268

LAWS OF MARYLAND

[Ch. 49

antecedent debt if the debtor acquires his rights in such
collateral either in the ordinary course of his business
or under a contract of purchase made pursuant to the
security agreement within a reasonable time after new
value is given.

9—109. Classification of goods; "consumer goods";
"equipment"; "farm products"; "inventory."

Goods are

(1)   "Consumer goods" if they are used or bought for
use primarily for personal, family or household purposes;

(2)   "Equipment" if they are used or bought for use
primarily in business (including farming or a profession)
or by a debtor who is a non-profit organization or a
governmental subdivision or agency or if the goods are
not included in the definitions of inventory, farm
products or consumer goods;

(3)   "Farm products" if they are crops or livestock
or supplies used or produced in farming operations or if
they are products of crops or livestock in their
unmanufactured states (such as ginned cotton, wool—clip,
maple syrup, milk and eggs), and if they are in the
possession of a debtor engaged in raising, fattening,
grazing or other farming operations. If goods are farm
products they are neither equipment nor inventory;

(4)    "Inventory" if they are held by a person who
holds them for sale or lease or to be furnished under
contracts of service or if he has so furnished them, or
if they are raw materials, work in process or materials
used or consumed in a business. Inventory of a person
is not to be classified as his equipment.

9—110. Sufficiency of description.

For the purposes of this [subtitle] TITLE any
description of personal property or real estate is
sufficient whether or not it is specific if it reasonably
identifies what is described.

9—111. Applicability of bulk transfer laws.

The creation of a security interest is not a bulk
transfer under [subtitle] TITLE 6 (see § 6—103).

9—112. Where collateral is not owned by debtor.

Unless otherwise agreed, when a secured party knows
that collateral is owned by a person who is not the
debtor, the owner of the collateral is entitled to