CHAPTER 50 SENATE BILL No. 88 An  Act concerning the uniform commercial code; relating to secured transactions; sale of accounts and chattel paper; amending K.S.A. 84-9-102 and repealing the existing section. Be it enacted by the Legislature of the State of Kansas:

      Section  1. K.S.A. 84-9-102 is hereby amended to read as follows:
84-9-102. (1) Except as otherwise provided in section K.S.A. 84-9-104
and amendments thereto on excluded transactions, this article applies:

      (a) To any transaction (, regardless of its form), which is intended to
create a security interest in personal property or fixtures including goods,
documents, instruments, general intangibles, chattel paper or accounts;
and also

      (b) to any sale of accounts or chattel paper.

      (2) This article applies to security interests created by contract in-
cluding pledge, assignment, chattel mortgage, chattel trust, trust deed,
factor's lien, equipment trust, conditional sale, trust receipt, other lien or
title retention contract and lease or consignment intended as security.
This article does not apply to statutory liens except as provided in section
K.S.A. 84-9-310 and amendments thereto.

      (3) The application of this article to a security interest in a secured
obligation is not affected by the fact that the obligation is itself secured
by a transaction or interest to which this article does not apply.

      (4) This article does not prevent the transfer of ownership of accounts
or chattel paper. The determination of whether a particular transfer of
accounts or chattel paper constitutes a sale or transfer for security pur-
poses is not governed by this article. This is a declaration of the meaning
of the uniform commercial code as originally adopted.

      Sec.  2. K.S.A. 84-9-102 is hereby repealed.

      Sec.  3. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 3, 1999.
 Published in the Kansas Register April 15, 1999.
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