LD 2245
pg. 83
Page 82 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 84 of 493
Download Bill Text
LR 1087
Item 1

 
Example 4: A Belgian governmental unit grants a security interest
in its equipment to a Swiss secured party. The equipment is
located in Belgium. A dispute arises and, for some reason, an
action is brought in a New Mexico state court. Inasmuch as the
transaction bears no "appropriate relation" to New Mexico, New
Mexico's UCC, including its Article 9, is inapplicable. See
Section 1-105(1). New Mexico's Section 9-109(c) on excluded
transactions should not come into play. Even if the parties agreed
that New Mexico law would govern, the parties' agreement would not
be effective because the transaction does not bear a "reasonable
relation" to New Mexico. See Section 1-105(1).

 
Conversely, Article 9 [Maine cite Article 9-A] will come into
play only if the litigation arises in a UCC jurisdiction or if a
foreign choice-of-law rule leads a foreign court to apply the law
of a UCC jurisdiction. For example, if issues concerning a
security interest granted by a foreign airline to a New York bank
are litigated overseas, the court may be bound to apply the law
of the debtor's jurisdiction and not New York's Article 9.

 
10. Certain Statutory and Common-Law Liens; Interests in Real
Property. With few exceptions (nonconsensual agricultural liens
being one), this Article applies only to consensual security
interests in personal property. Following former Section 9-
104(b) and (j), paragraphs (1) and (11) of subsection (d) [Maine
cite paragraphs (a) and (k) of subsection (4)] exclude landlord's
liens and leases and most other interests in or liens on real
property. These exclusions generally reiterate the limitations
on coverage (i.e., "by contract," "in personal property and
fixtures") made explicit in subsection (a)(1) [Maine cite
subsection (1), paragraph (a)]. Similarly, most jurisdictions
provide special liens to suppliers of many types of services and
materials, either by statute or by common law. With the
exception of agricultural liens, it is not necessary for this
Article to provide general codification of this lien structure,
which is determined in large part by local conditions and which
is far removed from ordinary commercial financing. As under
former Section 9-104(c), subsection (d)(2) [Maine cite subsection
(4), paragraph (b)] excludes these suppliers' liens (other than
agricultural liens) from this Article. However, Section 9-333
[Maine cite section 9-1333] provides a rule for determining
priorities between certain possessory suppliers' liens and
security interests covered by this Article.

 
11. Wage and Similar Claims. As under former Section 9-
104(d), subsection (d)(3) [Maine cite subsection (4), paragraph
(c)] excludes assignments of claims for wages and the like from
this Article. These assignments present important social issues


Page 82 of 493 Top of Page Page 84 of 493