delivery.— Except as otherwise provided in subsection (e) of this section, a buyer, other than a secured party, of tangible chattel paper, documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(c) Lessees that receive delivery.— Except as otherwise provided in subsection (e) of this section, a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(d) Licensees and buyers of certain collateral.— A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
(e) Purchase-money security interest.— Except as otherwise provided in §§ 2270 and 2271 of this title, if a person files a financing statement with respect to a purchase-money security interest before or within twenty (20) days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.
History —Sept. 19, 1996, No. 241, added as § 9-317 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2268 - No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers

(a) Seller retains no interest.— A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain an ownership interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest unperfected.— For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
History —Sept. 19, 1996, No. 241, added as § 9-318 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2269 - Rights and title of consignee with respect to creditors and purchasers

(a) Consignee has consignor's rights.— Except as otherwise provided in subsection (b) of this section, for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer.
(b) Applicability of other law.— For purposes of determining the rights of a creditor of a consignee, law other than this chapter determines the rights and title of a consignee while goods are in the consignee's possession if, under this part, a perfected security interest held by the consignor would have priority over the rights of the creditor.
History —Sept. 19, 1996, No. 241, added as § 9-319 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2270 - Buyer of goods

(a) Buyer in ordinary course of business.— 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.
(b) Buyer of consumer goods.— 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) Effectiveness of filing for subsection (b) of this section.— 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 subsection (a) and (b) of § 2266 of title.
(d) Buyer in ordinary course of business at wellhead or minehead.— 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) Possessory security interest not affected.— Subsections (a) and (b) of this section do not affect a security interest in goods in the possession of the secured party under § 2263 of this title.
History —Sept. 19, 1996, No. 241, added as § 9-320 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2271 - Licensee of general intangible and lessee of goods in ordinary course of business

(a) Licensee in ordinary course of business.— 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) Rights of licensee in ordinary course of business.— 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) Rights of lessee in ordinary course of business.— 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 —Sept. 19, 1996, No. 241, added as § 9-321 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2273 - Future advances

(a) When priority based on time of advance.— Except as otherwise provided in subsection (c) of this section, for purposes of determining the priority of a perfected security interest under § 2272(a)(1) of this section, perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:
(1) Is made while the security interest is perfected only:
(A) Under § 2259 of this title when it attaches, or
(B) temporarily under subsections (e), (f) or (g) of § 2262 of this title; and
(2) is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under § 2259 or subsections (e), (f) or (g) of § 2262 of this title.
(b) Lien creditor.— Except as otherwise provided in of this section, a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than forty-five (45) days after the person becomes a lien creditor unless the advance is made:
(1) Without knowledge of the lien, or
(2) pursuant to a commitment entered into without knowledge of the lien.
(c) Buyer of receivables.— Subsections (a) and (b) of this section do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.
(d) Buyer of goods.— Except as otherwise provided in subsection (e) of this section, a buyer of goods other than a buyer in ordinary course of business takes free of a security interest to the extent that it secures advances made after the earlier of:
(1) The time the secured party acquires knowledge of the buyer's purchase, or
(2) forty-five (45) days after the purchase.
(e) Advances made pursuant to commitment: priority of buyer of goods.— Subsection (d) of this section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the 45 day period.
(f) Lessee of goods.— Except as otherwise provided in subsection (g) of this section, a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:
(1) The time the secured party acquires knowledge of the lease, or
(2) forty-five (45) days after the lease contract becomes enforceable.
(g) Advances made pursuant to commitment: priority of lessee of goods.— Subsection (f) of this section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the forty-five (45)-day period.
History —Sept. 19, 1996, No. 241, added as § 9-323 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2275 - Priority of security interests in transferred collateral

(a) Subordination of security interest in transferred collateral.— 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) Limitation of subsection (a) subordination.— Subsection (a) of this section subordinates a security interest only if the security interest:
(1) Otherwise would have priority solely under § 2272(a) or § 2274 of this title, or
(2) [Reserved.]
History —Sept. 19, 1996, No. 241, added as § 9-325 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2276 - Priority of security interests created by new debtor

(a) Subordination of security interest created by new debtor.— Subject to subsection (b) of this section, a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and perfected by a filed financing statement that would be ineffective to perfect the security interest but for the application of § 2328 or of §§ 2328 and 2266(i)(1) of this title is subordinate to a security interest in the same collateral which is perfected other than by such filed financing statement.
(b) Priority under other provisions; multiple original debtors.— The other provisions of this subchapter determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a) of this section. However, if the security agreements to which a new debtor became bound as debtor were not entered into by the same original debtor, the conflicting security interests rank according to priority in time of the new debtor's having become bound.
History —Sept. 19, 1996, No. 241, added as § 9-326 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2277 - 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 § 2214 of this title 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 § 2264 of this title 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 § 2214(a)(3) of this title has priority over a security interest held by the bank with which the deposit account is maintained.
History —Sept. 19, 1996, No. 241, added as § 9-327 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2278 - Priority of security interests in investment property

The following rules govern priority among conflicting security interests in the same investment property:
(1) A security interest held by a secured party having control of investment property under § 2216 of this title has priority over a security interest held by a secured party that does not have control of the investment property.
(2) Except as otherwise provided in subsections (3) and (4) of this section, conflicting security interests held by secured parties each of which has control under § 2216 of this title rank according to priority in time of:
(A) If the collateral is a security, obtaining control;
(B) if the collateral is a security entitlement carried in a securities account and:
(i) If the secured party obtained control under § 1706(d)(1) of this title, the secured party's becoming the person for which the securities account is maintained;
(ii) if the secured party obtained control under § 1706(d)(2) of this title, the securities intermediary's agreement to comply with the secured party's entitlement orders with respect to security entitlements carried or to be carried in the securities account, or
(iii) if the secured party obtained control through another person under § 1706(d)(3) of this title, the time on which priority would be based under this subsection if the other person were the secured party; or
(C) if the collateral is a commodity contract carried with a commodity intermediary, the satisfaction of the requirement for control specified in § 2216(b)(2) of this title with respect to commodity contracts carried or to be carried with the commodity intermediary.
(3) A security interest held by a securities intermediary in a security entitlement or a securities account maintained with the securities intermediary has priority over a conflicting security interest held by another secured party.
(4) A security interest held by a commodity intermediary in a commodity contract or a commodity account maintained with the commodity intermediary has priority over a conflicting security interest held by another secured party.
(5) A security interest in a certificated security in registered form which is perfected by taking delivery under § 2263(a) of this title and not by control under § 2264 of this title has priority over a conflicting security interest perfected by a method other than control.
(6) Conflicting security interests created by a broker, securities intermediary, or commodity intermediary which are perfected without control under § 2216 of this title rank equally.
(7) In all other cases, priority among conflicting security interests in investment property is governed by §§ 2272 and 2273 of this title.
History —Sept. 19, 1996, No. 241, added as § 9-328 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2279 - Priority of security interests in letter-of-credit right

The following rules govern priority among conflicting security interests in the same letter-of-credit right:
(1) A security interest held by a secured party having control of the letter-of-credit right under § 2217 of this title has priority to the extent of its control over a conflicting security interest held by a secured party that does not have control.
(2) Security interests perfected by control under § 2264 of this title rank according to priority in time of obtaining control.
History —Sept. 19, 1996, No. 241, added as § 9-329 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2279a - Priority of security interests in life insurance policy

The following rules govern priority among conflicting security interests in the same life insurance policy:
(1) A security interest held by an insurer has priority over a conflicting security interest held by another secured party.
(2) A secured party that has control over the life insurance policy has priority over a conflicting security interest held by a secured party without control.
(3) Except as otherwise provided in subsection (1) of this section, security interests perfected by control under § 2264 of this title rank according to priority in time of obtaining control.
History —Sept. 19, 1996, No. 241, added as § 9-329.1 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2280 - Priority of purchaser of chattel paper or instrument

(a) Purchaser's priority: security interest claimed merely as proceeds.— A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:
(1) In good faith and in the ordinary course of the purchaser's business, the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under § 2215 of this title, and
(2) the chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser.
(b) Purchaser's priority: other security interests.— A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under § 2215 of this title in good faith, in the ordinary course of the purchaser's business, and without knowledge that the purchase violates the rights of the secured party.
(c) Chattel paper purchaser's priority in proceeds.— Except as otherwise provided in § 2277 of this title, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:
(1) Section 2272 of this title provides for priority in the proceeds, or
(2) the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser's security interest in the proceeds is unperfected.
(d) Instrument purchaser's priority.— Except as otherwise provided in § 2281(a) of this title, a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.
(e) Holder of purchase-money security interest gives new value.— For purposes of subsections (a) and (b) of this section, the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.
(f) Indication of assignment gives knowledge.— For purposes of subsections (b) and (d) of this section, if chattel paper or an instrument indicates that it has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.
History —Sept. 19, 1996, No. 241, added as § 9-330 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2281 - Priority of rights of purchasers of instruments, documents, and securities under other chapters; priority of interests in financial assets and security entitlements under chapter 8

(a) Rights under chapters 3, 7, and 8 not limited.— This chapter does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in chapters 3, 7, and 8.
(b) Protection under Chapter 8.— This chapter does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Chapter 8.
(c) Filing not notice.— Filing under this chapter does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b) of this section.
History —Sept. 19, 1996, No. 241, added as § 9-331 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2282 - Transfer of money; transfer of funds from deposit account

(a) Transferee of money.— A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
(b) Transferee of funds from deposit account.— A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party.
History —Sept. 19, 1996, No. 241, added as § 9-332 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.
2023 Laws of Puerto Rico › TITLE NINETEEN - Negotiable Instruments (§§ 1-24 — 2409) › Subtitle 2 - Commercial Transactions (§§ 401 — 2409) › Chapter 55A - Secured Transactions (§§ 2211 — 2409) › Subchapter III - Perfection and Priority (§§ 2251 — 2292) › § 2283 - Priority of certain liens arising by operation of law

(a) Possessory lien.— In this section, “possessory lien” means an interest, other than a security interest or an agricultural lien:
(1) Which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;
(2) which is created by operation of law in favor of the person, and
(3) whose effectiveness depends on the person's possession of the goods.
(b) Priority of possessory lien.— A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise.
History —Sept. 19, 1996, No. 241, added as § 9-333 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.