Utah § 70A-9a-205 Use or disposition of collateral permissible.

Utah Statutes

§ 70A-9a-205 — Use or disposition of collateral permissible.

Utah § 70A-9a-205

Title 70AUniform Commercial Code

Ch. 70A-9aUniform Commercial Code - Secured Transactions

Part 70A-9a-2Effectiveness of Security Agreement - Attachment of Security Interest - Rights of Parties to Security Agreement

This text of Utah § 70A-9a-205 (Use or disposition of collateral permissible.) 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. § 70A-9a-205 (2026).

Text

(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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(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.