Section 28:9-109 - Classification of goods; "consumer goods"; "equipment"; "farm products"; "inventory"

Classification of goods; "consumer goods"; "equipment"; "farm products"; "inventory"

Goods are

(1) “consumer goods” if they are used or bought for use primarily for personal, family or household purposes;

(2) “equipment” if they are used or bought for use primarily in business (including farming or a profession) or by a debtor who is a non-profit organization or a governmental subdivision or agency or if the goods are not included in the definitions of inventory, farm products or consumer goods;

(3) “farm products” if they are crops or livestock or supplies used or produced in farming operations or if they are products of crops or livestock in their unmanufactured states (such as ginned cotton, woolclip, maple syrup, milk and eggs), and if they are in the possession of a debtor engaged in raising, fattening, grazing or other farming operations. If goods are farm products they are neither equipment nor inventory;

(4) “inventory” if they are held by a person who holds them for sale or lease or to be furnished under contracts of service or if he has so furnished them, or if they are raw materials, work in process or materials used or consumed in a business. Inventory of a person is not to be classified as his equipment.

CREDIT(S)

(Dec. 30, 1963, 77 Stat. 750, Pub. L. 88-243, § 1.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications
1981 Ed., § 28:9-109.
1973 Ed., § 28:9-109.
Legislative History of Laws
For Law 13-201, see notes following § 28:9-101.

Current through September 13, 2012