§ 9-604 — Procedure If Security Agreement Covers Real Property, Fixtures, or Cooperative Interests

Section 9--604. Procedure If Security Agreement Covers Real Property,\n Fixtures, or Cooperative Interests.\n (a) Enforcement: personal and real property. If a security agreement\ncovers both personal and real property, a secured party may proceed:\n (1) under this part as to the personal property without\n prejudicing any rights with respect to the real property; or\n (2) as to both the personal property and the real property in\n accordance with the rights with respect to the real property,\n in which case the other provisions of this part do not apply.\n (b) Enforcement: fixtures. Subject to subsection (c), if a security\nagreement covers goods that are or become fixtures, a secured party may\nproceed:\n (1) under this part; or\n (2) in accordance with the rights with respect to real property,\n in which case the other provisions of this part do not apply.\n (c) Removal of fixtures. Subject to the other provisions of this part,\nif a secured party holding a security interest in fixtures has priority\nover all owners and encumbrancers of the real property, the secured\nparty, after default, may remove the collateral from the real property.\n (d) Injury caused by removal. A secured party that removes collateral\nshall promptly reimburse any encumbrancer or owner of the real property,\nother than the debtor, for the cost of repair of any physical injury\ncaused by the removal. The secured party need not reimburse the\nencumbrancer or owner for any diminution in value of the real property\ncaused by the absence of the goods removed or by any necessity of\nreplacing them. A person entitled to reimbursement may refuse permission\nto remove until the secured party gives adequate assurance for the\nperformance of the obligation to reimburse.\n (e) Enforcement: cooperative interests. A security interest in a\ncooperative interest may be enforced only as provided in Section\n9--601(a).\n