Utah § 16-16-604 Security interest and set-off.

Utah Statutes

§ 16-16-604 — Security interest and set-off.

Utah § 16-16-604

Title 16Corporations

Ch. 16-16Uniform Limited Cooperative Association Act

Part 16-16-6Member's Interest in Limited Cooperative Association

This text of Utah § 16-16-604 (Security interest and set-off.) is published on Counsel Stack Legal Research, covering Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Utah Code Ann. § 16-16-604 (2026).

Text

(1)A member or transferee may create an enforceable security interest in its financial rights in a limited cooperative association.

(2)Unless the organic rules otherwise provide, a member may not create an enforceable security interest in the member's governance rights in a limited cooperative association.

(3)The organic rules may provide that a limited cooperative association has a security interest in the financial rights of a member to secure payment of any indebtedness or other obligation of the member to the association. A security interest provided for in the organic rules is enforceable under, and governed by, Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions.

(4)Unless the organic rules otherwise provide, a member may not compel the limited cooperative asso

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(1) A member or transferee may create an enforceable security interest in its financial rights in a limited cooperative association.
(2) Unless the organic rules otherwise provide, a member may not create an enforceable security interest in the member's governance rights in a limited cooperative association.
(3) The organic rules may provide that a limited cooperative association has a security interest in the financial rights of a member to secure payment of any indebtedness or other obligation of the member to the association. A security interest provided for in the organic rules is enforceable under, and governed by, Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions.
(4) Unless the organic rules otherwise provide, a member may not compel the limited cooperative association to offset financial rights against any indebtedness or obligation owed to the association.