Commercial Code section 9401

(a)

Except as otherwise provided in subdivision (b) and in Section 9406, 9407, 9408, and 9409, whether a debtor’s rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this division.

(b)

An agreement between the debtor and secured party which prohibits a transfer of the debtor’s rights in collateral or makes the transfer a default does not prevent the transfer from taking effect.

Source: Section 9401, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=9401.­ (accessed Jun. 2, 2025).

Last Updated

May 12, 2025

§ 9401’s source at ca​.gov