Utah Statutes
§ 70A-9a-205 — Use or disposition of collateral permissible.
Utah·Title 70A Uniform Commercial Code·Ch. 70A-9a Uniform Commercial Code - Secured Transactions·Part 70A-9a-2 Effectiveness of Security Agreement - Attachment of Security Interest - Rights of Parties to Security Agreement
(1)A security interest is not invalid or fraudulent against creditors solely because:
(1)(a) the debtor has the right or ability to:
(1)(a)(i) use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(1)(a)(ii) collect, compromise, enforce, or otherwise deal with collateral;
(1)(a)(iii) accept the return of collateral or make repossessions; or
(1)(a)(iv) use, commingle, or dispose of proceeds; or
(1)(b) the secured party fails to require the debtor to account for proceeds or replace collateral.
(2)This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
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Legislative History
Enacted by Chapter 252, 2000 General Session
Nearby Sections
15
§ 70A-10-101
Effective date.§ 70A-10-102
Specific repealer -- Provision for transition.§ 70A-10-103
General repealer.§ 70A-10-104
Laws not repealed.§ 70A-1a-101
Title.§ 70A-1a-102
Scope of chapter.§ 70A-1a-104
Construction against implied repeal.§ 70A-1a-105
Severability.§ 70A-1a-106
Use of singular and plural -- Gender.§ 70A-1a-107
Section captions.§ 70A-1a-201
General definitions.§ 70A-1a-202
Notice -- Knowledge.§ 70A-1a-203
Lease distinguished from security interest.