Ch. 652

1997 LAWS OF MARYLAND

"Note." § 3-104.

"PROCEEDS OF A LETTER OF CREDIT." § 5-114(A).

"Sale." § 2-106.

"Securities intermediary." § 8-102.

"Security." § 8-102.

"Security certificate." § 8-102.

"Security entitlement." § 8-102.

"Uncertificated security." § 8-102.

9-106.

"Account" means any right to payment for goods sold or leased or for services
rendered which is not evidenced by an instrument or chattel paper, whether or not it has
been earned by performance. "General intangibles" means any personal property
(including things in action and uncertificated general and limited partnership interests),
other than goods, accounts, chattel paper, documents, instruments, investment property,
RIGHTS TO PROCEEDS OF WRITTEN LETTERS OF CREDIT, and money. All rights to
payment earned or unearned under a charter or other contract involving the use or hire
of a vessel and all rights incident to the charter or contract are accounts.

9-304.

(1) A security interest in chattel paper or negotiable documents may be perfected
by filing. A SECURITY INTEREST IN THE RIGHTS TO PROCEEDS OF A WRITTEN
LETTER OF CREDIT CAN BE PERFECTED ONLY BY THE SECURED PARTY'S TAKING
POSSESSION OF THE LETTER OF CREDIT. A security interest in money or instruments
(other than instruments which constitute part of chattel paper) can be perfected only by
the secured party's taking possession, except as provided in subsections (4) and (5) of this
section and subsections (2) and (3) of § 9-306 on proceeds.

9-305.

A security interest in [letters of credit and advices of credit (subsection (2)(a) of §
5-116),] goods, instruments, money, negotiable documents or chattel paper may be
perfected by the secured party's taking possession of the collateral. A SECURITY
INTEREST IN THE RIGHT TO PROCEEDS OF A WRITTEN LETTER OF CREDIT MAY BE
PERFECTED BY THE SECURED PARTY'S TAKING POSSESSION OF THE LETTER OF
CREDIT. If such collateral other than goods covered by a negotiable document is held by
a bailee, the secured party is deemed to have possession from the time the bailee receives
notification of the secured party's interest. A security interest is perfected by possession
from the time possession is taken without relation back and continues only so long as
possession is retained, unless otherwise specified in this title. The security interest may be
otherwise perfected as provided in this title before or after the period of possession by the
secured party.

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