Printable Format84-9-309. Security interest perfected upon attachment. The following security interests are perfected when they attach:
(1) A purchase-money security interest in consumer goods, except as otherwise provided in K.S.A. 2024 Supp. 84-9-311(b), and amendments thereto, with respect to consumer goods that are subject to a statute or treaty described in K.S.A. 2024 Supp. 84-9-311(a), and amendments thereto;
(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 K.S.A. 84-2-401, 84-2-505, 84-2-711(3), or 84-2a-508(5), and amendments thereto, until the debtor obtains possession of the collateral;
(7) a security interest of a collecting bank arising under K.S.A. 84-4-210, and amendments thereto;
(8) a security interest of an issuer or nominated person arising under K.S.A. 84-5-118, and amendments thereto;
(9) a security interest arising in the delivery of a financial asset under K.S.A. 2024 Supp. 84-9-206, and amendments thereto;
(10) a security interest in investment property created by a broker or securities intermediary;
(11) a security interest in a commodity contract or a commodity account created by a commodity intermediary;
(12) an assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder; and
(13) a security interest created by an assignment of a beneficial interest in a decedent's estate.
History: L. 2000, ch. 142, § 29; July 1, 2001.
KANSAS COMMENT, 1996
This section, which does not vary from the 1995 Official Text, was amended in 1994. It is another variation of the bona fide purchase theme which runs throughout Article 9. (Other examples are found in 84-9-307, 84-9-308 and 84-9-310.) This section codifies the doctrine of negotiability, recognizing special priority for holders in due course of negotiable instruments under Article 3, holders of negotiable documents of title under Article 7, and protected purchasers of securities under Article 8. As one example of this rule, a bank claiming a security interest in a negotiable warehouse receipt or bill of lading by permissive filing under 48-9-304(1) loses out to a bona fide purchaser taking possession of the document of title under 84-7-501, 84-7-502 and 84-7-503. As a second example, a lender relying on the 21-day automatic perfection under 84-9-304(4) loses out to holders in due course of instruments (84-3-305) and to good faith purchasers of stocks and bonds (84-8-301), so long as these parties obtain possession. In neither case is the filing of a financing statement effective against the third-party purchasers unless they have actual knowledge of the Article 9 security interest.
Revisor's Note:
Former section 84-9-309 was repealed by L. 2000, ch. 142, § 155 and the number reassigned to the current text.
Law Review and Bar Journal References:
Applicability to provisions of K.S.A. 84-9-308 discussed, Charles H. Oldfather, 14 K.L.R. 571, 581 (1966).
"The New UCC Article 9 Amendments," Barkley Clark, 44 J.B.A.K. 131, 172 (1975).
"Right of Secured Party to Recover Proceeds Commingled in Debtor's Bank Account," Kristen D. Balloun, 28 K.L.R. 325, 338 (1980).
"Agricultural Credit and The Uniform Commercial Code: A Need for Change?" Keith G. Meyer, 34 K.L.R. 469, 487 (1986).
"Commercial Law: Identifiable Proceeds and the Knowledge Factor [Farmers State Bank v. Production Credit Association, 243 Kan. 87, 755 P.2d 518 (1988)]," Mahesh I. Patel, 28 W.L.J. 295, 305 (1988).
"To Be (Transformed) or Not to Be: The Transformation Versus Dual-Status Rules for Purchase-Money Security Interest Under Kansas' Former and Revised Article 9," Christopher Harry, 50 K.L.R. 1095 (2002).
"Revised Article 9 in Kansas," Hon. John K. Pearson, 51 K.L.R. 769, 783 (2003).
"A Brief Overview of Revised Article 9 in Kansas," John K. Pearson and J. Scott Pohl, 72 J.K.B.A. No. 8, 22 (2003).
"Kansas' Unique Treatment of Agricultural Liens," Keith G. Meyer, 53 K.L.R. 1141 (2005).