H.B. 140                                                 VETOES

"Merchant"....................................................................................................§ 2-104.

"Negotiable instrument"..............................................................................§ 3-104.

"Nominated person".....................................................................................§ 5-102.

"Note"............................................................................................................§ 3-104.

"Proceeds of a letter of credit".....................................................................§ 5-114.

"Prove"..........................................................................................................§ 3-103.

"Sale".............................................................................................................§ 2-106.

"Securities account".....................................................................................§ 8-501.

"Securities intermediary"............................................................................§ 8-102.

"Security"......................................................................................................§ 8-102.

"Security certificate"....................................................................................§ 8-102.

"Security entitlement".................................................................................§ 8-102.

"Uncertificated security".............................................................................§ 8-102.

9-203.

(b) Except as otherwise provided in subsections (c) through (i), a security
interest is enforceable against the debtor and third parties with respect to the
collateral only if:

(1)     Value has been given;

(2)     The debtor has rights in the collateral or the power to transfer rights
in the collateral to a secured party; and

(3)     One of the following conditions is met:

(A)    The debtor has authenticated a security agreement that
provides a description of the collateral and, if the security interest covers timber to be
cut, a description of the land concerned;

(B)    The collateral is not a certificated security and is in the
possession of the secured party under § 9-313 pursuant to the debtor's security
agreement;

(C)    The collateral is a certificated security in registered form and
the security certificate has been delivered to the secured party under § 8-301 of this
article pursuant to the debtor's security agreement; or

(D)    The collateral is deposit accounts, electronic chattel paper,
investment property, [or] letter-of-credit rights, OR ELECTRONIC DOCUMENTS, and
the secured party has control under [§ 9-104, § 9-105, § 9-106, or § 9-107] § 7-106, §
9-104, § 9-105, § 9-106, OR § 9-107 pursuant to the debtor's security agreement.

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