S. B. No. 208 As Introduced

As Introduced

129th General Assembly

Regular Session

2011-2012

S. B. No. 208

Senators Obhof, Kearney

Cosponsors: Senators Bacon, Beagle, Jones, Sawyer, Schiavoni, Wagoner

A BILL

To amend sections 1309.102, 1309.105, 1309.307,

1309.311, 1309.316, 1309.317, 1309.326, 1309.406,

1309.408, 1309.502, 1309.503, 1309.507, 1309.515,

1309.516, 1309.518, 1309.521, and 1309.607 of the

Revised Code to make changes to Ohio's Uniform

Commercial Code.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That sections 1309.102, 1309.105, 1309.307,	7
1309.311, 1309.316, 1309.317, 1309.326, 1309.406, 1309.408,	8
1309.502, 1309.503, 1309.507, 1309.515, 1309.516, 1309.518,	9
1309.521, and 1309.607 of the Revised Code be amended to read as	10
follows:	11

Sec. 1309.102. (A) As used in this chapter, unless the	12
context requires otherwise:	13

(1) "Accession" means goods that are physically united with	14
other goods in such a manner that the identity of the original	15
goods is not lost.	16

(2)(a) "Account," except as used in "account for," means a	17
right to payment of a monetary obligation, whether or not earned	18
by performance, (i) for property that has been or is to be sold,	19
leased, licensed, assigned, or otherwise disposed of, (ii) for	20
services rendered or to be rendered, (iii) for a policy of	21
insurance issued or to be issued, (iv) for a secondary obligation	22
incurred or to be incurred, (v) for energy provided or to be	23
provided, (vi) for the use or hire of a vessel under a charter or	24
other contract, (vii) arising out of the use of a credit or charge	25
card or information contained on or for use with the card, or	26
(viii) as winnings in a lottery or other game of chance operated	27
or sponsored by a state, governmental unit of a state, or person	28
licensed or authorized to operate the game by a state or	29
governmental unit of a state.	30

(b) "Account" includes health-care insurance receivables.

(c) "Account" does not include (i) rights to payment	32
evidenced by chattel paper or an instrument, (ii) commercial tort	33
claims, (iii) deposit accounts, (iv) investment property, (v)	34
letter-of-credit rights or letters of credit, or (vi) rights to	35
payment for money or funds advanced or sold, other than rights	36
arising out of the use of a credit or charge card or information	37
contained on or for use with the card.	38

(3) "Account debtor" means a person who is obligated on an	39
account, chattel paper, or general intangible. "Account debtor"	40
does not include a person who is obligated to pay a negotiable	41
instrument, even if the instrument constitutes part of chattel	42
paper.	43

(4) "Accounting," except as used in "accounting for," means a	44
record:	45

(a) Authenticated by a secured party;

(b) Indicating the aggregate unpaid secured obligations as of	47
a date not more than thirty-five days earlier or thirty-five days	48
later than the date of the record; and	49

(c) Identifying the components of the obligations in	50
reasonable detail.	51

(5) "Agricultural lien" means an interest, other than a	52
security interest, in farm products:	53

(a) That secures payment or performance of an obligation for:

(i) Goods or services furnished in connection with a debtor's	55
farming operation; or	56

(ii) Rent on real property leased by a debtor in connection	57
with its farming operation.	58

(b) That is created by statute in favor of a person who:

(i) In the ordinary course of business, furnished goods or	60
services to a debtor in connection with the debtor's farming	61
operation; or	62

(ii) Leased real property to a debtor in connection with the	63
debtor's farming operation; and	64

(c) Whose effectiveness does not depend on the person's	65
possession of the personal property.	66

(6) "As-extracted collateral" means:

(a) Oil, gas, or other minerals that are subject to a	68
security interest that:	69

(i) Is created by a debtor having an interest in the minerals	70
before extraction; and	71

(ii) Attaches to the minerals as extracted; or

(b) Accounts arising out of the sale at the wellhead or	73
minehead of oil, gas, or other minerals in which the debtor had an	74
interest before extraction.	75

(7) "Authenticate" means:

(a) To sign; or

(b) ~~To execute or otherwise adopt a symbol, or encrypt or~~	78
~~similarly process a record in whole or in part, with the~~With	79
present intent ~~of the authenticating person~~ to ~~identify the person~~	80
~~and~~ adopt or accept a record, to attach to or logically associate	81
with the record an electronic sound, symbol, or process.	82

(8) "Bank" means an organization that is engaged in the	83
business of banking. "Bank" includes savings banks, savings and	84
loan associations, credit unions, and trust companies.	85

(9) "Cash proceeds" means proceeds that are money, checks,	86
deposit accounts, or the like.	87

(10) "Certificate of title" means a certificate of title with	88
respect to which a statute provides for the security interest in	89
question to be indicated on the certificate as a condition or	90
result of the security interest's obtaining priority over the	91
rights of a lien creditor with respect to the collateral. The term	92
includes another record maintained as an alternative to a	93
certificate of title by the governmental unit that issues	94
certificates of title if a statute permits the security interest	95
in question to be indicated on the record as a condition or result	96
of the security interest's obtaining priority over the rights of a	97
lien creditor with respect to the collateral.	98

(11)(a) "Chattel paper" means a record that evidences both a	99
monetary obligation and a security interest in specific goods, a	100
security interest in specific goods and software used in the	101
goods, a security interest in specific goods and license of	102
software used in the goods, a lease of specific goods, or a lease	103
of specific goods and license of software used in the goods.	104

As used in division (A)(11)(a) of this section, "monetary	105
obligation" means a monetary obligation secured by the goods or	106
owed under a lease of the goods and includes a monetary obligation	107
with respect to software used in the goods.	108

(b) If a transaction is evidenced by records that include an	109
instrument or series of instruments, the group of records taken	110
together constitutes chattel paper.	111

(c) "Chattel paper" does not include (i) charters or other	112
contracts involving the use or hire of a vessel or (ii) records	113
that evidence a right to payment arising out of the use of a	114
credit or charge card or information contained on or for use with	115
the card.	116

(12) "Collateral" means the property subject to a security	117
interest or agricultural lien, including:	118

(a) Proceeds to which a security interest attaches;

119

(b) Accounts, chattel paper, payment intangibles, and	120
promissory notes that have been sold; and	121

122

(13) "Commercial tort claim" means a claim arising in tort	123
with respect to which:	124

(a) The claimant is an organization; or

125

(b) The claimant is an individual, and the claim:

126

(i) Arose in the course of the claimant's business or	127
profession; and	128

(ii) Does not include damages arising out of personal injury	129
to or the death of an individual.	130

(14) "Commodity account" means an account maintained by a	131
commodity intermediary in which a commodity contract is carried	132
for a commodity customer.	133

(15) "Commodity contract" means a commodity futures contract,	134
an option on a commodity futures contract, a commodity option, or	135
another contract if the contract or option is:	136

(a) Traded on or subject to the rules of a board of trade	137
that has been designated as a contract market for such a contract	138
pursuant to the federal commodities laws; or	139

(b) Traded on a foreign commodity board of trade, exchange,	140
or market and is carried on the books of a commodity intermediary	141
for a commodity customer.	142

(16) "Commodity customer" means a person for whom a commodity	143
intermediary carries a commodity contract on its books.	144

(17) "Commodity intermediary" means a person that:

145

(a) Is registered as a futures commission merchant under the	146
federal commodities laws; or	147

(b) In the ordinary course of its business provides clearance	148
or settlement services for a board of trade that has been	149
designated as a contract market pursuant to the federal	150
commodities laws.	151

(18) "Communicate" means:

152

(a) To send a written or other tangible record;

153

(b) To transmit a record by any means agreed upon by the	154
persons sending and receiving the record; or	155

(c) In the case of transmission of a record to or by a filing	156
office, to transmit a record by any means prescribed by	157
filing-office rule.	158

(19) "Consignee" means a merchant to whom goods are delivered	159
in a consignment.	160

(20) "Consignment" means a transaction, regardless of its	161
form, in which a person delivers goods to a merchant for the	162
purpose of sale and:	163

(a) The merchant:

164

(i) Deals in goods of that kind under a name other than the	165
name of the person making delivery;	166

(ii) Is not an auctioneer; and

167

(iii) Is not generally known by its creditors to be	168
substantially engaged in selling the goods of others;	169

(b) With respect to each delivery, the aggregate value of the	170
goods is one thousand dollars or more at the time of delivery.	171

(c) The goods are not consumer goods immediately before	172
delivery; and	173

(d) The transaction does not create a security interest that	174
secures an obligation.	175

(21) "Consignor" means a person that delivers goods to a	176
consignee in a consignment.	177

(22) "Consumer debtor" means a debtor in a consumer	178
transaction.	179

(23) "Consumer goods" means goods that are used or bought for	180
use primarily for personal, family, or household purposes.	181

(24) "Consumer-goods transaction" means a consumer	182
transaction in which:	183

(a) An individual incurs an obligation primarily for	184
personal, family, or household purposes; and	185

(b) A security interest in consumer goods secures the	186
obligation.	187

(25) "Consumer obligor" means an obligor who is an individual	188
and who incurred the obligation as part of a transaction entered	189
into primarily for personal, family, or household purposes.	190

(26) "Consumer transaction" means a transaction in which: (a)	191
an individual incurs an obligation primarily for personal, family,	192
or household purposes, (b) a security interest secures the	193
obligation, and (c) the collateral is held or acquired primarily	194
for personal, family, or household purposes. "Consumer	195
transaction" includes consumer-goods transactions.	196

(27) "Continuation statement" means an amendment of a	197
financing statement that:	198

(a) Identifies, by its file number, the initial financing	199
statement to which it relates; and	200

(b) Indicates that it is a continuation statement for, or	201
that it is filed to continue the effectiveness of, the identified	202
financing statement.	203

(28) "Debtor" means:

204

(a) A person having an interest, other than a security	205
interest or other lien, in the collateral, whether or not the	206
person is an obligor;	207

(b) A seller of accounts, chattel paper, payment intangibles,	208
or promissory notes; or	209

210

(29) "Deposit account" means a demand, time, savings,	211
passbook, or similar account maintained with a bank but does not	212
include investment property or accounts evidenced by an	213
instrument.	214

(30) "Document" means a document of title or a receipt of the	215
type described in division (B) of section 1307.201 of the Revised	216
Code.	217

(31) "Electronic chattel paper" means chattel paper evidenced	218
by a record consisting of information stored in an electronic	219
medium.	220

(32) "Encumbrance" means a right, other than an ownership	221
interest, in real property. "Encumbrance" includes mortgages and	222
other liens on real property.	223

(33) "Equipment" means goods other than inventory, farm	224
products, or consumer goods.	225

(34) "Farm products" means goods, other than standing timber,	226
with respect to which the debtor is engaged in a farming operation	227
and that are:	228

(a) Crops grown, growing, or to be grown, including:

229

(i) Crops produced on trees, vines, and bushes; and

230

(ii) Aquatic goods produced in aquacultural operations;

231

(b) Livestock, born or unborn, including aquatic goods	232
produced in aquacultural operations;	233

234

(d) Products of crops or livestock in their unmanufactured	235
states.	236

(35) "Farming operation" means raising, cultivating,	237
propagating, fattening, grazing, or any other farming, livestock,	238
or aquacultural operation.	239

(36) "File number" means the number assigned to an initial	240
financing statement under division (A) of section 1309.519 of the	241
Revised Code.	242

(37) "Filing office" means an office designated in section	243
1309.501 of the Revised Code as the place to file a financing	244
statement.	245

(38) "Filing-office rule" means a rule adopted under section	246
1309.526 of the Revised Code.	247

(39) "Financing statement" means a record composed of an	248
initial financing statement and any filed record or records	249
relating to the initial financing statement. For the purposes of	250
this chapter, financing statements filed for recording with the	251
secretary of state shall not be required to include social	252
security or employer identification numbers.	253

(40) "Fixture filing" means the filing of a financing	254
statement covering goods that are or are to become fixtures and	255
satisfying divisions (A) and (B) of section 1309.502 of the	256
Revised Code. "Fixture filing" includes the filing of a financing	257
statement covering goods of a transmitting utility that are or are	258
to become fixtures.	259

(41) "Fixtures" means goods that have become so related to	260
particular real property that an interest in them arises under	261
real property law.	262

(42) "General intangible" means any personal property,	263
including things in action, other than accounts, chattel paper,	264
commercial tort claims, deposit accounts, documents, goods,	265
instruments, investment property, letter-of-credit rights, letters	266
of credit, money, and oil, gas, or other minerals before	267
extraction. "General intangible" includes payment intangibles and	268
software.	269

(43) "Good faith" has the same meaning as in section 1301.201	270
of the Revised Code.	271

(44)(a) "Goods" means all things that are movable when a	272
security interest attaches. "Goods" includes (i) fixtures, (ii)	273
standing timber that is to be cut and removed under a conveyance	274
or contract for sale, (iii) the unborn young of animals, (iv)	275
crops grown, growing, or to be grown, even if the crops are	276
produced on trees, vines, or bushes, and (v) manufactured homes.	277

(b) "Goods" also includes a computer program embedded in	278
goods and any supporting information provided in connection with a	279
transaction relating to the program if (i) the program is	280
associated with the goods in such a manner that it customarily is	281
considered part of the goods, or (ii) by becoming the owner of the	282
goods, a person acquires a right to use the program in connection	283
with the goods.	284

(c) "Goods" does not include a computer program embedded in	285
goods that consist solely of the medium in which the program is	286
embedded. "Goods" does not include accounts, chattel paper,	287
commercial tort claims, deposit accounts, documents, general	288
intangibles, instruments, investment property, letter-of-credit	289
rights, letters of credit, money, or oil, gas, or other minerals	290
before extraction.	291

(45) "Governmental unit" means a subdivision, agency,	292
department, county, parish, municipal corporation, or other unit	293
of the government of the United States, a state, or a foreign	294
country. "Governmental unit" includes an organization having a	295
separate corporate existence if the organization is eligible to	296
issue debt on which interest is exempt from income taxation under	297
the laws of the United States.	298

(46) "Health-care-insurance receivable" means an interest in	299
or claim under a policy of insurance that is a right to payment of	300
a monetary obligation for health-care goods or services provided.	301

(47)(a) "Instrument" means a negotiable instrument or any	302
other writing that evidences a right to the payment of a monetary	303
obligation, is not itself a security agreement or lease, and is of	304
a type that in ordinary course of business is transferred by	305
delivery with any necessary indorsement or assignment.	306

(b) "Instrument" does not include (i) investment property,	307
(ii) letters of credit, or (iii) writings that evidence a right to	308
payment arising out of the use of a credit or charge card or	309
information contained on or for use with the card.	310

(48) "Inventory" means goods, other than farm products, that:

311

(a) Are leased by a person as lessor;

312

(b) Are held by a person for sale or lease or to be furnished	313
under a contract of service;	314

315

(d) Consist of raw materials, work in process, or materials	316
used or consumed in a business.	317

(49) "Investment property" means a security, whether	318
certificated or uncertificated, a security entitlement, a	319
securities account, a commodity contract, or a commodity account.	320

(50) "Jurisdiction of organization," with respect to a	321
registered organization, means the jurisdiction under whose law	322
the organization is formed or organized.	323

(51) "Letter-of-credit right" means a right to payment or	324
performance under a letter of credit, whether or not the	325
beneficiary has demanded or is at the time entitled to demand	326
payment or performance. "Letter-of-credit right" does not include	327
the right of a beneficiary to demand payment or performance under	328
a letter of credit.	329

(52) "Lien creditor" means:

330

(a) A creditor who has acquired a lien on the property	331
involved by attachment, levy or the like;	332

(b) An assignee for benefit of creditors from the time of	333
assignment;	334

(c) A trustee in bankruptcy from the date of the filing of	335
the petition; or	336

(d) A receiver in equity from the time of appointment.

337

(53) "Manufactured home" means a structure, transportable in	338
one or more sections, that, in the traveling mode, is eight body	339
feet or more in width or forty body feet or more in length, or,	340
when erected on site, is three hundred twenty or more square feet,	341
and that is built on a permanent chassis and designed to be used	342
as a dwelling with or without a permanent foundation when	343
connected to the required utilities, and includes the plumbing,	344
heating, air conditioning, and electrical systems contained in the	345
structure. "Manufactured home" includes any structure that meets	346
all of the requirements of this paragraph except the size	347
requirements and with respect to which the manufacturer	348
voluntarily files a certification required by the United States	349
secretary of housing and urban development and complies with the	350
standards established under Title 42 of the United States Code.	351

(54) "Manufactured-home transaction" means a secured	352
transaction:	353

(a) That creates a purchase-money security interest in a	354
manufactured home, other than a manufactured home held as	355
inventory; or	356

(b) In which a manufactured home, other than a manufactured	357
home held as inventory, is the primary collateral.	358

(55) "Mortgage" means a consensual interest in real property,	359
including fixtures, that secures payment or performance of an	360
obligation.	361

(56) "New debtor" means a person that becomes bound as debtor	362
under division (D) of section 1309.203 of the Revised Code by a	363
security agreement previously entered into by another person.	364

(57)(a) "New value" means (i) money, (ii) money's worth in	365
property, services, or new credit, or (iii) release by a	366
transferee of an interest in property previously transferred to	367
the transferee.	368

(b) "New value" does not include an obligation substituted	369
for another obligation.	370

(58) "Noncash proceeds" means proceeds other than cash	371
proceeds.	372

(59)(a) "Obligor" means a person who, with respect to an	373
obligation secured by a security interest in or an agricultural	374
lien on the collateral, (i) owes payment or other performance of	375
the obligation, (ii) has provided property other than the	376
collateral to secure payment or other performance of the	377
obligation, or (iii) is otherwise accountable in whole or in part	378
for payment or other performance of the obligation.	379

(b) "Obligor" does not include issuers or nominated persons	380
under a letter of credit.	381

(60) "Original debtor," except as used in division (C) of	382
section 1309.310 of the Revised Code, means a person who, as	383
debtor, entered into a security agreement to which a new debtor	384
has become bound under division (D) of section 1309.203 of the	385
Revised Code.	386

(61) "Payment intangible" means a general intangible under	387
which the account debtor's principal obligation is a monetary	388
obligation.	389

(62) "Person related to," with respect to an individual,	390
means:	391

(a) The spouse of the individual;

392

(b) A brother, brother-in-law, sister, or sister-in-law of	393
the individual;	394

(c) An ancestor or lineal descendant of the individual or the	395
individual's spouse; or	396

(d) Any other relative, by blood or marriage, of the	397
individual or the individual's spouse who shares the same home	398
with the individual.	399

(63) "Person related to," with respect to an organization,	400
means:	401

(a) A person directly or indirectly controlling, controlled	402
by, or under common control with the organization;	403

(b) An officer or director of, or a person performing similar	404
functions with respect to, the organization;	405

(c) An officer or director of, or a person performing similar	406
functions with respect to, a person described in division	407
(A)(63)(a) of this section;	408

(d) The spouse of an individual described in division	409
(A)(63)(a), (b), or (c) of this section; or	410

(e) An individual who is related by blood or marriage to an	411
individual described in division (A)(63)(a), (b), (c), or (d) of	412
this section and shares the same home with the individual.	413

(64) "Proceeds," except as used in division (B) of section	414
1309.609 of the Revised Code, means the following property:	415

(a) Whatever is acquired upon the sale, lease, license,	416
exchange, or other disposition of collateral;	417

(b) Whatever is collected on, or distributed on account of,	418
collateral;	419

420

(d) To the extent of the value of collateral, claims arising	421
out of the loss, nonconformity, or interference with the use of,	422
defects or infringement of rights in, or damage to the collateral;	423
or	424

(e) To the extent of the value of collateral and to the	425
extent payable to the debtor or the secured party, insurance	426
payable by reason of the loss or nonconformity of, defects or	427
infringement of rights in, or damage to the collateral.	428

(65) "Promissory note" means an instrument that evidences a	429
promise to pay a monetary obligation, does not evidence an order	430
to pay, and does not contain an acknowledgment by a bank that the	431
bank has received for deposit a sum of money or funds.	432

(66) "Proposal" means a record authenticated by a secured	433
party that includes the terms on which the secured party is	434
willing to accept collateral in full or partial satisfaction of	435
the obligation it secures pursuant to sections 1309.620, 1309.621,	436
and 1309.622 of the Revised Code.	437

(67) "Public-finance transaction" means a secured transaction	438
in connection with which:	439

(a) Debt securities are issued;

440

(b) All or a portion of the securities issued have an initial	441
stated maturity of at least twenty years; and	442

(c) The debtor, obligor, secured party, account debtor or	443
other person obligated on collateral, assignor or assignee of a	444
secured obligation, or assignor or assignee of a security interest	445
is a state or a governmental unit of a state.	446

(68) "Public organic record" means a record that is available	447
to the public for inspection and is:	448

(a) A record consisting of the record initially filed with or	449
issued by a state or the United States to form or organize an	450
organization and any record filed with or issued by the state or	451
the United States that amends or restates the initial record;	452

(b) An organic record of a business trust consisting of the	453
record initially filed with a state and any record filed with the	454
state that amends or restates the initial record, if a statute of	455
the state governing business trusts requires that the record be	456
filed with the state; or	457

(c) A record consisting of legislation enacted by the	458
legislature of a state or the congress of the United States that	459
forms or organizes an organization, any record amending the	460
legislation, and any record filed with or issued by the state or	461
the United States that amends or restates the name of the	462
organization.	463

(69) "Pursuant to commitment," with respect to an advance	464
made or other value given by a secured party, means pursuant to	465
the secured party's obligation, whether or not a subsequent event	466
of default or other event not within the secured party's control	467
has relieved or may relieve the secured party from its obligation.	468

~~(69)~~(70) "Record," except as used in "for record," "of	469
record," "record or legal title," and "record owner," means	470
information that is inscribed on a tangible medium or that is	471
stored in an electronic or other medium and is retrievable in	472
perceivable form.	473

~~(70)~~(71) "Registered organization" means an organization	474
formed or organized solely under the law of a single state or the	475
United States ~~and as to which the state or the United States must~~	476
~~maintain a public record showing the organization to have been~~	477
~~organized~~by the filing of a public organic record with, the	478
issuance of a public organic record by, or the enactment of	479
legislation by the state or the United States. The term includes a	480
business trust that is formed or organized under the law of a	481
single state if a statute of the state governing business trusts	482
requires that the business trust's organic record be filed with	483
the state.	484

~~(71)~~(72) "Secondary obligor" means an obligor to the extent	485
that:	486

(a) The obligor's obligation is secondary; or

487

(b) The obligor has a right of recourse with respect to an	488
obligation secured by collateral against the debtor, another	489
obligor, or property of either.	490

~~(72)~~(73) "Secured party" means:

491

(a) A person in whose favor a security interest is created or	492
provided for under a security agreement, whether or not any	493
obligation to be secured is outstanding;	494

(b) A person that holds an agricultural lien;

495

496

(d) A person to whom accounts, chattel paper, payment	497
intangibles, or promissory notes have been sold;	498

(e) A trustee, indenture trustee, agent, collateral agent, or	499
other representative in whose favor a security interest or	500
agricultural lien is created or provided for; or	501

(f) A person who holds a security interest arising under	502
section 1302.42, 1302.49, 1302.85, 1304.20, 1305.18, or 1310.54 of	503
the Revised Code.	504

~~(73)~~(74) "Security agreement" means an agreement that creates	505
or provides for a security interest.	506

~~(74)~~(75) "Send," in connection with a record or notification,	507
means:	508

(a) To deposit in the mail, deliver for transmission, or	509
transmit by any other usual means of communication, with postage	510
or cost of transmission provided for, addressed to any address	511
reasonable under the circumstances; or	512

(b) To cause the record or notification to be received within	513
the time that it would have been received if properly sent under	514
division (A)(74)(a) of this section.	515

~~(75)~~(76) "Software" means a computer program and any	516
supporting information provided in connection with a transaction	517
relating to the program. "Software" does not include a computer	518
program that is included in the definition of goods.	519

~~(76)~~(77) "State" means a state of the United States, the	520
District of Columbia, Puerto Rico, the United States Virgin	521
Islands, or any territory or insular possession subject to the	522
jurisdiction of the United States.	523

~~(77)~~(78) "Supporting obligation" means a letter-of-credit	524
right or secondary obligation that supports the payment or	525
performance of an account, chattel paper, a document, a general	526
intangible, an instrument, or investment property.	527

~~(78)~~(79) "Tangible chattel paper" means chattel paper	528
evidenced by a record consisting of information that is inscribed	529
on a tangible medium.	530

~~(79)~~(80) "Termination statement" means an amendment of a	531
financing statement that:	532

(a) Identifies, by its file number, the initial financing	533
statement to which it relates; and	534

(b) Indicates either that it is a termination statement or	535
that the identified financing statement is no longer effective.	536

~~(80)~~(81) "Transmitting utility" means a person primarily	537
engaged in the business of:	538

(a) Operating a railroad, subway, street railway, or trolley	539
bus;	540

(b) Transmitting communications electrically,	541
electromagnetically, or by light;	542

543

(d) Transmitting or producing and transmitting electricity,	544
steam, gas, or water.	545

(B) Other definitions applying to this chapter are:

546

(1) "Applicant" has the same meaning as in section 1305.01 of	547
the Revised Code.	548

(2) "Beneficiary" has the same meaning as in section 1305.01	549
of the Revised Code.	550

(3) "Broker" has the same meaning as in section 1308.01 of	551
the Revised Code.	552

(4) "Certificated security" has the same meaning as in	553
section 1308.01 of the Revised Code.	554

(5) "Check" has the same meaning as in section 1303.03 of the	555
Revised Code.	556

(6) "Clearing corporation" has the same meaning as in section	557
1308.01 of the Revised Code.	558

(7) "Contract for sale" has the same meaning as in section	559
1302.01 of the Revised Code.	560

(8) "Control" with respect to a document of title, has the	561
same meaning as in section 1307.106 of the Revised Code.	562

(9) "Customer" has the same meaning as in section 1304.01 of	563
the Revised Code.	564

(10) "Entitlement holder" has the same meaning as in section	565
1308.01 of the Revised Code.	566

(11) "Financial asset" has the same meaning as in section	567
1308.01 of the Revised Code.	568

(12) "Holder in due course" has the same meaning as in	569
section 1303.32 of the Revised Code.	570

(13) "Issuer," with respect to a letter of credit or	571
letter-of-credit right, has the same meaning as in section 1305.01	572
of the Revised Code.	573

(14) "Issuer," with respect to a security, has the same	574
meaning as in section 1308.08 of the Revised Code.	575

(15) "Issuer," with respect to a document of title, has the	576
same meaning as in section 1307.102 of the Revised Code.	577

(16) "Lease," "lease agreement," "lease contract," "leasehold	578
interest," "lessee," "lessee in ordinary course of business,"	579
"lessor," and "lessor's residual interest" have the same meanings	580
as in section 1310.01 of the Revised Code.	581

(17) "Letter of credit" has the same meaning as in section	582
1305.01 of the Revised Code.	583

(18) "Merchant" has the same meaning as in section 1302.01 of	584
the Revised Code.	585

(19) "Negotiable instrument" has the same meaning as in	586
section 1303.03 of the Revised Code.	587

(20) "Nominated person" has the same meaning as in section	588
1305.01 of the Revised Code.	589

(21) "Note" has the same meaning as in section 1303.03 of the	590
Revised Code.	591

(22) "Proceeds of a letter of credit" has the same meaning as	592
in section 1305.13 of the Revised Code.	593

(23) "Prove" has the same meaning as in section 1303.01 of	594
the Revised Code.	595

(24) "Sale" has the same meaning as in division (A)(11) of	596
section 1302.01 of the Revised Code.	597

(25) "Securities account" has the same meaning as in section	598
1308.51 of the Revised Code.	599

(26) "Securities intermediary," "security," "security	600
certificate," "security entitlement," and "uncertificated	601
security" have the same meanings as in section 1308.01 of the	602
Revised Code.	603

(C) In addition, Chapter 1301. of the Revised Code contains	604
general definitions and principles of construction and	605
interpretations applicable throughout this chapter.	606

Sec. 1309.105. (A) A secured party has control of electronic	607
chattel paper if a system employed for evidencing the transfer of	608
interests in the chattel paper reliably establishes the secured	609
party as the person to which the chattel paper was assigned.	610

(B) A system satisfies division (A) of this section if the	611
record or records comprising the chattel paper are created,	612
stored, and assigned in such a manner that:	613

~~(A)~~(1) A single authoritative copy of the record or records	614
exists that is unique, identifiable, and, except as otherwise	615
provided in divisions ~~(D)~~(B)(4), ~~(E)~~(5), and ~~(F)~~(6) of this	616
section, unalterable;	617

~~(B)~~(2) The authoritative copy identifies the secured party as	618
the assignee of the record or records;	619

~~(C)~~(3) The authoritative copy is communicated to and	620
maintained by the secured party or its designated custodian;	621

~~(D)~~(4) Copies or ~~revisions~~amendments that add or change an	622
identified assignee of the authoritative copy may be made only	623
with the ~~participation~~consent of the secured party;	624

~~(E)~~(5) Each copy of the authoritative copy and any copy of a	625
copy is readily identifiable as a copy that is not the	626
authoritative copy; and	627

~~(F)~~(6) Any ~~revision~~amendment of the authoritative copy is	628
readily identifiable as an authorized or unauthorized ~~revision~~.	629

Sec. 1309.307. (A) As used in this section, "place of	630
business" means a place where a debtor conducts the debtor's	631
affairs.	632

(B) Except as otherwise provided in this section, the	633
following rules determine a debtor's location:	634

(1) A debtor who is an individual is located at the	635
individual's principal residence.	636

(2) A debtor that is an organization and has only one place	637
of business is located at its place of business.	638

(3) A debtor that is an organization and has more than one	639
place of business is located at its chief executive office.	640

(C) Division (B) of this section applies only if a debtor's	641
residence, place of business, or chief executive office, as	642
applicable, is located in a jurisdiction whose law generally	643
requires information concerning the existence of a nonpossessory	644
security interest to be made generally available in a filing,	645
recording, or registration system as a condition or result of the	646
security interest's obtaining priority over the rights of a lien	647
creditor with respect to the collateral. If division (B) of this	648
section does not apply, the debtor is located in the District of	649
Columbia.	650

(D) A person that ceases to exist, have a residence, or have	651
a place of business continues to be located in the jurisdiction	652
specified by divisions (B) and (C) of this section.	653

(E) A registered organization that is organized under the law	654
of a state is located in that state.	655

(F) Except as otherwise provided in division (I) of this	656
section, a registered organization that is organized under the law	657
of the United States and a branch or agency of a bank that is not	658
organized under the law of the United States or a state are	659
located:	660

(1) In the state that the law of the United States	661
designates, if the law designates a state of location;	662

(2) In the state that the registered organization, branch, or	663
agency designates, if the law of the United States authorizes the	664
registered organization, branch, or agency to designate its state	665
of location, including by designating its main office, home	666
office, or other comparable office; or	667

(3) In the District of Columbia, if neither division (F)(1)	668
nor (2) of this section applies.	669

(G) A registered organization continues to be located in the	670
jurisdiction specified by division (E) or (F) of this section	671
notwithstanding:	672

(1) The suspension, revocation, forfeiture, or lapse of the	673
registered organization's status in its jurisdiction of	674
organization; or	675

(2) The dissolution, winding up, or cancellation of the	676
existence of the registered organization.	677

(H) The United States is located in the District of Columbia.

678

(I) A branch or agency of a bank that is not organized under	679
the law of the United States or a state is located in the state in	680
which the branch or agency is licensed, if all branches and	681
agencies of the bank are licensed in only one state.	682

(J) A foreign air carrier under the "Federal Aviation Act of	683
1958," 49 U.S.C. 40102, as amended, is located at the designated	684
office of the agent upon which service of process may be made on	685
behalf of the carrier.	686

(K) This section applies only for the purposes of sections	687
1309.301 to 1309.342 of the Revised Code.	688

Sec. 1309.311. (A) Except as otherwise provided in division	689
(D) of this section, the filing of a financing statement is not	690
necessary or effective to perfect a security interest in property	691
subject to:	692

(1) A statute, regulation, or treaty of the United States	693
whose requirements for a security interest's obtaining priority	694
over the rights of a lien creditor with respect to the property	695
preempt division (A) of section 1309.310 of the Revised Code;	696

(2) Chapters 1547., 1548., 4505., 4519., and 5309. of the	697
Revised Code;	698

(3) A ~~certificate of title~~ statute of another jurisdiction	699
that provides for a security interest to be indicated on ~~the~~a	700
certificate of title as a condition or result of the security	701
interest's obtaining priority over the rights of a lien creditor	702
with respect to the property.	703

(B) Compliance with the requirements of a statute,	704
regulation, or treaty described in division (A) of this section	705
for obtaining priority over the rights of a lien creditor is	706
equivalent to the filing of a financing statement under this	707
chapter. Except as otherwise provided in division (D) of this	708
section, section 1309.313, and divisions (D) and (E) of section	709
1309.316 of the Revised Code for goods covered by a certificate of	710
title, a security interest in property subject to a statute,	711
regulation, or treaty described in division (A) of this section	712
may be perfected only by compliance with those requirements, and a	713
security interest so perfected remains perfected notwithstanding a	714
change in the use or transfer of possession of the collateral.	715

(C) Except as otherwise provided in division (D) of this	716
section and divisions (D) and (E) of section 1309.316 of the	717
Revised Code, duration and renewal of perfection of a security	718
interest perfected by compliance with the requirements prescribed	719
by a statute, regulation, or treaty described in division (A) of	720
this section are governed by the statute, regulation, or treaty.	721
In other respects, the security interest is subject to this	722
chapter.	723

(D) During any period in which collateral subject to a	724
statute specified in division (A)(2) of this section is inventory	725
held for sale or lease by a person or leased by that person as	726
lessor and that person is in the business of selling goods of that	727
kind, this section does not apply to a security interest in that	728
collateral created by that person.	729

Sec. 1309.316. (A) A security interest perfected pursuant to	730
the law of the jurisdiction designated in division (A) of section	731
1309.301 or division (C) of section 1309.305 of the Revised Code	732
remains perfected until the earliest of:	733

(1) The time perfection would have ceased under the law of	734
that jurisdiction;	735

(2) The expiration of four months after a change of the	736
debtor's location to another jurisdiction; or	737

(3) The expiration of one year after a transfer of collateral	738
to a person that thereby becomes a debtor and is located in	739
another jurisdiction.	740

(B) If a security interest described in division (A) of this	741
section becomes perfected under the law of the other jurisdiction	742
before the earliest time or event described in that division, it	743
remains perfected thereafter. If the security interest does not	744
become perfected under the law of the other jurisdiction before	745
that earliest time or event, it becomes unperfected and is deemed	746
never to have been perfected as against a purchaser of the	747
collateral for value.	748

(C) A possessory security interest in collateral, other than	749
goods covered by a certificate of title and as-extracted	750
collateral consisting of goods, remains continuously perfected if:	751

(1) The collateral is located in one jurisdiction and subject	752
to a security interest perfected under the law of that	753
jurisdiction;	754

(2) Thereafter, the collateral is brought into another	755
jurisdiction; and	756

(3) Upon entry into the other jurisdiction, the security	757
interest is perfected under the law of the other jurisdiction.	758

(D) Except as otherwise provided in division (E) of this	759
section, a security interest in goods covered by a certificate of	760
title that is perfected by any method under the law of another	761
jurisdiction when the goods become covered by a certificate of	762
title from this state remains perfected until the security	763
interest would have become unperfected under the law of the other	764
jurisdiction had the goods not become so covered.	765

(E) A security interest described in division (D) of this	766
section becomes unperfected as against a purchaser of the goods	767
for value and is deemed never to have been perfected as against a	768
purchaser of the goods for value if the applicable requirements	769
for perfection under division (B) of section 1309.311 or section	770
1309.313 of the Revised Code are not satisfied before the earlier	771
of:	772

(1) The time the security interest would have become	773
unperfected under the law of the other jurisdiction had the goods	774
not become covered by a certificate of title from this state; or	775

(2) The expiration of four months after the goods had become	776
so covered.	777

(F) A security interest in deposit accounts, letter-of-credit	778
rights, or investment property that is perfected under the law of	779
the bank's jurisdiction, the issuer's jurisdiction, a nominated	780
person's jurisdiction, the securities intermediary's jurisdiction,	781
or the commodity intermediary's jurisdiction, as applicable,	782
remains perfected until the earlier of:	783

(1) The time the security interest would have become	784
unperfected under the law of that jurisdiction; or	785

(2) The expiration of four months after a change of the	786
applicable jurisdiction to another jurisdiction.	787

(G) If a security interest described in division (F) of this	788
section becomes perfected under the law of the other jurisdiction	789
before the earlier of the time or the end of the period described	790
in that division, it remains perfected thereafter. If the security	791
interest does not become perfected under the law of the other	792
jurisdiction before the earlier of that time or the end of that	793
period, it becomes unperfected and is deemed never to have been	794
perfected as against a purchaser of the collateral for value.	795

(H) The following rules apply to collateral to which a	796
security interest attaches within four months after the debtor	797
changes its location to another jurisdiction:	798

(1) A financing statement filed before the change pursuant to	799
the law of the jurisdiction designated in division (A) of section	800
1309.301 or division (C) of section 1309.305 of the Revised Code	801
is effective to perfect a security interest in the collateral if	802
the financing statement would have been effective to perfect a	803
security interest in the collateral had the debtor not changed its	804
location.	805

(2) If a security interest perfected by a financing statement	806
that is effective under division (H)(1) of this section becomes	807
perfected under the law of the other jurisdiction before the	808
earlier of the time the financing statement would have become	809
ineffective under the law of the jurisdiction designated in	810
division (A) of section 1309.301 or division (C) of section	811
1309.305 of the Revised Code or the expiration of the four-month	812
period, it remains perfected thereafter. If the security interest	813
does not become perfected under the law of the other jurisdiction	814
before the earlier time or event, it becomes unperfected and is	815
deemed never to have been perfected as against a purchaser of the	816
collateral for value.	817

(I) If a financing statement naming an original debtor is	818
filed pursuant to the law of the jurisdiction designated in	819
division (A) of section 1309.301 or division (C) of section	820
1309.305 of the Revised Code and the new debtor is located in	821
another jurisdiction, the following rules apply:	822

(1) The financing statement is effective to perfect a	823
security interest in collateral acquired by the new debtor before,	824
and within four months after, the new debtor becomes bound under	825
division (D) of section 1309.203 of the Revised Code, if the	826
financing statement would have been effective to perfect a	827
security interest in the collateral had the collateral been	828
acquired by the original debtor.	829

(2) A security interest perfected by the financing statement	830
and that becomes perfected under the law of the other jurisdiction	831
before the earlier of the time the financing statement would have	832
become ineffective under the law of the jurisdiction designated in	833
division (A) of section 1309.301 or division (C) of section	834
1309.305 of the Revised Code or the expiration of the four-month	835
period remains perfected thereafter. A security interest that is	836
perfected by the financing statement but that does not become	837
perfected under the law of the other jurisdiction before the	838
earlier time or event becomes unperfected and is deemed never to	839
have been perfected as against a purchaser of the collateral for	840
value.	841

Sec. 1309.317. (A) A security interest or agricultural lien	842
is subordinate to the rights of:	843

(1) A person entitled to priority under section 1309.322 of	844
the Revised Code; and	845

(2) Except as otherwise provided in division (E) of this	846
section, a person who becomes a lien creditor before the earlier	847
of the time:	848

(a) The security interest or agricultural lien is perfected;	849
or	850

(b) One of the conditions specified in division (B)(3) of	851
section 1309.203 of the Revised Code is met and a financing	852
statement covering the collateral is filed.	853

(B) Except as otherwise provided in division (E) of this	854
section, a buyer, other than a secured party, of tangible chattel	855
paper, tangible documents, goods, instruments, or a certificated	856
security ~~certificate~~ takes free of a security interest or	857
agricultural lien if the buyer gives value and receives delivery	858
of the collateral without knowledge of the security interest or	859
agricultural lien and before it is perfected.	860

(C) Except as otherwise provided in division (E) of this	861
section, a lessee of goods takes free of a security interest or	862
agricultural lien if the lessee gives value and receives delivery	863
of the collateral without knowledge of the security interest or	864
agricultural lien and before it is perfected.	865

(D) A licensee of a general intangible or a buyer, other than	866
a secured party, of ~~accounts, electronic chattel paper, electronic~~	867
~~documents, general intangibles, or investment property~~collateral	868
other than tangible chattel paper, tangible documents, goods,	869
instruments, or a certificated security takes free of a security	870
interest if the licensee or buyer gives value without knowledge of	871
the security interest and before it is perfected.	872

(E) Except as otherwise provided in sections 1309.320 and	873
1309.321 of the Revised Code, if a person files a financing	874
statement with respect to a purchase money security interest	875
before or within twenty days after the debtor receives delivery of	876
the collateral, the security interest takes priority over the	877
rights of a buyer, lessee, or lien creditor that arise between the	878
time the security interest attaches and the time of filing.	879

Sec. 1309.326. (A) Subject to division (B) of this section,	880
a security interest that is created by a new debtor ~~that~~in	881
collateral in which the new debtor has or acquires rights and is	882
perfected solely by a filed financing statement that ~~is effective~~	883
~~solely under~~would be ineffective to perfect the security interest	884
but for the application of division (I)(1) of section 1309.316 of	885
the Revised Code or section 1309.508 of the Revised Code in	886
~~collateral in which a new debtor has or acquires rights~~ is	887
subordinate to a security interest in the same collateral that is	888
perfected other than by such a filed financing statement ~~that is~~	889
~~effective solely under section 1309.508 of the Revised Code~~.	890

(B) Sections 1309.301 to 1309.342 of the Revised Code	891
determine the priority among conflicting security interests in the	892
same collateral perfected by filed financing statements ~~that are~~	893
~~effective solely under section 1309.508~~described in division (A)	894
of ~~the Revised Code~~this section. However, if the security	895
agreements to which a new debtor became bound as debtor were not	896
entered into by the same original debtor, the conflicting security	897
interests rank according to priority in time of the new debtor's	898
having become bound.	899

Sec. 1309.406. (A) Subject to divisions (B) to (I) of this	900
section, an account debtor on an account, chattel paper, or	901
payment intangible may discharge its obligation by paying the	902
assignor until, but not after, the account debtor receives a	903
notification, authenticated by the assignor or the assignee, that	904
the amount due or to become due has been assigned and that payment	905
is to be made to the assignee. After receipt of the notification,	906
the account debtor may discharge its obligation by paying the	907
assignee and may not discharge the obligation by paying the	908
assignor.	909

(B) Subject to division (H) of this section, notification	910
under division (A) of this section is not effective:	911

(1) If the notification does not reasonably identify the	912
rights assigned;	913

(2) To the extent that an agreement between an account debtor	914
and a seller of a payment intangible limits the account debtor's	915
duty to pay a person other than the seller and the limitation is	916
effective under law other than this chapter; or	917

(3) At the option of an account debtor, if the notification	918
notifies the account debtor to make less than the full amount of	919
any installment or other periodic payment to the assignee, even	920
if:	921

(a) Only a portion of the account, chattel paper, or payment	922
intangible has been assigned to that assignee;	923

(b) A portion has been assigned to another assignee; or

924

(c) The account debtor knows that the assignment to that	925
assignee is limited.	926

(C) Subject to division (H) of this section, if requested by	927
the account debtor, an assignee shall seasonably furnish	928
reasonable proof that the assignment has been made. Unless the	929
assignee complies, the account debtor may discharge its obligation	930
by paying the assignor, even if the account debtor has received a	931
notification under division (A) of this section.	932

(D) Except as otherwise provided in division (E) of this	933
section and sections 1309.407 and 1310.31 of the Revised Code, and	934
subject to division (H) of this section, a term in an agreement	935
between an account debtor and an assignor or in a promissory note	936
is ineffective to the extent that it:	937

(1) Prohibits, restricts, or requires the consent of the	938
account debtor or person obligated on the promissory note to the	939
assignment or transfer of, or the creation, attachment,	940
perfection, or enforcement of a security interest in, the account,	941
chattel paper, payment intangible, or promissory note; or	942

(2) Provides that the assignment or transfer or the creation,	943
attachment, perfection, or enforcement of the security interest	944
may give rise to a default, breach, right of recoupment, claim,	945
defense, termination, right of termination, or remedy under the	946
account, chattel paper, payment intangible, or promissory note.	947

(E) Division (D) of this section does not apply to the sale	948
of a payment intangible or promissory note, other than a sale	949
pursuant to a disposition under section 1309.610 of the Revised	950
Code or an acceptance of collateral under section 1309.620 of the	951
Revised Code.	952

(F) Except as provided in sections 1309.407 and 1310.31 of	953
the Revised Code and subject to divisions (H) and (I) of this	954
section, a rule of law, statute, or regulation that prohibits,	955
restricts, or requires the consent of a government, governmental	956
body or official, or account debtor to the assignment or transfer	957
of, or creation of a security interest in, an account or chattel	958
paper is not effective to the extent that the rule of law,	959
statute, or regulation:	960

(1) Prohibits, restricts, or requires the consent of the	961
government, governmental body or official, or account debtor to	962
the assignment or transfer of, or the creation, attachment,	963
perfection, or enforcement of a security interest in the account	964
or chattel paper; or	965

(2) Provides that the assignment or transfer or the creation,	966
attachment, perfection, or enforcement of the security interest	967
may give rise to a default, breach, right of recoupment, claim,	968
defense, termination, right of termination, or remedy under the	969
account or chattel paper.	970

(G) Subject to division (H) of this section, an account	971
debtor may not waive or vary its option under division (B)(3) of	972
this section.	973

(H) This section is subject to law other than this chapter	974
that establishes a different rule for an account debtor who is an	975
individual and who incurred the obligation primarily for personal,	976
family, or household purposes.	977

(I) This section does not apply to an assignment of a	978
health-care-insurance receivable.	979

(J) Divisions (D) and (F) of this section do not apply to:

980

(1) A claim or right to receive compensation for injuries or	981
sickness as described in section 104(a)(1) or (2) of the Internal	982
Revenue Code, as amended; or	983

(2) A claim or right to receive benefits under a special	984
needs trust as described in the "Omnibus Budget Reconciliation Act	985
of 1993," 107 Stat. 312, 42 U.S.C. 1396p(d)(4), as amended.	986

(K) Divisions (D), (F), and (J) of this section apply only to	987
a security interest created on or after July 1, 2001. Nothing in	988
this section shall supersede the provisions of sections 2323.58 to	989
2323.587 of the Revised Code. This section shall be interpreted	990
consistently with sections 2323.58 to 2323.587 of the Revised	991
Code.	992

Sec. 1309.408. (A) Except as otherwise provided in division	993
(B) of this section, a term in a promissory note or in an	994
agreement between an account debtor and a debtor that relates to a	995
health-care-insurance receivable or a general intangible,	996
including a contract, permit, license, or franchise, and which	997
term prohibits, restricts, or requires the consent of the person	998
obligated on the promissory note or the account debtor to, the	999
assignment or transfer of, or creation, attachment, or perfection	1000
of a security interest in, the promissory note,	1001
health-care-insurance receivable, or general intangible, is not	1002
effective to the extent that the term:	1003

(1) Would impair the creation, attachment, or perfection of a	1004
security interest; or	1005

(2) Provides that the assignment or transfer or the creation,	1006
attachment, or perfection of the security interest may give rise	1007
to a default, breach, right of recoupment, claim, defense,	1008
termination, right of termination, or remedy under the promissory	1009
note, health-care-insurance receivable, or general intangible.	1010

(B) Division (A) applies to a security interest in a payment	1011
intangible or promissory note only if the security interest arises	1012
out of a sale of the payment intangible or promissory note, other	1013
than a sale pursuant to a disposition under section 1309.610 of	1014
the Revised Code or an acceptance of collateral under section	1015
1309.620 of the Revised Code.	1016

(C) A rule of law, statute, or regulation that prohibits,	1017
restricts, or requires the consent of a government, governmental	1018
body or official, person obligated on a promissory note, or	1019
account debtor to the assignment or transfer of, or creation of a	1020
security interest in, a promissory note, health-care-insurance	1021
receivable, or general intangible, including a contract, permit,	1022
license, or franchise between an account debtor and a debtor, is	1023
not effective to the extent that the rule of law, statute, or	1024
regulation:	1025

(1) Would impair the creation, attachment, or perfection of a	1026
security interest; or	1027

(2) Provides that the assignment or transfer or the creation,	1028
attachment, or perfection of the security interest may give rise	1029
to a default, breach, right of recoupment, claim, defense,	1030
termination, right of termination, or remedy under the promissory	1031
note, health-care-insurance receivable, or general intangible.	1032

(D) To the extent that a term in a promissory note or in an	1033
agreement between an account debtor and a debtor that relates to a	1034
health-care-insurance receivable or general intangible or a rule	1035
of law, statute, or regulation described in division (C) of this	1036
section would be effective under law other than this chapter but	1037
is ineffective under division (A) or (C) of this section, the	1038
creation, attachment, or perfection of a security interest in the	1039
promissory note, health-care-insurance receivable, or general	1040
intangible:	1041

(1) Is not enforceable against the person obligated on the	1042
promissory note or the account debtor;	1043

(2) Does not impose a duty or obligation on the person	1044
obligated on the promissory note or the account debtor;	1045

(3) Does not require the person obligated on the promissory	1046
note or the account debtor to recognize the security interest, pay	1047
or render performance to the secured party, or accept payment or	1048
performance from the secured party;	1049

(4) Does not entitle the secured party to use or assign the	1050
debtor's rights under the promissory note, health-care-insurance	1051
receivable, or general intangible, including any related	1052
information or materials furnished to the debtor in the	1053
transaction giving rise to the promissory note,	1054
health-care-insurance receivable, or general intangible;	1055

(5) Does not entitle the secured party to use, assign,	1056
possess, or have access to any trade secrets or confidential	1057
information of the person obligated on the promissory note or the	1058
account debtor; and	1059

(6) Does not entitle the secured party to enforce the	1060
security interest in the promissory note, health-care-insurance	1061
receivable, or general intangible.	1062

(E) Divisions (A) and (C) of this section do not apply to:

1063

(1) A claim or right to receive compensation for injuries or	1064
sickness as described in section 104(a)(1) or (2) of the Internal	1065
Revenue Code as amended; or	1066

(2) A claim or right to receive benefits under a special	1067
needs trust as described in the "Omnibus Budget Reconciliation Act	1068
of 1993," 107 Stat. 312, 42 U.S.C. 1396p(d)(4), as amended.	1069

(F) Divisions (A), (C), and (E) of this section apply only to	1070
a security interest created on or after July 1, 2001. Nothing in	1071
this section shall supersede the provisions of sections 2323.58 to	1072
2323.587 of the Revised Code. This section shall be interpreted	1073
consistently with sections 2323.58 to 2323.587 of the Revised	1074
Code.	1075

Sec. 1309.502. (A) Subject to division (B) of this section,	1076
a financing statement is sufficient only if it:	1077

(1) Provides the name of the debtor;

1078

(2) Provides the name of the secured party or a	1079
representative of the secured party; and	1080

(3) Indicates the collateral covered by the financing	1081
statement.	1082

(B) Except as otherwise provided in division (B) of section	1083
1309.501 of the Revised Code, to be sufficient, a financing	1084
statement that covers as-extracted collateral or timber to be cut,	1085
or that is filed as a fixture filing and covers goods that are or	1086
are to become fixtures, shall satisfy division (A) of this section	1087
and also:	1088

(1) Indicate that it covers this type of collateral;

1089

(2) Indicate that it is to be filed in the real property	1090
records;	1091

(3) Provide a description of the real property to which the	1092
collateral is related sufficient to give constructive notice of a	1093
mortgage under the laws of this state if the description were	1094
contained in a record of the mortgage of the real property; and	1095

(4) If the debtor does not have an interest of record in the	1096
real property, provide the name of a record owner.	1097

(C) A record of a mortgage is effective, from the date of	1098
recording, as a financing statement filed as a fixture filing or	1099
as a financing statement covering as-extracted collateral or	1100
timber to be cut only if:	1101

(1) The record indicates the goods or accounts that it	1102
covers;	1103

(2) The goods are or are to become fixtures related to the	1104
real property described in the record, or the collateral is	1105
related to the real property described in the record and is	1106
as-extracted collateral or timber to be cut;	1107

(3) The record satisfies the requirements for a financing	1108
statement contained in this section ~~other than an indication~~, but:	1109

(a) The record need not indicate that it is to be filed in	1110
the real property records; and	1111

(b) The record sufficiently provides the name of a debtor who	1112
is an individual if it provides the individual name of the debtor	1113
or the surname and first personal name of the debtor, even if the	1114
debtor is an individual to whom division (A)(4) of section	1115
1309.503 of the Revised Code applies; and	1116

(4) The record is duly recorded.

1117

(D) A financing statement may be filed before a security	1118
agreement is made or a security interest otherwise attaches.	1119

Sec. 1309.503. (A) A financing statement sufficiently	1120
provides the name of the debtor:	1121

(1) IfExcept as otherwise provided in division (A)(3) of	1122
this section, if the debtor is a registered organization or the	1123
collateral is held in a trust that is a registered organization,	1124
only if the financing statement provides the name ~~of the debtor~~	1125
~~indicated~~that is stated to be the registered organization's name	1126
on the public organic record ofmost recently filed with or issued	1127
or enacted by the ~~debtor's~~registered organization's jurisdiction	1128
of organization ~~that shows the debtor to have been organized~~	1129
which purports to state, amend, or restate the registered	1130
organization's name;	1131

(2) IfSubject to division (F) of this section, if the ~~debtor~~	1132
~~is a decedent's estate~~collateral is being administered by the	1133
personal representative of a decedent, only if the financing	1134
statement provides, as the name of the debtor, the name of the	1135
decedent and, in a separate part of the financing statement,	1136
indicates that the ~~debtor~~collateral is ~~an estate~~being	1137
administered by a personal representative;	1138

(3) If the ~~debtor~~collateral is ~~a trust or a trustee acting~~	1139
~~with respect to property~~ held in a trust that is not a registered	1140
organization, only if the financing statement:	1141

(a) Provides, as the name ~~specified~~of the debtor:

1142

(i) If the organic record of the trust specifies a name for	1143
the trust ~~in its organic documents or, if no~~, the name is	1144
specified~~, provides~~; or	1145

(ii) If the organic record of the trust does not specify a	1146
name for the trust, the name of the settlor ~~and additional~~	1147
~~information sufficient to distinguish the debtor from other trusts~~	1148
~~having one or more of the same settlors~~or testator; and	1149

(b) ~~Indicates, in the debtor's name or otherwise, that the~~	1150
~~debtor is a trust or is a trustee acting with respect to property~~	1151
In a separate part of the financing statement:	1152

(i) If the name is provided in accordance with division	1153
(A)(3)(a)(i) of this section, indicates that the collateral is	1154
held in a trust; or	1155

(ii) If the name is provided in accordance with division	1156
(A)(3)(a)(ii) of this section, provides additional information	1157
sufficient to distinguish the trust from other trusts having one	1158
or more of the same settlors or the same testator and indicates	1159
that the collateral is held in a trust, unless the additional	1160
information so indicates.	1161

(4) Subject to division (G) of this section, if the debtor is	1162
an individual to whom this state has issued a driver's license or	1163
identification card that has not expired, only if the financing	1164
statement provides the name of the individual that is indicated on	1165
the driver's license or identification card;	1166

(5) If the debtor is an individual to whom division (A)(4) of	1167
this section does not apply, only if the financing statement	1168
provides the individual name of the debtor or the surname and	1169
first personal name of the debtor; and	1170

(6) In other cases:

1171

(a) If the debtor has a name, only if itthe financing	1172
statement provides the ~~individual or~~ organizational name of the	1173
debtor; and	1174

(b) If the debtor does not have a name, only if it provides	1175
the names of the partners, members, associates, or other persons	1176
comprising the debtor, in a manner that each name provided would	1177
be sufficient if the person named were the debtor.	1178

(B) A financing statement that provides the name of the	1179
debtor in accordance with division (A) of this section is not	1180
rendered ineffective by the absence of:	1181

(1) A trade name or other name of the debtor; or

1182

(2) Unless required under division (A)~~(4)~~(6)(b) of this	1183
section, names of partners, members, associates, or other persons	1184
comprising the debtor.	1185

(C) A financing statement that provides only the debtor's	1186
trade name does not sufficiently provide the name of the debtor.	1187

(D) Failure to indicate the representative capacity of a	1188
secured party or representative of a secured party does not affect	1189
the sufficiency of a financing statement.	1190

(E) A financing statement may provide the name of more than	1191
one debtor and the name of more than one secured party.	1192

(F) The name of the decedent indicated on the order	1193
appointing the personal representative of the decedent issued by	1194
the court having jurisdiction over the collateral is sufficient as	1195
the "name of the decedent" under division (A)(2) of this section.	1196

(G) If this state has issued to an individual more than one	1197
driver's license or identification card of a kind described in	1198
division (A)(4) of this section, the one that was issued most	1199
recently is the one to which division (A)(4) of this section	1200
refers.	1201

(H) As used in this section, "name of the settlor or	1202
testator" means:	1203

(1) If the settlor is a registered organization, the name	1204
that is stated to be the settlor's name on the public organic	1205
record most recently filed with or issued or enacted by the	1206
settlor's jurisdiction of organization that purports to state,	1207
amend, or restate the settlor's name; or	1208

(2) In other cases, the name of the settlor or testator	1209
indicated in the trust's organic record.	1210

Sec. 1309.507. (A) A filed financing statement remains	1211
effective with respect to collateral that is sold, exchanged,	1212
leased, licensed, or otherwise disposed of and in which a security	1213
interest or agricultural lien continues, even if the secured party	1214
knows of or consents to the disposition.	1215

(B) Except as otherwise provided in division (C) of this	1216
section and section 1309.508 of the Revised Code, a financing	1217
statement is not rendered ineffective if, after the financing	1218
statement is filed, the information provided in the financing	1219
statement becomes seriously misleading under section 1309.506 of	1220
the Revised Code.	1221

(C) If ~~a debtor so changes its~~the name that a filed	1222
financing statement provides for a debtor becomes insufficient as	1223
the name of the debtor under division (A) of section 1309.503 of	1224
the Revised Code so that the financing statement becomes seriously	1225
misleading under section 1309.506 of the Revised Code:	1226

(1) The financing statement is effective to perfect a	1227
security interest in collateral acquired by the debtor before, or	1228
within four months after, the ~~change~~filed financing statement	1229
becomes seriously misleading; and	1230

(2) The financing statement is not effective to perfect a	1231
security interest in collateral acquired by the debtor more than	1232
four months after the ~~change~~filed financing statement becomes	1233
seriously misleading, unless an amendment to the financing	1234
statement that renders the financing statement not seriously	1235
misleading is filed within four months after the ~~change~~financing	1236
statement became seriously misleading.	1237

Sec. 1309.515. (A) Except as otherwise provided in divisions	1238
(B), (E), (F), and (G) of this section, a filed financing	1239
statement is effective for a period of five years after the date	1240
of filing.	1241

(B) Except as otherwise provided in divisions (E), (F), and	1242
(G) of this section, an initial financing statement filed in	1243
connection with a public-finance transaction or manufactured-home	1244
transaction is effective for a period of thirty years after the	1245
date of filing if it indicates that it is filed in connection with	1246
a public-finance transaction or manufactured-home transaction.	1247

(C) The effectiveness of a filed financing statement lapses	1248
on the expiration of the period of its effectiveness unless,	1249
before the lapse, a continuation statement is filed pursuant to	1250
division (D) of this section. Upon lapse, a financing statement	1251
ceases to be effective, and any security interest or agricultural	1252
lien that was perfected by the financing statement becomes	1253
unperfected, unless the security interest is perfected otherwise.	1254
If the security interest or agricultural lien becomes unperfected	1255
upon lapse, it is deemed never to have been perfected as against a	1256
purchaser of the collateral for value.	1257

(D) A continuation statement may be filed only within six	1258
months before the expiration of the five-year period specified in	1259
division (A) or the thirty-year period specified in division (B)	1260
of this section, whichever is applicable.	1261

(E) Except as provided in section 1309.510 of the Revised	1262
Code, upon timely filing of a continuation statement, the	1263
effectiveness of the initial financing statement continues for a	1264
period of five years commencing on the day on which the financing	1265
statement would have become ineffective in the absence of the	1266
filing. Upon the expiration of the five-year period, the financing	1267
statement lapses in the same manner as provided in division (C) of	1268
this section, unless, before the lapse, another continuation	1269
statement is filed pursuant to division (D) of this section.	1270
Succeeding continuation statements may be filed in the same manner	1271
to continue the effectiveness of the initial financing statement.	1272

(F) If a debtor is a transmitting utility and a filed initial	1273
financing statement so indicates, the financing statement is	1274
effective until a termination statement is filed.	1275

(G) A record of a mortgage that is effective as a financing	1276
statement filed as a fixture filing under division (C) of section	1277
1309.502 of the Revised Code remains effective as a financing	1278
statement filed as a fixture filing until the mortgage is released	1279
or satisfied of record or its effectiveness otherwise terminates	1280
as to the real property.	1281

Sec. 1309.516. (A) Except as provided in division (B) of	1282
this section, communication of a record to a filing office and	1283
tender of the filing fee or acceptance of the record by the filing	1284
office constitutes filing.	1285

(B) Filing does not occur with respect to a record that a	1286
filing office refuses to accept because:	1287

(1) The record is not communicated by a method or medium of	1288
communication authorized by the filing office;	1289

(2) An amount equal to or greater than the applicable filing	1290
fee is not tendered;	1291

(3) The filing office is unable to index the record because:

1292

(a) In the case of an initial financing statement, the record	1293
does not provide a name for the debtor;	1294

(b) In the case of an amendment or ~~correction~~information	1295
statement, the record:	1296

(i) Does not identify the initial financing statement as	1297
required by section 1309.512 or 1309.518 of the Revised Code, as	1298
applicable; or	1299

(ii) Identifies an initial financing statement whose	1300
effectiveness has lapsed under section 1309.515 of the Revised	1301
Code.	1302

(c) In the case of an initial financing statement that	1303
provides the name of a debtor identified as an individual or an	1304
amendment that provides a name of a debtor identified as an	1305
individual that was not provided previously in the financing	1306
statement to which the record relates, the record does not	1307
identify the debtor's ~~last name~~surname; or	1308

(d) In the case of a record filed in the filing office	1309
described in division (A)(1) of section 1309.501 of the Revised	1310
Code, the record does not provide a sufficient description of the	1311
real property to which it relates.	1312

(4) In the case of an initial financing statement or an	1313
amendment that adds a secured party of record, the record does not	1314
provide a name and mailing address for the secured party of	1315
record;	1316

(5) In the case of an initial financing statement or an	1317
amendment that provides a name of a debtor that was not provided	1318
previously in the financing statement to which the amendment	1319
relates, the record does not:	1320

(a) Provide a mailing address for the debtor; or

1321

(b) Indicate whether the name provided as the name of the	1322
debtor is the name of an individual or an organization~~; or~~	1323

~~(c) If the financing statement indicates that the debtor is~~	1324
~~an organization, provide:~~	1325

~~(i) A type of organization for the debtor; or~~

1326

~~(ii) A jurisdiction of organization for the debtor~~.

1327

(6) In the case of an assignment reflected in an initial	1328
financing statement under division (A) of section 1309.514 of the	1329
Revised Code or an amendment filed under division (B) of section	1330
1309.514 of the Revised Code, the record does not provide a name	1331
and mailing address for the assignee.	1332

(7) In the case of a continuation statement, the record is	1333
not filed within the six-month period prescribed by division (D)	1334
of section 1309.515 of the Revised Code.; or	1335

(8) The secretary of state refuses to accept the record for	1336
filing or recording in compliance with division (A) of section	1337
111.24 of the Revised Code.	1338

1339

(1) A record does not provide information if the filing	1340
office is unable to read or decipher the information; and	1341

(2) A record that does not indicate that it is an amendment	1342
or identify an initial financing statement to which it relates, as	1343
required by section 1309.512, 1309.514, or 1309.518 of the Revised	1344
Code, is an initial financing statement.	1345

(D) A record that is communicated to the filing office with	1346
tender of the filing fee, but that the filing office refuses to	1347
accept for a reason other than one specified in division (B) of	1348
this section, is effective as a filed record except as against a	1349
purchaser of the collateral that gives value in reasonable	1350
reliance upon the absence of the record from the files.	1351

Sec. 1309.518. (A) A person may file in the filing office a	1352
~~correction~~an information statement with respect to a record	1353
indexed there under the person's name if the person believes that	1354
the record is inaccurate or was wrongfully filed.	1355

(B) ~~A correction~~An information statement under division (A)	1356
of this section must:	1357

(1) Identify the record to which it relates by:

1358

(a) The file number assigned to the initial financing	1359
statement to which the record relates; and	1360

(b) If the ~~correction~~information statement relates to a	1361
record filed in a filing office described in division (A)(1) of	1362
section 1309.501 of the Revised Code, the date and time that the	1363
initial financing statement was filed and the information	1364
specified in division (B) of section 1309.502 of the Revised Code;	1365

(2) Indicate that it is ~~a correction~~an information	1366
statement; and	1367

(3) Provide the basis for the person's belief that the record	1368
is inaccurate and indicate the manner in which the person believes	1369
the record should be amended to cure any inaccuracy or provide the	1370
basis for the person's belief that the record was wrongfully	1371
filed.	1372

(C) A person may file in the filing office an information	1373
statement with respect to a record filed there if the person is a	1374
secured party of record with respect to the financing statement to	1375
which the record relates and believes that the person that filed	1376
the record was not entitled to do so under division (D) of section	1377
1309.509 of the Revised Code.	1378

(D) An information statement under division (C) of this	1379
section must:	1380

(1) Identify the record to which it relates by:

1381

(a) The file number assigned to the initial financing	1382
statement to which the record relates; and	1383

(b) If the information statement relates to a record filed in	1384
a filing office described in division (A)(1) of section 1309.501	1385
of the Revised Code, the date and time that the initial financing	1386
statement was filed and the information specified in division (B)	1387
of section 1309.502 of the Revised Code;	1388

(2) Indicate that it is an information statement; and

1389

(3) Provide the basis for the person's belief that the person	1390
that filed the record was not entitled to do so under division (D)	1391
of section 1309.509 of the Revised Code.	1392

(E) The filing of ~~a correction~~an information statement does	1393
not affect the effectiveness of an initial financing statement or	1394
other filed record.	1395

Sec. 1309.521. (A) A filing office that accepts written	1396
records may not refuse to accept a written initial financing	1397
statement in the following form and format except for a reason	1398
prescribed in division (B) of section 1309.516 of the Revised	1399
Code:	1400

UCC FINANCING STATEMENT	1401

Follow instructions (front and back) carefully.	1402

A. Name and phone of contact at filer (optional)			1403
.................................................................			1404
B. Send acknowledgment to: (name and address)			1405
..................................			1406
..................................			1407
..................................	The above space is for filing office use only.		1408
1. DEBTOR'S EXACT FULL LEGAL NAME			1409
(Insert only one debtor name [1a or 1b]. Do not abbreviate or			1410
combine names. If completing 1b, insert the debtor's name exactly as it appears on the debtor's current driver's license or identification card issued by this state, if one exists.)			1411
1a. Organization's name .........................................			1412
or			1413
1b. Individual's last name ............. First name .............			1414
Middle name ........................... Suffix ..................			1415
1c. Mailing address .............................................			1416
City .......... State ....... Postal code ...... Country ........			1417
		1418
Additional information regarding organization debtor			1419
1d. Type of organization ........................................			1420
1e. Jurisdiction of organization ................................			1421
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME			1422
(Insert only one debtor name [2a or 2b]. Do not abbreviate or			1423
combine names. If completing 2b, insert the debtor's name exactly as it appears on the debtor's current driver's license or identification card issued by this state, if one exists.)			1424
2a. Organization's name .........................................			1425
or			1426
2b. Individual's last name ............. First name .............			1427
Middle name ........................... Suffix ..................			1428
2c. Mailing address .............................................			1429
City .......... State ....... Postal code ...... Country ........			1430
		1431
Additional information regarding organization debtor			1432
2d. Type of organization ........................................			1433
2e. Jurisdiction of organization ................................			1434
3. SECURED PARTY'S NAME (or name of total assignee of assignor			1435
S/P). Insert only one secured party name (3a or 3b).			1436
3a. Organization's name .........................................			1437
or			1438
3b. Individual's last name ............. First name .............			1439
Middle name ........................... Suffix ..................			1440
3c. Mailing address .............................................			1441
City .......... State ....... Postal code ...... Country ........			1442
4. This FINANCING STATEMENT covers the following collateral:			1443
.................................................................			1444
.................................................................			1445
.................................................................			1446
.................................................................			1447
5. ALTERNATIVE DESIGNATION (if applicable):			1448
[ ] Lessee/lessor [ ] Consignee/consignor [ ] Bailee/bailor			1449
[ ] Seller/buyer [ ] Ag. lien [ ] Non-UCC filing			1450
6. [ ] This FINANCING STATEMENT is to be filed [for record] (or			1451
recorded) in the REAL ESTATE RECORDS. Attach addendum ..........			1452
[if applicable].			1453
7. Check to REQUEST SEARCH REPORT(S) on debtor(s)			1454
[ADDITIONAL FEE] .......... [optional]			1455
[ ] All debtors [ ] Debtor 1 [ ] Debtor 2			1456
8. OPTIONAL FILER REFERENCE DATA			1457
.................................................................			1458
.................................................................			1459

UCC FINANCING STATEMENT ADDENDUM	1460

Follow instructions (front and back) carefully.	1461

9. NAME OF FIRST DEBTOR (1a OR 1b) ON RELATED FINANCING STATEMENT			1462
9a. Organization's name .........................................			1463
or			1464
9b. Individual's last name ............. First name .............			1465
Middle name ........................... Suffix ..................			1466
10. MISCELLANEOUS			1467
..................................			1468
..................................			1469
..................................		The above space is for filing office use only.	1470
11. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME			1471
(Insert only one name [11a or 11b]. Do not abbreviate or combine			1472
names. If completing 11b, insert the debtor's name exactly as it appears on the debtor's current driver's license or identification card issued by this state, if one exists.)			1473
11a. Organization's name ........................................			1474
or			1475
11b. Individual's last name ............. First name ............			1476
Middle name ........................... Suffix ..................			1477
11c. Mailing address ............................................			1478
City .......... State ....... Postal code ...... Country ........			1479
		1480
Additional information regarding organization debtor			1481
11d. Type of organization .......................................			1482
11e. Jurisdiction of organization ...............................			1483
12. [ ] ADDITIONAL SECURED PARTY'S or [ ] ASSIGNOR S/P'S NAME			1484
(Insert only one name [12a or 12b].)			1485
12a. Organization's name ........................................			1486
or			1487
12b. Individual's last name ............. First name ............			1488
Middle name ........................... Suffix ..................			1489
12c. Mailing address ............................................			1490
City .......... State ....... Postal code ...... Country ........			1491
13. This FINANCING STATEMENT covers [ ] timber to be cut or			1492
[ ] as-extracted collateral, or is filed as a [ ] fixture filing.			1493
14. DESCRIPTION OF REAL ESTATE:			1494
.................................................................			1495
.................................................................			1496
.................................................................			1497
.................................................................			1498
15. Name and address of a RECORD OWNER of above-described real			1499
estate (if debtor does not have a record interest):			1500
.................................................................			1501
.................................................................			1502
.................................................................			1503
16. Additional collateral description:			1504
.................................................................			1505
.................................................................			1506
.................................................................			1507
.................................................................			1508
17. Check only if applicable and check only one box.			1509
Debtor is a [ ] Trust or [ ] Trustee acting with respect to			1510
property held in trust or [ ] Decedent's estate			1511
18. Check only if applicable and check only one box.			1512
[ ]	Debtor is a transmitting utility		1513
[ ]	Filed in connection with a manufactured-home transaction -		1514
	effective 30 years		1515
[ ]	Filed in connection with a public-finance transaction -		1516
	effective 30 years		1517

(B) A filing office that accepts written records may not	1518
refuse to accept a written record in the following form and format	1519
except for a reason prescribed in division (B) of section 1309.516	1520
of the Revised Code:	1521

UCC FINANCING STATEMENT AMENDMENT	1522

Follow instructions (front and back) carefully.	1523

A. Name and phone of contact at filer (optional)		1524
................................................................		1525
B. Send acknowledgment to: (name and address)		1526
..................................		1527
..................................		1528
..................................	The above space is for filing office use only.	1529
1a. INITIAL FINANCING STATEMENT FILE NUMBER ....................		1530
1b. [ ] This financing statement amendment is to be filed [for		1531
record] (or recorded) in the real estate records.		1532
2. [ ] TERMINATION: Effectiveness of the financing statement identified above is terminated with respect to security interest(s) of the secured party authorizing this termination statement.		1533
3. [ ] CONTINUATION: Effectiveness of the financing statement identified above with respect to security interest(s) of the secured party authorizing this continuation statement is continued for the additional period provided by applicable law.		1534
4. [ ] ASSIGNMENT (full or partial): Give name of assignee in item 7a or 7b and address of assignee in item 7c; and also give name of assignor in item 9.		1535
5. AMENDMENT (PARTY INFORMATION): This amendment affects [ ] Debtor		1536
or [ ] Secured Party of record. Check only one of these two boxes.		1537

Also check one of the following three boxes and provide appropriate information in items 6 and/or 7.		1538
[ ]	CHANGE name and/or address. Give current record name in item 6a or 6b; also give new name (if name change) in item 7a or 7b and/or new address (if address change) in item 7c.	1539
[ ]	DELETE name. Give record name to be deleted in item 6a or 6b.	1540
[ ]	ADD name. Complete item 7a or 7b, and also item 7c; also complete items 7d-7g (if applicable).	1541

6. CURRENT RECORD INFORMATION:		1542
6a. Organization's name .........................................		1543
or		1544
6b. Individual's last name .................. First name ........		1545
Middle name ................................. Suffix ............		1546
7. CHANGED (NEW) OR ADDED INFORMATION:		1547
(If completing 7b and the amendment affects a debtor, insert the debtor's name exactly as it appears on the debtor's current driver's license or identification card issued by this state, if one exists.)		1548
7a. Organization's name .........................................		1549
or		1550
7b. Individual's last name .................. First name ........		1551
Middle name ................................. Suffix ............		1552
7c. Mailing address .............................................		1553
City ........ State ....... Postal code ....... Country .........		1554
		1555
Additional information regarding organization debtor		1556
7d. Type of organization ........................................		1557
7e. Jurisdiction of organization ................................		1558
8. AMENDMENT (COLLATERAL CHANGE). Check only one box.		1559
Describe collateral [ ] deleted or [ ] added, or give entire		1560
[ ] restated collateral description, or describe collateral		1561
[ ] assigned.		1562
.................................................................		1563
.................................................................		1564
.................................................................		1565
.................................................................		1566
9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT		1567
(name of assignor, if this is an assignment). If this is an		1568
amendment authorized by a debtor that adds collateral or adds		1569
the authorizing debtor, or if this is a termination authorized		1570
by a debtor, check here [ ] and enter name of debtor		1571
authorizing this amendment.		1572
9a. Organization's name .........................................		1573
or		1574
9b. Individual's last name ................ First name ..........		1575
Middle name ............................... Suffix ..............		1576
10. OPTIONAL FILER REFERENCE DATA		1577
.................................................................		1578

UCC FINANCING STATEMENT AMENDMENT ADDENDUM	1579

Follow instructions (front and back) carefully.	1580

11. INITIAL FINANCING STATEMENT FILE NUMBER (same as item 1a		1581
on amendment form) .............................................		1582
12. NAME OF PARTY AUTHORIZING		1583
THIS AMENDMENT (same as item 9		1584
on amendment form)		1585
12a. Organization's name		1586
.................................		1587
or		1588
12b. Individual's last name		1589
.................................		1590
First name ......................		1591
Middle name .......... Suffix ...	The above space is for filing office use only.	1592
13. Use this space for additional information.		1593
...................................................................		1594
...................................................................		1595
...................................................................		1596

...................................................................

1597

Sec. 1309.607. (A) If so agreed, and in any event after	1598
default, a secured party:	1599

(1) May notify an account debtor or other person obligated on	1600
collateral to make payment or otherwise render performance to or	1601
for the benefit of the secured party;	1602

(2) May take any proceeds to which the secured party is	1603
entitled under section 1309.315 of the Revised Code;	1604

(3) May enforce the obligations of an account debtor or other	1605
person obligated on collateral and exercise the rights of the	1606
debtor with respect to the obligation of the account debtor or	1607
other person obligated on collateral to make payment or otherwise	1608
render performance to the debtor, and with respect to any property	1609
that secures the obligations of the account debtor or other person	1610
obligated on the collateral;	1611

(4) If it holds a security interest in a deposit account	1612
perfected by control under division (A)(1) of section 1309.104 of	1613
the Revised Code, may apply the balance of the deposit account to	1614
the obligation secured by the deposit account; and	1615

(5) If it holds a security interest in a deposit account	1616
perfected by control under division (A)(2) or (3) of section	1617
1309.104 of the Revised Code, may instruct the bank to pay the	1618
balance of the deposit account to or for the benefit of the	1619
secured party.	1620

(B) If necessary to enable a secured party to exercise the	1621
right of a debtor to enforce a mortgage nonjudicially under	1622
division (A)(3) of this section, the secured party may record in	1623
the office in which a record of the mortgage is recorded:	1624

(1) A copy of the security agreement that creates or provides	1625
for a security interest in the obligation secured by the mortgage;	1626
and	1627

(2) The secured party's sworn affidavit in recordable form	1628
stating that:	1629

(a) A default has occurred with respect to the obligation	1630
secured by the mortgage; and	1631

(b) The secured party is entitled to enforce the mortgage	1632
nonjudicially.	1633

(C) A secured party shall proceed in a commercially	1634
reasonable manner if the secured party:	1635

(1) Undertakes to collect from or enforce an obligation of an	1636
account debtor or other person obligated on collateral; and	1637

(2) Is entitled to charge back uncollected collateral or	1638
otherwise to full or limited recourse against the debtor or a	1639
secondary obligor.	1640

(D) A secured party may deduct from the collections made	1641
pursuant to division (C) of this section reasonable expenses of	1642
collection and enforcement, including reasonable attorney's fees	1643
and legal expenses incurred by the secured party.	1644

(E) This section does not determine whether an account	1645
debtor, bank, or other person obligated on collateral owes a duty	1646
to a secured party.	1647

Section 2. That existing sections 1309.102, 1309.105,	1648
1309.307, 1309.311, 1309.316, 1309.317, 1309.326, 1309.406,	1649
1309.408, 1309.502, 1309.503, 1309.507, 1309.515, 1309.516,	1650
1309.518, 1309.521, and 1309.607 of the Revised Code are hereby	1651
repealed.	1652

Section 3. (A) Except as otherwise provided in Sections 3	1653
through 8 of this act, this act applies to a transaction or lien	1654
within its scope, even if the transaction or lien was entered into	1655
or created before Sections 1 through 8 of this act take effect.	1656

(B) This act does not affect an action, case, or proceeding	1657
commenced before Sections 1 through 8 of this act take effect.	1658

Section 4. (A) A security interest that is a perfected	1659
security interest immediately before Sections 1 through 8 of this	1660
act take effect is a perfected security interest under Chapter	1661
1309. of the Revised Code as amended by this act if, when Sections	1662
1 through 8 of this act take effect, the applicable requirements	1663
for attachment and perfection under Chapter 1309. of the Revised	1664
Code as amended by this act are satisfied without further action.	1665

(B) Except as otherwise provided in Section 5 of this act,	1666
if, immediately before Sections 1 through 8 of this act take	1667
effect, a security interest is a perfected security interest, but	1668
the applicable requirements for perfection under Chapter 1309. of	1669
the Revised Code as amended by this act are not satisfied when	1670
Sections 1 through 8 of this act take effect, the security	1671
interest remains perfected thereafter only if the applicable	1672
requirements for perfection under Chapter 1309. of the Revised	1673
Code as amended by this act are satisfied within one year after	1674
Sections 1 through 8 of this act take effect.	1675

A security interest that is an unperfected security interest	1676
immediately before Sections 1 through 8 of this act take effect	1677
becomes a perfected security interest:	1678

(1) Without further action, when Sections 1 through 8 of this	1679
act take effect if the applicable requirements for perfection	1680
under Chapter 1309. of the Revised Code as amended by this act are	1681
satisfied before or at that time; or	1682

(2) When the applicable requirements for perfection are	1683
satisfied if the requirements are satisfied after that time.	1684

Section 5. (A) The filing of a financing statement before	1685
Sections 1 through 8 of this act take effect is effective to	1686
perfect a security interest to the extent the filing would satisfy	1687
the applicable requirements for perfection under Chapter 1309. of	1688
the Revised Code as amended by this act.	1689

(B) This act does not render ineffective an effective	1690
financing statement that, before Sections 1 through 8 of this act	1691
take effect, is filed and satisfies the applicable requirements	1692
for perfection under the law of the jurisdiction governing	1693
perfection as provided in Chapter 1309. of the Revised Code as it	1694
existed before amendment. However, except as otherwise provided in	1695
Section 6 of this act and divisions (C) and (D) of this section,	1696
the financing statement ceases to be effective:	1697

(1) If the financing statement is filed in this state, at the	1698
time the financing statement would have ceased to be effective had	1699
Sections 1 through 8 of this act not taken effect; or	1700

(2) If the financing statement is filed in another	1701
jurisdiction, at the earlier of:	1702

(a) The time the financing statement would have ceased to be	1703
effective under the law of that jurisdiction; or	1704

(b) June 30, 2018.

1705

(C) The filing of a continuation statement after Sections 1	1706
through 8 of this act take effect does not continue the	1707
effectiveness of a financing statement filed before those sections	1708
take effect. However, upon the timely filing of a continuation	1709
statement after those sections take effect and in accordance with	1710
the law of the jurisdiction governing perfection as provided in	1711
Chapter 1309. of the Revised Code as amended by this act, the	1712
effectiveness of a financing statement filed in the same office in	1713
that jurisdiction before those sections take effect continues for	1714
the period provided by the law of that jurisdiction.	1715

(D) Division (B)(2)(b) of this section applies to a financing	1716
statement that, before Sections 1 through 8 of this act take	1717
effect, is filed against a transmitting utility and satisfies the	1718
applicable requirements for perfection under the law of the	1719
jurisdiction governing perfection as provided in Chapter 1309. of	1720
the Revised Code as it existed before amendment, only to the	1721
extent that Chapter 1309. of the Revised Code as amended by this	1722
act provides that the law of a jurisdiction other than the	1723
jurisdiction in which the financing statement is filed governs	1724
perfection of a security interest in collateral covered by the	1725
financing statement.	1726

(E) A financing statement that includes a financing statement	1727
filed before Sections 1 through 8 of this act take effect and a	1728
continuation statement filed after those sections take effect is	1729
effective only to the extent that it satisfies the requirements of	1730
sections 1309.501 to 1309.529 of the Revised Code as amended by	1731
this act for an initial financing statement. A financing statement	1732
that indicates that the debtor is a decedent's estate indicates	1733
that the collateral is being administered by a personal	1734
representative within the meaning of division (A)(2) of section	1735
1309.503 of the Revised Code as amended by this act. A financing	1736
statement that indicates that the debtor is a trust or is a	1737
trustee acting with respect to property held in trust indicates	1738
that the collateral is held in a trust within the meaning of	1739
division (A)(3) of section 1309.503 of the Revised Code as amended	1740
by this act.	1741

Section 6. (A) The filing of an initial financing statement	1742
in the office specified in section 1309.501 of the Revised Code	1743
continues the effectiveness of a financing statement filed before	1744
Sections 1 through 8 of this act take effect if:	1745

(1) The filing of an initial financing statement in that	1746
office would be effective to perfect a security interest under	1747
Chapter 1309. of the Revised Code as amended by this act;	1748

(2) The pre-effective-date financing statement was filed in	1749
an office in another state; and	1750

(3) The initial financing statement satisfies division (C) of	1751
this section.	1752

(B) The filing of an initial financing statement under	1753
division (A) of this section continues the effectiveness of the	1754
pre-effective-date financing statement:	1755

(1) If the initial financing statement is filed before	1756
Sections 1 through 8 of this act take effect, for the period	1757
provided in section 1309.515 of the Revised Code as it existed	1758
before amendment with respect to an initial financing statement;	1759
and	1760

(2) If the initial financing statement is filed after	1761
Sections 1 through 8 of this act take effect, for the period	1762
provided in section 1309.515 of the Revised Code as amended by	1763
this act with respect to an initial financing statement.	1764

(C) To be effective for purposes of division (A) of this	1765
section, an initial financing statement must:	1766

(1) Satisfy the requirements of sections 1309.501 to 1309.529	1767
of the Revised Code as amended by this act for an initial	1768
financing statement;	1769

(2) Identify the pre-effective-date financing statement by	1770
indicating the office in which the financing statement was filed	1771
and providing the dates of filing and file numbers, if any, of the	1772
financing statement and of the most recent continuation statement	1773
filed with respect to the financing statement; and	1774

(3) Indicate that the pre-effective-date financing statement	1775
remains effective.	1776

Section 7. (A) In this section, "pre-effective-date financing	1777
statement" means a financing statement filed before Sections 1	1778
through 8 of this act take effect.	1779

(B) After Sections 1 through 8 of this act take effect, a	1780
person may add or delete collateral covered by, continue or	1781
terminate the effectiveness of, or otherwise amend the information	1782
provided in, a pre-effective-date financing statement only in	1783
accordance with the law of the jurisdiction governing perfection	1784
as provided in Chapter 1309. of the Revised Code as amended by	1785
this act. However, the effectiveness of a pre-effective-date	1786
financing statement also may be terminated in accordance with the	1787
law of the jurisdiction in which the financing statement is filed.	1788

(C) Except as otherwise provided in division (D) of this	1789
section, if the law of this state governs perfection of a security	1790
interest, the information in a pre-effective-date financing	1791
statement may be amended after Sections 1 through 8 of this act	1792
take effect only if:	1793

(1) The pre-effective-date financing statement and an	1794
amendment are filed in the office specified in section 1309.501 of	1795
the Revised Code;	1796

(2) An amendment is filed in the office specified in section	1797
1309.501 of the Revised Code concurrently with, or after the	1798
filing in that office of, an initial financing statement that	1799
satisfies division (C) of Section 6 of this act; or	1800

(3) An initial financing statement that provides the	1801
information as amended and satisfies division (C) of Section 6 of	1802
this act is filed in the office specified in section 1309.501 of	1803
the Revised Code.	1804

(D) If the law of this state governs perfection of a security	1805
interest, the effectiveness of a pre-effective-date financing	1806
statement may be continued only under divisions (C) and (E) of	1807
Section 5 of this act or Section 6 of this act.	1808

(E) Whether or not the law of this state governs perfection	1809
of a security interest, the effectiveness of a pre-effective-date	1810
financing statement filed in this state may be terminated after	1811
Sections 1 through 8 of this act take effect by filing a	1812
termination statement in the office in which the	1813
pre-effective-date financing statement is filed, unless an initial	1814
financing statement that satisfies division (C) of Section 6 of	1815
this act has been filed in the office specified by the law of the	1816
jurisdiction governing perfection as provided in Chapter 1309. of	1817
the Revised Code as amended by this act as the office in which to	1818
file a financing statement.	1819

A person may file an initial financing statement or a	1820
continuation statement under Sections 3 through 8 of this act if:	1821

(1) The secured party of record authorizes the filing; and

1822

(2) The filing is necessary under Sections 3 through 8 of	1823
this act:	1824

(a) To continue the effectiveness of a financing statement	1825
filed before Sections 1 through 8 of this act take effect; or	1826

(b) To perfect or continue the perfection of a security	1827
interest.	1828

Section 8. This act determines the priority of conflicting	1829
claims to collateral. However, if the relative priorities of the	1830
claims were established before Sections 1 through 8 of this act	1831
take effect, Chapter 1309. of the Revised Code as it existed	1832
before amendment determines priority.	1833

Section 9. Sections 1 through 8 of this act shall take effect	1834
on July 1, 2013.	1835