Information Maintained by the Office of Code Revision Indiana Legislative Services Agency
IC 26-1-9.1
     Chapter 9.1. Secured Transactions

IC 26-1-9.1-101
Short title
    
Sec. 101. IC 26-1-9.1 may be cited as Uniform Commercial Code_Secured Transactions.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-102
Definitions and index of definitions
    
Sec. 102. (a) In IC 26-1-9.1:
        (1) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.
        (2) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance:
            (A) for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of;
            (B) for services rendered or to be rendered;
            (C) for a policy of insurance issued or to be issued;
            (D) for a secondary obligation incurred or to be incurred;
            (E) for energy provided or to be provided;
            (F) for the use or hire of a vessel under a charter or other contract;
            (G) arising out of the use of a credit or charge card or information contained on or for use with the card; or
            (H) as winnings in a lottery or other game of chance operated or sponsored by a state other than Indiana, a governmental unit of a state, or a person licensed or authorized to operate the game by a state or governmental unit of a state.
        The term does not include a right to a payment of a prize awarded by the state lottery commission in the Indiana state lottery established under IC 4-30. The term includes health-care-insurance receivables. The term does not include (i) rights to payment evidenced by chattel paper or an instrument, (ii) commercial tort claims, (iii) deposit accounts, (iv) investment property, (v) letter-of-credit rights or letters of credit, or (vi) rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
        (3) "Account debtor" means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
        (4) "Accounting", except as used in "accounting for", means a record:
            (A) authenticated by a secured party;


            (B) indicating the aggregate unpaid secured obligations as of a date not more than thirty-five (35) days earlier or thirty-five (35) days later than the date of the record; and
            (C) identifying the components of the obligations in reasonable detail.
        (5) "Agricultural lien" means an interest, other than a security interest, in farm products:
            (A) that secures payment or performance of an obligation for:
                (i) goods or services furnished in connection with a debtor's farming operation; or
                (ii) rent on real property leased by a debtor in connection with the debtor's farming operation;
            (B) that is created by statute in favor of a person that:
                (i) in the ordinary course of its business furnished goods or services to a debtor in connection with the debtor's farming operation; or
                (ii) leased real property to a debtor in connection with the debtor's farming operation; and
            (C) whose effectiveness does not depend on the person's possession of the personal property.
        (6) "As-extracted collateral" means:
            (A) oil, gas, or other minerals that are subject to a security interest that:
                (i) is created by a debtor having an interest in the minerals before extraction; and
                (ii) attaches to the minerals as extracted; or
            (B) accounts arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
        (7) "Authenticate" means:
            (A) to sign; or
            (B) with present intent to adopt or accept a record, to attach to or logically associate with the record an electronic sound, symbol, or process.
        (8) "Bank" means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions, and trust companies.
        (9) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.
        (10) "Certificate of title" means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. The term includes another record maintained as an alternative to a certificate of title by the governmental unit that issues certificates of title if a statute permits the security interest in question to be indicated on the record as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the

collateral.
        (11) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. In this subdivision, "monetary obligation" means a monetary obligation secured by the goods or owed under a lease of the goods and includes a monetary obligation with respect to software used in the goods. The term "chattel paper" does not include: (i) charters or other contracts involving the use or hire of a vessel; or (ii) records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper.
        (12) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:
            (A) proceeds to which a security interest attaches;
            (B) accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
            (C) goods that are the subject of a consignment.
        (13) "Commercial tort claim" means a claim arising in tort with respect to which:
            (A) the claimant is an organization; or
            (B) the claimant is an individual and the claim:
                (i) arose in the course of the claimant's business or profession; and
                (ii) does not include damages arising out of personal injury to or the death of an individual.
        (14) "Commodity account" means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer.
        (15) "Commodity contract" means a commodity futures contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is:
            (A) traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
            (B) traded on a foreign commodity board of trade, exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer.
        (16) "Commodity customer" means a person for which a commodity intermediary carries a commodity contract on its books.
        (17) "Commodity intermediary" means a person that:
            (A) is registered as a futures commission merchant under

federal commodities law; or
            (B) in the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.
        (18) "Communicate" means:
            (A) to send a written or other tangible record;
            (B) to transmit a record by any means agreed upon by the persons sending and receiving the record; or
            (C) in the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office rule.
        (19) "Consignee" means a merchant to which goods are delivered in a consignment.
        (20) "Consignment" means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:
            (A) the merchant:
                (i) deals in goods of that kind under a name other than the name of the person making delivery;
                (ii) is not an auctioneer; and
                (iii) is not generally known by its creditors to be substantially engaged in selling the goods of others;
            (B) with respect to each delivery, the aggregate value of the goods is one thousand dollars ($1,000) or more at the time of delivery;
            (C) the goods are not consumer goods immediately before delivery; and
            (D) the transaction does not create a security interest that secures an obligation.
        (21) "Consignor" means a person that delivers goods to a consignee in a consignment.
        (22) "Consumer debtor" means a debtor in a consumer transaction.
        (23) "Consumer goods" means goods that are used or bought for use primarily for personal, family, or household purposes.
        (24) "Consumer-goods transaction" means a consumer transaction in which:
            (A) an individual incurs an obligation primarily for personal, family, or household purposes; and
            (B) a security interest in consumer goods secures the obligation.
        (25) "Consumer obligor" means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes.
        (26) "Consumer transaction" means a transaction in which (i) an individual incurs an obligation primarily for personal, family, or household purposes, (ii) a security interest secures the obligation, and (iii) the collateral is held or acquired primarily for personal, family, or household purposes. The term includes

consumer-goods transactions.
        (27) "Continuation statement" means an amendment of a financing statement that:
            (A) identifies, by its file number, the initial financing statement to which it relates; and
            (B) indicates that it is a continuation statement for, or that it is filed to continue the effectiveness of, the identified financing statement.
        (28) "Debtor" means:
            (A) a person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
            (B) a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
            (C) a consignee.
        (29) "Deposit account" means a demand, time, savings, passbook, or similar account maintained with a bank. The term does not include investment property or accounts evidenced by an instrument.
        (30) "Document" means a document of title or a receipt of the type described in IC 26-1-7-201(b).
        (31) "Electronic chattel paper" means chattel paper evidenced by a record or records consisting of information stored in an electronic medium.
        (32) "Encumbrance" means a right, other than an ownership interest, in real property. The term includes mortgages and other liens on real property.
        (33) "Equipment" means goods other than inventory, farm products, or consumer goods.
        (34) "Farm products" means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and which are:
            (A) crops grown, growing, or to be grown, including:
                (i) crops produced on trees, vines, and bushes; and
                (ii) aquatic goods produced in aquacultural operations;
            (B) livestock, born or unborn, including aquatic goods produced in aquacultural operations;
            (C) supplies used or produced in a farming operation; or
            (D) products of crops or livestock in their unmanufactured states.
        (35) "Farming operation" means raising, cultivating, propagating, fattening, grazing, or any other farming, livestock, or aquacultural operation.
        (36) "File number" means the number assigned to an initial financing statement pursuant to IC 26-1-9.1-519(a).
        (37) "Filing office" means an office designated in IC 26-1-9.1-501 as the place to file a financing statement.
        (38) "Filing-office rule" means a rule adopted pursuant to IC 26-1-9.1-526.
        (39) "Financing statement" means a record or records composed

of an initial financing statement and any filed record relating to the initial financing statement.
        (40) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b). The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures.
        (41) "Fixtures" means goods that have become so related to particular real property that an interest in them arises under real property law.
        (42) "General intangible" means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods, instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or other minerals before extraction. The term includes payment intangibles and software.
        (43) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
        (44) "Goods" means all things that are movable when a security interest attaches. The term includes (i) fixtures, (ii) standing timber that is to be cut and removed under a conveyance or contract for sale, (iii) the unborn young of animals, (iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines, or bushes, and (v) manufactured homes. The term also includes a computer program embedded in goods and any supporting information provided in connection with a transaction relating to the program if (i) the program is associated with the goods in such a manner that it customarily is considered part of the goods, or (ii) by becoming the owner of the goods, a person acquires a right to use the program in connection with the goods. The term does not include a computer program embedded in goods that consist solely of the medium in which the program is embedded. The term also does not include accounts, chattel paper, commercial tort claims, deposit accounts, documents, general intangibles, instruments, investment property, letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
        (45) "Governmental unit" means a subdivision, agency, department, county, parish, municipality, or other unit of the government of the United States, a state, or a foreign country. The term includes an organization having a separate corporate existence if the organization is eligible to issue debt on which interest is exempt from income taxation under the laws of the United States.
        (46) "Health-care-insurance receivable" means an interest in or claim under a policy of insurance that is a right to payment of a monetary obligation for health-care goods or services provided.
        (47) "Instrument" means a negotiable instrument or any other writing that evidences a right to the payment of a monetary

obligation, is not itself a security agreement or lease, and is of a type that in the ordinary course of business is transferred by delivery with any necessary endorsement or assignment. The term does not include (i) investment property, (ii) letters of credit, or (iii) writings that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card.
        (48) "Inventory" means goods, other than farm products, that:
            (A) are leased by a person as lessor;
            (B) are held by a person for sale or lease or to be furnished under a contract of service;
            (C) are furnished by a person under a contract of service; or
            (D) consist of raw materials, work in process, or materials used or consumed in a business.
        (49) "Investment property" means a security, whether certificated or uncertificated, security entitlement, securities account, commodity contract, or commodity account.
        (50) "Jurisdiction of organization", with respect to a registered organization, means the jurisdiction under whose law the organization is formed or organized.
        (51) "Letter-of-credit right" means a right to payment or performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance. The term does not include the right of a beneficiary to demand payment or performance under a letter of credit.
        (52) "Lien creditor" means:
            (A) a creditor that has acquired a lien on the property involved by attachment, levy, or the like;
            (B) an assignee for benefit of creditors from the time of assignment;
            (C) a trustee in bankruptcy from the date of the filing of the petition; or
            (D) a receiver in equity from the time of appointment.
        (53) "Manufactured home" means a structure, transportable in one (1) or more sections, which, in the traveling mode, is eight (8) body feet or more in width or forty (40) body feet or more in length, or, when erected on site, is three hundred twenty (320) or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained therein. The term includes any structure that meets all of the requirements of this subdivision except the size requirements, and with respect to which the manufacturer voluntarily files a certification required by the United States Secretary of Housing and Urban Development and complies with the standards established under Title 42 of the United States Code.
        (54) "Manufactured-home transaction" means a secured

transaction:
            (A) that creates a purchase-money security interest in a manufactured home, other than a manufactured home held as inventory; or
            (B) in which a manufactured home, other than a manufactured home held as inventory, is the primary collateral.
        (55) "Mortgage" means a consensual interest in real property, including fixtures, that secures payment or performance of an obligation.
        (56) "New debtor" means a person that becomes bound as debtor under IC 26-1-9.1-203(d) by a security agreement previously entered into by another person.
        (57) "New value" means (i) money, (ii) money's worth in property, services, or new credit, or (iii) release by a transferee of an interest in property previously transferred to the transferee. The term does not include an obligation substituted for another obligation.
        (58) "Noncash proceeds" means proceeds other than cash proceeds.
        (59) "Obligor" means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, (i) owes payment or other performance of the obligation, (ii) has provided property other than the collateral to secure payment or other performance of the obligation, or (iii) is otherwise accountable in whole or in part for payment or other performance of the obligation. The term does not include issuers or nominated persons under a letter of credit.
        (60) "Original debtor", except as used in IC 26-1-9.1-310(c), means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under IC 26-1-9.1-203(d).
        (61) "Payment intangible" means a general intangible under which the account debtor's principal obligation is a monetary obligation.
        (62) "Person related to", with respect to an individual, means:
            (A) the spouse of the individual;
            (B) a brother, brother-in-law, sister, or sister-in-law of the individual;
            (C) an ancestor or lineal descendant of the individual or the individual's spouse; or
            (D) any other relative, by blood or marriage, of the individual or the individual's spouse who shares the same home with the individual.
        (63) "Person related to", with respect to an organization, means:
            (A) a person directly or indirectly controlling, controlled by, or under common control with the organization;
            (B) an officer or director of, or a person performing similar functions with respect to, the organization;


            (C) an officer or director of, or a person performing similar functions with respect to, a person described in clause (A);
            (D) the spouse of an individual described in clause (A), (B), or (C); or
            (E) an individual who is related by blood or marriage to an individual described in clause (A), (B), (C), or (D) and shares the same home with the individual.
        (64) "Proceeds", except as used in IC 26-1-9.1-609(b), means the following property:
            (A) Whatever is acquired upon the sale, lease, license, exchange, or other disposition of collateral.
            (B) Whatever is collected on, or distributed on account of, collateral.
            (C) Rights arising out of collateral.
            (D) To the extent of the value of collateral, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to, the collateral.
            (E) To the extent of the value of collateral and to the extent payable to the debtor or the secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the collateral.
        (65) "Promissory note" means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
        (66) "Proposal" means a record authenticated by a secured party that includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to IC 26-1-9.1-620, IC 26-1-9.1-621, and IC 26-1-9.1-622.
        (67) "Public-finance transaction" means a secured transaction in connection with which:
            (A) debt securities are issued;
            (B) all or a portion of the securities issued have an initial stated maturity of at least twenty (20) years; and
            (C) the debtor, obligor, secured party, account debtor, or other person obligated on collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security interest is a state or a governmental unit of a state.
        (68) "Public organic record" means a record that is available to the public for inspection and is:
            (A) a record consisting of the record initially filed with or issued by a state or the United States to form or organize an organization and any record filed with or issued by the state or the United States which amends or restates the initial record;
            (B) an organic record of a business trust consisting of the record initially filed with a state and any record filed with

the state which amends or restates the initial record, if a statute of the state governing business trusts requires that the record be filed with the state; or
            (C) a record consisting of legislation enacted by the legislature of a state or the Congress of the United States which forms or organizes an organization, any record amending the legislation, and any record filed with or issued by the state or the United States which amends or restates the name of the organization.
        (69) "Pursuant to commitment", with respect to an advance made or other value given by a secured party, means pursuant to the secured party's obligation, whether or not a subsequent event of default or other event not within the secured party's control has relieved or may relieve the secured party from its obligation.
        (70) "Record", except as used in "for record", "of record", "record or legal title", and "record owner", means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
        (71) "Registered organization" means an organization formed or organized solely under the law of a single state or the United States by the filing of a public organic record with, the issuance of a public organic record by, or the enactment of legislation by the state or the United States. The term includes a business trust that is formed or organized under the law of a single state if a statute of the state governing business trusts requires that the business trust's organic record be filed with the state.
        (72) "Secondary obligor" means an obligor to the extent that:
            (A) the obligor's obligation is secondary; or
            (B) the obligor has a right of recourse with respect to an obligation secured by collateral against the debtor, another obligor, or property of either.
        (73) "Secured party" means:
            (A) a person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
            (B) a person that holds an agricultural lien;
            (C) a consignor;
            (D) a person to which accounts, chattel paper, payment intangibles, or promissory notes have been sold;
            (E) a trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or
            (F) a person that holds a security interest arising under IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), IC 26-1-2.1-508(5), IC 26-1-4-210, or IC 26-1-5.1-118.
        (74) "Security agreement" means an agreement that creates or provides for a security interest.
        (75) "Send", in connection with a record or notification, means:


            (A) to deposit in the mail, deliver for transmission, or transmit by any other usual means of communication, with postage or cost of transmission provided for, addressed to any address reasonable under the circumstances; or
            (B) to cause the record or notification to be received within the time that it would have been received if properly sent under clause (A).
        (76) "Software" means a computer program and any supporting information provided in connection with a transaction relating to the program. The term does not include a computer program that is included in the definition of goods.
        (77) "State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
        (78) "Supporting obligation" means a letter-of-credit right or secondary obligation that supports the payment or performance of an account, chattel paper, a document, a general intangible, an instrument, or investment property.
        (79) "Tangible chattel paper" means chattel paper evidenced by a record or records consisting of information that is inscribed on a tangible medium.
        (80) "Termination statement" means an amendment of a financing statement that:
            (A) identifies, by its file number, the initial financing statement to which it relates; and
            (B) indicates either that it is a termination statement or that the identified financing statement is no longer effective.
        (81) "Transmitting utility" means a person primarily engaged in the business of:
            (A) operating a railroad, subway, street railway, or trolley bus;
            (B) transmitting communications electrically, electromagnetically, or by light;
            (C) transmitting goods by pipeline or sewer; or
            (D) transmitting or producing and transmitting electricity, steam, gas, or water.
    (b) "Control" as provided in IC 26-1-7-106 and the following definitions outside IC 26-1-9.1 apply to IC 26-1-9.1:
        "Applicant" IC 26-1-5.1-102.
        "Beneficiary" IC 26-1-5.1-102.
        "Broker" IC 26-1-8.1-102.
        "Certificated security" IC 26-1-8.1-102.
        "Check" IC 26-1-3.1-104.
        "Clearing corporation" IC 26-1-8.1-102.
        "Contract for sale" IC 26-1-2-106.
        "Customer" IC 26-1-4-104.
        "Entitlement holder" IC 26-1-8.1-102.
        "Financial asset" IC 26-1-8.1-102.
        "Holder in due course" IC 26-1-3.1-302.
        "Issuer" (with respect to a letter of credit or letter-of-credit right) IC 26-1-5.1-102.
        "Issuer" (with respect to a security) IC 26-1-8.1-201.
        "Issuer" (with respect to documents of title) IC 26-1-7-102.
        "Lease" IC 26-1-2.1-103.
        "Lease agreement" IC 26-1-2.1-103.
        "Lease contract" IC 26-1-2.1-103.
        "Leasehold interest" IC 26-1-2.1-103.
        "Lessee" IC 26-1-2.1-103.
        "Lessee in ordinary course of business" IC 26-1-2.1-103.
        "Lessor" IC 26-1-2.1-103.
        "Lessor's residual interest" IC 26-1-2.1-103.
        "Letter of credit" IC 26-1-5.1-102.
        "Merchant" IC 26-1-2-104.
        "Negotiable instrument" IC 26-1-3.1-104.
        "Nominated person" IC 26-1-5.1-102.
        "Note" IC 26-1-3.1-104.
        "Proceeds of a letter of credit" IC 26-1-5.1-114.
        "Prove" IC 26-1-3.1-103.
        "Sale" IC 26-1-2-106.
        "Securities account" IC 26-1-8.1-501.
        "Securities intermediary" IC 26-1-8.1-102.
        "Security" IC 26-1-8.1-102.
        "Security certificate" IC 26-1-8.1-102.
        "Security entitlement" IC 26-1-8.1-102.
        "Uncertificated security" IC 26-1-8.1-102.
    (c) IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-9.1.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.65; P.L.108-2009, SEC.3; P.L.54-2011, SEC.3.

IC 26-1-9.1-102.5
"Take free"; "takes free"; "takes the money free"; "takes the funds free"
    
Sec. 102.5. As used in this chapter, "take free", "takes free", "takes the money free", and "takes the funds free", when used in conjunction with a security interest in collateral which is transferred, means that following the transfer the collateral is no longer encumbered by the security interest and the security interest is terminated with respect to the transferred collateral.
As added by P.L.192-2003, SEC.1.

IC 26-1-9.1-103
Purchase-money security interest; application of payment; burden of establishing
    
Sec. 103. (a) In this section:
        (1) "Purchase-money collateral" means goods or software that secures a purchase-money obligation incurred with respect to that collateral.
        (2) "Purchase-money obligation" means an obligation of an

obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in, or the use of the collateral if the value is in fact so used.
    (b) A security interest in goods is a purchase-money security interest:
        (1) to the extent that the goods are purchase-money collateral with respect to that security interest;
        (2) if the security interest is in inventory that is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest; and
        (3) also to the extent that the security interest secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.
    (c) A security interest in software is a purchase-money security interest to the extent that the security interest also secures a purchase-money obligation incurred with respect to goods in which the secured party holds or held a purchase-money security interest if:
        (1) the debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and
        (2) the debtor acquired its interest in the software for the principal purpose of using the software in the goods.
    (d) The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.
    (e) If the extent to which a security interest is a purchase-money security interest depends on the application of a payment to a particular obligation, the payment must be applied:
        (1) in accordance with any reasonable method of application to which the parties agree;
        (2) in the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or
        (3) in the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:
            (A) To obligations that are not secured.
            (B) If more than one (1) obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.
    (f) A purchase-money security interest does not lose its status as such, even if:
        (1) the purchase-money collateral also secures an obligation that is not a purchase-money obligation;
        (2) collateral that is not purchase-money collateral also secures the purchase-money obligation; or
        (3) the purchase-money obligation has been renewed,

refinanced, consolidated, or restructured.
    (g) A secured party claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-104
Control of deposit account
    
Sec. 104. (a) A secured party has control of a deposit account if:
        (1) the secured party is the bank with which the deposit account is maintained;
        (2) the debtor, secured party, and bank have agreed in an authenticated record that the bank will comply with instructions originated by the secured party directing disposition of the funds in the account without further consent by the debtor; or
        (3) the secured party becomes the bank's customer with respect to the deposit account.
    (b) A secured party that has satisfied subsection (a) has control, even if the debtor retains the right to direct the disposition of funds from the deposit account.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-105
Control of electronic chattel paper
    
Sec. 105. (a) A secured party has control of electronic chattel paper if a system employed for evidencing the transfer of interests in the chattel paper reliably establishes the secured party as the person to which the chattel paper was assigned.
    (b) A system satisfies subsection (a) if the record or records comprising the chattel paper are created, stored, and assigned in such a manner that:
        (1) a single authoritative copy of the record or records exists which is unique, identifiable and, except as otherwise provided in subdivisions (4), (5), and (6), unalterable;
        (2) the authoritative copy identifies the secured party as the assignee of the record or records;
        (3) the authoritative copy is communicated to and maintained by the secured party or its designated custodian;
        (4) copies or amendments that add or change an identified assignee of the authoritative copy can be made only with the consent of the secured party;
        (5) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative copy; and
        (6) any amendment of the authoritative copy is readily identifiable as authorized or unauthorized.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.4.

IC 26-1-9.1-106
Control of investment property


     Sec. 106. (a) A person has control of a certificated security, uncertificated security, or security entitlement as provided in IC 26-1-8.1-106.
    (b) A secured party has control of a commodity contract if:
        (1) the secured party is the commodity intermediary with which the commodity contract is carried; or
        (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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-107
Control of letter-of-credit right
    
Sec. 107. 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 IC 26-1-5.1-114(c) or otherwise applicable law or practice.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-108
Sufficiency of description
    
Sec. 108. (a) Except as otherwise provided in subsections (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 subsection (d), a description of collateral reasonably identifies the collateral if it identifies the collateral by:
        (1) specific listing;
        (2) category;
        (3) except as otherwise provided in subsection (e), a type of collateral defined in IC 26-1;
        (4) quantity;
        (5) computational or allocational formula or procedure; or
        (6) except as otherwise provided in subsection (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 subsection (e), a description of a security entitlement, securities account, or commodity account is sufficient if it describes:


        (1) the collateral by those terms or as investment property; or
        (2) the underlying financial asset or commodity contract.
    (e) A description only by type of collateral defined in IC 26-1 is an insufficient description of:
        (1) a commercial tort claim; or
        (2) in a consumer transaction, consumer goods, a security entitlement, a securities account, or a commodity account.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-109
Scope
    
Sec. 109. (a) Except as otherwise provided in subsections (c) and (d), IC 26-1-9.1 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 IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5), as provided in IC 26-1-9.1-110;
        (6) a security interest arising under IC 26-1-4-210 or IC 26-1-5.1-118; and
        (7) a transfer of an interest or a claim in a contractual right of a person to receive commissions or other compensation payable by an insurer (as defined in IC 27-1-2-3).
    (b) The application of IC 26-1-9.1 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 IC 26-1-9.1 does not apply.
    (c) IC 26-1-9.1 does not apply to the extent that:
        (1) a statute, regulation, or treaty of the United States preempts IC 26-1-9.1; or
        (2) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under IC 26-1-5.1-114.
    (d) IC 26-1-9.1 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 IC 26-1-9.1-333 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 that 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 a transfer described in subsection (a)(7), or 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 IC 26-1-9.1-315 and IC 26-1-9.1-322 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) IC 26-1-9.1-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
            (B) IC 26-1-9.1-404 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 IC 26-1-9.1-203 and IC 26-1-9.1-308;
            (B) fixtures in IC 26-1-9.1-334;
            (C) fixture filings in IC 26-1-9.1-501, IC 26-1-9.1-502, IC 26-1-9.1-512, IC 26-1-9.1-516, and IC 26-1-9.1-519; and
            (D) security agreements covering personal and real property in IC 26-1-9.1-604;
        (12) an assignment of a claim arising in tort, other than a commercial tort claim, but IC 26-1-9.1-315 and IC 26-1-9.1-322 apply with respect to proceeds and priorities in proceeds;
        (13) an assignment of a deposit account in a consumer transaction, but IC 26-1-9.1-315 and IC 26-1-9.1-322 apply with respect to proceeds and priorities in proceeds;
        (14) the creation, perfection, priority, or enforcement of a security interest created by the state, another state, or a foreign country, or a governmental unit of the state, another state or a foreign country;
        (15) a pledge of revenues, other money, or property made under IC 5-1-14-4;
        (16) a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. 104(a)(1) or (a)(2); or
        (17) a claim or right to receive benefits under a special need trust as described in 42 U.S.C. 1396p(d)(4).
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.1.

IC 26-1-9.1-110


Security interests arising under IC 26-1-2 or IC 26-1-2.1
    
Sec. 110. A security interest arising under IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5) is subject to IC 26-1-9.1. However, until the debtor obtains possession of the goods:
        (1) the security interest is enforceable, even if IC 26-1-9.1-203(b)(3) 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 IC 26-1-2 or IC 26-1-2.1; and
        (4) the security interest has priority over a conflicting security interest created by the debtor.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-201
General effectiveness of security agreement
    
Sec. 201. (a) Except as otherwise provided in IC 26-1, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.
    (b) A transaction subject to this article is subject to any applicable rule of law that establishes a different rule for consumers.
    (c) In case of conflict between IC 26-1-9.1 and a rule of law, statute, or regulation described in subsection (b), the rule of law, statute, or regulation controls. Failure to comply with a statute or regulation described in subsection (b) has only the effect the statute or regulation specifies.
    (d) IC 26-1-9.1 does not:
        (1) validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation described in subsection (b); or
        (2) extend the application of the rule of law, statute, or regulation to a transaction not otherwise subject to it.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-202
Title to collateral immaterial
    
Sec. 202. 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-203
Attachment and enforceability of security interest; proceeds; supporting obligations; formal requisites
    
Sec. 203. (a) A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment.
    (b) Except as otherwise provided in subsections (c) through (i), a

security interest is enforceable against the debtor and third parties with respect to the collateral only if:
        (1) value has been given;
        (2) the debtor has rights in the collateral or the power to transfer rights in the collateral to a secured party; and
        (3) one (1) of the following conditions is met:
            (A) The debtor has authenticated a security agreement that provides a description of the collateral and, if the security interest covers timber to be cut, a description of the land concerned.
            (B) The collateral is not a certificated security and is in the possession of the secured party under IC 26-1-9.1-313 pursuant to the debtor's security agreement.
            (C) The collateral is a certificated security in registered form and the security certificate has been delivered to the secured party under IC 26-1-8.1-301 pursuant to the debtor's security agreement.
            (D) The collateral is deposit accounts, electronic chattel paper, investment property, letter-of-credit rights, or electronic documents, and the secured party has control under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, or IC 26-1-9.1-107 pursuant to the debtor's security agreement.
    (c) Subsection (b) is subject to IC 26-1-4-210 on the security interest of a collecting bank, IC 26-1-5.1-118 on the security interest of a letter-of-credit issuer or nominated person, IC 26-1-9.1-110 on a security interest arising under IC 26-1-2 or IC 26-1-2.1, and IC 26-1-9.1-206 on security interests in investment property.
    (d) A person becomes bound as debtor by a security agreement entered into by another person if, by operation of law other than IC 26-1-9.1 or by contract:
        (1) the security agreement becomes effective to create a security interest in the person's property; or
        (2) the person becomes generally obligated for the obligations of the other person, including the obligation secured under the security agreement, and acquires or succeeds to all or substantially all of the assets of the other person.
    (e) If a new debtor becomes bound as debtor by a security agreement entered into by another person:
        (1) the agreement satisfies subsection (b)(3) with respect to existing or after-acquired property of the new debtor to the extent the property is described in the agreement; and
        (2) another agreement is not necessary to make a security interest in the property enforceable.
    (f) The attachment of a security interest in collateral gives the secured party the rights to proceeds provided by IC 26-1-9-315 and is also attachment of a security interest in a supporting obligation for the collateral.
    (g) The attachment of a security interest in a right to payment or performance secured by a security interest or other lien on personal

or real property is also attachment of a security interest in the security interest, mortgage, or other lien.
    (h) The attachment of a security interest in a securities account is also attachment of a security interest in the security entitlements carried in the securities account.
    (i) The attachment of a security interest in a commodity account is also attachment of a security interest in the commodity contracts carried in the commodity account.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.66.

IC 26-1-9.1-204
After-acquired property; future advances
    
Sec. 204. (a) Except as otherwise provided in subsection (b), a security agreement may create or provide for a security interest in after-acquired collateral.
    (b) A security interest does not attach under a term constituting an after-acquired property clause to:
        (1) consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten (10) days after the secured party gives value; or
        (2) a commercial tort claim.
    (c) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-205
Use or disposition of collateral permissible
    
Sec. 205. (a) A security interest is not invalid or fraudulent against creditors solely because:
        (1) the debtor has the right or ability to:
            (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; or
            (D) use, commingle, or dispose of proceeds; or
        (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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-206
Security interest arising in purchase or delivery of financial asset
    
Sec. 206. (a) A security interest in favor of a securities

intermediary attaches to a person's security entitlement if:
        (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; and
        (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 subsection (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:
        (1) the security or other financial asset:
            (A) in the ordinary course of business is transferred by delivery with any necessary endorsement or assignment; and
            (B) is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
        (2) the agreement calls for delivery against payment.
    (d) The security interest described in subsection (c) secures the obligation to make payment for the delivery.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-207
Rights and duties of secured party having possession or control of collateral
    
Sec. 207. (a) Except as otherwise provided in subsection (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 subsection (d), if a secured party has possession of collateral:
        (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; and
        (4) the secured party may use or operate the collateral:
            (A) for the purpose of preserving the collateral or its value;
            (B) as permitted by an order of a court having competent jurisdiction; or
            (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 subsection (d), a secured party

having possession of collateral or control of collateral under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, or IC 26-1-9.1-107:
        (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; and
        (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:
        (1) subsection (a) does not apply unless the secured party is entitled under an agreement:
            (A) to charge back uncollected collateral; or
            (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; and
        (2) subsections (b) and (c) do not apply.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.67.

IC 26-1-9.1-208
Additional duties of secured party having control of collateral
    
Sec. 208. (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 ten (10) days after receiving an authenticated demand by the debtor:
        (1) a secured party having control of a deposit account under IC 26-1-9.1-104(a)(2) shall send to the bank with which the deposit account is maintained an authenticated statement 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 IC 26-1-9.1-104(a)(3) shall:
            (A) pay the debtor the balance on deposit in the deposit account; or
            (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 of electronic chattel paper under IC 26-1-9.1-105 shall:
            (A) communicate the authoritative copy of the electronic chattel paper to the debtor or its designated custodian;
            (B) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic chattel paper is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the

secured party and instructing the custodian to comply with instructions originated by the debtor; and
            (C) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy that add or change an identified assignee of the authoritative copy without the consent of the secured party;
        (4) a secured party having control of investment property under IC 26-1-8.1-106(d)(2) or IC 26-1-9.1-106(b) shall send to the securities intermediary or commodity intermediary with which the security entitlement or commodity contract is maintained an authenticated 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 IC 26-1-9.1-107 shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letter of credit to the secured party an authenticated release from any further obligation to pay or deliver proceeds of the letter of credit to the secured party; and
        (6) a secured party having control of an electronic document shall:
            (A) give control of the electronic document to the debtor or its designated custodian;
            (B) if the debtor designates a custodian that is the designated custodian with which the authoritative copy of the electronic document is maintained for the secured party, communicate to the custodian an authenticated record releasing the designated custodian from any further obligation to comply with instructions originated by the secured party and instructing the custodian to comply with instructions originated by the debtor; and
            (C) take appropriate action to enable the debtor or its designated custodian to make copies of or revisions to the authoritative copy that add or change an identified assignee of the authoritative copy without the consent of the secured party.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.68.

IC 26-1-9.1-209
Duties of secured party if account debtor has been notified of assignment
    
Sec. 209. (a) Except as otherwise provided in subsection (c), this section applies if:
        (1) there is no outstanding secured obligation; and
        (2) the secured party is not committed to make advances, incur obligations, or otherwise give value.
    (b) Within ten (10) days after receiving an authenticated demand

by the debtor, a secured party shall send to an account debtor that has received notification of an assignment to the secured party as assignee under IC 26-1-9.1-406(a) an authenticated 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-210
Request for accounting; request regarding list of collateral or statement of account
    
Sec. 210. (a) In this section the following definitions apply:
        (1) "Request" means a record of a type described in subdivision (2), (3), or (4).
        (2) "Request for an accounting" means a record authenticated by a debtor requesting that the recipient provide an accounting of the unpaid obligations secured by collateral and reasonably identifying the transaction or relationship that is the subject of the request.
        (3) "Request regarding a list of collateral" means a record authenticated by a debtor requesting that the recipient approve or correct a list of what the debtor believes to be the collateral securing an obligation and reasonably identifying the transaction or relationship that is the subject of the request.
        (4) "Request regarding a statement of account" means a record authenticated by a debtor requesting that the recipient approve or correct a statement indicating what the debtor believes to be the aggregate amount of unpaid obligations secured by collateral as of a specified date and reasonably identifying the transaction or relationship that is the subject of the request.
    (b) Subject to subsections (c), (d), (e), and (f), a secured party, other than a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor, shall comply with a request within fourteen (14) days after receipt:
        (1) in the case of a request for an accounting, by authenticating and sending to the debtor an accounting; and
        (2) in the case of a request regarding a list of collateral or a request regarding a statement of account, by authenticating and sending to the debtor an approval or correction.
    (c) A secured party that claims a security interest in all of a particular type of collateral owned by the debtor may comply with a request regarding a list of collateral by sending to the debtor an authenticated record, including a statement to that effect within fourteen (14) days after receipt.
    (d) A person that receives a request regarding a list of collateral, claims no interest in the collateral when it receives the request, and claimed an interest in the collateral at an earlier time shall comply with the request within fourteen (14) days after receipt by sending to the debtor an authenticated record:


        (1) disclaiming any interest in the collateral; and
        (2) if known to the recipient, providing the name and mailing address of any assignee of or successor to the recipient's interest in the collateral.
    (e) A person that receives a request for an accounting or a request regarding a statement of account, claims no interest in the obligations when the person receives the request, and claimed an interest in the obligations at an earlier time shall comply with the request within fourteen (14) days after receipt by sending to the debtor an authenticated record:
        (1) disclaiming any interest in the obligations; and
        (2) if known to the recipient, providing the name and mailing address of any assignee of or successor to the recipient's interest in the obligations.
    (f) A debtor is entitled without charge to one (1) response to a request under this section during any six (6) month period. The secured party may require payment of a charge not exceeding twenty-five dollars ($25) for each additional response.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-301
Law governing perfection and priority of security interests
    
Sec. 301. Except as otherwise provided in IC 26-1-9.1-303 through IC 26-1-9.1-306, 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 subdivision (4), while tangible 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.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.69.


IC 26-1-9.1-302
Law governing perfection and priority of agricultural liens
    
Sec. 302. 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-303
Law governing perfection and priority of security interests in goods covered by a certificate of title
    
Sec. 303. (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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-304
Law governing perfection and priority of security interests in deposit accounts
    
Sec. 304. (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.
    (b) The following rules determine a bank's jurisdiction for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342:
        (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 IC 26-1, that jurisdiction is the bank's jurisdiction.
        (2) If subdivision (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 subdivision (1) nor subdivision (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 subdivisions apply, 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 subdivisions apply, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.2.

IC 26-1-9.1-305
Law governing perfection and priority of security interests in investment property
    
Sec. 305. (a) Except as otherwise provided in subsection (c), the following rules apply:
        (1) While a security certificate 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 the certificated security represented thereby.
        (2) The local law of the issuer's jurisdiction as specified in IC 26-1-8.1-110(d) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in an uncertificated security.
        (3) The local law of the securities intermediary's jurisdiction as specified in IC 26-1-8.1-110(e) governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a security entitlement or securities account.
        (4) The local law of the commodity intermediary's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a commodity contract or commodity account.
    (b) The following rules determine a commodity intermediary's jurisdiction for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342:
        (1) If an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that a particular jurisdiction is the commodity intermediary's jurisdiction for purposes of IC 26-1, that jurisdiction is the commodity intermediary's jurisdiction.
        (2) If subdivision (1) does not apply, and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the commodity intermediary's jurisdiction.
        (3) If neither subdivision (1) nor subdivision (2) applies, and an agreement between the commodity intermediary and commodity customer governing the commodity account expressly provides that the commodity account is maintained at an office in a particular jurisdiction, that jurisdiction is the commodity

intermediary's jurisdiction.
        (4) If none of the preceding subdivisions apply, the commodity intermediary's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the commodity customer's account is located.
        (5) If none of the preceding subdivisions apply, the commodity intermediary's jurisdiction is the jurisdiction in which the chief executive office of the commodity intermediary is located.
    (c) The local law of the jurisdiction in which the debtor is located governs:
        (1) perfection of a security interest in investment property by filing;
        (2) automatic perfection of a security interest in investment property created by a broker or securities intermediary; and
        (3) automatic perfection of a security interest in a commodity contract or commodity account created by a commodity intermediary.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.3.

IC 26-1-9.1-306
Law governing perfection and priority of security interests in letter-of-credit rights
    
Sec. 306. (a) Subject to subsection (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 IC 26-1-9.1-301 through IC 26-1-9.1-342, 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 IC 26-1-5.1-116.
    (c) This section does not apply to a security interest that is perfected only under IC 26-1-9.1-308(d).
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.4.

IC 26-1-9.1-307
Location of debtor
    
Sec. 307. (a) In this section, "place of business" means a place where a debtor conducts its affairs.
    (b) Except as otherwise provided in this section, the following rules determine a debtor's location:
        (1) A debtor who is an individual is located at the individual's principal residence.
        (2) A debtor that is an organization and has only one (1) place of business is located at its place of business.
        (3) A debtor that is an organization and has more than one (1) place of business is located at its chief executive office.


    (c) Subsection (b) applies only if a debtor's residence, place of business, or chief executive office, as applicable, is located in a jurisdiction whose law generally requires information concerning the existence of a nonpossessory security interest to be made generally available in a filing, recording, or registration system as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral. If subsection (b) does not apply, the debtor is located in the District of Columbia.
    (d) A person that ceases to exist, have a residence, or have a place of business continues to be located in the jurisdiction specified by subsections (b) and (c).
    (e) A registered organization that is organized under the law of a state is located in that state.
    (f) Except as otherwise provided in subsection (i), a registered organization that is organized under the law of the United States and a branch or agency of a bank that is not organized under the law of the United States or a state are located:
        (1) in the state that the law of the United States designates, if the law designates a state of location;
        (2) in the state that the registered organization, branch, or agency designates, if the law of the United States authorizes the registered organization, branch, or agency to designate its state of location, including by designating its main office, home office, or other comparable office; or
        (3) in the District of Columbia, if neither paragraph (1) nor paragraph (2) applies.
    (g) A registered organization continues to be located in the jurisdiction specified by subsection (e) or (f) notwithstanding:
        (1) the suspension, revocation, forfeiture, or lapse of the registered organization's status as such in its jurisdiction of organization; or
        (2) the dissolution, winding up, or cancellation of the existence of the registered organization.
    (h) The United States is located in the District of Columbia.
    (i) A branch or agency of a bank that is not organized under the law of the United States or a state is located in the state in which the branch or agency is licensed, if all branches and agencies of the bank are licensed in only one (1) state.
    (j) A foreign air carrier under the Federal Aviation Act of 1958, as amended, is located at the designated office of the agent upon which service of process may be made on behalf of the carrier.
    (k) This section applies only for purposes of IC 26-1-9.1-301 through IC 26-1-9.1-342.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.5; P.L.54-2011, SEC.5.

IC 26-1-9.1-308
When security interest or agricultural lien is perfected; continuity of perfection
    
Sec. 308. (a) Except as otherwise provided in this section and

IC 26-1-9.1-309, a security interest is perfected if it has attached and all of the applicable requirements for perfection in IC 26-1-9.1-310 through IC 26-1-9.1-316 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 IC 26-1-9.1-310 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 IC 26-1-9.1 and is later perfected by another method under IC 26-1-9.1, 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-309
Security interest perfected upon attachment
    
Sec. 309. The following security interests are perfected when they attach:
        (1) A purchase-money security interest in consumer goods, except as otherwise provided in IC 26-1-9.1-311(b) with respect to consumer goods that are subject to a statute or treaty described in IC 26-1-9.1-311(a).
        (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 IC 26-1-2-401, IC 26-1-2-505, IC 26-1-2-711(3), or IC 26-1-2.1-508(5), until the debtor obtains possession of the collateral.
        (7) A security interest of a collecting bank arising under IC 26-1-4-210.


        (8) A security interest of an issuer or nominated person arising under IC 26-1-5.1-118.
        (9) A security interest arising in the delivery of a financial asset under IC 26-1-9.1-206(c).
        (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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-310
When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply
    
Sec. 310. (a) Except as otherwise provided in subsection (b) and IC 26-1-9.1-312(b), a financing statement must be filed to perfect all security interests and agricultural liens.
    (b) The filing of a financing statement is not necessary to perfect a security interest:
        (1) that is perfected under IC 26-1-9.1-308(d), IC 26-1-9.1-308(e), IC 26-1-9.1-308(f), or IC 26-1-9.1-308(g);
        (2) that is perfected under IC 26-1-9.1-309 when it attaches;
        (3) in property subject to a statute, regulation, or treaty described in IC 26-1-9.1-311(a);
        (4) in goods in possession of a bailee that are perfected under IC 26-1-9.1-312(d)(1) or IC 26-1-9.1-312(d)(2);
        (5) in certificated securities, documents, goods, or instruments which is perfected without filing, control, or possession under IC 26-1-9.1-312(e), IC 26-1-9.1-312(f), or IC 26-1-9.1-312(g);
        (6) in collateral in the secured party's possession under IC 26-1-9.1-313;
        (7) in a certificated security which is perfected by delivery of the security certificate to the secured party under IC 26-1-9.1-313;
        (8) in deposit accounts, electronic chattel paper, electronic documents, investment property, or letter-of-credit rights which is perfected by control under IC 26-1-9.1-314;
        (9) in proceeds which is perfected under IC 26-1-9.1-315; or
        (10) that is perfected under IC 26-1-9.1-316.
    (c) If a secured party assigns a perfected security interest or agricultural lien, a filing under IC 26-1-9.1 is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.70.


IC 26-1-9.1-311
Perfection of security interests in property subject to certain statutes, regulations, and treaties
    
Sec. 311. (a) Except as otherwise provided in subsection (d), 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 IC 26-1-9.1-310(a);
        (2) any Indiana statute covering automobiles, trailers, mobile homes, or boats, which provides for a security interest to be indicated on a certificate of title as a condition or result of perfection; or
        (3) 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 the requirements of a statute, regulation, or treaty described in subsection (a) for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under IC 26-1-9.1. Except as otherwise provided in subsection (d), IC 26-1-9.1-313, IC 26-1-9.1-316(d), and IC 26-1-9.1-316(e) 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) Except as otherwise provided in subsection (d), IC 26-1-9.1-316(d), and IC 26-1-9.1-316(e), 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 IC 26-1-9.1.
    (d) 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, but instead, the filing provisions of IC 26-1-9.1-501 through IC 26-1-9.1-527 apply.
As added by P.L.57-2000, SEC.45. Amended by P.L.210-2005, SEC.74; P.L.54-2011, SEC.6.

IC 26-1-9.1-312
Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without filing or transfer

of possession
    
Sec. 312. (a) A security interest in chattel paper, negotiable documents, instruments, or investment property may be perfected by filing.
    (b) Except as otherwise provided in IC 26-1-9.1-315(c) and IC 26-1-9.1-315(d), for proceeds:
        (1) a security interest in a deposit account may be perfected only by control under IC 26-1-9.1-314;
        (2) and except as otherwise provided in IC 26-1-9.1-308(d), a security interest in a letter-of-credit right may be perfected only by control under IC 26-1-9.1-314; and
        (3) a security interest in money may be perfected only by the secured party's taking possession under IC 26-1-9.1-313.
    (c) While goods are in the possession of a bailee that has issued a negotiable document covering the goods:
        (1) a security interest in the goods may be perfected by perfecting a security interest in the document; and
        (2) a security interest perfected in the document has priority over any security interest that becomes perfected in the goods by another method during that time.
    (d) While goods are in the possession of a bailee that has issued a nonnegotiable document covering the goods, a security interest in the goods may be perfected by:
        (1) issuance of a document in the name of the secured party;
        (2) the bailee's receipt of notification of the secured party's interest; or
        (3) filing as to the goods.
    (e) A security interest in certificated securities, negotiable documents, or instruments is perfected without filing or the taking of possession or control for a period of twenty (20) days from the time it attaches to the extent that it arises for new value given under an authenticated security agreement.
    (f) A perfected security interest in a negotiable document or goods in possession of a bailee, other than one that has issued a negotiable document for the goods, remains perfected for twenty (20) days without filing if the secured party makes available to the debtor the goods or documents representing the goods for the purpose of:
        (1) ultimate sale or exchange; or
        (2) loading, unloading, storing, shipping, transshipping, manufacturing, processing, or otherwise dealing with them in a manner preliminary to their sale or exchange.
    (g) A perfected security interest in a certificated security or instrument remains perfected for twenty (20) days without filing if the secured party delivers the security certificate or instrument to the debtor for the purpose of:
        (1) ultimate sale or exchange; or
        (2) presentation, collection, enforcement, renewal, or registration of transfer.
    (h) After the twenty (20) day period specified in subsection (e), (f), or (g) expires, perfection depends upon compliance with

IC 26-1-9.1.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.71.

IC 26-1-9.1-313
When possession by or delivery to secured party perfects security interest without filing
    
Sec. 313. (a) Except as otherwise provided in subsection (b), a secured party may perfect a security interest in tangible negotiable documents, goods, instruments, money, or tangible chattel paper by taking possession of the collateral. A secured party may perfect a security interest in certificated securities by taking delivery of the certificated securities under IC 26-1-8.1-301.
    (b) With respect to goods covered by a certificate of title issued by this state, a secured party may perfect a security interest in the goods by taking possession of the goods only in the circumstances described in IC 26-1-9.1-316(e).
    (c) With respect to collateral other than certificated securities and goods covered by a document, a secured party takes possession of collateral in the possession of a person other than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary course of the debtor's business, when:
        (1) the person in possession authenticates a record acknowledging that it holds possession of the collateral for the secured party's benefit; or
        (2) the person takes possession of the collateral after having authenticated a record acknowledging that it will hold possession of collateral for the secured party's benefit.
    (d) If perfection of a security interest depends upon possession of the collateral by a secured party, perfection occurs not earlier than the time the secured party takes possession and continues only while the secured party retains possession.
    (e) A security interest in a certificated security in registered form is perfected by delivery when delivery of the certificated security occurs under IC 26-1-8.1-301 and remains perfected by delivery until the debtor obtains possession of the security certificate.
    (f) A person in possession of collateral is not required to acknowledge that it holds possession for a secured party's benefit.
    (g) If a person acknowledges that it holds possession for the secured party's benefit:
        (1) the acknowledgment is effective under subsection (c) or IC 26-1-8.1-301(a), even if the acknowledgment violates the rights of a debtor; and
        (2) unless the person otherwise agrees or a law other than IC 26-1-9.1 otherwise provides, the person does not owe any duty to the secured party and is not required to confirm the acknowledgment to another person.
    (h) A secured party having possession of collateral does not relinquish possession by delivering the collateral to a person other than the debtor or a lessee of the collateral from the debtor in the

ordinary course of the debtor's business if the person was instructed before the delivery or is instructed contemporaneously with the delivery:
        (1) to hold possession of the collateral for the secured party's benefit; or
        (2) to redeliver the collateral to the secured party.
    (i) A secured party does not relinquish possession, even if a delivery under subsection (h) violates the rights of a debtor. A person to which collateral is delivered under subsection (h) does not owe any duty to the secured party and is not required to confirm the delivery to another person unless the person otherwise agrees or law other than IC 26-1-9.1 otherwise provides.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.72.

IC 26-1-9.1-314
Perfection by control
    
Sec. 314. (a) A security interest in investment property, deposit accounts, letter-of-credit rights, electronic chattel paper, or electronic documents may be perfected by control of the collateral under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, or IC 26-1-9.1-107.
    (b) A security interest in deposit accounts, electronic chattel paper, letter-of-credit rights, or electronic documents is perfected by control under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, or IC 26-1-9.1-107 when the secured party obtains control and remains perfected by control only while the secured party retains control.
    (c) A security interest in investment property is perfected by control under IC 26-1-9.1-106 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.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.73.

IC 26-1-9.1-315
Secured party's rights on disposition of collateral and in proceeds
    
Sec. 315. (a) Except as otherwise provided in IC 26-1-9.1 and in IC 26-1-2-403(2):
        (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; and


        (2) a security interest attaches to any identifiable proceeds of collateral.
    (b) Proceeds that are commingled with other property are identifiable proceeds:
        (1) if the proceeds are goods, to the extent provided by IC 26-1-9.1-336; and
        (2) if the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than IC 26-1-9.1 with respect to commingled property of the type involved.
    (c) A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
    (d) A perfected security interest in proceeds becomes unperfected on the twenty-first 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.
            (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) when the security interest attaches to the proceeds or within twenty (20) days thereafter.
    (e) If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under subsection (d)(1) becomes unperfected at the later of:
        (1) when the effectiveness of the filed financing statement lapses under IC 26-1-9.1-515 or is terminated under IC 26-1-9.1-513; or
        (2) the twenty-first day after the security interest attaches to the proceeds.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-316
Continued perfection of security interest following change in governing law
    
Sec. 316. (a) A security interest perfected pursuant to the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) remains perfected until the earliest of:
        (1) the time perfection would have ceased under the law of that jurisdiction;
        (2) the expiration of four (4) months after a change of the debtor's location to another jurisdiction; or
        (3) the expiration of one (1) year after a transfer of collateral to a person that thereby becomes a debtor and is located in another jurisdiction.
    (b) If a security interest described in subsection (a) becomes

perfected under the law of the other jurisdiction before the earliest time or event described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earliest time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
    (c) A possessory security interest in collateral, other than goods covered by a certificate of title and as-extracted collateral consisting of goods, remains continuously perfected if:
        (1) the collateral is located in one (1) jurisdiction and subject to a security interest perfected under the law of that jurisdiction;
        (2) thereafter the collateral is brought into another jurisdiction; and
        (3) upon entry into the other jurisdiction, the security interest is perfected under the law of the other jurisdiction.
    (d) Except as otherwise provided in subsection (e), a security interest in goods covered by a certificate of title which is perfected by any method under the law of another jurisdiction when the goods become covered by a certificate of title from this state remains perfected until the security interest would have become unperfected under the law of the other jurisdiction had the goods not become so covered.
    (e) A security interest described in subsection (d) becomes unperfected as against a purchaser of the goods for value and is deemed never to have been perfected as against a purchaser of the goods for value if the applicable requirements for perfection under IC 26-1-9.1-311(b) or IC 26-1-9.1-313 are not satisfied before the earlier of:
        (1) the time the security interest would have become unperfected under the law of the other jurisdiction had the goods not become covered by a certificate of title from this state; or
        (2) the expiration of four (4) months after the goods had become so covered.
    (f) A security interest in deposit accounts, letter-of-credit rights, or investment property which is perfected under the law of the bank's jurisdiction, the issuer's jurisdiction, a nominated person's jurisdiction, the securities intermediary's jurisdiction, or the commodity intermediary's jurisdiction, as applicable, remains perfected until the earlier of:
        (1) the time the security interest would have become unperfected under the law of that jurisdiction; or
        (2) the expiration of four (4) months after a change of the applicable jurisdiction to another jurisdiction.
    (g) If a security interest described in subsection (f) becomes perfected under the law of the other jurisdiction before the earlier of the time or the end of the period described in that subsection, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier of that time or the end of that period, it becomes unperfected and is

deemed never to have been perfected as against a purchaser of the collateral for value.
    (h) The following rules apply to collateral to which a security interest attaches within four (4) months after the debtor changes its location to another jurisdiction:
        (1) A financing statement filed before the change under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) is effective to perfect a security interest in the collateral if the financing statement would have been effective to perfect a security interest in the collateral had the debtor not changed its location.
        (2) If a security interest perfected by a financing statement that is effective under subdivision (1) becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the four (4) month period, it remains perfected thereafter. If the security interest does not become perfected under the law of the other jurisdiction before the earlier time or event, it becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
    (i) If a financing statement naming an original debtor is filed under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) and the new debtor is located in another jurisdiction, the following rules apply:
        (1) The financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four (4) months after, the new debtor becomes bound under IC 26-1-9.1-203(d), if the financing statement would have been effective to perfect a security interest in the collateral had the collateral been acquired by the original debtor.
        (2) A security interest perfected by the financing statement and which becomes perfected under the law of the other jurisdiction before the earlier of the time the financing statement would have become ineffective under the law of the jurisdiction designated in IC 26-1-9.1-301(1) or IC 26-1-9.1-305(c) or the expiration of the four (4) month period remains perfected thereafter. A security interest that is perfected by the financing statement but which does not become perfected under the law of the other jurisdiction before the earlier time or event becomes unperfected and is deemed never to have been perfected as against a purchaser of the collateral for value.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.7.

IC 26-1-9.1-317
Interests that take priority over or take free of unperfected security interest or agricultural lien
    
Sec. 317. (a) A security interest or agricultural lien is subordinate

to the rights of:
        (1) a person entitled to priority under IC 26-1-9.1-322; and
        (2) except as provided in subsection (e), 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 (1) of the conditions specified in IC 26-1-9.1-203(b)(3) is met;
        and a financing statement covering the collateral is filed.
    (b) Except as otherwise provided in subsection (e), a buyer, other than a secured party, of tangible chattel paper, tangible 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) Except as otherwise provided in subsection (e), 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) 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) Except as otherwise provided in IC 26-1-9.1-320 and IC 26-1-9.1-321, 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 that arise between the time the security interest attaches and the time of filing.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.6; P.L.143-2007, SEC.74; P.L.54-2011, SEC.8.

IC 26-1-9.1-318
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
    
Sec. 318. (a) A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.
    (b) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-319
Rights and title of consignee with respect to creditors and purchasers


     Sec. 319. (a) Except as otherwise provided in subsection (b), 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 has rights and title to the goods identical to those the consignor had or had power to transfer.
    (b) For purposes of determining the rights of a creditor of a consignee, law other than this article determines the rights and title of a consignee while goods are in the consignee's possession if, under IC 26-1-9.1-301 through IC 26-1-9.1-342, a perfected security interest held by the consignor would have priority over the rights of the creditor.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.7.

IC 26-1-9.1-320
Buyer of goods
    
Sec. 320. (a) Except as otherwise provided in this subsection and subsection (e), a buyer in ordinary course of business 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. The following apply whenever a person is buying farm products from a person engaged in farming operations who has created a security interest on the farm products:
        (1) A person buying farm products from a person engaged in farming operations is not protected by this subsection if, within one (1) year before the sale of the farm products, the buyer has received prior written notice of the security interest. "Written notice" means any writing that contains the following:
            (A) The full name and address of the debtor.
            (B) The full name and address of the secured party.
            (C) In the case of a debtor doing business other than as an individual, the United States Internal Revenue Service taxpayer identification number of the debtor.
            (D) A description of the collateral, including the type and amount of farm products, the crop year, the county of location, and a description of the real property on which the farm products were grown or produced.
            (E) Any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest.
        Notice must be received before a buyer of farm products has made full payment to the person engaged in farming operations for the farm products if the notice is to be considered "prior written notice". The written notice lapses on either the expiration period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first.
        (2) A secured party must, within fifteen (15) days of the satisfaction of the debt, inform in writing each potential buyer listed by the debtor whenever a debt has been satisfied and

written notice, as required by subdivision (1), had been previously sent to that buyer.
        (3) A debtor engaged in farming operations who has created a security interest in farm products must provide the secured party with a written list of potential buyers of the farm products at the time the debt is incurred if such a list is requested by the secured party. The debtor may not sell farm products to a buyer who does not appear on the list (if the list is requested by the secured party) unless the secured party has given prior written permission to the debtor to sell to someone who does not appear on the list, or the debtor satisfies the debt for that secured party on the farm products he sells within fifteen (15) days of the date of sale. A debtor who knowingly or intentionally sells to a buyer who does not appear on the list (if the list is requested by the secured party) and who does not meet one (1) of the above exceptions, commits a Class C misdemeanor. A secured party commits a Class C infraction if the secured party knowingly or intentionally gives false or misleading information on the notice required by subdivision (1) or the secured party fails within fifteen (15) days of satisfaction of the debt to notify purchasers to whom a written notice had been previously sent under subdivision (1) of the satisfaction of the debt.
        (4) A purchaser of farm products buying from a person engaged in farming operations must issue a check for payment jointly to the debtor and those secured parties from whom he has received prior written notice of a security interest as provided for in subdivision (1). A purchaser who fails to issue a jointly payable check as required by this subsection is not protected by this subdivision. A purchaser of farm products (on which there is a perfected security interest) buying from a person engaged in farming operations who withholds all or part of the proceeds of the sale from the seller, in order to satisfy a prior debt ("prior debt" does not include the costs of marketing the farm product or the cost of transporting the farm product to the market) owed by the seller to the buyer, commits a Class C infraction.
    (b) Except as otherwise provided in subsection (e), 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) To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by IC 26-1-9.1-316(a) and IC 26-1-9.1-316(b).
    (d) 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) Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under IC 26-1-9.1-313.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-321
Licensee of general intangible and lessee of goods in ordinary course of business
    
Sec. 321. (a) 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) 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) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-322
Priorities among conflicting security interests in and agricultural liens on same collateral
    
Sec. 322. (a) Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:
        (1) Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.
        (2) A perfected security interest or agricultural lien has priority over a conflicting unperfected security interest or agricultural lien.
        (3) The first security interest or agricultural lien to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected.
    (b) For the purposes of subsection (a)(1):
        (1) the time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and


        (2) the time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.
    (c) Except as otherwise provided in subsection (f), a security interest in collateral which qualifies for priority over a conflicting security interest under IC 26-1-9.1-327, IC 26-1-9.1-328, IC 26-1-9.1-329, IC 26-1-9.1-330, or IC 26-1-9.1-331 also has priority over a conflicting security interest in:
        (1) any supporting obligation for the collateral; and
        (2) proceeds of the collateral if:
            (A) the security interest in proceeds is perfected;
            (B) the proceeds are cash proceeds or of the same type as the collateral; and
            (C) in the case of proceeds that are proceeds of proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.
    (d) Subject to subsection (e) and except as otherwise provided in subsection (f), if a security interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property, or letter-of-credit rights is perfected by a method other than filing, conflicting perfected security interests in proceeds of the collateral rank according to priority in time of filing.
    (e) Subsection (d) applies only if the proceeds of the collateral are not cash proceeds, chattel paper, negotiable documents, instruments, investment property, or letter-of-credit rights.
    (f) Subsections (a) through (e) are subject to:
        (1) subsection (g) and IC 26-1-9.1-301 through IC 26-1-9.1-342;
        (2) IC 26-1-4-210 with respect to a security interest of a collecting bank;
        (3) IC 26-1-5.1-118 with respect to a security interest of an issuer or nominated person; and
        (4) IC 26-1-9.1-110 with respect to a security interest arising under IC 26-1-2 or IC 26-1-2.1.
    (g) A perfected agricultural lien on collateral has priority over a conflicting security interest in or agricultural lien on the same collateral if the statute creating the agricultural lien so provides.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.8.

IC 26-1-9.1-323
Future advances
    
Sec. 323. (a) Except as otherwise provided in subsection (c), for purposes of determining the priority of a perfected security interest under IC 26-1-9.1-322(a)(1), 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 IC 26-1-9.1-309 when it attaches; or


            (B) temporarily under IC 26-1-9.1-312(e), IC 26-1-9.1-312(f), or IC 26-1-9.1-312(g); 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 IC 26-1-9.1-309, IC 26-1-9.1-312(e), IC 26-1-9.1-312(f), or IC 26-1-9.1-312(g).
    (b) Except as otherwise provided in subsection (c), 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) Subsections (a) and (b) 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) Except as otherwise provided in subsection (e), 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) Subsection (d) 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 forty-five (45) day period.
    (f) Except as otherwise provided in subsection (g), 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) Subsection (f) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-324
Priority of purchase-money security interests
    
Sec. 324. (a) Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in IC 26-1-9.1-327, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within twenty (20) days thereafter.


    (b) Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in IC 26-1-9.1-330, and, except as otherwise provided in IC 26-1-9.1-327, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:
        (1) the purchase-money security interest is perfected when the debtor receives possession of the inventory;
        (2) the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
        (3) the holder of the conflicting security interest receives the notification within five (5) years before the debtor receives possession of the inventory; and
        (4) the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.
    (c) Subsection (b)(2) through (b)(4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:
        (1) if the purchase-money security interest is perfected by filing, before the date of the filing; or
        (2) if the purchase-money security interest is temporarily perfected without filing or possession under IC 26-1-9.1-312(f), before the beginning of the twenty (20) day period thereunder.
    (d) Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in IC 26-1-9.1-327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:
        (1) the purchase-money security interest is perfected when the debtor receives possession of the livestock;
        (2) the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
        (3) the holder of the conflicting security interest receives the notification within six (6) months before the debtor receives possession of the livestock; and
        (4) the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.
    (e) Subsection (d)(2) through (d)(4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:
        (1) if the purchase-money security interest is perfected by filing, before the date of the filing; or
        (2) if the purchase-money security interest is temporarily perfected without filing or possession under IC 26-1-9.1-312(f), before the beginning of the twenty (20) day period thereunder.
    (f) Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in IC 26-1-9.1-327, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.
    (g) If more than one (1) security interest qualifies for priority in the same collateral under subsection (a), (b), (d), or (f):
        (1) a security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and
        (2) in all other cases, IC 26-1-9.1-322(a) applies to the qualifying security interests.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-325
Priority of security interests in transferred collateral
    
Sec. 325. (a) Except as otherwise provided in subsection (b), 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) Subsection (a) subordinates a security interest only if the security interest:
        (1) otherwise would have priority solely under IC 26-1-9.1-322(a) or IC 26-1-9.1-324; or
        (2) arose solely under IC 26-1-2-711(3) or IC 26-1-2.1-508(5).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-326
Priority of security interests created by new debtor
    
Sec. 326. (a) Subject to subsection (b), a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective to perfect the security interest but for the application of IC 26-1-9.1-316(i)(1) or IC 26-1-9.1-508 is subordinate to a security interest in the same collateral that is perfected by another method.
    (b) The other provisions of IC 26-1-9.1-301 through

IC 26-1-9.1-342 determine the priority among conflicting security interests in the same collateral perfected by filed financing statements described in subsection (a). However, if the security agreements to which a new debtor became bound as a 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.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.9.

IC 26-1-9.1-327
Priority of security interests in deposit account
    
Sec. 327. 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 IC 26-1-9.1-104 has priority over a conflicting security interest held by a secured party that does not have control.
        (2) Except as otherwise provided in subdivisions (3) and (4), security interests perfected by control under IC 26-1-9.1-314 rank according to priority in time of obtaining control.
        (3) Except as otherwise provided in subdivision (4), 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 IC 26-1-9.1-104(a)(3) has priority over a security interest held by the bank with which the deposit account is maintained.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-328
Priority of security interests in investment property
    
Sec. 328. 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 IC 26-1-9.1-106 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 subdivisions (3) and (4), conflicting security interests held by secured parties each of which has control under IC 26-1-9.1-106 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 IC 26-1-8.1-106(d)(1), the secured party's becoming the person for which the securities account is maintained;
                (ii) if the secured party obtained control under IC 26-1-8.1-106(d)(2), 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 IC 26-1-8.1-106(d)(3), the time on which priority would be based under this subdivision 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 IC 26-1-9.1-106(b)(2) 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 IC 26-1-9.1-313(a) and not by control under IC 26-1-9.1-314 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 IC 26-1-9.1-106 rank equally.
        (7) In all other cases, priority among conflicting security interests in investment property is governed by IC 26-1-9.1-322 and IC 26-1-9.1-323.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-329
Priority of security interests in letter-of-credit rights
    
Sec. 329. 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 IC 26-1-9.1-107 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 IC 26-1-9.1-314 rank according to priority in time of obtaining control.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-330
Priority of purchases of chattel paper or instrument
    
Sec. 330. (a) 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 IC 26-1-9.1-105; and
        (2) the chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser.
    (b) 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 IC 26-1-9.1-105 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) Except as otherwise provided in IC 26-1-9.1-327, 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) IC 26-1-9.1-322 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) Except as otherwise provided in IC 26-1-9.1-331(a), 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) For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.
    (f) For purposes of subsections (b) and (d), 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-331
Priority of rights of purchasers of instruments, documents, and securities under other chapters; priority of interests in financial assets and security entitlements under IC 26-1-8.1
    
Sec. 331. (a) This article 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 IC 26-1-3.1, IC 26-1-7, and IC 26-1-8.1.
    (b) This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of an adverse claim under IC 26-1-8.1.
    (c) Filing under IC 26-1-9.1 does not constitute notice of a claim

or defense to the holders, purchasers, or persons described in subsections (a) and (b).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-332
Transfer of money; transfer of funds from deposit account
    
Sec. 332. (a) 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) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-333
Priority of certain liens arising by operation of law
    
Sec. 333. (a) In this section, "possessory lien" means an interest, other than a security interest or an agricultural lien:
        (1) that 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) that is created by statute or rule of law in favor of the person; and
        (3) whose effectiveness depends on the person's possession of the goods.
    (b) 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.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-334
Priority of security interests in fixtures and crops
    
Sec. 334. (a) A security interest under IC 26-1-9.1 may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under IC 26-1-9.1 in ordinary building materials incorporated into an improvement on land.
    (b) IC 26-1-9.1 does not prevent creation of an encumbrance upon fixtures under real property law.
    (c) In cases not governed by subsections (d) through (h), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.
    (d) Except as otherwise provided in subsection (h), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:
        (1) the security interest is a purchase-money security interest;
        (2) the interest of the encumbrancer or owner arises before the

goods become fixtures; and
        (3) the security interest is perfected by a fixture filing before the goods become fixtures or within twenty (20) days thereafter.
    (e) A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:
        (1) the debtor has an interest of record in the real property or is in possession of the real property and the security interest:
            (A) is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and
            (B) has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;
        (2) before the goods become fixtures, the security interest is perfected by any method permitted by IC 26-1-9.1 and the fixtures are readily removable:
            (A) factory or office machines;
            (B) equipment that is not primarily used or leased for use in the operation of the real property; or
            (C) replacements of domestic appliances that are consumer goods;
        (3) the conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by IC 26-1-9.1; or
        (4) the security interest is:
            (A) created in a manufactured home in a manufactured-home transaction; and
            (B) perfected pursuant to a statute described in IC 26-1-9.1-311(a)(2).
    (f) A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:
        (1) the encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or
        (2) the debtor has a right to remove the goods against the encumbrancer or owner.
    (g) The priority of the security interest under subsection (f) continues for a reasonable time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.
    (h) A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f), a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.
    (i) A perfected security interest in crops growing on real property

has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-335
Accessions
    
Sec. 335. (a) A security interest may be created in an accession and continues in collateral that becomes an accession.
    (b) If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.
    (c) Except as otherwise provided in subsection (d), the other provisions of IC 26-1-9.1-301 through IC 26-1-9.1-342 determine the priority of a security interest in an accession.
    (d) A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate-of-title statute under IC 26-1-9.1-311(b).
    (e) After default, subject to IC 26-1-9.1-601 through IC 26-1-9.1-628, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.
    (f) A secured party that removes an accession from other goods under subsection (e) shall promptly reimburse any holder of a security interest or other lien on, or owner, of the whole or the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.9.

IC 26-1-9.1-336
Commingled goods
    
Sec. 336. (a) As used in this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.
    (b) A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.
    (c) If collateral becomes commingled goods, a security interest attaches to the product or mass.
    (d) If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) is perfected.
    (e) Except as otherwise provided in subsection (f), the other provisions of IC 26-1-9.1-301 through IC 26-1-9.1-342 determine the

priority of a security interest that attaches to the product or mass under subsection (c).
    (f) If more than one (1) security interest attaches to the product or mass under subsection (c), the following rules determine priority:
        (1) A security interest that is perfected under subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.
        (2) If more than one (1) security interest is perfected under subsection (d), the security interests rank equally in proportion to value of the collateral at the time it became commingled goods.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-337
Priority of security interests in goods covered by certificate of title
    
Sec. 337. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:
        (1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
        (2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under IC 26-1-9.1-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-338
Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
    
Sec. 338. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in IC 26-1-9.1-516(b)(5) that is incorrect at the time the financing statement is filed:
        (1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
        (2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007,

SEC.75.

IC 26-1-9.1-339
Priority subject to subordination
    
Sec. 339. IC 26-1-9.1 does not preclude subordination by agreement by a person entitled to priority.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-340
Effectiveness of right of recoupment or setoff against deposit account
    
Sec. 340. (a) Except as otherwise provided in subsection (c), a bank with which a deposit account is maintained may exercise any right of recoupment or set-off against a secured party that holds a security interest in the deposit account.
    (b) Except as otherwise provided in subsection (c), the application of IC 26-1-9.1 to a security interest in a deposit account does not affect a right of recoupment or set-off of the secured party as to a deposit account maintained with the secured party.
    (c) The exercise by a bank of a set-off against a deposit account is ineffective against a secured party that holds a security interest in the deposit account which is perfected by control under IC 26-1-9.1-104(a)(3), if the set-off is based on a claim against the debtor.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-341
Bank's rights and duties with respect to deposit account
    
Sec. 341. Except as otherwise provided in IC 26-1-9.1-340(c), and unless the bank otherwise agrees in an authenticated record, a bank's rights and duties with respect to a deposit account maintained with the bank are not terminated, suspended, or modified by:
        (1) the creation, attachment, or perfection of a security interest in the deposit account;
        (2) the bank's knowledge of the security interest; or
        (3) the bank's receipt of instructions from the secured party.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-342
Bank's right to refuse to enter into or disclose existence of control agreement
    
Sec. 342. IC 26-1-9.1 does not require a bank to enter into an agreement of the kind described in IC 26-1-9.1-104(a)(2), even if its customer so requests or directs. A bank that has entered into such an agreement is not required to confirm the existence of the agreement to another person unless requested to do so by its customer.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-401
Alienability of debtor's rights


     Sec. 401. (a) Except as otherwise provided in subsection (b) and IC 26-1-9.1-406, IC 26-1-9.1-407, IC 26-1-9.1-408, and IC 26-1-9.1-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than IC 26-1-9.1.
    (b) An agreement between the debtor and secured party that prohibits a transfer of the debtor's rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-402
Secured party not obligated on contract of debtor or in tort
    
Sec. 402. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-403
Agreement not to assert defenses against assignee
    
Sec. 403. (a) As used in this section, "value" has the meaning provided in IC 26-1-3-303(a).
    (b) Except as otherwise provided in this section, an agreement between an account debtor and an assignor not to assert against an assignee any claim or defense that the account debtor may have against the assignor is enforceable by an assignee that takes an assignment:
        (1) for value;
        (2) in good faith;
        (3) without notice of a claim of a property or possessory right to the property assigned; and
        (4) without notice of a defense or claim in recoupment of the type that may be asserted against a person entitled to enforce a negotiable instrument under IC 26-1-3.1-305(a).
    (c) Subsection (b) does not apply to defenses of a type that may be asserted against a holder in due course of a negotiable instrument under IC 26-1-3.1-305(b).
    (d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than IC 26-1-9.1 requires that the record include a statement to the effect that the rights of an assignee are subject to claims or defenses that the account debtor could assert against the original obligee, and the record does not include such a statement:
        (1) the record has the same effect as if the record included such a statement; and
        (2) the account debtor may assert against an assignee those claims and defenses that would have been available if the record included such a statement.
    (e) This section is subject to law other than IC 26-1-9.1 that establishes a different rule for an account debtor who is an individual

and who incurred the obligation primarily for personal, family, or household purposes.
    (f) Except as otherwise provided in subsection (d), this section does not displace law other than IC 26-1-9.1 which gives effect to an agreement by an account debtor not to assert a claim or defense against an assignee.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-404
Rights acquired by assignee; claims and defenses against assignee
    
Sec. 404. (a) Unless an account debtor has made an enforceable agreement not to assert defenses or claims, and subject to subsections (b) through (e), the rights of an assignee are subject to:
        (1) all terms of the agreement between the account debtor and assignor and any defense or claim in recoupment arising from the transaction that gave rise to the contract; and
        (2) any other defense or claim of the account debtor against the assignor which accrues before the account debtor receives a notification of the assignment authenticated by the assignor or the assignee.
    (b) Subject to subsection (c) and except as otherwise provided in subsection (d), the claim of an account debtor against an assignor may be asserted against an assignee under subsection (a) only to reduce the amount the account debtor owes.
    (c) This section is subject to law other than IC 26-1-9.1 that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
    (d) In a consumer transaction, if a record evidences the account debtor's obligation, law other than IC 26-1-9.1 requires that the record include a statement to the effect that the account debtor's recovery against an assignee with respect to claims and defenses against the assignor may not exceed amounts paid by the account debtor under the record, and the record does not include such a statement, the extent to which a claim of an account debtor against the assignor may be asserted against an assignee is determined as if the record included such a statement.
    (e) This section does not apply to an assignment of a health-care-insurance receivable.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-405
Modification of assigned contract
    
Sec. 405. (a) A modification of or substitution for an assigned contract is effective against an assignee if made in good faith. The assignee acquires corresponding rights under the modified or substituted contract. The assignment may provide that the modification or substitution is a breach of contract by the assignor. This subsection is subject to subsections (b) through (d).
    (b) Subsection (a) applies to the extent that:


        (1) the right to payment or a part thereof under an assigned contract has not been fully earned by performance; or
        (2) the right to payment or a part thereof has been fully earned by performance and the account debtor has not received notification of the assignment under IC 26-1-9.1-406(a).
    (c) This section is subject to law other than IC 26-1-9.1 that establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
    (d) This section does not apply to an assignment of a health-care-insurance receivable.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-406
Discharge of account debtor; notification of assignment; identification and proof of assignment; restrictions on assignment of accounts, chattel paper, payment intangibles, and promissory notes ineffective
    
Sec. 406. (a) Subject to subsections (b) through (i), an account debtor on an account, chattel paper, or a payment intangible may discharge its obligation by paying the assignor until, but not after, the account debtor receives a notification, authenticated by the assignor or the assignee, that the amount due or to become due has been assigned and that payment is to be made to the assignee. After receipt of the notification, the account debtor may discharge its obligation by paying the assignee and may not discharge the obligation by paying the assignor.
    (b) Subject to subsection (h), notification is ineffective under subsection (a):
        (1) if it does not reasonably identify the rights assigned;
        (2) to the extent that an agreement between an account debtor and a seller of a payment intangible limits the account debtor's duty to pay a person other than the seller and the limitation is effective under law other than IC 26-1-9.1; or
        (3) at the option of an account debtor, if the notification notifies the account debtor to make less than the full amount of any installment or other periodic payment to the assignee, even if:
            (A) only a portion of the account, chattel paper, or payment intangible has been assigned to that assignee;
            (B) a portion has been assigned to another assignee; or
            (C) the account debtor knows that the assignment to that assignee is limited.
    (c) Subject to subsection (h), if requested by the account debtor, an assignee shall seasonably furnish reasonable proof that the assignment has been made. Unless the assignee complies, the account debtor may discharge its obligation by paying the assignor, even if the account debtor has received a notification under subsection (a).
    (d) Except as otherwise provided in subsection (e) and IC 26-1-2.1-303 and IC 26-1-9.1-407, and subject to subsection (h),

a term in an agreement between an account debtor and an assignor or in a promissory note is ineffective to the extent that it:
        (1) prohibits, restricts, or requires the consent of the account debtor or person obligated on the promissory note to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in, the account, chattel paper, payment intangible, or promissory note; or
        (2) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the account, chattel paper, payment intangible, or promissory note.
    (e) Subsection (d) does not apply to the sale of a payment intangible or promissory note other than a sale pursuant to a disposition under IC 26-1-9.1-610 or an acceptance of collateral under IC 26-1-9.1-620.
    (f) Except as provided in IC 26-1-2.1-303 and IC 26-1-9.1-407, and subject to subsections (h) and (i), a rule of law, statute, or regulation that prohibits, restricts, or requires the consent of a government, governmental body or official, or account debtor to the assignment or transfer of, or creation of a security interest in, an account or chattel paper is ineffective to the extent that the rule of law, statute, or regulation:
        (1) prohibits, restricts, or requires the consent of the government, governmental body or official, or account debtor to the assignment or transfer of, or the creation, attachment, perfection, or enforcement of a security interest in the account or chattel paper; or
        (2) provides that the assignment or transfer or the creation, attachment, perfection, or enforcement of the security interest may give rise to a default, right of recoupment, claim, defense, termination, right of termination, or remedy under the account or chattel paper.
    (g) Subject to subsection (h), an account debtor may not waive or vary its option under subsection (b)(3).
    (h) This section is subject to law other than IC 26-1-9.1 which establishes a different rule for an account debtor who is an individual and who incurred the obligation primarily for personal, family, or household purposes.
    (i) This section does not apply to an assignment of a health-care-insurance receivable.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.10.

IC 26-1-9.1-407
Restrictions on creation or enforcement of security interest in leasehold interest or in lessor's residual interest
    
Sec. 407. (a) Except as otherwise provided in subsection (b), a term in a lease agreement is ineffective to the extent that it:
        (1) prohibits, restricts, or requires the consent of a party to the

lease to the assignment, transfer, creation, attachment, perfection, or enforcement of a security interest in an interest of a party under the lease contract or in the lessor's residual interest in the goods; or
        (2) provides that the assignment, transfer, creation, attachment, perfection, or enforcement of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the lease.
    (b) Except as otherwise provided in IC 26-1-2.1-303(7), a term described in subsection (a)(2) is effective to the extent that there is:
        (1) a transfer by the lessee of the lessee's right of possession or use of the goods in violation of the term; or
        (2) a delegation of a material performance of either party to the lease contract in violation of the term.
    (c) The creation, attachment, perfection, or enforcement of a security interest in the lessor's interest under the lease contract or the lessor's residual interest in the goods is not a transfer that materially impairs the lessee's prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of IC 26-1-2.1-303(4) unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-408
Restrictions on assignment of promissory notes, health care insurance receivables, and certain general intangibles ineffective
    
Sec. 408. (a) Except as otherwise provided in subsection (b), a term in a promissory note or in an agreement between an account debtor and a debtor that relates to a health-care-insurance receivable or a general intangible, including a contract, permit, license, or franchise, and which term prohibits, restricts, or requires the consent of the person obligated on the promissory note or the account debtor to, the assignment or transfer of, or creation, attachment, or perfection of a security interest in, the promissory note, health-care-insurance receivable, or general intangible, is ineffective to the extent that the term:
        (1) would impair the creation, attachment, or perfection of a security interest; or
        (2) provides that the assignment, transfer, creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
    (b) Subsection (a) applies to a security interest in a payment intangible or promissory note only if the security interest arises out of a sale of the payment intangible or promissory note other than a sale under a disposition under IC 26-1-9.1-610 or an acceptance of collateral under IC 26-1-9.1-620.
    (c) A rule of law, statute, or regulation, which prohibits, restricts,

or requires the consent of a government, governmental body or official, person obligated on a promissory note, or account debtor to the assignment or transfer of, or creation of a security interest in, a promissory note, health-care-insurance receivable, or general intangible, including a contract, permit, license, or franchise between an account debtor and a debtor, is ineffective to the extent that the rule of law, statute, or regulation:
        (1) would impair the creation, attachment, or perfection of a security interest; or
        (2) provides that the assignment, transfer, creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the promissory note, health-care-insurance receivable, or general intangible.
    (d) To the extent that a term in a promissory note or in an agreement between an account debtor and a debtor which relates to a health-care-insurance receivable or general intangible or a rule of law, statute, or regulation described in subsection (c) would be effective under law other than IC 26-1-9.1 but is ineffective under subsection (a) or (c), the creation, attachment, or perfection of a security interest in the promissory note, health-care-insurance receivable, or general intangible:
        (1) is not enforceable against the person obligated on the promissory note or the account debtor;
        (2) does not impose a duty or obligation on the person obligated on the promissory note or the account debtor;
        (3) does not require the person obligated on the promissory note or the account debtor to recognize the security interest, pay or render performance to the secured party, or accept payment or performance from the secured party;
        (4) does not entitle the secured party to use or assign the debtor's rights under the promissory note, health-care-insurance receivable, or general intangible, including any related information or materials furnished to the debtor in the transaction giving rise to the promissory note, health-care-insurance receivable, or general intangible;
        (5) does not entitle the secured party to use, assign, possess, or have access to any trade secrets or confidential information of the person obligated on the promissory note or the account debtor; and
        (6) does not entitle the secured party to enforce the security interest in the promissory note, health-care-insurance receivable, or general intangible.
    (e) This section prevails over any inconsistent provision in statute, administrative rule, or regulation.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.10; P.L.54-2011, SEC.11.

IC 26-1-9.1-409
Restrictions on assignment of letter-of-credit rights ineffective


     Sec. 409. (a) A term in a letter-of-credit or a rule of law, statute, regulation, custom, or practice applicable to the letter-of-credit that prohibits, restricts, or requires the consent of an applicant, issuer, or nominated person to a beneficiary's assignment of or creation of a security interest in a letter-of-credit right is ineffective to the extent that the term or rule of law, statute, regulation, custom, or practice:
        (1) would impair the creation, attachment, or perfection of a security interest in the letter-of-credit right; or
        (2) provides that the assignment, transfer, creation, attachment, or perfection of the security interest may give rise to a default, breach, right of recoupment, claim, defense, termination, right of termination, or remedy under the letter-of-credit right.
    (b) To the extent that a term in a letter-of-credit is ineffective under subsection (a) but would be effective under law other than IC 26-1-9.1 or a custom or practice applicable to the letter-of-credit, to the transfer of a right to draw or otherwise demand performance under the letter-of-credit, or to the assignment of a right to proceeds of the letter-of-credit, the creation, attachment, or perfection of a security interest in the letter-of-credit right:
        (1) is not enforceable against the applicant, issuer, nominated person, or transferee beneficiary;
        (2) imposes no duties or obligations on the applicant, issuer, nominated person, or transferee beneficiary; and
        (3) does not require the applicant, issuer, nominated person, or transferee beneficiary to recognize the security interest, pay or render performance to the secured party, or accept payment or other performance from the secured party.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-501
Filing office
    
Sec. 501. (a) Except as otherwise provided in subsections (b), (c), and (d), if the local law of this state governs perfection of a security interest or agricultural lien, the office in which to file a financing statement to perfect the security interest or agricultural lien is:
        (1) the office designated for the filing or recording of a record of a mortgage on the related real property, if:
            (A) the collateral is as-extracted collateral or timber to be cut; or
            (B) the financing statement is filed as a fixture filing and the collateral is goods that are or are to become fixtures; or
        (2) the office of the secretary of state, in all other cases, including a case in which the collateral is goods that are or are to become fixtures and the financing statement is not filed as a fixture filing.
    (b) The office in which to file a financing statement to perfect a security interest in collateral, including fixtures, of a transmitting utility is the office of the secretary of state. The financing statement also constitutes a fixture filing as to the collateral indicated in the financing statement which is or is to become fixtures.


    (c) Before July 1, 2002, the requirements for perfection of an agricultural lien are as prescribed in the statute establishing the agricultural lien.
    (d) Before July 1, 2002, the office in which to file a financing statement to perfect a security interest in equipment used in a farming operation, a farm product, or an account or a general intangible arising from or relating to the sale of a farm product by a farmer is:
        (1) the office of the county recorder in the county of the debtor's principal residence, if the debtor is an individual with the debtor's principal residence in Indiana;
        (2) the office of the county recorder in the county of the debtor's place of business, if the debtor is an organization with one (1) place of business in Indiana;
        (3) the office of the county recorder in the county of the debtor's chief executive office, if the debtor is an organization with two (2) or more places of business in Indiana and the debtor's chief executive office is in Indiana; and
        (4) the office of the county recorder in the county in which the collateral is located, for equipment used in a farming operation or farm product, or the office of the secretary of state, for an account or a general intangible arising from or relating to the sale of a farm product by a farmer, in all other cases.
    (e) A financing statement filed under subsection (d) is effective for five (5) years after the date the financing statement is filed.
    (f) After June 30, 2001, and before July 1, 2002, a financing statement filed under subsection (d) may be amended only by filing an amendment in the same office of county recorder as the office in which the financing statement being amended was filed.
    (g) After June 30, 2002, a financing statement filed under subsection (d) may be amended only if a replacement financing statement is filed in the office of the secretary of state. The replacement financing statement must:
        (1) satisfy the requirements of IC 26-1-9.1 for an initial financing statement;
        (2) identify the earlier financing statement filed under subsection (d) by:
            (A) indicating the office in which the earlier financing statement was filed; and
            (B) providing the dates of filing and file numbers, if any, of:
                (i) the earlier financing statement filed under subsection (d); and
                (ii) the most recent amendment filed with respect to the financing statement filed under subsection (d); and
        (3) indicate that the earlier financing statement filed under subsection (d) remains effective.
    (h) The filing of a replacement financing statement under subsection (g) is effective as a continuation statement of the earlier financing statement filed under subsection (d) if it is filed:
        (1) after June 30, 2002; and
        (2) before the lapse of the earlier financing statement filed under subsection (d).
The filing of a replacement financing statement under subsection (g) continues the effectiveness of the earlier financing statement filed under subsection (d) for five (5) years after the date the replacement financing statement is filed.
    (i) After June 30, 2002, a financing statement filed under subsection (d) may be terminated:
        (1) by filing a termination statement in the office in which the initial financing statement has been filed if no replacement financing statement has been filed under subsection (g); or
        (2) by filing a termination statement in the office of the secretary of state if a replacement financing statement has been filed under subsection (g).
    (j) After June 30, 2002, a financing statement filed under subsection (d) may be assigned only if:
        (1) a replacement financing statement is filed under subsection (g); and
        (2) an assignment of record is filed that satisfies IC 26-1-9.1-514.
    (k) After June 30, 2002, a financing statement filed under subsection (c) may be amended (for purposes other than continuation, termination, or assignment) only if:
        (1) a replacement financing statement is filed under subsection (g); and
        (2) an amendment is filed that satisfies IC 26-1-9.1-512.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.11.

IC 26-1-9.1-502
Contents of financing statement; record of mortgage as financing statement; time of filing financing statement
    
Sec. 502. (a) Subject to subsection (b), a financing statement is sufficient only if it:
        (1) provides the name of the debtor;
        (2) provides the name of the secured party or a representative of the secured party; and
        (3) indicates the collateral covered by the financing statement.
    (b) Except as otherwise provided in IC 26-1-9.1-501(b), to be sufficient, a financing statement that covers as-extracted collateral or timber to be cut, or which is filed as a fixture filing and covers goods that are or are to become fixtures, must satisfy subsection (a) and also:
        (1) indicate that it covers this type of collateral;
        (2) indicate that it is to be filed in the real property records;
        (3) provide a description of the real property to which the collateral is related that is sufficient to give constructive notice of a mortgage under the law of this state if the description were contained in a record of the mortgage of the real property; and
        (4) if the debtor does not have an interest of record in the real

property, provide the name of a record owner.
    (c) A record of a mortgage is effective, from the date of recording, as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut only if:
        (1) the record indicates the goods or accounts that it covers;
        (2) the goods are or are to become fixtures related to the real property described in the record or the collateral is related to the real property described in the record and is as-extracted collateral or timber to be cut;
        (3) the record satisfies the requirements for a financing statement in this section, but:
            (A) the record need not indicate that it is to be filed in the real property records; and
            (B) the record sufficiently provides the name of a debtor who is an individual if it provides the individual name of the debtor or the surname and first personal name of the debtor, even if the debtor is an individual to whom IC 26-1-9.1-503(a)(4) applies; and
        (4) the record is recorded.
    (d) A financing statement may be filed before a security agreement is made or a security interest otherwise attaches.
    (e) To the extent that IC 36-2-11-15 applies to require the identification of the preparer of a financing statement, the failure of the financing statement to identify the preparer does not affect the sufficiency of the financing statement.
    (f) This subsection does not apply to a financing statement described in IC 26-1-9.1-706. Not later than thirty (30) days after the date the financing statement is filed, the secured party that files the financing statement shall furnish a copy of the financing statement to the debtor. The secured party has the burden of establishing compliance with this subsection. The failure of the secured party to comply with this subsection does not affect the sufficiency or effectiveness of the financing statement. A person who fails to comply with this subsection is subject to IC 26-1-9.1-625.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.12; P.L.54-2011, SEC.12.

IC 26-1-9.1-503
Name of debtor and secured party
    
Sec. 503. (a) A financing statement sufficiently provides the name of the debtor:
        (1) except as otherwise provided in subdivision (3), if the debtor is a registered organization or the collateral is held in a trust that is a registered organization, only if the financing statement provides the name that is stated to be the registered organization's name on the public organic record most recently filed with or issued or enacted by the registered organization's jurisdiction of organization which purports to state, amend, or restate the registered organization's name;
        (2) subject to subsection (f), if the collateral is being

administered by the personal representative of a decedent only if the financing statement provides as the name of the debtor the name of the decedent, and, in a separate part of the financing statement, indicates that the collateral is being administered by a personal representative;
        (3) if the collateral is held in a trust that is not a registered organization, only if the financing statement:
            (A) provides as the name of the debtor:
                (i) if the organic record of the trust specifies a name for the trust, the name specified; or
                (ii) if the organic record of the trust does not specify a name for the trust, the name of the settlor or testator; and
            (B) in a separate part of the financing statement:
                (i) if the name is provided in accordance with clause (A)(i), indicates that the collateral is held in a trust; or
                (ii) if the name is provided in accordance with clause (A)(ii), provides additional information sufficient to distinguish the trust from other trusts having one (1) or more of the same settlors of the same testator and indicates that the collateral is held in a trust, unless the additional information so indicates;
        (4) subject to subsection (g), if the debtor is an individual to whom this state has issued a driver's license or an identification card for nondrivers under IC 9-24-16 that has not expired, only if the financing statement provides the name of the individual which is indicated on the driver's license or identification card;
        (5) if the debtor is an individual to whom subdivision (4) does not apply, only if the financing statement provides the individual name of the debtor or the surname and first personal name of the debtor; and
        (6) in other cases:
            (A) if the debtor has a name, only if it provides the individual or organizational name of the debtor; and
            (B) if the debtor does not have a name, only if it provides the names of the partners, members, associates, or other persons comprising the debtor in a manner that each name provided would be sufficient if the person named were the debtor.
    (b) A financing statement that provides the name of the debtor in accordance with subsection (a) is not rendered ineffective by the absence of:
        (1) a trade name or other name of the debtor; or
        (2) unless required under subsection (a)(6)(B), names of partners, members, associates, or other persons comprising the debtor.
    (c) A financing statement that provides only the debtor's trade name does not sufficiently provide the name of the debtor.
    (d) Failure to indicate the representative capacity of a secured party or representative of a secured party does not affect the sufficiency of a financing statement.
    (e) A financing statement may provide the name of more than one

(1) debtor and the name of more than one (1) secured party.
    (f) The name of the decedent indicated on the order appointing the personal representative of the decedent issued by the court having jurisdiction over the collateral is sufficient as the "name of the decedent" under subsection (a)(2).
    (g) If this state has issued to an individual more than one (1) driver's license or identification card of a kind described in subsection (a)(4), the one (1) that was issued most recently is the one (1) to which subsection (a)(4) refers.
    (h) In this section, "name of the settlor or testator" means:
        (1) if the settlor is a registered organization, the name that is stated to be the settlor's name on the public organic record most recently filed with or issued or enacted by the settlor's jurisdiction of organization which purports to state, amend, or restate the settlor's name; or
        (2) in other cases, the name of the settlor or testator indicated in the trust's organic record.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.13.

IC 26-1-9.1-504
Indication of collateral
    
Sec. 504. A financing statement sufficiently indicates the collateral that it covers if the financing statement provides:
        (1) a description of the collateral pursuant to IC 26-1-9.1-108; or
        (2) an indication that the financing statement covers all assets or all personal property.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-505
Filing and compliance with other statutes and treaties for consignments, leases, other bailments, and other transactions
    
Sec. 505. (a) A consignor, lessor, or other bailor of goods or a buyer of a payment intangible or a promissory note may file a financing statement, or may comply with a statute or treaty described in IC 26-1-9.1-311(a), using the terms "consignor", "consignee", "lessor", "lessee", "bailor", "bailee", "licensor", "licensee", "owner", "registered owner", "buyer", "seller", or words of similar import, instead of the terms "secured party" and "debtor".
    (b) IC 26-1-9.1-501 through IC 26-1-9.1-527 apply to the filing of a financing statement under subsection (a) and, as appropriate, to compliance that is equivalent to filing a financing statement under IC 26-1-9.1-311(b), but the filing or compliance is not of itself a factor in determining whether the collateral secures an obligation. If it is determined for another reason that the collateral secures an obligation, a security interest held by the consignor, lessor, bailor, owner, or buyer which attaches to the collateral is perfected by the filing or compliance.
As added by P.L.57-2000, SEC.45.



IC 26-1-9.1-506
Effect of errors or omissions
    
Sec. 506. (a) A financing statement substantially satisfying the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527 is effective, even if it has minor errors or omissions, unless the errors or omissions make the financing statement seriously misleading.
    (b) Except as otherwise provided in subsection (c), a financing statement that fails sufficiently to provide the name of the debtor in accordance with IC 26-1-9.1-503(a) is seriously misleading.
    (c) If a search of the records of the filing office under the debtor's correct name, using the filing office's standard search logic, if any, would disclose a financing statement that fails to sufficiently provide the name of the debtor in accordance with IC 26-1-9.1-503(a), the name provided does not make the financing statement seriously misleading.
    (d) For purposes of IC 26-1-9.1-508(b), the "debtor's correct name" in subsection (c) means the correct name of the new debtor.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.13.

IC 26-1-9.1-507
Effect of certain events on effectiveness of financing statement
    
Sec. 507. (a) A filed financing statement remains effective with respect to collateral that is sold, exchanged, leased, licensed, or otherwise disposed of and in which a security interest or agricultural lien continues, even if the secured party knows of or consents to the disposition.
    (b) Except as otherwise provided in subsection (c) and IC 26-1-9.1-508, a financing statement is not rendered ineffective if, after the financing statement is filed, the information provided in the financing statement becomes seriously misleading under IC 26-1-9.1-506.
    (c) If the name that a filed financing statement provides for a debtor becomes insufficient as the name of the debtor under IC 26-1-9.1-503(a) so that the financing statement becomes seriously misleading under IC 26-1-9.1-506:
        (1) the financing statement is effective to perfect a security interest in collateral acquired by the debtor before, or within four (4) months after, the filed financing statement becomes seriously misleading; and
        (2) the financing statement is not effective to perfect a security interest in collateral acquired by the debtor more than four (4) months after the filed financing statement becomes seriously misleading, unless an amendment to the financing statement which renders the financing statement not seriously misleading is filed within four months (4) after the financing statement became seriously misleading.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.14.


IC 26-1-9.1-508
Effectiveness of financing statement if new debtor becomes bound by security agreement
    
Sec. 508. (a) Except as otherwise provided in this section, a filed financing statement naming an original debtor is effective to perfect a security interest in collateral in which a new debtor has or acquires rights to the extent that the financing statement would have been effective had the original debtor acquired rights in the collateral.
    (b) If the difference between the name of the original debtor and that of the new debtor causes a filed financing statement that is effective under subsection (a) to be seriously misleading under IC 26-1-9.1-506:
        (1) the financing statement is effective to perfect a security interest in collateral acquired by the new debtor before, and within four (4) months after, the new debtor becomes bound under IC 26-1-9.1-203(d); and
        (2) the financing statement is not effective to perfect a security interest in collateral acquired by the new debtor more than four (4) months after the new debtor becomes bound under IC 26-1-9.1-203(d) unless an initial financing statement providing the name of the new debtor is filed before the expiration of that time.
    (c) This section does not apply to collateral as to which a filed financing statement remains effective against the new debtor under IC 26-1-9.1-507(a).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-509
Persons entitled to file a record
    
Sec. 509. (a) A person may file an initial financing statement, amendment that adds collateral covered by a financing statement, or amendment that adds a debtor to a financing statement only if:
        (1) the debtor authorizes the filing in an authenticated record or under subsection (b) or (c); or
        (2) the person holds an agricultural lien that has become effective at the time of filing and the financing statement covers only collateral in which the person holds an agricultural lien.
    (b) By authenticating or becoming bound as debtor by a security agreement, a debtor or new debtor authorizes the filing of an initial financing statement, and an amendment, covering:
        (1) the collateral described in the security agreement; and
        (2) property that becomes collateral under IC 26-1-9.1-315(a)(2), whether or not the security agreement expressly covers proceeds.
    (c) By acquiring collateral in which a security interest or agricultural lien continues under IC 26-1-9.1-315(a)(1), a debtor authorizes the filing of an initial financing statement, and an amendment, covering the collateral and property that becomes collateral under IC 26-1-9.1-315(a)(2).
    (d) A person may file an amendment other than an amendment

that adds collateral covered by a financing statement or an amendment that adds a debtor to a financing statement only if:
        (1) the secured party of record authorizes the filing; or
        (2) the amendment is a termination statement for a financing statement as to which the secured party of record has failed to file or send a termination statement as required by IC 26-1-9.1-513(a) or IC 26-1-9.1-513(c), the debtor authorizes the filing, and the termination statement indicates that the debtor authorized it to be filed.
    (e) If there is more than one (1) secured party of record for a financing statement, each secured party of record may authorize the filing of an amendment under subsection (d).
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.14; P.L.1-2010, SEC.108.

IC 26-1-9.1-510
Effectiveness of filed record
    
Sec. 510. (a) A filed record is effective only to the extent that it was filed by a person that may file it under IC 26-1-9.1-509.
    (b) A record authorized by one secured party of record does not affect the financing statement with respect to another secured party of record.
    (c) A continuation statement that is not filed within the six (6) month period prescribed by IC 26-1-9.1-515(d) is ineffective.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-511
Secured party of record
    
Sec. 511. (a) A secured party of record with respect to a financing statement is a person whose name is provided as the name of the secured party or a representative of the secured party in an initial financing statement that has been filed. If an initial financing statement is filed under IC 26-1-9.1-514(a), the assignee named in the initial financing statement is the secured party of record with respect to the financing statement.
    (b) If an amendment of a financing statement that provides the name of a person as a secured party or a representative of a secured party is filed, the person named in the amendment is a secured party of record. If an amendment is filed under IC 26-1-9.1-514(b), the assignee named in the amendment is a secured party of record.
    (c) A person remains a secured party of record until the filing of an amendment of the financing statement that deletes the person.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-512
Amendment of financing statement
    
Sec. 512. (a) Subject to IC 26-1-9.1-509, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e), otherwise amend the information provided in, a financing statement by filing an amendment that:


        (1) identifies, by its file number, the initial financing statement to which the amendment relates; and
        (2) if the amendment relates to an initial financing statement filed or recorded in a filing office described in IC 26-1-9.1-501(a)(1), provides the information specified in IC 26-1-9.1-502(b).
    (b) Except as otherwise provided in IC 26-1-9.1-515, the filing of an amendment does not extend the period of effectiveness of the financing statement.
    (c) A financing statement that is amended by an amendment that adds collateral is effective as to the added collateral only from the date of the filing of the amendment.
    (d) A financing statement that is amended by an amendment that adds a debtor is effective as to the added debtor only from the date of the filing of the amendment.
    (e) An amendment is ineffective to the extent it:
        (1) purports to delete all debtors and fails to provide the name of a debtor to be covered by the financing statement; or
        (2) purports to delete all secured parties of record and fails to provide the name of a new secured party of record.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-513
Termination statement
    
Sec. 513. (a) A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and:
        (1) there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
        (2) the debtor did not authorize the filing of the initial financing statement.
    (b) To comply with subsection (a), a secured party shall cause the secured party of record to file the termination statement:
        (1) within one (1) month after there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
        (2) if earlier, within twenty (20) days after the secured party receives an authenticated demand from a debtor.
    (c) In cases not governed by subsection (a), within twenty (20) days after a secured party receives an authenticated demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:
        (1) except in the case of a financing statement covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by

the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;
        (2) the financing statement covers accounts or chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation;
        (3) the financing statement covers goods that were the subject of a consignment to the debtor but are not in the debtor's possession; or
        (4) the debtor did not authorize the filing of the initial financing statement.
    (d) Except as otherwise provided in IC 26-1-9.1-510, upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective. Except as otherwise provided in IC 26-1-9.1-510, for purposes of IC 26-1-9.1-519(g), IC 26-1-9.1-522(a), and IC 26-1-9.1-523(c), the filing with the filing office of a termination statement relating to a financing statement that indicates that the debtor is a transmitting utility also causes the effectiveness of the financing statement to lapse.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-514
Assignment of powers of secured party of record
    
Sec. 514. (a) Except as otherwise provided in subsection (c), an initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address of the secured party.
    (b) Except as otherwise provided in subsection (c), a secured party of record may assign of record all or part of its power to authorize an amendment to a financing statement by filing in the filing office an amendment of the financing statement which:
        (1) identifies, by its file number, the initial financing statement to which it relates;
        (2) provides the name of the assignor; and
        (3) provides the name and mailing address of the assignee.
    (c) An assignment of record of a security interest in a fixture covered by a record of a mortgage which is effective as a financing statement filed as a fixture filing under IC 26-1-9.1-502(c) may be made only by an assignment of record of the mortgage in the manner provided by law of this state other than IC 26-1.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-515
Duration and effectiveness of financing statement; effect of lapsed financing statement
    
Sec. 515. (a) Except as otherwise provided in subsections (b), (e), (f), and (g), a filed financing statement is effective for a period of five (5) years after the date of filing.


    (b) Except as otherwise provided in subsections (e), (f), and (g), an initial financing statement filed in connection with a public-finance transaction or manufactured-home transaction is effective for a period of thirty (30) years after the date of filing if it indicates that it is filed in connection with a public-finance transaction or manufactured-home transaction.
    (c) The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless, before the lapse, a continuation statement is filed pursuant to subsection (d). Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is considered never to have been perfected as against a purchaser of the collateral for value.
    (d) A continuation statement may be filed only within six (6) months before the expiration of the five (5) year period specified in subsection (a) or the thirty (30) year period specified in subsection (b), whichever is applicable.
    (e) Except as otherwise provided in IC 26-1-9.1-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five (5) years commencing on the day on which the financing statement would have become ineffective in the absence of the filing. Upon the expiration of the five (5) year period, the financing statement lapses in the same manner as provided in subsection (c), unless, before the lapse, another continuation statement is filed pursuant to subsection (d). Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement.
    (f) If a debtor is a transmitting utility and a filed initial financing statement so indicates, the financing statement is effective until a termination statement is filed.
    (g) A record of a mortgage that is effective as a financing statement filed as a fixture filing under IC 26-1-9.1-502(c) remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.15.

IC 26-1-9.1-516
What constitutes filing; effectiveness of filing
    
Sec. 516. (a) Except as otherwise provided in subsection (b) or section 901 of this chapter, communication of a record to a filing office and tender of the filing fee or acceptance of the record by the filing office constitutes filing.
    (b) Filing does not occur with respect to a record that a filing office refuses to accept because:
        (1) the record is not communicated by a method or medium of

communication authorized by the filing office;
        (2) an amount equal to or greater than the applicable filing fee is not tendered;
        (3) the filing office is unable to index the record because:
            (A) in the case of an initial financing statement, the record does not provide a name for the debtor;
            (B) in the case of an amendment or information statement, the record:
                (i) does not identify the initial financing statement as required by IC 26-1-9.1-512 or IC 26-1-9.1-518, as applicable; or
                (ii) identifies an initial financing statement whose effectiveness has lapsed under IC 26-1-9.1-515;
            (C) in the case of an initial financing statement that provides the name of a debtor identified as an individual or an amendment that provides a name of a debtor identified as an individual which was not previously provided in the financing statement to which the record relates, the record does not identify the debtor's surname; or
            (D) in the case of a record recorded in the filing office described in IC 26-1-9.1-501(a)(1), the record does not provide a sufficient description of the real property to which it relates;
        (4) in the case of an initial financing statement or an amendment that adds a secured party of record, the record does not provide a name and mailing address for the secured party of record;
        (5) in the case of an initial financing statement or an amendment that provides a name of a debtor that was not previously provided in the financing statement to which the amendment relates, the record does not:
            (A) provide a mailing address for the debtor; or
            (B) indicate whether the name provided as the name of the debtor is the name of an individual or an organization;
        (6) in the case of an assignment reflected in an initial financing statement under IC 26-1-9.1-514(a) or an amendment filed under IC 26-1-9.1-514(b), the record does not provide a name and mailing address for the assignee; or
        (7) in the case of a continuation statement, the record is not filed within the six (6) month period prescribed by IC 26-1-9.1-515(d).
    (c) For purposes of subsection (b):
        (1) a record does not provide information if the filing office is unable to read or decipher the information; and
        (2) a record that does not indicate that it is an amendment or identify an initial financing statement to which it relates, as required by IC 26-1-9.1-512, IC 26-1-9.1-514, or IC 26-1-9.1-518, is an initial financing statement.
    (d) A record that is communicated to the filing office with tender of the filing fee, but which the filing office refuses to accept for a

reason other than one (1) set forth in subsection (b), is effective as a filed record except as against a purchaser of the collateral which gives value in reasonable reliance upon the absence of the record from the files.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.16; P.L.86-2013, SEC.1.

IC 26-1-9.1-517
Effect of indexing errors
    
Sec. 517. The failure of the filing office to index a record correctly does not affect the effectiveness of the filed record.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-518
Claim concerning inaccurate or wrongfully filed record
    
Sec. 518. (a) A person may file in the filing office an information statement with respect to a record indexed there under the person's name if the person believes that the record is inaccurate or was wrongfully filed.
    (b) An information statement under subsection (a) must:
        (1) identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
        (2) indicate that it is an information statement; and
        (3) provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.
    (c) A person may file in the filing office an information statement with respect to a record filed there if the person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under IC 26-1-9.1-509(d).
    (d) An information statement under subsection (c) must:
        (1) identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
        (2) indicate that it is an information statement; and
        (3) provide the basis for the person's belief that the person that filed the record was not entitled to do so under IC 26-1-9.1-509(d).
    (e) The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.17.

IC 26-1-9.1-519
Numbering, maintaining, and indexing records; communicating information provided in records


     Sec. 519. (a) For each record filed in a filing office, the filing office shall:
        (1) assign a unique number to the filed record;
        (2) create a record that bears the number assigned to the filed record and the date and time of filing;
        (3) maintain the filed record for public inspection; and
        (4) index the filed record in accordance with subsections (c), (d), and (e).
    (b) A file number must include a digit that:
        (1) is mathematically derived from or related to the other digits of the file number; and
        (2) aids the filing office in determining whether a number communicated as the file number includes a single-digit or transpositional error.
    (c) Except as otherwise provided in subsections (d) and (e), the filing office shall:
        (1) index an initial financing statement according to the name of the debtor and index all filed records relating to the initial financing statement in a manner that associates with one another an initial financing statement and all filed records relating to the initial financing statement; and
        (2) index a record that provides a name of a debtor that was not previously provided in the financing statement to which the record relates also according to the name that was not previously provided.
    (d) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index it:
        (1) under the names of the debtor and of each owner of record shown on the financing statement as if they were the mortgagors under a mortgage of the real property described; and
        (2) to the extent that the law of this state provides for indexing of records of mortgages under the name of the mortgagee, under the name of the secured party as if the secured party were the mortgagee thereunder, or, if indexing is by description, as if the financing statement were a record of a mortgage of the real property described.
    (e) If a financing statement is filed as a fixture filing or covers as-extracted collateral or timber to be cut, the filing office shall index an assignment filed under IC 26-1-9.1-514(a) or an amendment filed under IC 26-1-9.1-514(b):
        (1) under the name of the assignor as grantor; and
        (2) to the extent that the law of this state provides for indexing a record of the assignment of a mortgage under the name of the assignee, under the name of the assignee.
    (f) The filing office shall maintain a capability:
        (1) to retrieve a record by the name of the debtor and by the file number assigned to the initial financing statement to which the record relates; and
        (2) to associate and retrieve with one another an initial

financing statement and each filed record relating to the initial financing statement.
    (g) The filing office may not remove a debtor's name from the index until one (1) year after the effectiveness of a financing statement naming the debtor lapses under IC 26-1-9.1-515 with respect to all secured parties of record.
    (h) The filing office shall perform the acts required by subsections (a) through (e) at the time and in the manner prescribed by filing-office rule, but not later than two (2) business days after the filing office receives the record in question.
    (i) Subsections (b) and (h) do not apply to a filing office described in IC 26-1-9.1-501(a)(1).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-520
Acceptance and refusal to accept record
    
Sec. 520. (a) A filing office shall refuse to accept a record for filing for a reason set forth in IC 26-1-9.1-516(b) and may refuse to accept a record for filing only for a reason set forth in IC 26-1-9.1-516(b).
    (b) If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing-office rule, but in the case of a filing office described in IC 26-1-9.1-501(a)(2), in no event more than two (2) business days after the filing office receives the record.
    (c) A filed financing statement satisfying IC 26-1-9.1-502(a) and IC 26-1-9.1-502(b) is effective, even if the filing office is required to refuse to accept it for filing under subsection (a). However, IC 26-1-9.1-338 applies to a filed financing statement providing information described in IC 26-1-9.1-516(b)(5) that is incorrect at the time the financing statement is filed.
    (d) If a record communicated to a filing office provides information that relates to more than one (1) debtor, IC 26-1-9.1-501 through IC 26-1-9.1-527 apply as to each debtor separately.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-521
Uniform form of written financing statement and amendment
    
Sec. 521. A filing office that accepts written records may not refuse to accept a written initial financing statement in the following form and format except for a reason set forth in IC 26-1-9.1-516(b) or IC 26-1-9.1-901:
UCC FINANCING STATEMENT
FOLLOW INSTRUCTIONS
A.    NAME & PHONE OF CONTACT AT FILER (optional)
    _____________________________________________
B.    E-MAIL CONTACT AT FILER (optional)
    ____________________________________________


C.    SEND ACKNOWLEDGMENT TO: (Name and Address)
    ______________________________________________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
1.    DEBTOR'S NAME - provide only one Debtor name (1a or 1b) (use exact, full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    1a. ORGANIZATION'S NAME
    __________________________________________________________________
OR
    1b. INDIVIDUAL'S SURNAME    FIRST PERSONAL NAME
    __________________________    ________________________
    ADDITIONAL NAME(S)/INITIAL(S) THAT ARE    SUFFIX
    PART OF THE NAME OF THIS DEBTOR
    ________________________________________        __________
    1c. MAILING ADDRESS
    _____________________________________________________________________
    CITY                     STATE     POSTAL CODE    COUNTRY
    _____________________________    _______    ______________    __________
2.    DEBTOR'S NAME - provide only one Debtor name (2a or 2b) (use exact, full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    2a. ORGANIZATION'S NAME
    _____________________________________________________________________
OR
    2b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    _______________________________    ___________________________
    ADDITIONAL NAME(S)/INITIAL(S) THAT
    ARE PART OF THE NAME OF THIS DEBTOR        SUFFIX
    _________________________________________        ___________
    2c. MAILING ADDRESS
    ____________________________________________________________________
    CITY                     STATE     POSTAL CODE    COUNTRY
    _____________________________    _______    ______________    __________
3.    SECURED PARTY'S NAME (or NAME of ASSIGNEE of ASSIGNOR SECURED PARTY) - provide only one Secured Party name (3a or 3b)
    3a. ORGANIZATION'S NAME
    _____________________________________________________________________
OR
    3b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    _____________________________________    ___________________________
    ADDITIONAL NAME(S)/INITIAL(S)        SUFFIX
    _____________________________________    __________________
    3c. MAILING ADDRESS
    _____________________________________________________________________
    CITY                         STATE     POSTAL CODE    COUNTRY
    ___________________________    _______    ______________    __________
4.     COLLATERAL: This financing statement covers the following collateral:
    _____________________________________________________________________
5.    Check only if applicable and check only one box:
            Collateral is     . held in a Trust (see Instructions)
                            . being administered by a Decedent's Personal Representative.
6a.    Check only if applicable and check only one box:
    . Public-Finance Transaction . Manufactured-Home Transaction
    . A Debtor is a Transmitting Utility
6b. Check only if applicable and check only one box:
    . Agricultural Lien . Non-UCC Filing
7.    ALTERNATIVE DESIGNATION (if applicable): . Lessee/Lessor
    . Consignee/Consignor . Seller/Buyer . Bailee/Bailor . Licensee/Licensor
8.    OPTIONAL FILER REFERENCE DATA
    _____________________________________________________________________
[UCC FINANCING STATEMENT (Form UCC1)]
UCC FINANCING STATEMENT ADDENDUM
FOLLOW INSTRUCTIONS
9.    NAME OF FIRST DEBTOR (same as item 1a or 1b on Financing Statement)
    9a. ORGANIZATION'S NAME
    _____________________________________________________________________
OR
    9b. INDIVIDUAL'S SURNAME
    _______________________________________________
    FIRST PERSONAL NAME
    _______________________________________________
    ADDITIONAL NAME(S)/INITIAL(S)        SUFFIX
    ________________________________________    ______
    THE ABOVE SPACE IS FOR
    FILING OFFICE USE ONLY
10.    ADDITIONAL DEBTOR'S NAME - provide only one Debtor name (10a or 10b) (use exact, full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    10a. ORGANIZATION'S NAME
    __________________________________________________________________
OR
    10b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    ____________________________________    _______________________
    ADDITIONAL NAME(S)/INITIAL(S) THAT
    ARE PART OF THE NAME OF THIS DEBTOR        SUFFIX
    _________________________________________        _______________
    10c. MAILING ADDRESS
    _____________________________________________________________________
    CITY                         STATE     POSTAL CODE    COUNTRY
    _____________________________    _______    ______________    __________
11.    . ADDITIONAL SECURED PARTY'S NAME or . ASSIGNOR SECURED PARTY'S NAME - provide only one name (11a or 11b)
    11a. ORGANIZATION'S NAME
    ___________________________________________________________________
OR
    11b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    _________________________
    ADDITIONAL NAME(S)/INITIAL(S)            SUFFIX
    _____________________________________    _________________________
    11c. MAILING ADDRESS
    ___________________________________________________________________
    CITY                         STATE     POSTAL CODE    COUNTRY
    _____________________________    _______    _______________    _________
12.        ADDITIONAL SPACE FOR ITEM 4 (Collateral)
        ___________________________________________________________________
13.        . This FINANCING STATEMENT is to be filed [for record] (or recorded) in the REAL ESTATE RECORDS (if applicable)
14.    This FINANCING STATEMENT:
        . covers timber to be cut . covers as-extracted collateral . is filed as a fixture filing
15.        Name and address of a RECORD OWNER of real estate described in item 16 (if Debtor does not have a record interest):
     ____________________________________________________________________
16.    Description of real estate:
    _____________________________________________________________________
17.    MISCELLANEOUS:
    ____________________________________________________________________
[UCC FINANCING STATEMENT ADDENDUM (Form UCC1Ad)]
    (b) A filing office that accepts written records may not refuse to accept a written record in the following form and format except for a reason described in IC 26-1-9.1-516(b):
UCC FINANCING STATEMENT AMENDMENT
FOLLOW INSTRUCTIONS
A.    NAME & PHONE OF CONTACT AT FILER (optional)
    ___________________________________________
B.    E-MAIL CONTACT AT FILER (optional)
    _________________________________________
C.    SEND ACKNOWLEDGMENT TO: (Name and Address)
    _________________________________________
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
    1a. INITIAL FINANCING STATEMENT FILE NUMBER
    ____________________________________________________________________
    1b. . This FINANCING STATEMENT AMENDMENT is to be filed [for record] (or recorded) in the REAL ESTATE RECORDS.
    Filer: attach Amendment Addendum (Form UCC3Ad) and provide Debtor's name in item 13.
2.    . TERMINATION: Effectiveness of the Financing Statement identified above is terminated with respect to the security interest(s) of
    Secured Party authorizing this Termination Statement
3.    . ASSIGNMENT (full or partial): Provide name of Assignee in item 7a or 7b, and address of Assignee in item 7c and name of Assignor in item 9. For partial assignment, complete items 7 and 9 and also indicate affected collateral in item 8
4.    . CONTINUATION: Effectiveness of the Financing Statement identified above with respect to the security interest(s) of Secured
    Party authorizing this Continuation Statement is continued for the additional period provided by applicable law
5.    . PARTY INFORMATION CHANGE:
    Check one of these two boxes:
    This Change affects . Debtor or . Secured Party of record.
    AND
    Check one of these three boxes to:
    . CHANGE name and/or address: Complete item 6a or 6b, and item 7a or 7b and item 7c.
    . ADD name: Complete item 7a or 7b, and item 7c.
    . DELETE name: Give record name to be deleted in item 6a or 6b.
6.    CURRENT RECORD INFORMATION: Complete for Party Information Change - provide only one name (6a or 6b) (use exact, full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    6a. ORGANIZATION'S NAME
    _____________________________________________________________________
OR
    6b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    _________________________
    ADDITIONAL NAME(S)/INITIAL(S)        SUFFIX
    _____________________________________    _________________________
7.    CHANGED OR ADDED INFORMATION: Complete for Assignment or Party Information Change - provide only one name (7a or 7b) (use exact full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    7a. ORGANIZATION'S NAME
    ____________________________________________________________________
OR
    7b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    _________________________
        ADDITIONAL NAME(S)/INITIAL(S) THAT ARE
        PART OF THE NAME OF THIS DEBTOR     SUFFIX
    _____________________________________    _____________
    7c. MAILING ADDRESS
    ___________________________________________________________________
    CITY                         STATE     POSTAL CODE    COUNTRY
    _____________________________    _______    _______________    _________
8.    . COLLATERAL CHANGE:
    Also check one of these four boxes:
    . ADD collateral . DELETE collateral . RESTATE covered collateral
    . ASSIGN collateral
    Indicate collateral:
9.    NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT - provide only one name (9a or 9b) (name of Assignor, if this is an Assignment)
    If this is an Amendment authorized by a DEBTOR, check here . and provide name of authorizing Debtor
    9a. ORGANIZATION'S NAME
    __________________________________________________________________
OR
    9b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    _________________________
    ADDITIONAL NAME(S)/INITIAL(S)        SUFFIX
    ______________________________________    ____________
10.    OPTIONAL FILER REFERENCE DATA
    _____________________________________________________________________
[UCC FINANCING STATEMENT AMENDMENT (Form UCC3)]
UCC FINANCING STATEMENT AMENDMENT ADDENDUM
FOLLOW INSTRUCTIONS
11.    INITIAL FINANCING STATEMENT FILE NUMBER (same as item 1a on Amendment form)
    _____________________________________________________________________
12.    NAME OF PARTY AUTHORIZING THIS AMENDMENT (same as item 9 on Amendment form)
    12a. ORGANIZATION'S NAME
    ____________________________________________________________________
OR
    12b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    ___________________________
    ADDITIONAL NAME(S)/INITIAL(S)        SUFFIX
    _______________________________________    _______
THE ABOVE SPACE IS FOR
FILING OFFICE USE ONLY
13.    Name of DEBTOR on related financing statement (Name of a current Debtor of record required for indexing purposes only in some filing offices - see Instruction for item 13 - insert only one Debtor name (13a or 13b) (use exact, full name; do not omit, modify, or abbreviate any word in the Debtor's name)
    13a. ORGANIZATION'S NAME
    _____________________________________________________________________
OR
    13b. INDIVIDUAL'S SURNAME        FIRST PERSONAL NAME
    __________________________________    _________________________
    ADDITIONAL NAME(S)/INITIAL(S)            SUFFIX
    _______________________________________________    ___________
14.    ADDITIONAL SPACE FOR ITEM 8 (Collateral)
    ____________________________________________________________________
15.    This FINANCING STATEMENT AMENDMENT:    . covers timber to be cut
    . covers as-extracted collateral     . is filed as a fixture filing
16.    Name and address of a RECORD OWNER of real estate described in item 17 (if Debtor does not have a record interest):
    _____________________________________________________________________
17.        Description of real estate
    _____________________________________________________________________
18.        MISCELLANEOUS:
    _____________________________________________________________________
[UCC FINANCING STATEMENT AMENDMENT ADDENDUM (Form UCC3Ad)]".
As added by P.L.57-2000, SEC.45. Amended by P.L.1-2007, SEC.182; P.L.54-2011, SEC.18; P.L.86-2013, SEC.2.

IC 26-1-9.1-522
Maintenance and destruction of records
    
Sec. 522. (a) The filing office shall maintain a record of the information provided in a filed financing statement for at least one (1) year after the effectiveness of the financing statement has lapsed under IC 26-1-9.1-515 with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and by using the file number assigned to the initial financing statement to which the record relates.
    (b) Except to the extent that a statute governing disposition of public records provides otherwise, the filing office immediately may destroy any written record evidencing a financing statement. However, if the filing office destroys a written record, it shall maintain another record of the financing statement that complies with subsection (a).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-523
Information from filing office; sale or license of records
    
Sec. 523. (a) If a person that files a written record requests an acknowledgment of the filing, the filing office shall send to the person an image of the record showing the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1) and the date and time of the filing of the record. However, if the person furnishes a copy of the

record to the filing office, the filing office may instead:
        (1) note upon the copy the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1) and the date and time of the filing of the record; and
        (2) send the copy to the person.
    (b) If a person files a record other than a written record, the filing office shall communicate to the person an acknowledgment that provides:
        (1) the information in the record;
        (2) the number assigned to the record pursuant to IC 26-1-9.1-519(a)(1); and
        (3) the date and time of the filing of the record.
    (c) The filing office shall communicate or otherwise make available in a record the following information to any person that requests it:
        (1) whether there is on file on a date and time specified by the filing office, but not a date earlier than three (3) business days before the filing office receives the request, any financing statement that:
            (A) designates a particular debtor or, if the request so states, designates a particular debtor at the address specified in the request;
            (B) has not lapsed under IC 26-1-9.1-515 with respect to all secured parties of record; and
            (C) if the request so states, has lapsed under IC 26-1-9.1-515 and a record of which is maintained by the filing office under IC 26-1-9.1-522(a);
        (2) the date and time of filing of each financing statement; and
        (3) the information provided in each financing statement.
    (d) In complying with its duty under subsection (c), the filing office may communicate information in any medium. However, if requested, the filing office shall communicate information by issuing its written certificate.
    (e) The filing office shall perform the acts required by subsections (a) through (d) at the time and in the manner prescribed by filing-office rule, but not later than two (2) business days after the filing office receives the request.
    (f) At least weekly, the secretary of state shall offer to sell or license to the public on a nonexclusive basis, in bulk, copies of all records filed in it under IC 26-1-9.1-501 through IC 26-1-9.1-527, in every medium from time to time available to the filing office.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.15.

IC 26-1-9.1-524
Delay by filing office
    
Sec. 524. Delay by the filing office beyond a time limit prescribed in IC 26-1-9.1-501 through IC 26-1-9.1-527 is excused if:
        (1) the delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of

equipment, or other circumstances beyond control of the filing office; and
        (2) the filing office exercises reasonable diligence under the circumstances.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-525
Fees
    
Sec. 525. (a) Except as otherwise provided in subsection (e), the fee for filing and indexing a record under IC 26-1-9.1-501 through IC 26-1-9.1-527, other than an initial financing statement of the kind described in IC 26-1-9.1-502(c), is:
        (1) four dollars ($4) if the record is communicated in writing, including by facsimile, and consists of one (1) or two (2) pages;
        (2) eight dollars ($8) if the record is communicated in writing, including by facsimile, and consists of more than two (2) pages; and
        (3) no fee if the record is communicated by electronic filing.
    (b) Except as otherwise provided in subsection (e), the fee for filing and indexing an initial financing statement of the kind described in IC 26-1-9.1-502(c) is:
        (1) eight dollars ($8) if the financing statement indicates that it is filed in connection with a public-finance transaction; and
        (2) eight dollars ($8) if the financing statement indicates that it is filed in connection with a manufactured-home transaction.
    (c) The fee for responding to a request for information from the filing office, including for issuing a certificate showing whether there is on file any financing statement naming a particular debtor, is:
        (1) five dollars ($5) if the request is communicated in writing, including by facsimile; and
        (2) no fee if the request is communicated electronically.
    (d) This section does not require a fee with respect to a record of a mortgage which is effective as a financing statement filed as a fixture filing or as a financing statement covering as-extracted collateral or timber to be cut under IC 26-1-9.1-502(c). However, the recording and satisfaction fees that otherwise would be applicable to the record of the mortgage apply.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.16; P.L.277-2001, SEC.26.

IC 26-1-9.1-526
Filing_office rules
    
Sec. 526. (a) The secretary of state shall adopt and publish rules to implement IC 26-1-9.1. The filing-office rules must be consistent with IC 26-1-9.1.
    (b) To keep the filing-office rules and practices of the filing office in harmony with the rules and practices of filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527, and to keep the technology used by the filing office compatible with the technology used by filing offices in other

jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527, the secretary of state, so far as is consistent with the purposes, policies, and provisions of IC 26-1-9.1, in adopting, amending, and repealing filing-office rules, shall:
        (1) consult with filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527;
        (2) consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
        (3) take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.17.

IC 26-1-9.1-527
Duty to report
    
Sec. 527. The secretary of state shall report annually to the general assembly on the operation of the filing office. The report must be in an electronic format under IC 5-14-6 and must contain a statement of the extent to which:
        (1) the filing office rules are not in harmony with the rules of filing offices in other jurisdictions that enact substantially IC 26-1-9.1-501 through IC 26-1-9.1-527 and the reasons for these variations; and
        (2) the filing office rules are not in harmony with the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators, or any successor organization, and the reasons for these variations.
As added by P.L.57-2000, SEC.45. Amended by P.L.28-2004, SEC.164.

IC 26-1-9.1-601
Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes
    
Sec. 601. (a) After default, a secured party has the rights provided in this section through IC 26-1-9.1-628 and, except as otherwise provided in IC 26-1-9.1-602, those provided by agreement of the parties. A secured party:
        (1) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
        (2) if the collateral is documents, may proceed either as to the documents or as to the goods they cover.
    (b) A secured party in possession of collateral or control of collateral under IC 26-1-7-106, IC 26-1-9.1-104, IC 26-1-9.1-105, IC 26-1-9.1-106, or IC 26-1-9.1-107 has the rights and duties provided in IC 26-1-9.1-207.
    (c) The rights under subsections (a) and (b) are cumulative and may be exercised simultaneously.


    (d) Except as otherwise provided in subsection (g) and IC 26-1-9.1-605, after default, a debtor and an obligor have the rights provided in IC 26-1-9.1-601 through IC 26-1-9.1-628 and by agreement of the parties.
    (e) If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
        (1) the date of perfection of the security interest or agricultural lien in the collateral;
        (2) the date of filing a financing statement covering the collateral; or
        (3) any date specified in a statute under which the agricultural lien was created.
    (f) A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of IC 26-1-9.1.
    (g) Except as otherwise provided in IC 26-1-9.1-607(c), IC 26-1-9.1-601 through IC 26-1-9.1-628 impose no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
As added by P.L.57-2000, SEC.45. Amended by P.L.143-2007, SEC.76.

IC 26-1-9.1-602
Waiver and variance of rights and duties
    
Sec. 602. Except as otherwise provided in IC 26-1-9.1-624, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:
        (1) IC 26-1-9.1-207(b)(4)(C), which deals with use and operation of the collateral by the secured party.
        (2) IC 26-1-9.1-210, which deals with requests for an accounting and requests concerning a list of collateral and statement of account.
        (3) IC 26-1-9.1-607(c), which deals with collection and enforcement of collateral.
        (4) IC 26-1-9.1-608(a) and IC 26-1-9.1-615(c) to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition.
        (5) IC 26-1-9.1-608(a) and IC 26-1-9.1-615(d) to the extent that they require accounting for or payment of surplus proceeds of collateral.
        (6) IC 26-1-9.1-609 to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace.
        (7) IC 26-1-9.1-610(b), IC 26-1-9.1-611, IC 26-1-9.1-613, and IC 26-1-9.1-614, which deal with disposition of collateral.
        (8) IC 26-1-9.1-615(f), which deals with calculation of a

deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor.
        (9) IC 26-1-9.1-616, which deals with explanation of the calculation of a surplus or deficiency.
        (10) IC 26-1-9.1-620, IC 26-1-9.1-621, and IC 26-1-9.1-622, which deal with acceptance of collateral in satisfaction of obligation.
        (11) IC 26-1-9.1-623, which deals with redemption of collateral.
        (12) IC 26-1-9.1-624, which deals with permissible waivers.
        (13) IC 26-1-9.1-625 and IC 26-1-9.1-626, which deal with the secured party's liability for failure to comply with IC 26-1-9.1.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-603
Agreement on standards concerning rights and duties
    
Sec. 603. (a) The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in IC 26-1-9.1-602 if the standards are not manifestly unreasonable.
    (b) Subsection (a) does not apply to the duty under IC 26-1-9.1-609 to refrain from breaching the peace.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-604
Procedure if security agreement covers real property or fixtures
    
Sec. 604. (a) If a security agreement covers both personal and real property, a secured party may proceed:
        (1) under IC 26-1-9.1-601 through IC 26-1-9.1-628 as to the personal property without prejudicing any rights with respect to the real property; or
        (2) as to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 do not apply.
    (b) Subject to subsection (c), if a security agreement covers goods that are or become fixtures, a secured party may proceed:
        (1) under IC 26-1-9.1-601 through IC 26-1-9.1-628; or
        (2) in accordance with the rights with respect to real property, in which case the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 do not apply.
    (c) Subject to the other provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
    (d) A secured party that removes collateral shall promptly reimburse any encumbrancer or owner of the real property, other than the debtor, for the cost of repair of any physical injury caused by the removal. The secured party need not reimburse the

encumbrancer or owner for any diminution in value of the real property caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-605
Unknown debtor or secondary obligor
    
Sec. 605. A secured party does not owe a duty based on its status as secured party:
        (1) to a person that is a debtor or obligor, unless the secured party knows:
            (A) that the person is a debtor or obligor;
            (B) the identity of the person; and
            (C) how to communicate with the person; or
        (2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
            (A) that the person is a debtor; and
            (B) the identity of the person.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-606
Time of default for agricultural lien
    
Sec. 606. For purposes of IC 26-1-9.1-601 through IC 26-1-9.1-628, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-607
Collection and enforcement by secured party
    
Sec. 607. (a) If so agreed, and in any event after default, a secured party:
        (1) may notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party;
        (2) may take any proceeds to which the secured party is entitled under IC 26-1-9.1-315;
        (3) may enforce the obligations of an account debtor or other person obligated on collateral and exercise the rights of the debtor with respect to the obligation of the account debtor or other person obligated on collateral to make payment or otherwise render performance to the debtor, and with respect to any property that secures the obligations of the account debtor or other person obligated on the collateral;
        (4) if it holds a security interest in a deposit account perfected by control under IC 26-1-9.1-104(a)(1), may apply the balance of the deposit account to the obligation secured by the deposit account; and


        (5) if it holds a security interest in a deposit account perfected by control under IC 26-1-9.1-104(a)(2) or IC 26-1-9.1-104(a)(3), may instruct the bank to pay the balance of the deposit account to or for the benefit of the secured party.
    (b) If necessary to enable a secured party to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage nonjudicially, the secured party may record in the office in which a record of the mortgage is recorded:
        (1) a copy of the security agreement that creates or provides for a security interest in the obligation secured by the mortgage; and
        (2) the secured party's sworn affidavit in recordable form stating that:
            (A) a default has occurred with respect to the obligation secured by the mortgage; and
            (B) the secured party is entitled to enforce the mortgage nonjudicially.
    (c) A secured party shall proceed in a commercially reasonable manner if the secured party:
        (1) undertakes to collect from or enforce an obligation of an account debtor or other person obligated on collateral; and
        (2) is entitled to charge back uncollected collateral or otherwise to full or limited recourse against the debtor or a secondary obligor.
    (d) A secured party may deduct from the collections made pursuant to subsection (c) reasonable expenses of collection and enforcement, including reasonable attorney's fees and legal expenses incurred by the secured party.
    (e) This section does not determine whether an account debtor, bank, or other person obligated on collateral owes a duty to a secured party.
As added by P.L.57-2000, SEC.45. Amended by P.L.54-2011, SEC.19.

IC 26-1-9.1-608
Application of proceeds of collection or enforcement; liability for deficiency and right to surplus
    
Sec. 608. (a) If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:
        (1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under IC 26-1-9.1-607 in the following order to:
            (A) the reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
            (B) the satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and
            (C) the satisfaction of obligations secured by any

subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed.
        (2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder's demand under subdivision (1)(C).
        (3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under IC 26-1-9.1-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
        (4) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.
    (b) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-609
Secured party's right to take possession after default
    
Sec. 609. (a) After default, a secured party:
        (1) may take possession of the collateral; and
        (2) without removal, may render equipment unusable and dispose of collateral on a debtor's premises under IC 26-1-9.1-610.
    (b) A secured party may proceed under subsection (a):
        (1) pursuant to judicial process; or
        (2) without judicial process, if it proceeds without breach of the peace.
    (c) If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-610
Disposition of collateral after default
    
Sec. 610. (a) After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
    (b) Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose

of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
    (c) A secured party may purchase collateral:
        (1) at a public disposition; or
        (2) at a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
    (d) A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like, which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
    (e) A secured party may disclaim or modify warranties under subsection (d):
        (1) in a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
        (2) by communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
    (f) A record is sufficient to disclaim warranties under subsection (e) if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-611
Notification before disposition of collateral
    
Sec. 611. (a) As used in this section, "notification date" means the earlier of the date on which:
        (1) a secured party sends to the debtor and any secondary obligor an authenticated notification of disposition; or
        (2) the debtor and any secondary obligor waive the right to notification.
    (b) Except as otherwise provided in subsection (d), a secured party that disposes of collateral under IC 26-1-9.1-610 shall send to the persons specified in subsection (c) a reasonable authenticated notification of disposition.
    (c) To comply with subsection (b), the secured party shall send an authenticated notification of disposition to:
        (1) the debtor;
        (2) any secondary obligor; and
        (3) if the collateral is other than consumer goods:
            (A) any other person from which the secured party has received, before the notification date, an authenticated notification of a claim of an interest in the collateral;
            (B) any other secured party or lienholder that, ten (10) days before the notification date, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:


                (i) identified the collateral;
                (ii) was indexed under the debtor's name as of that date; and
                (iii) was filed in the office in which to file a financing statement against the debtor covering the collateral as of that date; and
            (C) any other secured party that, ten (10) days before the notification date, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in IC 26-1-9.1-311(a).
    (d) Subsection (b) does not apply if the collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market.
    (e) A secured party complies with the requirement for notification prescribed in subsection (c)(3)(B) if:
        (1) not later than twenty (20) days or earlier than thirty (30) days before the notification date, the secured party requests, in a commercially reasonable manner, information concerning financing statements indexed under the debtor's name in the office indicated in subsection (c)(3)(B); and
        (2) before the notification date, the secured party:
            (A) did not receive a response to the request for information; or
            (B) received a response to the request for information and sent an authenticated notification of disposition to each secured party or other lienholder named in that response whose financing statement covered the collateral.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-612
Timeliness of notification before disposition of collateral
    
Sec. 612. (a) Except as otherwise provided in subsection (b), whether a notification is sent within a reasonable time is a question of fact.
    (b) In a transaction other than a consumer transaction, a notification of disposition sent after default and ten (10) days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-613
Contents and form of notification before disposition of collateral; general
    
Sec. 613. Except in a consumer-goods transaction, the following rules apply:
        (1) The contents of a notification of disposition are sufficient if the notification:
            (A) describes the debtor and the secured party;
            (B) describes the collateral that is the subject of the intended disposition;


            (C) states the method of intended disposition;
            (D) states that the debtor is entitled to an accounting of the unpaid indebtedness and states the charge, if any, for an accounting; and
            (E) states the time and place of a public disposition or the time after which any other disposition is to be made.
        (2) Whether the contents of a notification that lacks any of the information specified in subdivision (1) are nevertheless sufficient is a question of fact.
        (3) The contents of a notification providing substantially the information specified in subdivision (1) are sufficient, even if the notification includes:
            (A) information not specified by that subdivision; or
            (B) minor errors that are not seriously misleading.
        (4) A particular phrasing of the notification is not required.
        (5) The following form of notification and the form appearing in IC 26-1-9.1-614(3), when completed, each provides sufficient information:
NOTIFICATION OF DISPOSITION OF COLLATERAL

    To:                Name of debtor, obligor, or other person to which the notification is sent
    From:        Name, address, and telephone number of secured party
        Name of Debtor(s): Include only if debtor(s) are not an addressee
    (For a public disposition:)
    We will sell (or lease or license, as applicable) the describe collateral to the highest qualified bidder in public as follows:
    Day and Date: _____________________
    Time: _________
    Place: ____________________________
    (For a private disposition:)
    We will sell (or lease or license, as applicable) the describe collateral privately sometime after day and date.
    You are entitled to an accounting of the unpaid indebtedness secured by the property that we intend to sell (or lease or license, as applicable) (for a charge of $____). You may request an accounting by calling us at telephone number.
(End of Form)

As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-614
Contents and form of notification before disposition of collateral; consumer goods transaction
    
Sec. 614. In a consumer-goods transaction, the following rules apply:
        (1) A notification of disposition must provide the following information:
            (A) The information specified in IC 26-1-9.1-613(1).
            (B) A description of any liability for a deficiency of the person to which the notification is sent.


            (C) A telephone number from which the amount that must be paid to the secured party to redeem the collateral under IC 26-1-9.1-623 is available.
            (D) A telephone number or mailing address from which additional information concerning the disposition and the obligation secured is available.
        (2) A particular phrasing of the notification is not required.
        (3) The following form of notification, when completed, provides sufficient information:
Name and address of secured party
Date
NOTICE OF OUR PLAN TO SELL PROPERTY

Name and address of any obligor who is also a debtor
Subject: Identification of Transaction
We have your describe collateral, because you broke promises in our agreement.
(For a public disposition:)
We will sell describe collateral at public sale. A sale could include a lease or license. The sale will be held as follows:
    Date: _____________________
    Time: _________
    Place: ____________________
You may attend the sale and bring bidders if you want.
(For a private disposition:)
We will sell describe collateral at private sale sometime after date. A sale could include a lease or license.
The money that we get from the sale (after paying our costs) will reduce the amount you owe. If we get less money than you owe, you will or will not, as applicable still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else.
You can get the property back at any time before we sell it by paying us the full amount you owe (not just the past due payments), including our expenses. To learn the exact amount you must pay, call us at telephone number.
If you want us to explain to you in writing how we have figured the amount that you owe us, you may call us at telephone number or write us at secured party's address and request a written explanation. We will charge you $ for the explanation if we sent you another written explanation of the amount you owe us within the last six (6) months.
If you need more information about the sale call us at telephone number or write us at secured party's address.
We are sending this notice to the following other people who have an interest in describe collateral or who owe money under your agreement:
Names of all other debtors and obligors, if any.
(End of Form)

        (4) A notification in the form of subdivision (3) is sufficient, even if additional information appears at the end of the form.
        (5) A notification in the form of subdivision (3) is sufficient, even if it includes errors in information not required by subdivision (1), unless the error is misleading with respect to rights arising under IC 26-1-9.1.
        (6) If a notification under this section is not in the form of subdivision (3), law other than IC 26-1-9.1 determines the effect of including information not required by subdivision (1).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-615
Application of proceeds of disposition; liability for deficiency and right to surplus
    
Sec. 615. (a) A secured party shall apply or pay over for application the cash proceeds of disposition under IC 26-1-9.1-610 in the following order to:
        (1) the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
        (2) the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;
        (3) the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:
            (A) the secured party receives from the holder of the subordinate security interest or other lien an authenticated demand for proceeds before distribution of the proceeds is completed; and
            (B) in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and
        (4) a secured party that is a consignor of the collateral if the secured party receives from the consignor an authenticated demand for proceeds before distribution of the proceeds is completed.
    (b) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder does so, the secured party need not comply with the holder's demand under subsection (a)(3).
    (c) A secured party need not apply or pay over for application noncash proceeds of disposition under IC 26-1-9.1-610 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.
    (d) If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c):
        (1) unless subsection (a)(4) requires the secured party to apply

or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and
        (2) the obligor is liable for any deficiency.
    (e) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes:
        (1) the debtor is not entitled to any surplus; and
        (2) the obligor is not liable for any deficiency.
    (f) The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with IC 26-1-9.1-601 through IC 26-1-9.1-628 to a transferee other than the secured party, a person related to the secured party, or a secondary obligor if:
        (1) the transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and
        (2) the amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
    (g) A secured party that receives cash proceeds of a disposition in good faith and without knowledge that the receipt violates the rights of the holder of a security interest or other lien that is not subordinate to the security interest or agricultural lien under which the disposition is made:
        (1) takes the cash proceeds free of the security interest or other lien;
        (2) is not obligated to apply the proceeds of the disposition to the satisfaction of obligations secured by the security interest or other lien; and
        (3) is not obligated to account to or pay the holder of the security interest or other lien for any surplus.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-616
Explanation of calculation of surplus or deficiency
    
Sec. 616. (a) As used in this section:
        (1) "Explanation" means a writing that:
            (A) states the amount of the surplus or deficiency;
            (B) provides an explanation in accordance with subsection (c) of how the secured party calculated the surplus or deficiency;
            (C) states, if applicable, that future debits, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the surplus or deficiency; and
            (D) provides a telephone number or mailing address from which additional information concerning the transaction is available.
        (2) "Request" means a record:
            (A) authenticated by a debtor or consumer obligor;
            (B) requesting that the recipient provide an explanation; and


            (C) sent after disposition of the collateral under IC 26-1-9.1-610.
    (b) In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under IC 26-1-9.1-615, the secured party shall:
        (1) send an explanation to the debtor or consumer obligor, as applicable, after the disposition and:
            (A) before or when the secured party accounts to the debtor and pays any surplus or first makes written demand on the consumer obligor after the disposition for payment of the deficiency; and
            (B) within fourteen (14) days after receipt of a request; or
        (2) in the case of a consumer obligor who is liable for a deficiency, within fourteen (14) days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.
    (c) To comply with subsection (a)(1)(B), a writing must provide the following information in the following order:
        (1) the aggregate amount of obligations secured by the security interest under which the disposition was made, and, if the amount reflects a rebate of unearned interest or credit service charge, an indication of that fact, calculated as of a specified date:
            (A) if the secured party takes or receives possession of the collateral after default, not more than thirty-five (35) days before the secured party takes or receives possession; or
            (B) if the secured party takes or receives possession of the collateral before default or does not take possession of the collateral, not more than thirty-five (35) days before the disposition;
        (2) the amount of proceeds of the disposition;
        (3) the aggregate amount of the obligations after deducting the amount of proceeds;
        (4) the amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorney's fees secured by the collateral that are known to the secured party and relate to the current disposition;
        (5) the amount, in the aggregate or by type, and types of credits, including rebates of interest or credit service charges, to which the obligor is known to be entitled and that are not reflected in the amount in paragraph (1); and
        (6) the amount of the surplus or deficiency.
    (d) A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) is sufficient, even if it includes minor errors that are not seriously misleading.
    (e) A debtor or consumer obligor is entitled without charge to one (1) response to a request under this section during any six (6) month period in which the secured party did not send to the debtor or

consumer obligor an explanation pursuant to subsection (b)(1). The secured party may require payment of a charge not exceeding twenty-five dollars ($25) for each additional response.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-617
Rights of transferee of collateral
    
Sec. 617. (a) A secured party's disposition of collateral after default:
        (1) transfers to a transferee for value all of the debtor's rights in the collateral;
        (2) discharges the security interest under which the disposition is made; and
        (3) discharges any subordinate security interest or other subordinate lien.
    (b) A transferee that acts in good faith takes free of the rights and interests described in subsection (a), even if the secured party fails to comply with IC 26-1-9.1 or the requirements of any judicial proceeding.
    (c) If a transferee does not take free of the rights and interests described in subsection (a), the transferee takes the collateral subject to:
        (1) the debtor's rights in the collateral;
        (2) the security interest or agricultural lien under which the disposition is made; and
        (3) any security interest or other lien.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-618
Rights and duties of certain secondary obligors
    
Sec. 618. (a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
        (1) receives an assignment of a secured obligation from the secured party;
        (2) receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or
        (3) is subrogated to the rights of a secured party with respect to collateral.
    (b) An assignment, transfer, or subrogation described in subsection (a):
        (1) is not a disposition of collateral under IC 26-1-9.1-610; and
        (2) relieves the secured party of further duties under IC 26-1-9.1.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-619
Transfer of record or legal title
    
Sec. 619. (a) In this section, "transfer statement" means a record

authenticated by a secured party stating:
        (1) that the debtor has defaulted in connection with an obligation secured by specified collateral;
        (2) that the secured party has exercised its post-default remedies with respect to the collateral;
        (3) that, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and
        (4) the name and mailing address of the secured party, debtor, and transferee.
    (b) A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate-of-title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:
        (1) accept the transfer statement;
        (2) promptly amend its records to reflect the transfer; and
        (3) if applicable, issue a new appropriate certificate of title in the name of transferee.
    (c) A transfer of the record or legal title to collateral to a secured party under subsection (b) or otherwise is not of itself a disposition of collateral under IC 26-1-9.1 and does not of itself relieve the secured party of its duties under IC 26-1-9.1.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-620
Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral
    
Sec. 620. (a) Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
        (1) the debtor consents to the acceptance under subsection (c);
        (2) the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal authenticated by:
            (A) a person to which the secured party was required to send a proposal under IC 26-1-9.1-621; or
            (B) any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;
        (3) if the collateral is consumer goods, the collateral is not in the possession of the debtor when the debtor consents to the acceptance; and
        (4) subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to IC 26-1-9.1-624.
    (b) A purported or apparent acceptance of collateral under this section is ineffective unless:
        (1) the secured party consents to the acceptance in an

authenticated record or sends a proposal to the debtor; and
        (2) the conditions of subsection (a) are met.
    (c) For purposes of this section:
        (1) a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default; and
        (2) a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record authenticated after default or the secured party:
            (A) sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;
            (B) in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and
            (C) does not receive a notification of objection authenticated by the debtor within twenty (20) days after the proposal is sent.
    (d) To be effective under subsection (a)(2), a notification of objection must be received by the secured party:
        (1) in the case of a person to which the proposal was sent pursuant to IC 26-1-9.1-621, within twenty (20) days after notification was sent to that person; and
        (2) in other cases:
            (A) within twenty (20) days after the last notification was sent pursuant to IC 26-1-9.1-621; or
            (B) if a notification was not sent, before the debtor consents to the acceptance under subsection (c).
    (e) A secured party that has taken possession of collateral shall dispose of the collateral pursuant to IC 26-1-9.1-610 within the time specified in subsection (f) if:
        (1) sixty percent (60%) of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or
        (2) sixty percent (60%) of the principal amount of the obligation secured has been paid in the case of a non-purchase-money security interest in consumer goods.
    (f) To comply with subsection (e), the secured party shall dispose of the collateral:
        (1) within ninety (90) days after taking possession; or
        (2) within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and authenticated after default.
    (g) In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-621


Notification of proposal to accept collateral
    
Sec. 621. (a) A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
        (1) any person from which the secured party has received, before the debtor consented to the acceptance, an authenticated notification of a claim of an interest in the collateral;
        (2) any other secured party or lienholder that, ten (10) days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
            (A) identified the collateral;
            (B) was indexed under the debtor's name as of that date; and
            (C) was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date; and
        (3) any other secured party that, ten (10) days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in IC 26-1-9.1-311(a).
    (b) A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a).
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-622
Effect of acceptance of collateral
    
Sec. 622. (a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
        (1) discharges the obligation to the extent consented to by the debtor;
        (2) transfers to the secured party all of a debtor's rights in the collateral;
        (3) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
        (4) terminates any other subordinate interest.
    (b) A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with IC 26-1-9.1.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-623
Right to redeem collateral
    
Sec. 623. (a) A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
    (b) To redeem collateral, a person shall tender:
        (1) fulfillment of all obligations secured by the collateral; and
        (2) the reasonable expenses and attorney's fees described in

IC 26-1-9.1-615(a)(1).
    (c) A redemption may occur at any time before a secured party:
        (1) has collected collateral under IC 26-1-9.1-607;
        (2) has disposed of collateral or entered into a contract for its disposition under IC 26-1-9.1-610; or
        (3) has accepted collateral in full or partial satisfaction of the obligation it secures under IC 26-1-9.1-622.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-624
Waiver
    
Sec. 624. (a) A debtor or secondary obligor may waive the right to notification of disposition of collateral under IC 26-1-9.1-611 only by an agreement to that effect entered into and authenticated after default.
    (b) A debtor may waive the right to require disposition of collateral under IC 26-1-9.1-620(e) only by an agreement to that effect entered into and authenticated after default.
    (c) Except in a consumer-goods transaction, a debtor or secondary obligor may waive the right to redeem collateral under IC 26-1-9.1-623 only by an agreement to that effect entered into and authenticated after default.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-625
Remedies for secured party's failure to comply with chapter
    
Sec. 625. (a) If it is established that a secured party is not proceeding in accordance with IC 26-1-9.1, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.
    (b) Subject to subsections (c), (d), and (f), a person is liable for damages in the amount of any loss caused by a failure to comply with IC 26-1-9.1. Loss caused by a failure to comply may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative financing.
    (c) Except as otherwise provided in IC 26-1-9.1-628:
        (1) a person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover damages under subsection (b) for its loss; and
        (2) if the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with IC 26-1-9.1-601 through IC 26-1-9.1-628 may recover for that failure in any event an amount not less than the credit service charge plus ten percent (10%) of the principal amount of the obligation or the time-price differential plus ten percent (10%) of the cash price.
    (d) A debtor whose deficiency is eliminated under IC 26-1-9.1-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is

eliminated or reduced under IC 26-1-9.1-626 may not otherwise recover under subsection (b) for noncompliance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or acceptance.
    (e) In addition to any damages recoverable under subsection (b), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover five hundred dollars ($500) in each case from a person that:
        (1) fails to comply with IC 26-1-9.1-208;
        (2) fails to comply with IC 26-1-9.1-209;
        (3) files a record that the person is not entitled to file under IC 26-1-9.1-509(a);
        (4) fails to cause the secured party of record to file or send a termination statement as required by IC 26-1-9.1-513(a) or IC 26-1-9.1-513(c);
        (5) fails to comply with IC 26-1-9.1-616(b)(1) and whose failure is part of a pattern or consistent with a practice, of noncompliance;
        (6) fails to comply with IC 26-1-9.1-616(b)(2); or
        (7) fails to comply with IC 26-1-9.1-502(f).
    (f) A debtor or consumer obligor may recover damages under subsection (b) and, in addition, five hundred dollars ($500) in each case from a person that, without reasonable cause, fails to comply with a request under IC 26-1-9.1-210. A recipient of a request under IC 26-1-9.1-210 that never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.
    (g) If a secured party fails to comply with a request regarding a list of collateral or a statement of account under IC 26-1-9.1-210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.18.

IC 26-1-9.1-626
Action in which deficiency or surplus is in issue
    
Sec. 626. In an action arising from a transaction in which the amount of a deficiency or surplus is in issue, the following rules apply:
        (1) A secured party need not prove compliance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in issue.
        (2) If the secured party's compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with IC 26-1-9.1-601 through IC 26-1-9.1-628.


        (3) Except as otherwise provided in IC 26-1-9.1-628, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:
            (A) the proceeds of the collection, enforcement, disposition, or acceptance; or
            (B) the amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or acceptance.
        (4) For purposes of subdivision (3)(B), the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum.
        (5) If a deficiency or surplus is calculated under IC 26-1-9.1-615(f), the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.19.

IC 26-1-9.1-627
Determination of whether conduct was commercially reasonable
    
Sec. 627. (a) The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner.
    (b) A disposition of collateral is made in a commercially reasonable manner if the disposition is made:
        (1) in the usual manner on any recognized market;
        (2) at the price current in any recognized market at the time of the disposition; or
        (3) otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition.
    (c) A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved:
        (1) in a judicial proceeding;
        (2) by a bona fide creditors' committee;
        (3) by a representative of creditors; or


        (4) by an assignee for the benefit of creditors.
    (d) Approval under subsection (c) need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-628
Nonliability and limitation on liability of secured party; liability of secondary obligor
    
Sec. 628. (a) Unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person:
        (1) the secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with IC 26-1-9.1; and
        (2) the secured party's failure to comply with IC 26-1-9.1 does not affect the liability of the person for a deficiency.
    (b) A secured party is not liable because of its status as secured party:
        (1) to a person that is a debtor or obligor, unless the secured party knows:
            (A) that the person is a debtor or obligor;
            (B) the identity of the person; and
            (C) how to communicate with the person; or
        (2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
            (A) that the person is a debtor; and
            (B) the identity of the person.
    (c) A secured party is not liable to any person, and a person's liability for a deficiency is not affected, because of any act or omission arising out of the secured party's reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party's belief is based on its reasonable reliance on:
        (1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or
        (2) an obligor's representation concerning the purpose for which a secured obligation was incurred.
    (d) A secured party is not liable to any person under IC 26-1-9.1-625(c)(2) for its failure to comply with IC 26-1-9.1-616.
    (e) A secured party is not liable under IC 26-1-9.1-625(c)(2) more than once with respect to any one secured obligation.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-701
Effective date
    
Sec. 701. IC 26-1-9.1 takes effect on July 1, 2001.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-702


Savings clause
    
Sec. 702. (a) Except as otherwise provided in this section through section 709 of this chapter, IC 26-1-9.1 applies to a transaction or lien within its scope, even if the transaction or lien was entered into or created before IC 26-1-9.1 takes effect.
    (b) Except as otherwise provided in subsection (c) and IC 26-1-9.1-703 through IC 26-1-9.1-709:
        (1) transactions and liens that were not governed by IC 26-1-9, before its repeal, were validly entered into or created before IC 26-1-9.1 takes effect, and would be subject to IC 26-1-9.1 if they had been entered into or created after IC 26-1-9.1 takes effect, and the rights, duties, and interests flowing from those transactions and liens remain valid after IC 26-1-9.1 takes effect; and
        (2) the transactions and liens may be terminated, completed, consummated, and enforced as required or permitted by IC 26-1-9.1 or by the law that otherwise would apply if IC 26-1-9.1 had not taken effect.
    (c) IC 26-1-9.1 does not affect an action, case, or proceeding commenced before IC 26-1-9.1 takes effect.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-703
Security interest perfected before effective date
    
Sec. 703. (a) A security interest that is enforceable immediately before IC 26-1-9.1 takes effect and would have priority over the rights of a person that becomes a lien creditor at that time is a perfected security interest under IC 26-1-9.1 if, when IC 26-1-9.1 takes effect, the applicable requirements for enforceability and perfection under IC 26-1-9.1 are satisfied without further action.
    (b) Except as otherwise provided in IC 26-1-9.1-705, if, immediately before IC 26-1-9.1 takes effect, a security interest is enforceable and would have priority over the rights of a person that becomes a lien creditor at that time, but the applicable requirements for enforceability or perfection under IC 26-1-9.1 are not satisfied when IC 26-1-9.1 takes effect, the security interest:
        (1) is a perfected security interest for one (1) year after IC 26-1-9.1 takes effect;
        (2) remains enforceable thereafter only if the security interest becomes enforceable under IC 26-1-9.1-203 before the year expires; and
        (3) remains perfected thereafter only if the applicable requirements for perfection under IC 26-1-9.1 are satisfied before the year expires.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-704
Security interest unperfected before effective date
    
Sec. 704. A security interest that is enforceable immediately before IC 26-1-9.1 takes effect but which would be subordinate to the

rights of a person that becomes a lien creditor at that time:
        (1) remains an enforceable security interest for one (1) year after IC 26-1-9.1 takes effect;
        (2) remains enforceable thereafter if the security interest becomes enforceable under IC 26-1-9.1-203 when IC 26-1-9.1 takes effect or within one (1) year thereafter; and
        (3) becomes perfected:
            (A) without further action, when IC 26-1-9.1 takes effect if the applicable requirements for perfection under IC 26-1-9.1 are satisfied before or at that time; or
            (B) when the applicable requirements for perfection are satisfied if the requirements are satisfied after that time.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-705
Effectiveness of action taken before effective date
    
Sec. 705. (a) If action, other than the filing of a financing statement, is taken before IC 26-1-9.1 takes effect and the action would have resulted in priority of a security interest over the rights of a person that becomes a lien creditor had the security interest become enforceable before IC 26-1-9.1 takes effect, the action is effective to perfect a security interest that attaches under IC 26-1-9.1 within one (1) year after IC 26-1-9.1 takes effect. An attached security interest becomes unperfected one (1) year after IC 26-1-9.1 takes effect unless the security interest becomes a perfected security interest under IC 26-1-9.1 before the expiration of that period.
    (b) The filing of a financing statement before IC 26-1-9.1 takes effect is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under IC 26-1-9.1.
    (c) IC 26-1-9.1 does not render ineffective an effective financing statement that is filed before IC 26-1-9.1 takes effect and satisfied the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in IC 26-1-9-103, before its repeal. However, except as otherwise provided in subsections (d) and (e) and IC 26-1-9.1-706, the financing statement ceases to be effective at the earlier of:
        (1) the time the financing statement would have ceased to be effective under the law of the jurisdiction in which it is filed; or
        (2) June 30, 2006.
    (d) The filing of a continuation statement after IC 26-1-9.1 takes effect does not continue the effectiveness of the financing statement filed before IC 26-1-9.1 takes effect. However, upon the timely filing of a continuation statement after IC 26-1-9.1 takes effect and in accordance with the law of the jurisdiction governing perfection as provided in IC 26-1-9.1-301 through IC 26-1-9.1-342, the effectiveness of a financing statement filed in the same office in that jurisdiction before IC 26-1-9.1 takes effect continues for the period provided by the law of that jurisdiction.
    (e) Subsection (c)(2) applies to a financing statement that is filed

against a transmitting utility before IC 26-1-9.1 takes effect and satisfied the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in IC 26-1-9-103, before its repeal, only to the extent that IC 26-1-9.1-301 through IC 26-1-9.1-342 provide that the law of a jurisdiction other than jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
    (f) A financing statement that includes a financing statement filed before IC 26-1-9.1 takes effect and a continuation statement filed after IC 26-1-9.1 takes effect is effective only to the extent that it satisfies the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527 for an initial financing statement.
As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.20.

IC 26-1-9.1-706
Filing of initial financing statement; effectiveness of financing statement
    
Sec. 706. (a) The filing of an initial financing statement in the office specified in IC 26-1-9.1-501 continues the effectiveness of a financing statement filed before IC 26-1-9.1 takes effect if:
        (1) the filing of an initial financing statement in that office would be effective to perfect a security interest under IC 26-1-9.1;
        (2) the pre-effective-date financing statement was filed in an office in another state or another office in this state; and
        (3) the initial financing statement satisfies subsection (c).
    (b) The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective date financing statement if the initial financing statement is filed:
        (1) before IC 26-1-9.1 takes effect, for the period provided in IC 26-1-9-403 (before its repeal) for a financing statement; and
        (2) after IC 26-1-9.1 takes effect, for the period provided in IC 26-1-9.1-515 for an initial financing statement.
    (c) To be effective for purposes of subsection (a), an initial financing statement must:
        (1) satisfy the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-526 for an initial financing statement;
        (2) identify the pre-effective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
        (3) indicate that the pre-effective-date financing statement remains effective.
As added by P.L.57-2000, SEC.45. Amended by P.L.1-2007, SEC.183.

IC 26-1-9.1-707


Pre-effective-date financing statement
    
Sec. 707. (a) In this section, "pre-effective-date financing statement" means a financing statement filed before IC 26-1-9.1 takes effect.
    (b) After IC 26-1-9.1 takes effect, a person may add or delete collateral covered by, continue, or terminate the effectiveness of, or otherwise amend the information provided in, a pre-effective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided under IC 26-1-9.1-301 through IC 26-1-9.1-342. However, the effectiveness of a pre-effective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
    (c) Except as otherwise provided in subsection (d), if Indiana law governs perfection of a security interest, the information in a pre-effective-date financing statement may be amended after IC 26-1-9.1 takes effect only if:
        (1) the pre-effective date financing statement and an amendment are filed in the office specified in IC 26-1-9.1-501;
        (2) an amendment is filed in the office specified in IC 26-1-9.1-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies IC 26-1-9.1-706(c); or
        (3) an initial financing statement that provides the information as amended and satisfies IC 26-1-9.1-706(c) is filed in the office specified in IC 26-1-9.1-501.
    (d) If Indiana law governs the perfection of a security interest, the effectiveness of a pre-effective-date financing statement may be continued only under IC 26-1-9.1-705(d) and IC 26-1-9.1-705(f) or IC 26-1-9.1-706.
    (e) Whether or not Indiana law governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement filed in Indiana may be terminated after IC 26-1-9.1 takes effect by filing a termination statement in the office in which the pre-effective-date financing statement is filed, unless an initial financing statement that satisfies IC 26-1-9.1-706(c) has been filed in the office specified by the law of the jurisdiction governing perfection in IC 26-1-9.1-301 through IC 26-1-9.1-342 as the office in which to file a financing statement.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-708
Persons entitled to file initial financing statement or continuation statement
    
Sec. 708. A person may file an initial financing statement or a continuation statement under IC 26-1-9.1-701 through IC 26-1-9.1-709 if:
        (1) the secured party of record authorizes the filing; and
        (2) the filing is necessary under IC 26-1-9.1-701 through IC 26-1-9.1-709:


            (A) to continue the effectiveness of a financing statement filed before IC 26-1-9.1 takes effect; or
            (B) to perfect or continue the perfection of a security interest.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-709
Priority
    
Sec. 709. (a) IC 26-1-9, before its repeal, determines the priority of conflicting claims to collateral if the relative priorities of the claims were established before IC 26-1-9.1 takes effect. In other cases, IC 26-1-9.1 determines priority.
    (b) For purposes of IC 26-1-9.1-322(a), the priority of a security interest that becomes enforceable under IC 26-1-9.1-203 dates from the time IC 26-1-9.1 takes effect if the security interest is perfected under IC 26-1-9.1 by the filing of a financing statement before IC 26-1-9.1 takes effect which would not have been effective to perfect the security interest under IC 26-1-9, before its repeal. This subsection does not apply to conflicting security interests each of which is perfected by the filing of such a financing statement.
As added by P.L.57-2000, SEC.45.

IC 26-1-9.1-801
Transactions or liens entered into or created before July 1, 2013
    
Sec. 801. (a) Except as otherwise provided in this section through IC 26-1-9.1-808, amendments to this chapter made by P.L.54-2011 apply to a transaction or lien with its scope, even if the transaction or lien was entered into or created before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).
    (b) The amendments to this chapter made by P.L.54-2011 do not affect an action, case, or proceeding commenced before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).
As added by P.L.54-2011, SEC.20. Amended by P.L.6-2012, SEC.178.

IC 26-1-9.1-802
Security interest perfected before July 1, 2013
    
Sec. 802. (a) A security interest that is a perfected security interest immediately before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) is a perfected security interest under this chapter, as amended by P.L.54-2011 if, when the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), the applicable requirements for attachment and perfection under this chapter, as amended by P.L.54-2011, are satisfied without further action.
    (b) Except as otherwise provided in IC 26-1-9.1-804, if, immediately before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), a security interest is a perfected security interest, but the applicable requirements for

perfection under this chapter, as amended by P.L.54-2011, are not satisfied when the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), the security interest remains perfected thereafter only if the applicable requirements for perfection under this chapter, as amended by P.L.54-2011, are satisfied within one (1) year after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).
As added by P.L.54-2011, SEC.21. Amended by P.L.6-2012, SEC.179.

IC 26-1-9.1-803
Security interest unperfected before July 1, 2013
    
Sec. 803. A security interest that is an unperfected security interest immediately before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) becomes a perfected security interest:
        (1) without further action, when the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) if the applicable requirements for perfection under this chapter, as amended by P.L.54-2011, are satisfied before or at that time; or
        (2) when the applicable requirements for perfection are satisfied if the requirements are satisfied after this time.
As added by P.L.54-2011, SEC.22. Amended by P.L.6-2012, SEC.180.

IC 26-1-9.1-804
Effectiveness of action taken before July 1, 2013
    
Sec. 804. (a) The filing of a financing statement before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) is effective to perfect a security interest to the extent the filing would satisfy the applicable requirements for perfection under this chapter, as amended by P.L.54-2011.
    (b) The amendments to this chapter made by P.L.54-2011 do not render ineffective an effective financing statement that, before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), is filed and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection provided in this chapter as it existed before it was amended by P.L.54-2011. However, except as otherwise provided in subsections (c) and (d) and IC 26-1-9.1-805, the financing statement ceases to be effective:
        (1) if the financing statement is filed in this state, at the time the financing statement would have ceased to be effective had the amendments to this chapter made by P.L.54-2011 not taken effect; or
        (2) if the financing statement is filed in another jurisdiction, at the earlier of:
            (A) the time the financing statement would have ceased to be effective under the law of that jurisdiction; or
            (B) June 30, 2018.
    (c) The filing of a continuation statement after the amendments to

this chapter made by P.L.54-2011 take effect (July 1, 2013) does not continue the effectiveness of a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013). However, upon the timely filing of a continuation statement after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) and in accordance with the law of the jurisdiction governing perfection as provided in this chapter as amended by P.L.54-2011, the effectiveness of a financing statement filed in the same office in that jurisdiction before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) continues for the period provided by the law of that jurisdiction.
    (d) Subsection (b)(2)(B) applies to a financing statement that, before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), is filed against a transmitting utility and satisfies the applicable requirements for perfection under the law of the jurisdiction governing perfection as provided in this chapter as it existed before it was amended by P.L.54-2011, only to the extent that this chapter, as amended by P.L.54-2011, provides that the law of a jurisdiction other than the jurisdiction in which the financing statement is filed governs perfection of a security interest in collateral covered by the financing statement.
    (e) A financing statement that includes a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) and a continuation statement filed after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) is effective only to the extent that it satisfies the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527, as amended by P.L.54-2011, for an initial financing statement. A financing statement that indicates that the debtor is a decedent's estate indicates that the collateral is being administered by a personal representative within the meaning of IC 26-1-9.1-503(a)(2), as amended by P.L.54-2011. A financing statement that indicates that the debtor is a trust or is a trustee acting with respect to property held in trust indicates that the collateral is held in a trust within the meaning of IC 26-1-9.1-503(a)(3) as amended by P.L.54-2011.
As added by P.L.54-2011, SEC.23. Amended by P.L.6-2012, SEC.181.

IC 26-1-9.1-805
When initial financing statement suffices to continue effectiveness of financing statement
    
Sec. 805. (a) The filing of an initial financing statement in the office specified in IC 26-1-9.1-501 continues the effectiveness of a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) if:
        (1) the filing of an initial financing statement in that office would be effective to perfect a security interest under this chapter, as amended by P.L.54-2011;
        (2) the pre-effective-date financing statement was filed in an office in another state; and


        (3) the initial financing statement satisfies subsection (c).
    (b) The filing of an initial financing statement under subsection (a) continues the effectiveness of the pre-effective-date financing statement:
        (1) if the initial financing statement is filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), for the period provided in IC 26-1-9.1-515, before it was amended by P.L.54-2011, with respect to an initial financing statement; and
        (2) if the initial financing statement is filed after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), for the period provided in IC 26-1-9.1-515, as amended by P.L.54-2011 with respect to an initial financing statement.
    (c) To be effective for purposes of subsection (a), an initial financing statement must:
        (1) satisfy the requirements of IC 26-1-9.1-501 through IC 26-1-9.1-527, as amended by P.L.54-2011 for an initial financing statement;
        (2) identify the pre-effective-date financing statement by indicating the office in which the financing statement was filed and providing the dates of filing and file numbers, if any, of the financing statement and of the most recent continuation statement filed with respect to the financing statement; and
        (3) indicate that the pre-effective-date financing statement remains effective.
As added by P.L.54-2011, SEC.24. Amended by P.L.6-2012, SEC.182.

IC 26-1-9.1-806
Amendment of financing statement filed before July 1, 2013
    
Sec. 806. (a) In this section, "pre-effective-date financing statement" means a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013).
    (b) After the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), a person may add or delete collateral covered by, continue or terminate the effectiveness of, or otherwise amend the information provided in, a pre-effective-date financing statement only in accordance with the law of the jurisdiction governing perfection as provided in this chapter, as amended by P.L.54-2011. However, the effectiveness of a pre-effective-date financing statement also may be terminated in accordance with the law of the jurisdiction in which the financing statement is filed.
    (c) Except as otherwise provided in subsection (d), if the law of this state governs perfection of a security interest, the information in a pre-effective-date financing statement may be amended after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) only if:
        (1) the pre-effective-date financing statement and an amendment are filed in the office specified in IC 26-1-9.1-501;


        (2) an amendment is filed in the office specified in IC 26-1-9.1-501 concurrently with, or after the filing in that office of, an initial financing statement that satisfies IC 26-1-9.1-805(c); or
        (3) an initial financing statement that provides the information as amended and satisfies IC 26-1-9.1-805(c) is filed in the office specified in IC 26-1-9.1-501.
    (d) If the law of this state governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement may be continued only under IC 26-1-9.1-804(c) and IC 26-1-9.1-804(e) or IC 26-1-9.1-805.
    (e) Whether or not the law of this state governs perfection of a security interest, the effectiveness of a pre-effective-date financing statement filed in this state may be terminated after the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013) by filing a termination statement in the office in which the pre-effective-date financing statement is filed, unless an initial financing statement that satisfies IC 26-1-9.1-805(c) has been filed in the office specified by the law of the jurisdiction governing perfection as provided in this chapter, as amended by P.L.54-2011, as the office in which to file a financing statement.
As added by P.L.54-2011, SEC.25. Amended by P.L.6-2012, SEC.183.

IC 26-1-9.1-807
Person entitled to file initial financing statement or continuation statement
    
Sec. 807. A person may file an initial financing statement or a continuation statement under this chapter if:
        (1) the secured party of record authorizes the filing; and
        (2) the filing is necessary under this chapter:
            (A) to continue the effectiveness of a financing statement filed before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013); or
            (B) to perfect or continue the perfection of a security interest.
As added by P.L.54-2011, SEC.26. Amended by P.L.6-2012, SEC.184.

IC 26-1-9.1-808
Priority
    
Sec. 808. The amendments to this chapter made by P.L.54-2011 determine the priority of conflicting claims to collateral. However, if the relative priorities of the claims were established before the amendments to this chapter made by P.L.54-2011 take effect (July 1, 2013), this chapter, as it existed before amendments to this chapter made by P.L.54-2011, determines priority.
As added by P.L.54-2011, SEC.27. Amended by P.L.6-2012, SEC.185.


IC 26-1-9.1-901
Refusal to accept financing statements; fraudulent financing statements; no duty to inspect financing statements
    
Sec. 901. (a) If a person presents a financing statement to the secretary of state for filing or recording, the secretary of state may refuse to accept the financing statement for filing or recording if:
        (1) the financing statement is not required or authorized to be filed or recorded with the secretary of state; or
        (2) the secretary of state has reasonable cause to believe the financing statement is materially false or fraudulent.
    (b) A fraudulent financing statement that the secretary of state may refuse to accept includes the following:
        (1) Any financing statement that has the same name listed as both the debtor and the secured party.
        (2) Any financing statement that identifies an individual debtor as a transmitting utility.
        (3) Any financing statement that is determined to be intended for an improper purpose, such as hindering, harassing, or wrongfully interfering with another person or entity.
        (4) Any financing statement that is filed:
            (A) without the consent or participation of the:
                (i) obligor named in the financing statement;
                (ii) person named in the financing statement as debtor; and
                (iii) owner of collateral described or indicated in the financing statement; or
            (B) by consent of an agent, a fiduciary, or another representative of the secured party of record without the consent of the secured party.
        (5) Any financing statement that is forged.
    (c) The secretary of state does not have a duty to inspect, evaluate, or investigate a financing statement that is presented for filing or recording.
As added by P.L.86-2013, SEC.3.

IC 26-1-9.1-902
Judicial reviews of financing statements; pro se motions
    
Sec. 902. (a) A person who believes that a financing statement is fraudulent under section 901 of this chapter may file a motion for judicial review of the financing statement.
    (b) If a court determines that a financing statement is fraudulent, the court may:
        (1) award the prevailing party all costs related to the review, including:
            (A) filing fees;
            (B) attorney's fees;
            (C) administrative costs; and
            (D) other reasonable costs;
        (2) declare the financing statement ineffective; and
        (3) order the office or agency that possesses the financing statement to terminate or purge the financing statement.


    (c) The secretary of state shall create a form to assist pro se individuals with a filing described in this section, and shall post the form on the secretary of state's Internet web site.
As added by P.L.86-2013, SEC.4.