South Carolina Code of Laws
Chapter 9 - Commercial Code - Secured Transactions
Section 36-9-109. Scope.

(a) Except as otherwise provided in subsections (c) and (d), this chapter 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 Section 36-2-401, 36-2-505, 36-2-711(3), or 36-2A-508(5), as provided in Section 36-9-110; and
(6) a security interest arising under Section 36-4-208 or 36-5-118.
(b) The application of this chapter 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 chapter does not apply.
(c) This chapter does not apply to the extent that:
(1) a statute, regulation, or treaty of the United States preempts this chapter; or
(2) the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 36-5-114.
(d) This chapter does not apply to:
(1) a landlord's lien, other than an agricultural lien, but Section 36-9-317 applies as to the priority of the landlord's lien;
(2) a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 36-9-333 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 also is 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 Sections 36-9-315 and 36-9-322 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) Section 36-9-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and
(B) Section 36-9-404 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 Sections 36-9-203 and 36-9-308;
(B) fixtures in Section 36-9-334;
(C) fixture filings in Sections 36-9-501, 36-9-502, 36-9-512, 36-9-516, and 36-9-519; and
(D) security agreements covering personal and real property in Section 36-9-604;
(12) an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 36-9-315 and 36-9-322 apply with respect to proceeds and priorities in proceeds;
(13) an assignment of a deposit account in a consumer transaction, but Sections 36-9-315 and 36-9-322 apply with respect to proceeds and priorities in proceeds;
(14) a transfer by a government or governmental unit; or
(15) the creation, perfection, priority, or enforcement of any sale, assignment of, pledge of, security interest in, or other transfer of, any interest or right or portion of any interest or right in any storm recovery property as defined in Section 58-27-1105(17).
HISTORY: 1962 Code Section 10.9-109; 1966 (54) 2716; 1988 Act No. 494, Section 5; 2001 Act No. 67, Section 12; 2002 Act No. 192, Section 1, eff March 22, 2002; 2022 Act No. 227 (S.1077), Section 2, eff June 17, 2022.
Effect of Amendment
The 2002 amendment, in subsection (c), deleted paragraphs (2) and (3) relating to security interests expressly governed by another South Carolina statute and a statute of another State or foreign country, respectively, and renumbered paragraph (4) as (2), in subsection (d), added paragraph (14), and, in the South Carolina Reporter's Comment, made organizational changes and added item D.
2022 Act No. 227, Section 2, in (d), in (13), deleted the "or" at the end, in (14), substituted "; or" for ".", and added (15).

Structure South Carolina Code of Laws