§ 4-9-604 — Procedure if security agreement covers real property or fixtures

(a) If a security agreement covers both personal and real property, a secured party
may proceed:

(1) Under this part 6 as to the personal property without prejudicing any
rights with respect to the real property; or

(2) As to both the personal property and the real property in accordance with
the rights with respect to the real property, in which case the other provisions of
this part 6 do not apply.

(b) Subject to subsection (c) of this section, if a security agreement covers
goods that are or become fixtures, a secured party may proceed:

(1) Under this part 6; or

(2) In accordance with the rights with respect to real property, in which case
the other provisions of this part 6 do not apply.

(c) Subject to the other provisions of this part 6, if a secured party holding a
security interest in fixtures has priority over all owners and encumbrancers of the
real property, the secured party, after default, may remove the collateral from the
real property.

(d) A secured party that removes collateral shall promptly reimburse any
encumbrancer or owner of the real property for the cost of repair of any physical
injury caused by the removal. The secured party need not reimburse the
encumbrancer or owner for any diminution in value of the real property caused by
the absence of the goods removed or by any necessity of replacing them. A person
entitled to reimbursement may refuse permission to remove until the secured party
gives adequate assurance for the performance of the obligation to reimburse.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1400, � 1, effective July 1.