Sub. S. B. No. 208 As Passed by the House

As Passed by the House

129th General Assembly

Regular Session

2011-2012

Sub. S. B. No. 208

Senators Obhof, Kearney

Cosponsors: Senators Bacon, Beagle, Jones, Sawyer, Schiavoni, Wagoner, Coley, Daniels, Faber, Hughes, Lehner, Manning, Oelslager, Patton
Representatives Bubp, Szollosi, Slaby, Terhar, Letson, Antonio, Baker, Beck, Blair, Brenner, Carney, Dovilla, Duffey, Foley, Garland, Hall, Hayes, Murray, Rose Speaker Batchelder

A BILL

To amend sections 102.01, 103.63, 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 and to provide that

the Joint Legislative Ethics Committee is the

appropriate ethics commission for matters relating

to the public member appointees to the

Constitutional Modernization Commission.

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

Section 1. That sections 102.01, 103.63, 1309.102, 1309.105,	11
1309.307, 1309.311, 1309.316, 1309.317, 1309.326, 1309.406,	12
1309.408, 1309.502, 1309.503, 1309.507, 1309.515, 1309.516,	13
1309.518, 1309.521, and 1309.607 of the Revised Code be amended to	14
read as follows:	15

Sec. 102.01. As used in this chapter:

(A) "Compensation" means money, thing of value, or financial	17
benefit. "Compensation" does not include reimbursement for actual	18
and necessary expenses incurred in the performance of official	19
duties.	20

(B) "Public official or employee" means any person who is	21
elected or appointed to an office or is an employee of any public	22
agency. "Public official or employee" does not include a person	23
elected or appointed to the office of precinct, ward, or district	24
committee member under section 3517.03 of the Revised Code, any	25
presidential elector, or any delegate to a national convention.	26
"Public official or employee" does not include a person who is a	27
teacher, instructor, professor, or other kind of educator whose	28
position does not involve the performance of, or authority to	29
perform, administrative or supervisory functions.	30

(C) "Public agency" means the general assembly, all courts,	31
any department, division, institution, board, commission,	32
authority, bureau or other instrumentality of the state, a county,	33
city, village, or township, the five state retirement systems, or	34
any other governmental entity. "Public agency" does not include a	35
department, division, institution, board, commission, authority,	36
or other instrumentality of the state or a county, municipal	37
corporation, township, or other governmental entity that functions	38
exclusively for cultural, educational, historical, humanitarian,	39
advisory, or research purposes; that does not expend more than ten	40
thousand dollars per calendar year, excluding salaries and wages	41
of employees; and whose members are uncompensated. "Public agency"	42
does not include the nonprofit corporation formed under section	43
187.01 of the Revised Code.	44

(D) "Immediate family" means a spouse residing in the	45
person's household and any dependent child.	46

(E) "Income" includes gross income as defined and used in the	47
"Internal Revenue Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as	48
amended, interest and dividends on obligations or securities of	49
any state or of any political subdivision or authority of any	50
state or political subdivision, and interest or dividends on	51
obligations of any authority, commission, or instrumentality of	52
the United States.	53

(F) Except as otherwise provided in division (A) of section	54
102.08 of the Revised Code, "appropriate ethics commission" means:	55

(1) For matters relating to members of the general assembly,	56
employees of the general assembly, employees of the legislative	57
service commission, ~~and~~ candidates for the office of member of the	58
general assembly, and public members appointed to the Ohio	59
constitutional modernization commission under section 103.63 of	60
the Revised Code, the joint legislative ethics committee;	61

(2) For matters relating to judicial officers and employees,	62
and candidates for judicial office, the board of commissioners on	63
grievances and discipline of the supreme court;	64

(3) For matters relating to all other persons, the Ohio	65
ethics commission.	66

(G) "Anything of value" has the same meaning as provided in	67
section 1.03 of the Revised Code and includes, but is not limited	68
to, a contribution as defined in section 3517.01 of the Revised	69
Code.	70

(H) "Honorarium" means any payment made in consideration for	71
any speech given, article published, or attendance at any public	72
or private conference, convention, meeting, social event, meal, or	73
similar gathering. "Honorarium" does not include ceremonial gifts	74
or awards that have insignificant monetary value; unsolicited	75
gifts of nominal value or trivial items of informational value; or	76
earned income from any person, other than a legislative agent, for	77
personal services that are customarily provided in connection with	78
the practice of a bona fide business, if that business initially	79
began before the public official or employee conducting that	80
business was elected or appointed to the public official's or	81
employee's office or position of employment.	82

(I) "Employer" means any person who, directly or indirectly,	83
engages an executive agency lobbyist or legislative agent.	84

(J) "Executive agency decision," "executive agency lobbyist,"	85
and "executive agency lobbying activity" have the same meanings as	86
in section 121.60 of the Revised Code.	87

(K) "Legislation," "legislative agent," "financial	88
transaction," and "actively advocate" have the same meanings as in	89
section 101.70 of the Revised Code.	90

(L) "Expenditure" has the same meaning as in section 101.70	91
of the Revised Code when used in relation to activities of a	92
legislative agent, and the same meaning as in section 121.60 of	93
the Revised Code when used in relation to activities of an	94
executive agency lobbyist.	95

Sec. 103.63. There is established an Ohio constitutional	96
modernization commission consisting of thirty-two members. Twelve	97
members shall be appointed from the general assembly as follows:	98
three by the president of the senate, three by the minority leader	99
of the senate, three by the speaker of the house of	100
representatives, and three by the minority leader of the house of	101
representatives. Not later than January 1, 2012, and every two	102
years thereafter, the twelve general assembly members shall meet,	103
organize, and elect two co-chairpersons, who shall be from	104
different political parties. The members shall then, by majority	105
vote, appoint twenty commission members, not from the general	106
assembly. All appointments shall end on the first day of January	107
of every even-numbered year, and the commission shall then be	108
re-created in the manner provided above. Members may be	109
reappointed. Vacancies on the commission shall be filled in the	110
manner provided for original appointments.	111

The members of the commission shall serve without	112
compensation, but each member shall be reimbursed for actual and	113
necessary expenses incurred while engaging in the performance of	114
the member's official duties. Membership on the commission does	115
not constitute holding another public office. The joint	116
legislative ethics committee is the appropriate ethics commission	117
as described in division (F) of section 102.01 of the Revised Code	118
for matters relating to the public members appointed to the Ohio	119
constitutional modernization commission.	120

Sec. 1309.102. (A) As used in this chapter, unless the	121
context requires otherwise:	122

(1) "Accession" means goods that are physically united with	123
other goods in such a manner that the identity of the original	124
goods is not lost.	125

(2)(a) "Account," except as used in "account for," means a	126
right to payment of a monetary obligation, whether or not earned	127
by performance, (i) for property that has been or is to be sold,	128
leased, licensed, assigned, or otherwise disposed of, (ii) for	129
services rendered or to be rendered, (iii) for a policy of	130
insurance issued or to be issued, (iv) for a secondary obligation	131
incurred or to be incurred, (v) for energy provided or to be	132
provided, (vi) for the use or hire of a vessel under a charter or	133
other contract, (vii) arising out of the use of a credit or charge	134
card or information contained on or for use with the card, or	135
(viii) as winnings in a lottery or other game of chance operated	136
or sponsored by a state, governmental unit of a state, or person	137
licensed or authorized to operate the game by a state or	138
governmental unit of a state.	139

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

140

(c) "Account" does not include (i) rights to payment	141
evidenced by chattel paper or an instrument, (ii) commercial tort	142
claims, (iii) deposit accounts, (iv) investment property, (v)	143
letter-of-credit rights or letters of credit, or (vi) rights to	144
payment for money or funds advanced or sold, other than rights	145
arising out of the use of a credit or charge card or information	146
contained on or for use with the card.	147

(3) "Account debtor" means a person who is obligated on an	148
account, chattel paper, or general intangible. "Account debtor"	149
does not include a person who is obligated to pay a negotiable	150
instrument, even if the instrument constitutes part of chattel	151
paper.	152

(4) "Accounting," except as used in "accounting for," means a	153
record:	154

(a) Authenticated by a secured party;

155

(b) Indicating the aggregate unpaid secured obligations as of	156
a date not more than thirty-five days earlier or thirty-five days	157
later than the date of the record; and	158

(c) Identifying the components of the obligations in	159
reasonable detail.	160

(5) "Agricultural lien" means an interest, other than a	161
security interest, in farm products:	162

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

163

(i) Goods or services furnished in connection with a debtor's	164
farming operation; or	165

(ii) Rent on real property leased by a debtor in connection	166
with its farming operation.	167

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

168

(i) In the ordinary course of business, furnished goods or	169
services to a debtor in connection with the debtor's farming	170
operation; or	171

(ii) Leased real property to a debtor in connection with the	172
debtor's farming operation; and	173

(c) Whose effectiveness does not depend on the person's	174
possession of the personal property.	175

(6) "As-extracted collateral" means:

176

(a) Oil, gas, or other minerals that are subject to a	177
security interest that:	178

(i) Is created by a debtor having an interest in the minerals	179
before extraction; and	180

(ii) Attaches to the minerals as extracted; or

181

(b) Accounts arising out of the sale at the wellhead or	182
minehead of oil, gas, or other minerals in which the debtor had an	183
interest before extraction.	184

(7) "Authenticate" means:

185

(a) To sign; or

186

(b) ~~To execute or otherwise adopt a symbol, or encrypt or~~	187
~~similarly process a record in whole or in part, with the~~With	188
present intent ~~of the authenticating person~~ to ~~identify the person~~	189
~~and~~ adopt or accept a record, to attach to or logically associate	190
with the record an electronic sound, symbol, or process.	191

(8) "Bank" means an organization that is engaged in the	192
business of banking. "Bank" includes savings banks, savings and	193
loan associations, credit unions, and trust companies.	194

(9) "Cash proceeds" means proceeds that are money, checks,	195
deposit accounts, or the like.	196

(10) "Certificate of title" means a certificate of title with	197
respect to which a statute provides for the security interest in	198
question to be indicated on the certificate as a condition or	199
result of the security interest's obtaining priority over the	200
rights of a lien creditor with respect to the collateral. The term	201
includes another record maintained as an alternative to a	202
certificate of title by the governmental unit that issues	203
certificates of title if a statute permits the security interest	204
in question to be indicated on the record as a condition or result	205
of the security interest's obtaining priority over the rights of a	206
lien creditor with respect to the collateral.	207

(11)(a) "Chattel paper" means a record that evidences both a	208
monetary obligation and a security interest in specific goods, a	209
security interest in specific goods and software used in the	210
goods, a security interest in specific goods and license of	211
software used in the goods, a lease of specific goods, or a lease	212
of specific goods and license of software used in the goods.	213

As used in division (A)(11)(a) of this section, "monetary	214
obligation" means a monetary obligation secured by the goods or	215
owed under a lease of the goods and includes a monetary obligation	216
with respect to software used in the goods.	217

(b) If a transaction is evidenced by records that include an	218
instrument or series of instruments, the group of records taken	219
together constitutes chattel paper.	220

(c) "Chattel paper" does not include (i) charters or other	221
contracts involving the use or hire of a vessel or (ii) records	222
that evidence a right to payment arising out of the use of a	223
credit or charge card or information contained on or for use with	224
the card.	225

(12) "Collateral" means the property subject to a security	226
interest or agricultural lien, including:	227

(a) Proceeds to which a security interest attaches;

228

(b) Accounts, chattel paper, payment intangibles, and	229
promissory notes that have been sold; and	230

231

(13) "Commercial tort claim" means a claim arising in tort	232
with respect to which:	233

(a) The claimant is an organization; or

234

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

235

(i) Arose in the course of the claimant's business or	236
profession; and	237

(ii) Does not include damages arising out of personal injury	238
to or the death of an individual.	239

(14) "Commodity account" means an account maintained by a	240
commodity intermediary in which a commodity contract is carried	241
for a commodity customer.	242

(15) "Commodity contract" means a commodity futures contract,	243
an option on a commodity futures contract, a commodity option, or	244
another contract if the contract or option is:	245

(a) Traded on or subject to the rules of a board of trade	246
that has been designated as a contract market for such a contract	247
pursuant to the federal commodities laws; or	248

(b) Traded on a foreign commodity board of trade, exchange,	249
or market and is carried on the books of a commodity intermediary	250
for a commodity customer.	251

(16) "Commodity customer" means a person for whom a commodity	252
intermediary carries a commodity contract on its books.	253

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

254

(a) Is registered as a futures commission merchant under the	255
federal commodities laws; or	256

(b) In the ordinary course of its business provides clearance	257
or settlement services for a board of trade that has been	258
designated as a contract market pursuant to the federal	259
commodities laws.	260

(18) "Communicate" means:

261

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

262

(b) To transmit a record by any means agreed upon by the	263
persons sending and receiving the record; or	264

(c) In the case of transmission of a record to or by a filing	265
office, to transmit a record by any means prescribed by	266
filing-office rule.	267

(19) "Consignee" means a merchant to whom goods are delivered	268
in a consignment.	269

(20) "Consignment" means a transaction, regardless of its	270
form, in which a person delivers goods to a merchant for the	271
purpose of sale and:	272

(a) The merchant:

273

(i) Deals in goods of that kind under a name other than the	274
name of the person making delivery;	275

(ii) Is not an auctioneer; and

276

(iii) Is not generally known by its creditors to be	277
substantially engaged in selling the goods of others;	278

(b) With respect to each delivery, the aggregate value of the	279
goods is one thousand dollars or more at the time of delivery.	280

(c) The goods are not consumer goods immediately before	281
delivery; and	282

(d) The transaction does not create a security interest that	283
secures an obligation.	284

(21) "Consignor" means a person that delivers goods to a	285
consignee in a consignment.	286

(22) "Consumer debtor" means a debtor in a consumer	287
transaction.	288

(23) "Consumer goods" means goods that are used or bought for	289
use primarily for personal, family, or household purposes.	290

(24) "Consumer-goods transaction" means a consumer	291
transaction in which:	292

(a) An individual incurs an obligation primarily for	293
personal, family, or household purposes; and	294

(b) A security interest in consumer goods secures the	295
obligation.	296

(25) "Consumer obligor" means an obligor who is an individual	297
and who incurred the obligation as part of a transaction entered	298
into primarily for personal, family, or household purposes.	299

(26) "Consumer transaction" means a transaction in which: (a)	300
an individual incurs an obligation primarily for personal, family,	301
or household purposes, (b) a security interest secures the	302
obligation, and (c) the collateral is held or acquired primarily	303
for personal, family, or household purposes. "Consumer	304
transaction" includes consumer-goods transactions.	305

(27) "Continuation statement" means an amendment of a	306
financing statement that:	307

(a) Identifies, by its file number, the initial financing	308
statement to which it relates; and	309

(b) Indicates that it is a continuation statement for, or	310
that it is filed to continue the effectiveness of, the identified	311
financing statement.	312

(28) "Debtor" means:

313

(a) A person having an interest, other than a security	314
interest or other lien, in the collateral, whether or not the	315
person is an obligor;	316

(b) A seller of accounts, chattel paper, payment intangibles,	317
or promissory notes; or	318

319

(29) "Deposit account" means a demand, time, savings,	320
passbook, or similar account maintained with a bank but does not	321
include investment property or accounts evidenced by an	322
instrument.	323

(30) "Document" means a document of title or a receipt of the	324
type described in division (B) of section 1307.201 of the Revised	325
Code.	326

(31) "Electronic chattel paper" means chattel paper evidenced	327
by a record consisting of information stored in an electronic	328
medium.	329

(32) "Encumbrance" means a right, other than an ownership	330
interest, in real property. "Encumbrance" includes mortgages and	331
other liens on real property.	332

(33) "Equipment" means goods other than inventory, farm	333
products, or consumer goods.	334

(34) "Farm products" means goods, other than standing timber,	335
with respect to which the debtor is engaged in a farming operation	336
and that are:	337

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

338

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

339

(ii) Aquatic goods produced in aquacultural operations;

340

(b) Livestock, born or unborn, including aquatic goods	341
produced in aquacultural operations;	342

343

(d) Products of crops or livestock in their unmanufactured	344
states.	345

(35) "Farming operation" means raising, cultivating,	346
propagating, fattening, grazing, or any other farming, livestock,	347
or aquacultural operation.	348

(36) "File number" means the number assigned to an initial	349
financing statement under division (A) of section 1309.519 of the	350
Revised Code.	351

(37) "Filing office" means an office designated in section	352
1309.501 of the Revised Code as the place to file a financing	353
statement.	354

(38) "Filing-office rule" means a rule adopted under section	355
1309.526 of the Revised Code.	356

(39) "Financing statement" means a record composed of an	357
initial financing statement and any filed record or records	358
relating to the initial financing statement. For the purposes of	359
this chapter, financing statements filed for recording with the	360
secretary of state shall not be required to include social	361
security or employer identification numbers.	362

(40) "Fixture filing" means the filing of a financing	363
statement covering goods that are or are to become fixtures and	364
satisfying divisions (A) and (B) of section 1309.502 of the	365
Revised Code. "Fixture filing" includes the filing of a financing	366
statement covering goods of a transmitting utility that are or are	367
to become fixtures.	368

(41) "Fixtures" means goods that have become so related to	369
particular real property that an interest in them arises under	370
real property law.	371

(42) "General intangible" means any personal property,	372
including things in action, other than accounts, chattel paper,	373
commercial tort claims, deposit accounts, documents, goods,	374
instruments, investment property, letter-of-credit rights, letters	375
of credit, money, and oil, gas, or other minerals before	376
extraction. "General intangible" includes payment intangibles and	377
software.	378

(43) "Good faith" has the same meaning as in section 1301.201	379
of the Revised Code.	380

(44)(a) "Goods" means all things that are movable when a	381
security interest attaches. "Goods" includes (i) fixtures, (ii)	382
standing timber that is to be cut and removed under a conveyance	383
or contract for sale, (iii) the unborn young of animals, (iv)	384
crops grown, growing, or to be grown, even if the crops are	385
produced on trees, vines, or bushes, and (v) manufactured homes.	386

(b) "Goods" also includes a computer program embedded in	387
goods and any supporting information provided in connection with a	388
transaction relating to the program if (i) the program is	389
associated with the goods in such a manner that it customarily is	390
considered part of the goods, or (ii) by becoming the owner of the	391
goods, a person acquires a right to use the program in connection	392
with the goods.	393

(c) "Goods" does not include a computer program embedded in	394
goods that consist solely of the medium in which the program is	395
embedded. "Goods" does not include accounts, chattel paper,	396
commercial tort claims, deposit accounts, documents, general	397
intangibles, instruments, investment property, letter-of-credit	398
rights, letters of credit, money, or oil, gas, or other minerals	399
before extraction.	400

(45) "Governmental unit" means a subdivision, agency,	401
department, county, parish, municipal corporation, or other unit	402
of the government of the United States, a state, or a foreign	403
country. "Governmental unit" includes an organization having a	404
separate corporate existence if the organization is eligible to	405
issue debt on which interest is exempt from income taxation under	406
the laws of the United States.	407

(46) "Health-care-insurance receivable" means an interest in	408
or claim under a policy of insurance that is a right to payment of	409
a monetary obligation for health-care goods or services provided.	410

(47)(a) "Instrument" means a negotiable instrument or any	411
other writing that evidences a right to the payment of a monetary	412
obligation, is not itself a security agreement or lease, and is of	413
a type that in ordinary course of business is transferred by	414
delivery with any necessary indorsement or assignment.	415

(b) "Instrument" does not include (i) investment property,	416
(ii) letters of credit, or (iii) writings that evidence a right to	417
payment arising out of the use of a credit or charge card or	418
information contained on or for use with the card.	419

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

420

(a) Are leased by a person as lessor;

421

(b) Are held by a person for sale or lease or to be furnished	422
under a contract of service;	423

424

(d) Consist of raw materials, work in process, or materials	425
used or consumed in a business.	426

(49) "Investment property" means a security, whether	427
certificated or uncertificated, a security entitlement, a	428
securities account, a commodity contract, or a commodity account.	429

(50) "Jurisdiction of organization," with respect to a	430
registered organization, means the jurisdiction under whose law	431
the organization is formed or organized.	432

(51) "Letter-of-credit right" means a right to payment or	433
performance under a letter of credit, whether or not the	434
beneficiary has demanded or is at the time entitled to demand	435
payment or performance. "Letter-of-credit right" does not include	436
the right of a beneficiary to demand payment or performance under	437
a letter of credit.	438

(52) "Lien creditor" means:

439

(a) A creditor who has acquired a lien on the property	440
involved by attachment, levy or the like;	441

(b) An assignee for benefit of creditors from the time of	442
assignment;	443

(c) A trustee in bankruptcy from the date of the filing of	444
the petition; or	445

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

446

(53) "Manufactured home" means a structure, transportable in	447
one or more sections, that, in the traveling mode, is eight body	448
feet or more in width or forty body feet or more in length, or,	449
when erected on site, is three hundred twenty or more square feet,	450
and that is built on a permanent chassis and designed to be used	451
as a dwelling with or without a permanent foundation when	452
connected to the required utilities, and includes the plumbing,	453
heating, air conditioning, and electrical systems contained in the	454
structure. "Manufactured home" includes any structure that meets	455
all of the requirements of this paragraph except the size	456
requirements and with respect to which the manufacturer	457
voluntarily files a certification required by the United States	458
secretary of housing and urban development and complies with the	459
standards established under Title 42 of the United States Code.	460

(54) "Manufactured-home transaction" means a secured	461
transaction:	462

(a) That creates a purchase-money security interest in a	463
manufactured home, other than a manufactured home held as	464
inventory; or	465

(b) In which a manufactured home, other than a manufactured	466
home held as inventory, is the primary collateral.	467

(55) "Mortgage" means a consensual interest in real property,	468
including fixtures, that secures payment or performance of an	469
obligation.	470

(56) "New debtor" means a person that becomes bound as debtor	471
under division (D) of section 1309.203 of the Revised Code by a	472
security agreement previously entered into by another person.	473

(57)(a) "New value" means (i) money, (ii) money's worth in	474
property, services, or new credit, or (iii) release by a	475
transferee of an interest in property previously transferred to	476
the transferee.	477

(b) "New value" does not include an obligation substituted	478
for another obligation.	479

(58) "Noncash proceeds" means proceeds other than cash	480
proceeds.	481

(59)(a) "Obligor" means a person who, with respect to an	482
obligation secured by a security interest in or an agricultural	483
lien on the collateral, (i) owes payment or other performance of	484
the obligation, (ii) has provided property other than the	485
collateral to secure payment or other performance of the	486
obligation, or (iii) is otherwise accountable in whole or in part	487
for payment or other performance of the obligation.	488

(b) "Obligor" does not include issuers or nominated persons	489
under a letter of credit.	490

(60) "Original debtor," except as used in division (C) of	491
section 1309.310 of the Revised Code, means a person who, as	492
debtor, entered into a security agreement to which a new debtor	493
has become bound under division (D) of section 1309.203 of the	494
Revised Code.	495

(61) "Payment intangible" means a general intangible under	496
which the account debtor's principal obligation is a monetary	497
obligation.	498

(62) "Person related to," with respect to an individual,	499
means:	500

(a) The spouse of the individual;

501

(b) A brother, brother-in-law, sister, or sister-in-law of	502
the individual;	503

(c) An ancestor or lineal descendant of the individual or the	504
individual's spouse; or	505

(d) Any other relative, by blood or marriage, of the	506
individual or the individual's spouse who shares the same home	507
with the individual.	508

(63) "Person related to," with respect to an organization,	509
means:	510

(a) A person directly or indirectly controlling, controlled	511
by, or under common control with the organization;	512

(b) An officer or director of, or a person performing similar	513
functions with respect to, the organization;	514

(c) An officer or director of, or a person performing similar	515
functions with respect to, a person described in division	516
(A)(63)(a) of this section;	517

(d) The spouse of an individual described in division	518
(A)(63)(a), (b), or (c) of this section; or	519

(e) An individual who is related by blood or marriage to an	520
individual described in division (A)(63)(a), (b), (c), or (d) of	521
this section and shares the same home with the individual.	522

(64) "Proceeds," except as used in division (B) of section	523
1309.609 of the Revised Code, means the following property:	524

(a) Whatever is acquired upon the sale, lease, license,	525
exchange, or other disposition of collateral;	526

(b) Whatever is collected on, or distributed on account of,	527
collateral;	528

529

(d) To the extent of the value of collateral, claims arising	530
out of the loss, nonconformity, or interference with the use of,	531
defects or infringement of rights in, or damage to the collateral;	532
or	533

(e) To the extent of the value of collateral and to the	534
extent payable to the debtor or the secured party, insurance	535
payable by reason of the loss or nonconformity of, defects or	536
infringement of rights in, or damage to the collateral.	537

(65) "Promissory note" means an instrument that evidences a	538
promise to pay a monetary obligation, does not evidence an order	539
to pay, and does not contain an acknowledgment by a bank that the	540
bank has received for deposit a sum of money or funds.	541

(66) "Proposal" means a record authenticated by a secured	542
party that includes the terms on which the secured party is	543
willing to accept collateral in full or partial satisfaction of	544
the obligation it secures pursuant to sections 1309.620, 1309.621,	545
and 1309.622 of the Revised Code.	546

(67) "Public-finance transaction" means a secured transaction	547
in connection with which:	548

(a) Debt securities are issued;

549

(b) All or a portion of the securities issued have an initial	550
stated maturity of at least twenty years; and	551

(c) The debtor, obligor, secured party, account debtor or	552
other person obligated on collateral, assignor or assignee of a	553
secured obligation, or assignor or assignee of a security interest	554
is a state or a governmental unit of a state.	555

(68) "Public organic record" means a record that is available	556
to the public for inspection and is:	557

(a) A record consisting of the record initially filed with or	558
issued by a state or the United States to form or organize an	559
organization and any record filed with or issued by the state or	560
the United States that amends or restates the initial record;	561

(b) An organic record of a business trust consisting of the	562
record initially filed with a state and any record filed with the	563
state that amends or restates the initial record, if a statute of	564
the state governing business trusts requires that the record be	565
filed with the state; or	566

(c) A record consisting of legislation enacted by the	567
legislature of a state or the congress of the United States that	568
forms or organizes an organization, any record amending the	569
legislation, and any record filed with or issued by the state or	570
the United States that amends or restates the name of the	571
organization.	572

(69) "Pursuant to commitment," with respect to an advance	573
made or other value given by a secured party, means pursuant to	574
the secured party's obligation, whether or not a subsequent event	575
of default or other event not within the secured party's control	576
has relieved or may relieve the secured party from its obligation.	577

~~(69)~~(70) "Record," except as used in "for record," "of	578
record," "record or legal title," and "record owner," means	579
information that is inscribed on a tangible medium or that is	580
stored in an electronic or other medium and is retrievable in	581
perceivable form.	582

~~(70)~~(71) "Registered organization" means an organization	583
formed or organized solely under the law of a single state or the	584
United States ~~and as to which the state or the United States must~~	585
~~maintain a public record showing the organization to have been~~	586
~~organized~~by the filing of a public organic record with, the	587
issuance of a public organic record by, or the enactment of	588
legislation by the state or the United States. The term includes a	589
business trust that is formed or organized under the law of a	590
single state if a statute of the state governing business trusts	591
requires that the business trust's organic record be filed with	592
the state.	593

~~(71)~~(72) "Secondary obligor" means an obligor to the extent	594
that:	595

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

596

(b) The obligor has a right of recourse with respect to an	597
obligation secured by collateral against the debtor, another	598
obligor, or property of either.	599

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

600

(a) A person in whose favor a security interest is created or	601
provided for under a security agreement, whether or not any	602
obligation to be secured is outstanding;	603

(b) A person that holds an agricultural lien;

604

605

(d) A person to whom accounts, chattel paper, payment	606
intangibles, or promissory notes have been sold;	607

(e) A trustee, indenture trustee, agent, collateral agent, or	608
other representative in whose favor a security interest or	609
agricultural lien is created or provided for; or	610

(f) A person who holds a security interest arising under	611
section 1302.42, 1302.49, 1302.85, 1304.20, 1305.18, or 1310.54 of	612
the Revised Code.	613

~~(73)~~(74) "Security agreement" means an agreement that creates	614
or provides for a security interest.	615

~~(74)~~(75) "Send," in connection with a record or notification,	616
means:	617

(a) To deposit in the mail, deliver for transmission, or	618
transmit by any other usual means of communication, with postage	619
or cost of transmission provided for, addressed to any address	620
reasonable under the circumstances; or	621

(b) To cause the record or notification to be received within	622
the time that it would have been received if properly sent under	623
division (A)(74)(a) of this section.	624

~~(75)~~(76) "Software" means a computer program and any	625
supporting information provided in connection with a transaction	626
relating to the program. "Software" does not include a computer	627
program that is included in the definition of goods.	628

~~(76)~~(77) "State" means a state of the United States, the	629
District of Columbia, Puerto Rico, the United States Virgin	630
Islands, or any territory or insular possession subject to the	631
jurisdiction of the United States.	632

~~(77)~~(78) "Supporting obligation" means a letter-of-credit	633
right or secondary obligation that supports the payment or	634
performance of an account, chattel paper, a document, a general	635
intangible, an instrument, or investment property.	636

~~(78)~~(79) "Tangible chattel paper" means chattel paper	637
evidenced by a record consisting of information that is inscribed	638
on a tangible medium.	639

~~(79)~~(80) "Termination statement" means an amendment of a	640
financing statement that:	641

(a) Identifies, by its file number, the initial financing	642
statement to which it relates; and	643

(b) Indicates either that it is a termination statement or	644
that the identified financing statement is no longer effective.	645

~~(80)~~(81) "Transmitting utility" means a person primarily	646
engaged in the business of:	647

(a) Operating a railroad, subway, street railway, or trolley	648
bus;	649

(b) Transmitting communications electrically,	650
electromagnetically, or by light;	651

652

(d) Transmitting or producing and transmitting electricity,	653
steam, gas, or water.	654

(B) Other definitions applying to this chapter are:

655

(1) "Applicant" has the same meaning as in section 1305.01 of	656
the Revised Code.	657

(2) "Beneficiary" has the same meaning as in section 1305.01	658
of the Revised Code.	659

(3) "Broker" has the same meaning as in section 1308.01 of	660
the Revised Code.	661

(4) "Certificated security" has the same meaning as in	662
section 1308.01 of the Revised Code.	663

(5) "Check" has the same meaning as in section 1303.03 of the	664
Revised Code.	665

(6) "Clearing corporation" has the same meaning as in section	666
1308.01 of the Revised Code.	667

(7) "Contract for sale" has the same meaning as in section	668
1302.01 of the Revised Code.	669

(8) "Control" with respect to a document of title, has the	670
same meaning as in section 1307.106 of the Revised Code.	671

(9) "Customer" has the same meaning as in section 1304.01 of	672
the Revised Code.	673

(10) "Entitlement holder" has the same meaning as in section	674
1308.01 of the Revised Code.	675

(11) "Financial asset" has the same meaning as in section	676
1308.01 of the Revised Code.	677

(12) "Holder in due course" has the same meaning as in	678
section 1303.32 of the Revised Code.	679

(13) "Issuer," with respect to a letter of credit or	680
letter-of-credit right, has the same meaning as in section 1305.01	681
of the Revised Code.	682

(14) "Issuer," with respect to a security, has the same	683
meaning as in section 1308.08 of the Revised Code.	684

(15) "Issuer," with respect to a document of title, has the	685
same meaning as in section 1307.102 of the Revised Code.	686

(16) "Lease," "lease agreement," "lease contract," "leasehold	687
interest," "lessee," "lessee in ordinary course of business,"	688
"lessor," and "lessor's residual interest" have the same meanings	689
as in section 1310.01 of the Revised Code.	690

(17) "Letter of credit" has the same meaning as in section	691
1305.01 of the Revised Code.	692

(18) "Merchant" has the same meaning as in section 1302.01 of	693
the Revised Code.	694

(19) "Negotiable instrument" has the same meaning as in	695
section 1303.03 of the Revised Code.	696

(20) "Nominated person" has the same meaning as in section	697
1305.01 of the Revised Code.	698

(21) "Note" has the same meaning as in section 1303.03 of the	699
Revised Code.	700

(22) "Proceeds of a letter of credit" has the same meaning as	701
in section 1305.13 of the Revised Code.	702

(23) "Prove" has the same meaning as in section 1303.01 of	703
the Revised Code.	704

(24) "Sale" has the same meaning as in division (A)(11) of	705
section 1302.01 of the Revised Code.	706

(25) "Securities account" has the same meaning as in section	707
1308.51 of the Revised Code.	708

(26) "Securities intermediary," "security," "security	709
certificate," "security entitlement," and "uncertificated	710
security" have the same meanings as in section 1308.01 of the	711
Revised Code.	712

(C) In addition, Chapter 1301. of the Revised Code contains	713
general definitions and principles of construction and	714
interpretations applicable throughout this chapter.	715

Sec. 1309.105. (A) A secured party has control of electronic	716
chattel paper if a system employed for evidencing the transfer of	717
interests in the chattel paper reliably establishes the secured	718
party as the person to which the chattel paper was assigned.	719

(B) A system satisfies division (A) of this section if the	720
record or records comprising the chattel paper are created,	721
stored, and assigned in such a manner that:	722

~~(A)~~(1) A single authoritative copy of the record or records	723
exists that is unique, identifiable, and, except as otherwise	724
provided in divisions ~~(D)~~(B)(4), ~~(E)~~(5), and ~~(F)~~(6) of this	725
section, unalterable;	726

~~(B)~~(2) The authoritative copy identifies the secured party as	727
the assignee of the record or records;	728

~~(C)~~(3) The authoritative copy is communicated to and	729
maintained by the secured party or its designated custodian;	730

~~(D)~~(4) Copies or ~~revisions~~amendments that add or change an	731
identified assignee of the authoritative copy may be made only	732
with the ~~participation~~consent of the secured party;	733

~~(E)~~(5) Each copy of the authoritative copy and any copy of a	734
copy is readily identifiable as a copy that is not the	735
authoritative copy; and	736

~~(F)~~(6) Any ~~revision~~amendment of the authoritative copy is	737
readily identifiable as an authorized or unauthorized ~~revision~~.	738

Sec. 1309.307. (A) As used in this section, "place of	739
business" means a place where a debtor conducts the debtor's	740
affairs.	741

(B) Except as otherwise provided in this section, the	742
following rules determine a debtor's location:	743

(1) A debtor who is an individual is located at the	744
individual's principal residence.	745

(2) A debtor that is an organization and has only one place	746
of business is located at its place of business.	747

(3) A debtor that is an organization and has more than one	748
place of business is located at its chief executive office.	749

(C) Division (B) of this section applies only if a debtor's	750
residence, place of business, or chief executive office, as	751
applicable, is located in a jurisdiction whose law generally	752
requires information concerning the existence of a nonpossessory	753
security interest to be made generally available in a filing,	754
recording, or registration system as a condition or result of the	755
security interest's obtaining priority over the rights of a lien	756
creditor with respect to the collateral. If division (B) of this	757
section does not apply, the debtor is located in the District of	758
Columbia.	759

(D) A person that ceases to exist, have a residence, or have	760
a place of business continues to be located in the jurisdiction	761
specified by divisions (B) and (C) of this section.	762

(E) A registered organization that is organized under the law	763
of a state is located in that state.	764

(F) Except as otherwise provided in division (I) of this	765
section, a registered organization that is organized under the law	766
of the United States and a branch or agency of a bank that is not	767
organized under the law of the United States or a state are	768
located:	769

(1) In the state that the law of the United States	770
designates, if the law designates a state of location;	771

(2) In the state that the registered organization, branch, or	772
agency designates, if the law of the United States authorizes the	773
registered organization, branch, or agency to designate its state	774
of location, including by designating its main office, home	775
office, or other comparable office; or	776

(3) In the District of Columbia, if neither division (F)(1)	777
nor (2) of this section applies.	778

(G) A registered organization continues to be located in the	779
jurisdiction specified by division (E) or (F) of this section	780
notwithstanding:	781

(1) The suspension, revocation, forfeiture, or lapse of the	782
registered organization's status in its jurisdiction of	783
organization; or	784

(2) The dissolution, winding up, or cancellation of the	785
existence of the registered organization.	786

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

787

(I) A branch or agency of a bank that is not organized under	788
the law of the United States or a state is located in the state in	789
which the branch or agency is licensed, if all branches and	790
agencies of the bank are licensed in only one state.	791

(J) A foreign air carrier under the "Federal Aviation Act of	792
1958," 49 U.S.C. 40102, as amended, is located at the designated	793
office of the agent upon which service of process may be made on	794
behalf of the carrier.	795

(K) This section applies only for the purposes of sections	796
1309.301 to 1309.342 of the Revised Code.	797

Sec. 1309.311. (A) Except as otherwise provided in division	798
(D) of this section, the filing of a financing statement is not	799
necessary or effective to perfect a security interest in property	800
subject to:	801

(1) A statute, regulation, or treaty of the United States	802
whose requirements for a security interest's obtaining priority	803
over the rights of a lien creditor with respect to the property	804
preempt division (A) of section 1309.310 of the Revised Code;	805

(2) Chapters 1547., 1548., 4505., 4519., and 5309. of the	806
Revised Code;	807

(3) A ~~certificate of title~~ statute of another jurisdiction	808
that provides for a security interest to be indicated on ~~the~~a	809
certificate of title as a condition or result of the security	810
interest's obtaining priority over the rights of a lien creditor	811
with respect to the property.	812

(B) Compliance with the requirements of a statute,	813
regulation, or treaty described in division (A) of this section	814
for obtaining priority over the rights of a lien creditor is	815
equivalent to the filing of a financing statement under this	816
chapter. Except as otherwise provided in division (D) of this	817
section, section 1309.313, and divisions (D) and (E) of section	818
1309.316 of the Revised Code for goods covered by a certificate of	819
title, a security interest in property subject to a statute,	820
regulation, or treaty described in division (A) of this section	821
may be perfected only by compliance with those requirements, and a	822
security interest so perfected remains perfected notwithstanding a	823
change in the use or transfer of possession of the collateral.	824

(C) Except as otherwise provided in division (D) of this	825
section and divisions (D) and (E) of section 1309.316 of the	826
Revised Code, duration and renewal of perfection of a security	827
interest perfected by compliance with the requirements prescribed	828
by a statute, regulation, or treaty described in division (A) of	829
this section are governed by the statute, regulation, or treaty.	830
In other respects, the security interest is subject to this	831
chapter.	832

(D) During any period in which collateral subject to a	833
statute specified in division (A)(2) of this section is inventory	834
held for sale or lease by a person or leased by that person as	835
lessor and that person is in the business of selling goods of that	836
kind, this section does not apply to a security interest in that	837
collateral created by that person.	838

Sec. 1309.316. (A) A security interest perfected pursuant to	839
the law of the jurisdiction designated in division (A) of section	840
1309.301 or division (C) of section 1309.305 of the Revised Code	841
remains perfected until the earliest of:	842

(1) The time perfection would have ceased under the law of	843
that jurisdiction;	844

(2) The expiration of four months after a change of the	845
debtor's location to another jurisdiction; or	846

(3) The expiration of one year after a transfer of collateral	847
to a person that thereby becomes a debtor and is located in	848
another jurisdiction.	849

(B) If a security interest described in division (A) of this	850
section becomes perfected under the law of the other jurisdiction	851
before the earliest time or event described in that division, it	852
remains perfected thereafter. If the security interest does not	853
become perfected under the law of the other jurisdiction before	854
that earliest time or event, it becomes unperfected and is deemed	855
never to have been perfected as against a purchaser of the	856
collateral for value.	857

(C) A possessory security interest in collateral, other than	858
goods covered by a certificate of title and as-extracted	859
collateral consisting of goods, remains continuously perfected if:	860

(1) The collateral is located in one jurisdiction and subject	861
to a security interest perfected under the law of that	862
jurisdiction;	863

(2) Thereafter, the collateral is brought into another	864
jurisdiction; and	865

(3) Upon entry into the other jurisdiction, the security	866
interest is perfected under the law of the other jurisdiction.	867

(D) Except as otherwise provided in division (E) of this	868
section, a security interest in goods covered by a certificate of	869
title that is perfected by any method under the law of another	870
jurisdiction when the goods become covered by a certificate of	871
title from this state remains perfected until the security	872
interest would have become unperfected under the law of the other	873
jurisdiction had the goods not become so covered.	874

(E) A security interest described in division (D) of this	875
section becomes unperfected as against a purchaser of the goods	876
for value and is deemed never to have been perfected as against a	877
purchaser of the goods for value if the applicable requirements	878
for perfection under division (B) of section 1309.311 or section	879
1309.313 of the Revised Code are not satisfied before the earlier	880
of:	881

(1) The time the security interest would have become	882
unperfected under the law of the other jurisdiction had the goods	883
not become covered by a certificate of title from this state; or	884

(2) The expiration of four months after the goods had become	885
so covered.	886

(F) A security interest in deposit accounts, letter-of-credit	887
rights, or investment property that is perfected under the law of	888
the bank's jurisdiction, the issuer's jurisdiction, a nominated	889
person's jurisdiction, the securities intermediary's jurisdiction,	890
or the commodity intermediary's jurisdiction, as applicable,	891
remains perfected until the earlier of:	892

(1) The time the security interest would have become	893
unperfected under the law of that jurisdiction; or	894

(2) The expiration of four months after a change of the	895
applicable jurisdiction to another jurisdiction.	896

(G) If a security interest described in division (F) of this	897
section becomes perfected under the law of the other jurisdiction	898
before the earlier of the time or the end of the period described	899
in that division, it remains perfected thereafter. If the security	900
interest does not become perfected under the law of the other	901
jurisdiction before the earlier of that time or the end of that	902
period, it becomes unperfected and is deemed never to have been	903
perfected as against a purchaser of the collateral for value.	904

(H) The following rules apply to collateral to which a	905
security interest attaches within four months after the debtor	906
changes its location to another jurisdiction:	907

(1) A financing statement filed before the change pursuant to	908
the law of the jurisdiction designated in division (A) of section	909
1309.301 or division (C) of section 1309.305 of the Revised Code	910
is effective to perfect a security interest in the collateral if	911
the financing statement would have been effective to perfect a	912
security interest in the collateral had the debtor not changed its	913
location.	914

(2) If a security interest perfected by a financing statement	915
that is effective under division (H)(1) of this section becomes	916
perfected under the law of the other jurisdiction before the	917
earlier of the time the financing statement would have become	918
ineffective under the law of the jurisdiction designated in	919
division (A) of section 1309.301 or division (C) of section	920
1309.305 of the Revised Code or the expiration of the four-month	921
period, it remains perfected thereafter. If the security interest	922
does not become perfected under the law of the other jurisdiction	923
before the earlier time or event, it becomes unperfected and is	924
deemed never to have been perfected as against a purchaser of the	925
collateral for value.	926

(I) If a financing statement naming an original debtor is	927
filed pursuant to the law of the jurisdiction designated in	928
division (A) of section 1309.301 or division (C) of section	929
1309.305 of the Revised Code and the new debtor is located in	930
another jurisdiction, the following rules apply:	931

(1) The financing statement is effective to perfect a	932
security interest in collateral acquired by the new debtor before,	933
and within four months after, the new debtor becomes bound under	934
division (D) of section 1309.203 of the Revised Code, if the	935
financing statement would have been effective to perfect a	936
security interest in the collateral had the collateral been	937
acquired by the original debtor.	938

(2) A security interest perfected by the financing statement	939
and that becomes perfected under the law of the other jurisdiction	940
before the earlier of the time the financing statement would have	941
become ineffective under the law of the jurisdiction designated in	942
division (A) of section 1309.301 or division (C) of section	943
1309.305 of the Revised Code or the expiration of the four-month	944
period remains perfected thereafter. A security interest that is	945
perfected by the financing statement but that does not become	946
perfected under the law of the other jurisdiction before the	947
earlier time or event becomes unperfected and is deemed never to	948
have been perfected as against a purchaser of the collateral for	949
value.	950

Sec. 1309.317. (A) A security interest or agricultural lien	951
is subordinate to the rights of:	952

(1) A person entitled to priority under section 1309.322 of	953
the Revised Code; and	954

(2) Except as otherwise provided in division (E) of this	955
section, a person who becomes a lien creditor before the earlier	956
of the time:	957

(a) The security interest or agricultural lien is perfected;	958
or	959

(b) One of the conditions specified in division (B)(3) of	960
section 1309.203 of the Revised Code is met and a financing	961
statement covering the collateral is filed.	962

(B) Except as otherwise provided in division (E) of this	963
section, a buyer, other than a secured party, of tangible chattel	964
paper, tangible documents, goods, instruments, or a certificated	965
security ~~certificate~~ takes free of a security interest or	966
agricultural lien if the buyer gives value and receives delivery	967
of the collateral without knowledge of the security interest or	968
agricultural lien and before it is perfected.	969

(C) Except as otherwise provided in division (E) of this	970
section, a lessee of goods takes free of a security interest or	971
agricultural lien if the lessee gives value and receives delivery	972
of the collateral without knowledge of the security interest or	973
agricultural lien and before it is perfected.	974

(D) A licensee of a general intangible or a buyer, other than	975
a secured party, of ~~accounts, electronic chattel paper, electronic~~	976
~~documents, general intangibles, or investment property~~collateral	977
other than tangible chattel paper, tangible documents, goods,	978
instruments, or a certificated security takes free of a security	979
interest if the licensee or buyer gives value without knowledge of	980
the security interest and before it is perfected.	981

(E) Except as otherwise provided in sections 1309.320 and	982
1309.321 of the Revised Code, if a person files a financing	983
statement with respect to a purchase money security interest	984
before or within twenty days after the debtor receives delivery of	985
the collateral, the security interest takes priority over the	986
rights of a buyer, lessee, or lien creditor that arise between the	987
time the security interest attaches and the time of filing.	988

Sec. 1309.326. (A) Subject to division (B) of this section,	989
a security interest that is created by a new debtor ~~that~~in	990
collateral in which the new debtor has or acquires rights and is	991
perfected solely by a filed financing statement that ~~is effective~~	992
~~solely under~~would be ineffective to perfect the security interest	993
but for the application of division (I)(1) of section 1309.316 of	994
the Revised Code or section 1309.508 of the Revised Code in	995
~~collateral in which a new debtor has or acquires rights~~ is	996
subordinate to a security interest in the same collateral that is	997
perfected other than by such a filed financing statement ~~that is~~	998
~~effective solely under section 1309.508 of the Revised Code~~.	999

(B) Sections 1309.301 to 1309.342 of the Revised Code	1000
determine the priority among conflicting security interests in the	1001
same collateral perfected by filed financing statements ~~that are~~	1002
~~effective solely under section 1309.508~~described in division (A)	1003
of ~~the Revised Code~~this section. However, if the security	1004
agreements to which a new debtor became bound as debtor were not	1005
entered into by the same original debtor, the conflicting security	1006
interests rank according to priority in time of the new debtor's	1007
having become bound.	1008

Sec. 1309.406. (A) Subject to divisions (B) to (I) of this	1009
section, an account debtor on an account, chattel paper, or	1010
payment intangible may discharge its obligation by paying the	1011
assignor until, but not after, the account debtor receives a	1012
notification, authenticated by the assignor or the assignee, that	1013
the amount due or to become due has been assigned and that payment	1014
is to be made to the assignee. After receipt of the notification,	1015
the account debtor may discharge its obligation by paying the	1016
assignee and may not discharge the obligation by paying the	1017
assignor.	1018

(B) Subject to division (H) of this section, notification	1019
under division (A) of this section is not effective:	1020

(1) If the notification does not reasonably identify the	1021
rights assigned;	1022

(2) To the extent that an agreement between an account debtor	1023
and a seller of a payment intangible limits the account debtor's	1024
duty to pay a person other than the seller and the limitation is	1025
effective under law other than this chapter; or	1026

(3) At the option of an account debtor, if the notification	1027
notifies the account debtor to make less than the full amount of	1028
any installment or other periodic payment to the assignee, even	1029
if:	1030

(a) Only a portion of the account, chattel paper, or payment	1031
intangible has been assigned to that assignee;	1032

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

1033

(c) The account debtor knows that the assignment to that	1034
assignee is limited.	1035

(C) Subject to division (H) of this section, if requested by	1036
the account debtor, an assignee shall seasonably furnish	1037
reasonable proof that the assignment has been made. Unless the	1038
assignee complies, the account debtor may discharge its obligation	1039
by paying the assignor, even if the account debtor has received a	1040
notification under division (A) of this section.	1041

(D) Except as otherwise provided in division (E) of this	1042
section and sections 1309.407 and 1310.31 of the Revised Code, and	1043
subject to division (H) of this section, a term in an agreement	1044
between an account debtor and an assignor or in a promissory note	1045
is ineffective to the extent that it:	1046

(1) Prohibits, restricts, or requires the consent of the	1047
account debtor or person obligated on the promissory note to the	1048
assignment or transfer of, or the creation, attachment,	1049
perfection, or enforcement of a security interest in, the account,	1050
chattel paper, payment intangible, or promissory note; or	1051

(2) Provides that the assignment or transfer or the creation,	1052
attachment, perfection, or enforcement of the security interest	1053
may give rise to a default, breach, right of recoupment, claim,	1054
defense, termination, right of termination, or remedy under the	1055
account, chattel paper, payment intangible, or promissory note.	1056

(E) Division (D) of this section does not apply to the sale	1057
of a payment intangible or promissory note, other than a sale	1058
pursuant to a disposition under section 1309.610 of the Revised	1059
Code or an acceptance of collateral under section 1309.620 of the	1060
Revised Code.	1061

(F) Except as provided in sections 1309.407 and 1310.31 of	1062
the Revised Code and subject to divisions (H) and (I) of this	1063
section, a rule of law, statute, or regulation that prohibits,	1064
restricts, or requires the consent of a government, governmental	1065
body or official, or account debtor to the assignment or transfer	1066
of, or creation of a security interest in, an account or chattel	1067
paper is not effective to the extent that the rule of law,	1068
statute, or regulation:	1069

(1) Prohibits, restricts, or requires the consent of the	1070
government, governmental body or official, or account debtor to	1071
the assignment or transfer of, or the creation, attachment,	1072
perfection, or enforcement of a security interest in the account	1073
or chattel paper; or	1074

(2) Provides that the assignment or transfer or the creation,	1075
attachment, perfection, or enforcement of the security interest	1076
may give rise to a default, breach, right of recoupment, claim,	1077
defense, termination, right of termination, or remedy under the	1078
account or chattel paper.	1079

(G) Subject to division (H) of this section, an account	1080
debtor may not waive or vary its option under division (B)(3) of	1081
this section.	1082

(H) This section is subject to law other than this chapter	1083
that establishes a different rule for an account debtor who is an	1084
individual and who incurred the obligation primarily for personal,	1085
family, or household purposes.	1086

(I) This section does not apply to an assignment of a	1087
health-care-insurance receivable.	1088

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

1089

(1) A claim or right to receive compensation for injuries or	1090
sickness as described in section 104(a)(1) or (2) of the Internal	1091
Revenue Code, as amended; or	1092

(2) A claim or right to receive benefits under a special	1093
needs trust as described in the "Omnibus Budget Reconciliation Act	1094
of 1993," 107 Stat. 312, 42 U.S.C. 1396p(d)(4), as amended.	1095

(K) Divisions (D), (F), and (J) of this section apply only to	1096
a security interest created on or after July 1, 2001. Nothing in	1097
this section shall supersede the provisions of sections 2323.58 to	1098
2323.587 of the Revised Code. This section shall be interpreted	1099
consistently with sections 2323.58 to 2323.587 of the Revised	1100
Code.	1101

Sec. 1309.408. (A) Except as otherwise provided in division	1102
(B) of this section, a term in a promissory note or in an	1103
agreement between an account debtor and a debtor that relates to a	1104
health-care-insurance receivable or a general intangible,	1105
including a contract, permit, license, or franchise, and which	1106
term prohibits, restricts, or requires the consent of the person	1107
obligated on the promissory note or the account debtor to, the	1108
assignment or transfer of, or creation, attachment, or perfection	1109
of a security interest in, the promissory note,	1110
health-care-insurance receivable, or general intangible, is not	1111
effective to the extent that the term:	1112

(1) Would impair the creation, attachment, or perfection of a	1113
security interest; or	1114

(2) Provides that the assignment or transfer or the creation,	1115
attachment, or perfection of the security interest may give rise	1116
to a default, breach, right of recoupment, claim, defense,	1117
termination, right of termination, or remedy under the promissory	1118
note, health-care-insurance receivable, or general intangible.	1119

(B) Division (A) applies to a security interest in a payment	1120
intangible or promissory note only if the security interest arises	1121
out of a sale of the payment intangible or promissory note, other	1122
than a sale pursuant to a disposition under section 1309.610 of	1123
the Revised Code or an acceptance of collateral under section	1124
1309.620 of the Revised Code.	1125

(C) A rule of law, statute, or regulation that prohibits,	1126
restricts, or requires the consent of a government, governmental	1127
body or official, person obligated on a promissory note, or	1128
account debtor to the assignment or transfer of, or creation of a	1129
security interest in, a promissory note, health-care-insurance	1130
receivable, or general intangible, including a contract, permit,	1131
license, or franchise between an account debtor and a debtor, is	1132
not effective to the extent that the rule of law, statute, or	1133
regulation:	1134

(1) Would impair the creation, attachment, or perfection of a	1135
security interest; or	1136

(2) Provides that the assignment or transfer or the creation,	1137
attachment, or perfection of the security interest may give rise	1138
to a default, breach, right of recoupment, claim, defense,	1139
termination, right of termination, or remedy under the promissory	1140
note, health-care-insurance receivable, or general intangible.	1141

(D) To the extent that a term in a promissory note or in an	1142
agreement between an account debtor and a debtor that relates to a	1143
health-care-insurance receivable or general intangible or a rule	1144
of law, statute, or regulation described in division (C) of this	1145
section would be effective under law other than this chapter but	1146
is ineffective under division (A) or (C) of this section, the	1147
creation, attachment, or perfection of a security interest in the	1148
promissory note, health-care-insurance receivable, or general	1149
intangible:	1150

(1) Is not enforceable against the person obligated on the	1151
promissory note or the account debtor;	1152

(2) Does not impose a duty or obligation on the person	1153
obligated on the promissory note or the account debtor;	1154

(3) Does not require the person obligated on the promissory	1155
note or the account debtor to recognize the security interest, pay	1156
or render performance to the secured party, or accept payment or	1157
performance from the secured party;	1158

(4) Does not entitle the secured party to use or assign the	1159
debtor's rights under the promissory note, health-care-insurance	1160
receivable, or general intangible, including any related	1161
information or materials furnished to the debtor in the	1162
transaction giving rise to the promissory note,	1163
health-care-insurance receivable, or general intangible;	1164

(5) Does not entitle the secured party to use, assign,	1165
possess, or have access to any trade secrets or confidential	1166
information of the person obligated on the promissory note or the	1167
account debtor; and	1168

(6) Does not entitle the secured party to enforce the	1169
security interest in the promissory note, health-care-insurance	1170
receivable, or general intangible.	1171

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

1172

(1) A claim or right to receive compensation for injuries or	1173
sickness as described in section 104(a)(1) or (2) of the Internal	1174
Revenue Code as amended; or	1175

(2) A claim or right to receive benefits under a special	1176
needs trust as described in the "Omnibus Budget Reconciliation Act	1177
of 1993," 107 Stat. 312, 42 U.S.C. 1396p(d)(4), as amended.	1178

(F) Divisions (A), (C), and (E) of this section apply only to	1179
a security interest created on or after July 1, 2001. Nothing in	1180
this section shall supersede the provisions of sections 2323.58 to	1181
2323.587 of the Revised Code. This section shall be interpreted	1182
consistently with sections 2323.58 to 2323.587 of the Revised	1183
Code.	1184

Sec. 1309.502. (A) Subject to division (B) of this section,	1185
a financing statement is sufficient only if it:	1186

(1) Provides the name of the debtor;

1187

(2) Provides the name of the secured party or a	1188
representative of the secured party; and	1189

(3) Indicates the collateral covered by the financing	1190
statement.	1191

(B) Except as otherwise provided in division (B) of section	1192
1309.501 of the Revised Code, to be sufficient, a financing	1193
statement that covers as-extracted collateral or timber to be cut,	1194
or that is filed as a fixture filing and covers goods that are or	1195
are to become fixtures, shall satisfy division (A) of this section	1196
and also:	1197

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

1198

(2) Indicate that it is to be filed in the real property	1199
records;	1200

(3) Provide a description of the real property to which the	1201
collateral is related sufficient to give constructive notice of a	1202
mortgage under the laws of this state if the description were	1203
contained in a record of the mortgage of the real property; and	1204

(4) If the debtor does not have an interest of record in the	1205
real property, provide the name of a record owner.	1206

(C) A record of a mortgage is effective, from the date of	1207
recording, as a financing statement filed as a fixture filing or	1208
as a financing statement covering as-extracted collateral or	1209
timber to be cut only if:	1210

(1) The record indicates the goods or accounts that it	1211
covers;	1212

(2) The goods are or are to become fixtures related to the	1213
real property described in the record, or the collateral is	1214
related to the real property described in the record and is	1215
as-extracted collateral or timber to be cut;	1216

(3) The record satisfies the requirements for a financing	1217
statement contained in this section ~~other than an indication~~, but:	1218

(a) The record need not indicate that it is to be filed in	1219
the real property records; and	1220

(b) The record sufficiently provides the name of a debtor who	1221
is an individual if it provides the individual name of the debtor	1222
or the surname and first personal name of the debtor, even if the	1223
debtor is an individual to whom division (A)(4) of section	1224
1309.503 of the Revised Code applies; and	1225

(4) The record is duly recorded.

1226

(D) A financing statement may be filed before a security	1227
agreement is made or a security interest otherwise attaches.	1228

Sec. 1309.503. (A) A financing statement sufficiently	1229
provides the name of the debtor:	1230

(1) IfExcept as otherwise provided in division (A)(3) of	1231
this section, if the debtor is a registered organization or the	1232
collateral is held in a trust that is a registered organization,	1233
only if the financing statement provides the name ~~of the debtor~~	1234
~~indicated~~that is stated to be the registered organization's name	1235
on the public organic record ofmost recently filed with or issued	1236
or enacted by the ~~debtor's~~registered organization's jurisdiction	1237
of organization ~~that shows the debtor to have been organized~~	1238
which purports to state, amend, or restate the registered	1239
organization's name;	1240

(2) IfSubject to division (F) of this section, if the ~~debtor~~	1241
~~is a decedent's estate~~collateral is being administered by the	1242
personal representative of a decedent, only if the financing	1243
statement provides, as the name of the debtor, the name of the	1244
decedent and, in a separate part of the financing statement,	1245
indicates that the ~~debtor~~collateral is ~~an estate~~being	1246
administered by a personal representative;	1247

(3) If the ~~debtor~~collateral is ~~a trust or a trustee acting~~	1248
~~with respect to property~~ held in a trust that is not a registered	1249
organization, only if the financing statement:	1250

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

1251

(i) If the organic record of the trust specifies a name for	1252
the trust ~~in its organic documents or, if no~~, the name is	1253
specified~~, provides~~; or	1254

(ii) If the organic record of the trust does not specify a	1255
name for the trust, the name of the settlor ~~and additional~~	1256
~~information sufficient to distinguish the debtor from other trusts~~	1257
~~having one or more of the same settlors~~or testator; and	1258

(b) ~~Indicates, in the debtor's name or otherwise, that the~~	1259
~~debtor is a trust or is a trustee acting with respect to property~~	1260
In a separate part of the financing statement:	1261

(i) If the name is provided in accordance with division	1262
(A)(3)(a)(i) of this section, indicates that the collateral is	1263
held in a trust; or	1264

(ii) If the name is provided in accordance with division	1265
(A)(3)(a)(ii) of this section, provides additional information	1266
sufficient to distinguish the trust from other trusts having one	1267
or more of the same settlors or the same testator and indicates	1268
that the collateral is held in a trust, unless the additional	1269
information so indicates.	1270

(4) Subject to division (G) of this section, if the debtor is	1271
an individual to whom this state has issued a driver's license or	1272
identification card that has not expired, only if the financing	1273
statement provides the name of the individual that is indicated on	1274
the driver's license or identification card;	1275

(5) If the debtor is an individual to whom division (A)(4) of	1276
this section does not apply, only if the financing statement	1277
provides the individual name of the debtor or the surname and	1278
first personal name of the debtor; and	1279

(6) In other cases:

1280

(a) If the debtor has a name, only if itthe financing	1281
statement provides the ~~individual or~~ organizational name of the	1282
debtor; and	1283

(b) If the debtor does not have a name, only if it provides	1284
the names of the partners, members, associates, or other persons	1285
comprising the debtor, in a manner that each name provided would	1286
be sufficient if the person named were the debtor.	1287

(B) A financing statement that provides the name of the	1288
debtor in accordance with division (A) of this section is not	1289
rendered ineffective by the absence of:	1290

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

1291

(2) Unless required under division (A)~~(4)~~(6)(b) of this	1292
section, names of partners, members, associates, or other persons	1293
comprising the debtor.	1294

(C) A financing statement that provides only the debtor's	1295
trade name does not sufficiently provide the name of the debtor.	1296

(D) Failure to indicate the representative capacity of a	1297
secured party or representative of a secured party does not affect	1298
the sufficiency of a financing statement.	1299

(E) A financing statement may provide the name of more than	1300
one debtor and the name of more than one secured party.	1301

(F) The name of the decedent indicated on the order	1302
appointing the personal representative of the decedent issued by	1303
the court having jurisdiction over the collateral is sufficient as	1304
the "name of the decedent" under division (A)(2) of this section.	1305

(G) If this state has issued to an individual more than one	1306
driver's license or identification card of a kind described in	1307
division (A)(4) of this section, the one that was issued most	1308
recently is the one to which division (A)(4) of this section	1309
refers.	1310

(H) As used in this section, "name of the settlor or	1311
testator" means:	1312

(1) If the settlor is a registered organization, the name	1313
that is stated to be the settlor's name on the public organic	1314
record most recently filed with or issued or enacted by the	1315
settlor's jurisdiction of organization that purports to state,	1316
amend, or restate the settlor's name; or	1317

(2) In other cases, the name of the settlor or testator	1318
indicated in the trust's organic record.	1319

Sec. 1309.507. (A) A filed financing statement remains	1320
effective with respect to collateral that is sold, exchanged,	1321
leased, licensed, or otherwise disposed of and in which a security	1322
interest or agricultural lien continues, even if the secured party	1323
knows of or consents to the disposition.	1324

(B) Except as otherwise provided in division (C) of this	1325
section and section 1309.508 of the Revised Code, a financing	1326
statement is not rendered ineffective if, after the financing	1327
statement is filed, the information provided in the financing	1328
statement becomes seriously misleading under section 1309.506 of	1329
the Revised Code.	1330

(C) If ~~a debtor so changes its~~the name that a filed	1331
financing statement provides for a debtor becomes insufficient as	1332
the name of the debtor under division (A) of section 1309.503 of	1333
the Revised Code so that the financing statement becomes seriously	1334
misleading under section 1309.506 of the Revised Code:	1335

(1) The financing statement is effective to perfect a	1336
security interest in collateral acquired by the debtor before, or	1337
within four months after, the ~~change~~filed financing statement	1338
becomes seriously misleading; and	1339

(2) The financing statement is not effective to perfect a	1340
security interest in collateral acquired by the debtor more than	1341
four months after the ~~change~~filed financing statement becomes	1342
seriously misleading, unless an amendment to the financing	1343
statement that renders the financing statement not seriously	1344
misleading is filed within four months after the ~~change~~financing	1345
statement became seriously misleading.	1346

Sec. 1309.515. (A) Except as otherwise provided in divisions	1347
(B), (E), (F), and (G) of this section, a filed financing	1348
statement is effective for a period of five years after the date	1349
of filing.	1350

(B) Except as otherwise provided in divisions (E), (F), and	1351
(G) of this section, an initial financing statement filed in	1352
connection with a public-finance transaction or manufactured-home	1353
transaction is effective for a period of thirty years after the	1354
date of filing if it indicates that it is filed in connection with	1355
a public-finance transaction or manufactured-home transaction.	1356

(C) The effectiveness of a filed financing statement lapses	1357
on the expiration of the period of its effectiveness unless,	1358
before the lapse, a continuation statement is filed pursuant to	1359
division (D) of this section. Upon lapse, a financing statement	1360
ceases to be effective, and any security interest or agricultural	1361
lien that was perfected by the financing statement becomes	1362
unperfected, unless the security interest is perfected otherwise.	1363
If the security interest or agricultural lien becomes unperfected	1364
upon lapse, it is deemed never to have been perfected as against a	1365
purchaser of the collateral for value.	1366

(D) A continuation statement may be filed only within six	1367
months before the expiration of the five-year period specified in	1368
division (A) or the thirty-year period specified in division (B)	1369
of this section, whichever is applicable.	1370

(E) Except as provided in section 1309.510 of the Revised	1371
Code, upon timely filing of a continuation statement, the	1372
effectiveness of the initial financing statement continues for a	1373
period of five years commencing on the day on which the financing	1374
statement would have become ineffective in the absence of the	1375
filing. Upon the expiration of the five-year period, the financing	1376
statement lapses in the same manner as provided in division (C) of	1377
this section, unless, before the lapse, another continuation	1378
statement is filed pursuant to division (D) of this section.	1379
Succeeding continuation statements may be filed in the same manner	1380
to continue the effectiveness of the initial financing statement.	1381

(F) If a debtor is a transmitting utility and a filed initial	1382
financing statement so indicates, the financing statement is	1383
effective until a termination statement is filed.	1384

(G) A record of a mortgage that is effective as a financing	1385
statement filed as a fixture filing under division (C) of section	1386
1309.502 of the Revised Code remains effective as a financing	1387
statement filed as a fixture filing until the mortgage is released	1388
or satisfied of record or its effectiveness otherwise terminates	1389
as to the real property.	1390

Sec. 1309.516. (A) Except as provided in division (B) of	1391
this section, communication of a record to a filing office and	1392
tender of the filing fee or acceptance of the record by the filing	1393
office constitutes filing.	1394

(B) Filing does not occur with respect to a record that a	1395
filing office refuses to accept because:	1396

(1) The record is not communicated by a method or medium of	1397
communication authorized by the filing office;	1398

(2) An amount equal to or greater than the applicable filing	1399
fee is not tendered;	1400

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

1401

(a) In the case of an initial financing statement, the record	1402
does not provide a name for the debtor;	1403

(b) In the case of an amendment or ~~correction~~information	1404
statement, the record:	1405

(i) Does not identify the initial financing statement as	1406
required by section 1309.512 or 1309.518 of the Revised Code, as	1407
applicable; or	1408

(ii) Identifies an initial financing statement whose	1409
effectiveness has lapsed under section 1309.515 of the Revised	1410
Code.	1411

(c) In the case of an initial financing statement that	1412
provides the name of a debtor identified as an individual or an	1413
amendment that provides a name of a debtor identified as an	1414
individual that was not provided previously in the financing	1415
statement to which the record relates, the record does not	1416
identify the debtor's ~~last name~~surname; or	1417

(d) In the case of a record filed in the filing office	1418
described in division (A)(1) of section 1309.501 of the Revised	1419
Code, the record does not provide a sufficient description of the	1420
real property to which it relates.	1421

(4) In the case of an initial financing statement or an	1422
amendment that adds a secured party of record, the record does not	1423
provide a name and mailing address for the secured party of	1424
record;	1425

(5) In the case of an initial financing statement or an	1426
amendment that provides a name of a debtor that was not provided	1427
previously in the financing statement to which the amendment	1428
relates, the record does not:	1429

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

1430

(b) Indicate whether the name provided as the name of the	1431
debtor is the name of an individual or an organization~~; or~~	1432

~~(c) If the financing statement indicates that the debtor is~~	1433
~~an organization, provide:~~	1434

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

1435

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

1436

(6) In the case of an assignment reflected in an initial	1437
financing statement under division (A) of section 1309.514 of the	1438
Revised Code or an amendment filed under division (B) of section	1439
1309.514 of the Revised Code, the record does not provide a name	1440
and mailing address for the assignee.	1441

(7) In the case of a continuation statement, the record is	1442
not filed within the six-month period prescribed by division (D)	1443
of section 1309.515 of the Revised Code.; or	1444

(8) The secretary of state refuses to accept the record for	1445
filing or recording in compliance with division (A) of section	1446
111.24 of the Revised Code.	1447

1448

(1) A record does not provide information if the filing	1449
office is unable to read or decipher the information; and	1450

(2) A record that does not indicate that it is an amendment	1451
or identify an initial financing statement to which it relates, as	1452
required by section 1309.512, 1309.514, or 1309.518 of the Revised	1453
Code, is an initial financing statement.	1454

(D) A record that is communicated to the filing office with	1455
tender of the filing fee, but that the filing office refuses to	1456
accept for a reason other than one specified in division (B) of	1457
this section, is effective as a filed record except as against a	1458
purchaser of the collateral that gives value in reasonable	1459
reliance upon the absence of the record from the files.	1460

Sec. 1309.518. (A) A person may file in the filing office a	1461
~~correction~~an information statement with respect to a record	1462
indexed there under the person's name if the person believes that	1463
the record is inaccurate or was wrongfully filed.	1464

(B) ~~A correction~~An information statement under division (A)	1465
of this section must:	1466

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

1467

(a) The file number assigned to the initial financing	1468
statement to which the record relates; and	1469

(b) If the ~~correction~~information statement relates to a	1470
record filed in a filing office described in division (A)(1) of	1471
section 1309.501 of the Revised Code, the date and time that the	1472
initial financing statement was filed and the information	1473
specified in division (B) of section 1309.502 of the Revised Code;	1474

(2) Indicate that it is ~~a correction~~an information	1475
statement; and	1476

(3) Provide the basis for the person's belief that the record	1477
is inaccurate and indicate the manner in which the person believes	1478
the record should be amended to cure any inaccuracy or provide the	1479
basis for the person's belief that the record was wrongfully	1480
filed.	1481

(C) A person may file in the filing office an information	1482
statement with respect to a record filed there if the person is a	1483
secured party of record with respect to the financing statement to	1484
which the record relates and believes that the person that filed	1485
the record was not entitled to do so under division (D) of section	1486
1309.509 of the Revised Code.	1487

(D) An information statement under division (C) of this	1488
section must:	1489

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

1490

(a) The file number assigned to the initial financing	1491
statement to which the record relates; and	1492

(b) If the information statement relates to a record filed in	1493
a filing office described in division (A)(1) of section 1309.501	1494
of the Revised Code, the date and time that the initial financing	1495
statement was filed and the information specified in division (B)	1496
of section 1309.502 of the Revised Code;	1497

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

1498

(3) Provide the basis for the person's belief that the person	1499
that filed the record was not entitled to do so under division (D)	1500
of section 1309.509 of the Revised Code.	1501

(E) The filing of ~~a correction~~an information statement does	1502
not affect the effectiveness of an initial financing statement or	1503
other filed record.	1504

Sec. 1309.521. (A) A filing office that accepts written	1505
records may not refuse to accept a written initial financing	1506
statement in the following form and format except for a reason	1507
prescribed in division (B) of section 1309.516 of the Revised	1508
Code:	1509

UCC FINANCING STATEMENT	1510

Follow instructions (front and back) carefully.	1511

A. Name and phone of contact at filer (optional)			1512
.................................................................			1513
B. Send acknowledgment to: (name and address)			1514
..................................			1515
..................................			1516
..................................	The above space is for filing office use only.		1517
1. DEBTOR'S EXACT FULL LEGAL NAME			1518
(Insert only one debtor name [1a or 1b]. Do not abbreviate or			1519
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.)			1520
1a. Organization's name .........................................			1521
or			1522
1b. Individual's last name ............. First name .............			1523
Middle name ........................... Suffix ..................			1524
1c. Mailing address .............................................			1525
City .......... State ....... Postal code ...... Country ........			1526
		1527
Additional information regarding organization debtor			1528
1d. Type of organization ........................................			1529
1e. Jurisdiction of organization ................................			1530
2. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME			1531
(Insert only one debtor name [2a or 2b]. Do not abbreviate or			1532
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.)			1533
2a. Organization's name .........................................			1534
or			1535
2b. Individual's last name ............. First name .............			1536
Middle name ........................... Suffix ..................			1537
2c. Mailing address .............................................			1538
City .......... State ....... Postal code ...... Country ........			1539
		1540
Additional information regarding organization debtor			1541
2d. Type of organization ........................................			1542
2e. Jurisdiction of organization ................................			1543
3. SECURED PARTY'S NAME (or name of total assignee of assignor			1544
S/P). Insert only one secured party name (3a or 3b).			1545
3a. Organization's name .........................................			1546
or			1547
3b. Individual's last name ............. First name .............			1548
Middle name ........................... Suffix ..................			1549
3c. Mailing address .............................................			1550
City .......... State ....... Postal code ...... Country ........			1551
4. This FINANCING STATEMENT covers the following collateral:			1552
.................................................................			1553
.................................................................			1554
.................................................................			1555
.................................................................			1556
5. ALTERNATIVE DESIGNATION (if applicable):			1557
[ ] Lessee/lessor [ ] Consignee/consignor [ ] Bailee/bailor			1558
[ ] Seller/buyer [ ] Ag. lien [ ] Non-UCC filing			1559
6. [ ] This FINANCING STATEMENT is to be filed [for record] (or			1560
recorded) in the REAL ESTATE RECORDS. Attach addendum ..........			1561
[if applicable].			1562
7. Check to REQUEST SEARCH REPORT(S) on debtor(s)			1563
[ADDITIONAL FEE] .......... [optional]			1564
[ ] All debtors [ ] Debtor 1 [ ] Debtor 2			1565
8. OPTIONAL FILER REFERENCE DATA			1566
.................................................................			1567
.................................................................			1568

UCC FINANCING STATEMENT ADDENDUM	1569

Follow instructions (front and back) carefully.	1570

9. NAME OF FIRST DEBTOR (1a OR 1b) ON RELATED FINANCING STATEMENT			1571
9a. Organization's name .........................................			1572
or			1573
9b. Individual's last name ............. First name .............			1574
Middle name ........................... Suffix ..................			1575
10. MISCELLANEOUS			1576
..................................			1577
..................................			1578
..................................		The above space is for filing office use only.	1579
11. ADDITIONAL DEBTOR'S EXACT FULL LEGAL NAME			1580
(Insert only one name [11a or 11b]. Do not abbreviate or combine			1581
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.)			1582
11a. Organization's name ........................................			1583
or			1584
11b. Individual's last name ............. First name ............			1585
Middle name ........................... Suffix ..................			1586
11c. Mailing address ............................................			1587
City .......... State ....... Postal code ...... Country ........			1588
		1589
Additional information regarding organization debtor			1590
11d. Type of organization .......................................			1591
11e. Jurisdiction of organization ...............................			1592
12. [ ] ADDITIONAL SECURED PARTY'S or [ ] ASSIGNOR S/P'S NAME			1593
(Insert only one name [12a or 12b].)			1594
12a. Organization's name ........................................			1595
or			1596
12b. Individual's last name ............. First name ............			1597
Middle name ........................... Suffix ..................			1598
12c. Mailing address ............................................			1599
City .......... State ....... Postal code ...... Country ........			1600
13. This FINANCING STATEMENT covers [ ] timber to be cut or			1601
[ ] as-extracted collateral, or is filed as a [ ] fixture filing.			1602
14. DESCRIPTION OF REAL ESTATE:			1603
.................................................................			1604
.................................................................			1605
.................................................................			1606
.................................................................			1607
15. Name and address of a RECORD OWNER of above-described real			1608
estate (if debtor does not have a record interest):			1609
.................................................................			1610
.................................................................			1611
.................................................................			1612
16. Additional collateral description:			1613
.................................................................			1614
.................................................................			1615
.................................................................			1616
.................................................................			1617
17. Check only if applicable and check only one box.			1618
Debtor is a [ ] Trust or [ ] Trustee acting with respect to			1619
property held in trust or [ ] Decedent's estate			1620
18. Check only if applicable and check only one box.			1621
[ ]	Debtor is a transmitting utility		1622
[ ]	Filed in connection with a manufactured-home transaction -		1623
	effective 30 years		1624
[ ]	Filed in connection with a public-finance transaction -		1625
	effective 30 years		1626

(B) A filing office that accepts written records may not	1627
refuse to accept a written record in the following form and format	1628
except for a reason prescribed in division (B) of section 1309.516	1629
of the Revised Code:	1630

UCC FINANCING STATEMENT AMENDMENT	1631

Follow instructions (front and back) carefully.	1632

A. Name and phone of contact at filer (optional)		1633
................................................................		1634
B. Send acknowledgment to: (name and address)		1635
..................................		1636
..................................		1637
..................................	The above space is for filing office use only.	1638
1a. INITIAL FINANCING STATEMENT FILE NUMBER ....................		1639
1b. [ ] This financing statement amendment is to be filed [for		1640
record] (or recorded) in the real estate records.		1641
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.		1642
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.		1643
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.		1644
5. AMENDMENT (PARTY INFORMATION): This amendment affects [ ] Debtor		1645
or [ ] Secured Party of record. Check only one of these two boxes.		1646

Also check one of the following three boxes and provide appropriate information in items 6 and/or 7.		1647
[ ]	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.	1648
[ ]	DELETE name. Give record name to be deleted in item 6a or 6b.	1649
[ ]	ADD name. Complete item 7a or 7b, and also item 7c; also complete items 7d-7g (if applicable).	1650

6. CURRENT RECORD INFORMATION:		1651
6a. Organization's name .........................................		1652
or		1653
6b. Individual's last name .................. First name ........		1654
Middle name ................................. Suffix ............		1655
7. CHANGED (NEW) OR ADDED INFORMATION:		1656
(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.)		1657
7a. Organization's name .........................................		1658
or		1659
7b. Individual's last name .................. First name ........		1660
Middle name ................................. Suffix ............		1661
7c. Mailing address .............................................		1662
City ........ State ....... Postal code ....... Country .........		1663
		1664
Additional information regarding organization debtor		1665
7d. Type of organization ........................................		1666
7e. Jurisdiction of organization ................................		1667
8. AMENDMENT (COLLATERAL CHANGE). Check only one box.		1668
Describe collateral [ ] deleted or [ ] added, or give entire		1669
[ ] restated collateral description, or describe collateral		1670
[ ] assigned.		1671
.................................................................		1672
.................................................................		1673
.................................................................		1674
.................................................................		1675
9. NAME OF SECURED PARTY OF RECORD AUTHORIZING THIS AMENDMENT		1676
(name of assignor, if this is an assignment). If this is an		1677
amendment authorized by a debtor that adds collateral or adds		1678
the authorizing debtor, or if this is a termination authorized		1679
by a debtor, check here [ ] and enter name of debtor		1680
authorizing this amendment.		1681
9a. Organization's name .........................................		1682
or		1683
9b. Individual's last name ................ First name ..........		1684
Middle name ............................... Suffix ..............		1685
10. OPTIONAL FILER REFERENCE DATA		1686
.................................................................		1687

UCC FINANCING STATEMENT AMENDMENT ADDENDUM	1688

Follow instructions (front and back) carefully.	1689

11. INITIAL FINANCING STATEMENT FILE NUMBER (same as item 1a		1690
on amendment form) .............................................		1691
12. NAME OF PARTY AUTHORIZING		1692
THIS AMENDMENT (same as item 9		1693
on amendment form)		1694
12a. Organization's name		1695
.................................		1696
or		1697
12b. Individual's last name		1698
.................................		1699
First name ......................		1700
Middle name .......... Suffix ...	The above space is for filing office use only.	1701
13. Use this space for additional information.		1702
...................................................................		1703
...................................................................		1704
...................................................................		1705

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

1706

Sec. 1309.607. (A) If so agreed, and in any event after	1707
default, a secured party:	1708

(1) May notify an account debtor or other person obligated on	1709
collateral to make payment or otherwise render performance to or	1710
for the benefit of the secured party;	1711

(2) May take any proceeds to which the secured party is	1712
entitled under section 1309.315 of the Revised Code;	1713

(3) May enforce the obligations of an account debtor or other	1714
person obligated on collateral and exercise the rights of the	1715
debtor with respect to the obligation of the account debtor or	1716
other person obligated on collateral to make payment or otherwise	1717
render performance to the debtor, and with respect to any property	1718
that secures the obligations of the account debtor or other person	1719
obligated on the collateral;	1720

(4) If it holds a security interest in a deposit account	1721
perfected by control under division (A)(1) of section 1309.104 of	1722
the Revised Code, may apply the balance of the deposit account to	1723
the obligation secured by the deposit account; and	1724

(5) If it holds a security interest in a deposit account	1725
perfected by control under division (A)(2) or (3) of section	1726
1309.104 of the Revised Code, may instruct the bank to pay the	1727
balance of the deposit account to or for the benefit of the	1728
secured party.	1729

(B) If necessary to enable a secured party to exercise the	1730
right of a debtor to enforce a mortgage nonjudicially under	1731
division (A)(3) of this section, the secured party may record in	1732
the office in which a record of the mortgage is recorded:	1733

(1) A copy of the security agreement that creates or provides	1734
for a security interest in the obligation secured by the mortgage;	1735
and	1736

(2) The secured party's sworn affidavit in recordable form	1737
stating that:	1738

(a) A default has occurred with respect to the obligation	1739
secured by the mortgage; and	1740

(b) The secured party is entitled to enforce the mortgage	1741
nonjudicially.	1742

(C) A secured party shall proceed in a commercially	1743
reasonable manner if the secured party:	1744

(1) Undertakes to collect from or enforce an obligation of an	1745
account debtor or other person obligated on collateral; and	1746

(2) Is entitled to charge back uncollected collateral or	1747
otherwise to full or limited recourse against the debtor or a	1748
secondary obligor.	1749

(D) A secured party may deduct from the collections made	1750
pursuant to division (C) of this section reasonable expenses of	1751
collection and enforcement, including reasonable attorney's fees	1752
and legal expenses incurred by the secured party.	1753

(E) This section does not determine whether an account	1754
debtor, bank, or other person obligated on collateral owes a duty	1755
to a secured party.	1756

Section 2. That existing sections 102.01, 103.63, 1309.102,	1757
1309.105, 1309.307, 1309.311, 1309.316, 1309.317, 1309.326,	1758
1309.406, 1309.408, 1309.502, 1309.503, 1309.507, 1309.515,	1759
1309.516, 1309.518, 1309.521, and 1309.607 of the Revised Code are	1760
hereby repealed.	1761

Section 3. (A) Except as otherwise provided in Sections 3	1762
through 8 of this act, this act applies to a transaction or lien	1763
within its scope, even if the transaction or lien was entered into	1764
or created before Sections 1 through 8 of this act, except for	1765
sections 102.01 and 103.63 of the Revised Code as amended by this	1766
act, take effect.	1767

(B) This act does not affect an action, case, or proceeding	1768
commenced before Sections 1 through 8 of this act, except for	1769
sections 102.01 and 103.63 of the Revised Code as amended by this	1770
act, take effect.	1771

Section 4. (A) A security interest that is a perfected	1772
security interest immediately before Sections 1 through 8 of this	1773
act, except for sections 102.01 and 103.63 of the Revised Code as	1774
amended by this act, take effect is a perfected security interest	1775
under Chapter 1309. of the Revised Code as amended by this act if,	1776
when Sections 1 through 8 of this act, except for sections 102.01	1777
and 103.63 of the Revised Code as amended by this act, take	1778
effect, the applicable requirements for attachment and perfection	1779
under Chapter 1309. of the Revised Code as amended by this act are	1780
satisfied without further action.	1781

(B) Except as otherwise provided in Section 5 of this act,	1782
if, immediately before Sections 1 through 8 of this act, except	1783
for sections 102.01 and 103.63 of the Revised Code as amended by	1784
this act, take effect, a security interest is a perfected security	1785
interest, but the applicable requirements for perfection under	1786
Chapter 1309. of the Revised Code as amended by this act are not	1787
satisfied when Sections 1 through 8 of this act, except for	1788
sections 102.01 and 103.63 of the Revised Code as amended by this	1789
act, take effect, the security interest remains perfected	1790
thereafter only if the applicable requirements for perfection	1791
under Chapter 1309. of the Revised Code as amended by this act are	1792
satisfied within one year after Sections 1 through 8 of this act,	1793
except for sections 102.01 and 103.63 of the Revised Code as	1794
amended by this act, take effect.	1795

A security interest that is an unperfected security interest	1796
immediately before Sections 1 through 8 of this act, except for	1797
sections 102.01 and 103.63 of the Revised Code as amended by this	1798
act, take effect becomes a perfected security interest:	1799

(1) Without further action, when Sections 1 through 8 of this	1800
act, except for sections 102.01 and 103.63 of the Revised Code as	1801
amended by this act, take effect if the applicable requirements	1802
for perfection under Chapter 1309. of the Revised Code as amended	1803
by this act are satisfied before or at that time; or	1804

(2) When the applicable requirements for perfection are	1805
satisfied if the requirements are satisfied after that time.	1806

Section 5. (A) The filing of a financing statement before	1807
Sections 1 through 8 of this act, except for sections 102.01 and	1808
103.63 of the Revised Code as amended by this act, take effect is	1809
effective to perfect a security interest to the extent the filing	1810
would satisfy the applicable requirements for perfection under	1811
Chapter 1309. of the Revised Code as amended by this act.	1812

(B) This act does not render ineffective an effective	1813
financing statement that, before Sections 1 through 8 of this act,	1814
except for sections 102.01 and 103.63 of the Revised Code as	1815
amended by this act, take effect, is filed and satisfies the	1816
applicable requirements for perfection under the law of the	1817
jurisdiction governing perfection as provided in Chapter 1309. of	1818
the Revised Code as it existed before amendment. However, except	1819
as otherwise provided in Section 6 of this act and divisions (C)	1820
and (D) of this section, the financing statement ceases to be	1821
effective:	1822

(1) If the financing statement is filed in this state, at the	1823
time the financing statement would have ceased to be effective had	1824
Sections 1 through 8 of this act, except for sections 102.01 and	1825
103.63 of the Revised Code as amended by this act, not taken	1826
effect; or	1827

(2) If the financing statement is filed in another	1828
jurisdiction, at the earlier of:	1829

(a) The time the financing statement would have ceased to be	1830
effective under the law of that jurisdiction; or	1831

(b) June 30, 2018.

1832

(C) The filing of a continuation statement after Sections 1	1833
through 8 of this act, except for sections 102.01 and 103.63 of	1834
the Revised Code as amended by this act, take effect does not	1835
continue the effectiveness of a financing statement filed before	1836
those sections, except for sections 102.01 and 103.63 of the	1837
Revised Code as amended by this act, take effect. However, upon	1838
the timely filing of a continuation statement after those	1839
sections, except for sections 102.01 and 103.63 of the Revised	1840
Code as amended by this act, take effect and in accordance with	1841
the law of the jurisdiction governing perfection as provided in	1842
Chapter 1309. of the Revised Code as amended by this act, the	1843
effectiveness of a financing statement filed in the same office in	1844
that jurisdiction before those sections, except for sections	1845
102.01 and 103.63 of the Revised Code as amended by this act, take	1846
effect continues for the period provided by the law of that	1847
jurisdiction.	1848

(D) Division (B)(2)(b) of this section applies to a financing	1849
statement that, before Sections 1 through 8 of this act, except	1850
for sections 102.01 and 103.63 of the Revised Code as amended by	1851
this act, take effect, is filed against a transmitting utility and	1852
satisfies the applicable requirements for perfection under the law	1853
of the jurisdiction governing perfection as provided in Chapter	1854
1309. of the Revised Code as it existed before amendment, only to	1855
the extent that Chapter 1309. of the Revised Code as amended by	1856
this act provides that the law of a jurisdiction other than the	1857
jurisdiction in which the financing statement is filed governs	1858
perfection of a security interest in collateral covered by the	1859
financing statement.	1860

(E) A financing statement that includes a financing statement	1861
filed before Sections 1 through 8 of this act, except for sections	1862
102.01 and 103.63 of the Revised Code as amended by this act, take	1863
effect and a continuation statement filed after those sections,	1864
except for sections 102.01 and 103.63 of the Revised Code as	1865
amended by this act, take effect is effective only to the extent	1866
that it satisfies the requirements of sections 1309.501 to	1867
1309.529 of the Revised Code as amended by this act for an initial	1868
financing statement. A financing statement that indicates that the	1869
debtor is a decedent's estate indicates that the collateral is	1870
being administered by a personal representative within the meaning	1871
of division (A)(2) of section 1309.503 of the Revised Code as	1872
amended by this act. A financing statement that indicates that the	1873
debtor is a trust or is a trustee acting with respect to property	1874
held in trust indicates that the collateral is held in a trust	1875
within the meaning of division (A)(3) of section 1309.503 of the	1876
Revised Code as amended by this act.	1877

Section 6. (A) The filing of an initial financing statement	1878
in the office specified in section 1309.501 of the Revised Code	1879
continues the effectiveness of a financing statement filed before	1880
Sections 1 through 8 of this act, except for sections 102.01 and	1881
103.63 of the Revised Code as amended by this act, take effect if:	1882

(1) The filing of an initial financing statement in that	1883
office would be effective to perfect a security interest under	1884
Chapter 1309. of the Revised Code as amended by this act;	1885

(2) The pre-effective-date financing statement was filed in	1886
an office in another state; and	1887

(3) The initial financing statement satisfies division (C) of	1888
this section.	1889

(B) The filing of an initial financing statement under	1890
division (A) of this section continues the effectiveness of the	1891
pre-effective-date financing statement:	1892

(1) If the initial financing statement is filed before	1893
Sections 1 through 8 of this act, except for sections 102.01 and	1894
103.63 of the Revised Code as amended by this act, take effect,	1895
for the period provided in section 1309.515 of the Revised Code as	1896
it existed before amendment with respect to an initial financing	1897
statement; and	1898

(2) If the initial financing statement is filed after	1899
Sections 1 through 8 of this act, except for sections 102.01 and	1900
103.63 of the Revised Code as amended by this act, take effect,	1901
for the period provided in section 1309.515 of the Revised Code as	1902
amended by this act with respect to an initial financing	1903
statement.	1904

(C) To be effective for purposes of division (A) of this	1905
section, an initial financing statement must:	1906

(1) Satisfy the requirements of sections 1309.501 to 1309.529	1907
of the Revised Code as amended by this act for an initial	1908
financing statement;	1909

(2) Identify the pre-effective-date financing statement by	1910
indicating the office in which the financing statement was filed	1911
and providing the dates of filing and file numbers, if any, of the	1912
financing statement and of the most recent continuation statement	1913
filed with respect to the financing statement; and	1914

(3) Indicate that the pre-effective-date financing statement	1915
remains effective.	1916

Section 7. (A) In this section, "pre-effective-date financing	1917
statement" means a financing statement filed before Sections 1	1918
through 8 of this act, except for sections 102.01 and 103.63 of	1919
the Revised Code as amended by this act, take effect.	1920

(B) After Sections 1 through 8 of this act, except for	1921
sections 102.01 and 103.63 of the Revised Code as amended by this	1922
act, take effect, a person may add or delete collateral covered	1923
by, continue or terminate the effectiveness of, or otherwise amend	1924
the information provided in, a pre-effective-date financing	1925
statement only in accordance with the law of the jurisdiction	1926
governing perfection as provided in Chapter 1309. of the Revised	1927
Code as amended by this act. However, the effectiveness of a	1928
pre-effective-date financing statement also may be terminated in	1929
accordance with the law of the jurisdiction in which the financing	1930
statement is filed.	1931

(C) Except as otherwise provided in division (D) of this	1932
section, if the law of this state governs perfection of a security	1933
interest, the information in a pre-effective-date financing	1934
statement may be amended after Sections 1 through 8 of this act,	1935
except for sections 102.01 and 103.63 of the Revised Code as	1936
amended by this act, take effect only if:	1937

(1) The pre-effective-date financing statement and an	1938
amendment are filed in the office specified in section 1309.501 of	1939
the Revised Code;	1940

(2) An amendment is filed in the office specified in section	1941
1309.501 of the Revised Code concurrently with, or after the	1942
filing in that office of, an initial financing statement that	1943
satisfies division (C) of Section 6 of this act; or	1944

(3) An initial financing statement that provides the	1945
information as amended and satisfies division (C) of Section 6 of	1946
this act is filed in the office specified in section 1309.501 of	1947
the Revised Code.	1948

(D) If the law of this state governs perfection of a security	1949
interest, the effectiveness of a pre-effective-date financing	1950
statement may be continued only under divisions (C) and (E) of	1951
Section 5 of this act or Section 6 of this act.	1952

(E) Whether or not the law of this state governs perfection	1953
of a security interest, the effectiveness of a pre-effective-date	1954
financing statement filed in this state may be terminated after	1955
Sections 1 through 8 of this act, except for sections 102.01 and	1956
103.63 of the Revised Code as amended by this act, take effect by	1957
filing a termination statement in the office in which the	1958
pre-effective-date financing statement is filed, unless an initial	1959
financing statement that satisfies division (C) of Section 6 of	1960
this act has been filed in the office specified by the law of the	1961
jurisdiction governing perfection as provided in Chapter 1309. of	1962
the Revised Code as amended by this act as the office in which to	1963
file a financing statement.	1964

A person may file an initial financing statement or a	1965
continuation statement under Sections 3 through 8 of this act if:	1966

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

1967

(2) The filing is necessary under Sections 3 through 8 of	1968
this act:	1969

(a) To continue the effectiveness of a financing statement	1970
filed before Sections 1 through 8 of this act, except for sections	1971
102.01 and 103.63 of the Revised Code as amended by this act, take	1972
effect; or	1973

(b) To perfect or continue the perfection of a security	1974
interest.	1975

Section 8. This act determines the priority of conflicting	1976
claims to collateral. However, if the relative priorities of the	1977
claims were established before Sections 1 through 8 of this act,	1978
except for sections 102.01 and 103.63 of the Revised Code as	1979
amended by this act, take effect, Chapter 1309. of the Revised	1980
Code as it existed before amendment determines priority.	1981

Section 9. Sections 1 through 8 of this act, except for	1982
sections 102.01 and 103.63 of the Revised Code as amended by this	1983
act, shall take effect on July 1, 2013.	1984