# Commercial Law (GCL)

## Title 9. Secured Transactions

### Subtitle 1. General Provisions

#### Section 9-109

(a) Except as otherwise provided in subsections (c) and (d), this title applies to:

  (1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

  (2) An agricultural lien;

  (3) A sale of accounts, chattel paper, payment intangibles, or promissory notes;

  (4) A consignment;

  (5) A security interest arising under Sec. 2-401, Sec. 2-505, Sec. 2-711(3), or Sec. 2A-508(5) of this article, as provided in Sec. 9-110; and

  (6) A security interest arising under Sec. 4-210 or Sec. 5-118 of this article.

(b) The application of this title 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 title does not apply.

(c) This title does not apply to the extent that:

  (1) A statute, regulation, or treaty of the United States preempts this title;

  (2) Another statute of this State expressly governs the creation, perfection, priority, or enforcement of a security interest created by this State or a governmental unit of this State;

  (3) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

  (4) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Sec. 5-114 of this article.

(d) This title does not apply to:

  (1) A landlord's lien, other than an agricultural lien;

  (2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Sec. 9-333 applies with respect to priority of the lien;

  (3) An assignment of a claim for wages, salary, or other compensation of an employee;

  (4) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

  (5) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;

  (6) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

  (7) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

  (8) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sec.Sec. 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds;

  (9) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

  (10) A right of recoupment or set-off, but:

    (A) Sec. 9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and

    (B) Sec. 9-404 applies with respect to defenses or claims of an account debtor;

  (11) The creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:

    (A) Liens on real property in Sec.Sec. 9-203 and 9-308;

    (B) Fixtures in Sec. 9-334;

    (C) Fixture filings in Sec.Sec. 9-501, 9-502, 9-512, 9-516, and 9-519; and

    (D) Security agreements covering personal and real property in Sec. 9-604;

  (12) An assignment of a claim arising in tort, other than a commercial tort claim, but Sec.Sec. 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds; or

  (13) An assignment of a deposit account in a consumer transaction, but Sec.Sec. 9-315 and 9-322 apply with respect to proceeds and priorities in proceeds.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)