Tennessee § 47-9-109 - Scope.

§ 47-9-109. Scope.

General scope of chapter. Except as otherwise provided in subsections (c) and (d), this chapter applies to: a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; an agricultural lien; a sale of accounts, chattel paper, payment intangibles, or promissory notes; a consignment; 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 a security interest arising under § 47-4-210 or § 47-5-118. 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. Extent to which chapter does not apply. This chapter does not apply to the extent that: a statute, regulation, or treaty of the United States preempts this chapter; 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; 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 the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under § 47-5-114. Inapplicability of chapter. This chapter does not apply to: a landlord's lien, other than an agricultural lien; 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; an assignment of a claim for wages, salary, or other compensation of an employee; a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose; an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only; an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract; an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness; 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; an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral; a right of recoupment or set-off, but: § 47-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and § 47-9-404 applies with respect to defenses or claims of an account debtor; 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: liens on real property in § 47-9-203 and § 47-9-308; fixtures in § 47-9-334; fixture filings in § 47-9-501, § 47-9-502, § 47-9-512, § 47-9-516, and § 47-9-519; and security agreements covering personal and real property in § 47-9-604; 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; 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; 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 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. Compiler's Notes. Former part 1, §§ 47-9-101 — 47-9-110 , 47-9-112 — 47-9-116 (Acts 1963, ch. 81, § 1 (9-101 — 9-110, 9-112 — 9-113); 1981, ch. 502, § 1; 1985, ch. 404, §§ 5-10; 1986, ch. 737, §§ 45, 46; 1987, ch. 113, § 1; 1993, ch. 398, § 4; 1997, ch. 79, §§ 2-5; 1998, ch. 675, §§ 6-9) and 47-9-111 (Acts 1963, ch. 81, § 1 (9-111)), repealed by Acts 1998, ch. 641, §§ 4, 6, was repealed and replaced in the revision of chapter 9 of the Uniform Commercial Code by Acts 2000, ch. 846, § 1, effective July 1, 2001. Acts 2001, ch. 290, § 4 provided that the amendments by that act, the addition of “, including, but not limited to, title 9, chapter 22” at the end of (c)(2), shall apply to any transaction within its scope, even if the transaction was entered into or created before July 1, 2001. Notwithstanding the foregoing, the application of the provisions of this chapter shall not affect the rights of holders of public obligations issued under the provisions of title 9, chapter 21, as amended, to the extent that their relative priorities were intended to be fixed by reference to any other provision of law prior to May 22, 1991. Cross-References. Transition provisions, title 47, ch. 9, part 7. Textbooks. Tennessee Jurisprudence, 1 Tenn. Juris., Agriculture, § 4; 6 Tenn. Juris., Commercial Law, §§ 3, 98, 99, 103; 6 Tenn. Juris., Conflict of Laws, Domicile and Residence, § 19; 18 Tenn. Juris., Liens, § 3. Law Reviews. Book Review, Tennessee Secured Transactions Under Revised Article 9 of the Uniform Commercial Code (Prof. Robert M. Lloyd), 38 No. 2 Tenn. B.J. 31 (2002). Creation, Perfection, and Enforcement of Security Interest Under the “Tennessee” Commercial Code (John A. Walker, Jr.), 48 Tenn. L. Rev. 819 (1981). Priorities in Accounts: The Crazy Quilt of Current Law and a Proposal for Reform (Dan T. Coenen), 45 Vand. L. Rev. 1061 (1992). The New Article 9: Its Impact on Tennessee Law (Part I), 66 Tenn. L. Rev. 125 (1999). Cited: Pro Page Partners, LLC v. Message Express Paging Co. (In re Pro Page Partners), 270 B.R. 221, 2001 Bankr. LEXIS 1574 (Bankr. E.D. Tenn. 2001); In re Music City RV, LLC, 304 S.W.3d 806, 2010 Tenn. LEXIS 86 (Tenn. Feb. 12, 2010).