Page:United States Statutes at Large Volume 77.djvu/783

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

751

§ 28:9—112. Where collateral is not owned by debtor Unless otherwise agreed, when a secured party knows that collateral is owned by a person who is not the debtor, the owner of the collateral is entitled to receive from the secured party any surplus under section 28:9—502(2) or under section 28:9—504(1), and is not liable for the debt or for any deficiency after resale, and he has the same right as the debtor (a) to receive statements under section 28:9—208; (b) to receive notice of and to object to a secured party's proposal to retain the collateral in satisfaction of the indebtedness under section 28:9—505; (c) to redeem the collateral under section 28:9—506; (d) to obtain injunctive or other relief under section 28:9— 507(1); and (e) to recover losses caused to him under section 28:9—208 (2). §28:9—113. Security interests arising under article on sales A security interest arising solely under the article on sales (article 2) is subject to the provisions of this article except that to the extent that and so long as the debtor does not have or does not lawfully obtain possession of the goods (a) no security agreement is necessary to make the security interest enforceable; and (b) no filing is required to perfect the security interest; and (c) the rights of the secured party on default by the debtor are governed by the article on sales (article 2). PART 2—VALIDITY OF SECURITY AGREEMENT A N D RIGHTS OF PARTIES THERETO §28:9—201. General validity of security agreement Except as otherwise provided by this title a security agreement is effective according to its terms between the parties, against purchasers of the collateral and against creditors. Nothing in this article validates any charge or practice illegal under any statute or regulation thereunder governing usury, small loans, retail installment sales, or the like, or extends the application of any such statute or regulation to any transaction not otherwise subject thereto. §28:9—202. Title to collateral immaterial Each provision of this article with regard to rights, obligations and remedies applies whether title to collateral is in the secured party or in the debtor. §28:9—^203. Enforceability of security interest; proceeds, formal requisites (1) Subject to the provisions of section 28:4—208 on the security interest of a collecting bank and section 28:9—113 on a security interest arising under the article on sales, a security interest is not enforceable against the debtor or third parties unless (a) the collateral is in the possession of the secured party; or (b) the debtor has signed a security agreement which contains a description of the collateral and in addition, when the security interest covers crops or oil, gas or minerals to be extracted or timber to be cut, a description of the land concerned. I n describing collateral, the word "proceeds" is sufficient without further description to cover proceeds of any character. (2) A transaction, although subject to this article, is also subject to chapter 20 of Title 2, relating to pawnbrokers, chapter ( of Title D.C. code 2 > 26, relating to money lenders, chai^ter 7 of Title 40, relating to liens 26-601°to 2019; 26-611; 40-701 to 40-715.

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