(1) Chapter 409 definitions. In this chapter:
(a) "Accession" means goods that are physically united with other goods in such a manner that the identity of the original goods is not lost.
(ag) "Account", except as used in "account for", means a right to payment of a monetary obligation, whether or not earned by performance; for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of; for services rendered or to be rendered; for a policy of insurance issued or to be issued; for a secondary obligation incurred or to be incurred; for energy provided or to be provided; for the use or hire of a vessel under a charter or other contract; arising out of the use of a credit or charge card or information contained on or for use with the card; or as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or person licensed or authorized to operate the game by a state or governmental unit of a state. The term includes health-care-insurance receivables. The term does not include rights to payment evidenced by chattel paper or an instrument; commercial tort claims; deposit accounts; investment property; letter-of-credit rights or letters of credit; or rights to payment for money or funds advanced or sold, other than rights arising out of the use of a credit or charge card or information contained on or for use with the card.
(am) "Account debtor" means a person obligated on an account, chattel paper, or general intangible. The term does not include persons obligated to pay a negotiable instrument, even if the instrument constitutes part of chattel paper.
(as) "Accounting", except as used in "accounting for", means a record:
1. Authenticated by a secured party;
2. Indicating the aggregate unpaid secured obligations as of a date not more than 35 days earlier or 35 days later than the date of the record; and
3. Identifying the components of the obligations in reasonable detail.
(b) "Agricultural lien" means an interest, other than a security interest, in farm products:
1. Which secures payment or performance of an obligation for:
a. Goods or services furnished in connection with a debtor's farming operation; or
b. Rent on real property leased by a debtor in connection with its farming operation;
2. Which is created by statute in favor of a person that:
a. In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or
b. Leased real property to a debtor in connection with the debtor's farming operation; and
3. Whose effectiveness does not depend on the person's possession of the personal property.
(bcm) "Applicant" means a person at whose request or for whose account a letter of credit is issued. The term includes a person who requests an issuer to issue a letter of credit on behalf of another if the person making the request undertakes an obligation to reimburse the issuer.
(bg) "As-extracted collateral" means:
1. Oil, gas, or other minerals that are subject to a security interest that is created by a debtor having an interest in the minerals before extraction and which attaches to the minerals as extracted; or
2. Accounts arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction.
(bm) "Authenticate" means:
1. To sign; or
2. To execute or otherwise adopt a symbol, or encrypt or similarly process a record in whole or in part, with the present intent of the authenticating person to identify the person and adopt or accept a record.
(bs) "Bank" means an organization that is engaged in the business of banking. The term includes savings banks, savings and loan associations, credit unions, and trust companies.
(btm) "Beneficiary" means a person who under the terms of a letter of credit is entitled to have its complying presentation honored. The term includes a person to whom drawing rights have been transferred under a transferable letter of credit.
(c) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the like.
(cg) "Certificate of title" means a certificate of title with respect to which a statute provides for the security interest in question to be indicated on the certificate as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the collateral.
(cm) "Chattel paper" means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods, or a lease of specific goods and license of software used in the goods. The term does not include charters or other contracts involving the use or hire of a vessel. The term does not include records that evidence a right to payment arising out of the use of a credit or charge card or information contained on or for use with the card. If a transaction is evidenced by records that include an instrument or series of instruments, the group of records taken together constitutes chattel paper. In this paragraph, "monetary obligation" means a monetary obligation secured by the goods or owned under a lease of the goods and includes a monetary obligation with respect to software used in the goods.
(cs) "Collateral" means the property subject to a security interest or agricultural lien. The term includes:
1. Proceeds to which a security interest attaches;
2. Accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
3. Goods that are the subject of a consignment.
(d) "Commercial tort claim" means a claim arising in tort with respect to which:
1. The claimant is an organization; or
2. The claimant is an individual and the claim:
a. Arose in the course of the claimant's business or profession; and
b. Does not include damages arising out of personal injury to or the death of an individual.
(dg) "Commodity account" means an account maintained by a commodity intermediary in which a commodity contract is carried for a commodity customer.
(dm) "Commodity contract" means a commodity futures contract, an option on a commodity futures contract, a commodity option, or another contract if the contract or option is:
1. Traded on or subject to the rules of a board of trade that has been designated as a contract market for such a contract pursuant to federal commodities laws; or
2. Traded on a foreign commodity board of trade, exchange, or market, and is carried on the books of a commodity intermediary for a commodity customer.
(ds) "Commodity customer" means a person for which a commodity intermediary carries a commodity contract on its books.
(e) "Commodity intermediary" means a person that:
1. Is registered as a futures commission merchant under federal commodities law; or
2. In the ordinary course of its business provides clearance or settlement services for a board of trade that has been designated as a contract market pursuant to federal commodities law.
(eg) "Communicate" means:
1. To send a written or other tangible record;
2. To transmit a record by any means agreed upon by the persons sending and receiving the record; or
3. In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing-office rule.
(em) "Consignee" means a merchant to which goods are delivered in a consignment.
(es) "Consignment" means a transaction, regardless of its form, in which a person delivers goods to a merchant for the purpose of sale and:
1. The merchant:
a. Deals in goods of that kind under a name other than the name of the person making delivery;
b. Is not an auctioneer; and
c. Is not generally known by its creditors to be substantially engaged in selling the goods of others;