12A:9-401 - Alienability of debtor's rights
12A:9-401 Alienability of debtor's rights.12A:9-401. Alienability of Debtor's Rights.
(a)Other law governs alienability; exceptions. Except as otherwise provided in subsection (b) and 12A:9-406, 12A:9-407, 12A:9-408 and 12A:9-409, whether a debtor's rights in collateral may be voluntarily or involuntarily transferred is governed by law other than this chapter.
(b)Agreement does not prevent transfer. 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.
L.2001, c.117, s.1; amended 2001, c.386, s.58.
12A:9-402. Secured party not obligated on contract of debtor or in tort
12A:9-402. Secured Party Not Obligated on Contract of Debtor or in Tort.
The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
L.2001, c.117, s.1.