![]() Secured parties and other lienholders are excluded from the definition of "debtor" because the interests of those parties normally derive from and encumber a debtor's interest. The definition also includes a "consignee," defined in this section, as well as a seller of accounts, chattel paper, payment intangibles, or promissory notes. The definition renders unnecessary former Section 9-112, which governed situations in which collateral was not owned by the debtor. Exculpatory provisions in Part 6 protect the secured party in that circumstance. With one exception (Section 9-616, as it relates to a consumer obligor), the rights and duties provided by Part 6 affect non-debtor obligors only if they are "secondary obligors."īy including in the definition of "debtor" all persons with a property interest (other than a security interest in or the lien on the collateral), the definition includes transferees of collateral, whether or not the secured party knows of the transfer or the transferee's identity. ![]() Obligors in the third class are neither debtors nor secondary obligors. The Restatement (3d), Suretyship and Guaranty § 1 (1996), contains a useful explanation of the concept. ![]() One must consult the law of suretyship to determine whether an obligation is secondary. Persons in the second class are secondary obligors if any portion of the obligation is secondary or if the obligor has a right of recourse against the debtor or another obligor with respect to the obligation secured by collateral. ![]() To reduce the need for this examination, this Article redefines "debtor" and adds new defined terms, "secondary obligor" and "obligor." In the context of Part 6 (default and enforcement), these definitions distinguish among three classes of persons (i) those persons who may have a stake in the proper enforcement of a security interest by virtue of their non-lien property interest (typically an ownership interest) in the collateral, (ii) those persons who may have a stake in the proper enforcement of the security interest because of their obligation to pay the secured debt, and (iii) those persons who have an obligation to pay the secured debt but have no stake in the proper enforcement of the security interest. Determining whether a person was a "debtor" under former Section 9-105(1)(d) required a close examination of the context in which the term was used. Reproduced with the permission of the Permanent Editorial Board for the UCC. Subsection (g), which is essentially identical to former section 1-105(2), indicates that choice of law rules provided in the other Articles govern when applicable.Ĭ opyright by ALI and NCCUSL. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |