Arizona Laws 44-1773. Purchase or resale of consigned fine art by art dealer
A. If a work of fine art is trust property under section 44-1772 when initially received by the art dealer it remains trust property notwithstanding the subsequent purchase of the work of fine art by the art dealer directly or indirectly for the art dealer’s own account until the purchase price is paid in full to the artist.
Terms Used In Arizona Laws 44-1773
- Art dealer: means a person engaged in the business of selling works of fine art, other than a person exclusively engaged in the business of selling goods at public auction. See Arizona Laws 44-1771
- Artist: means the creator of a work of fine art. See Arizona Laws 44-1771
- Fiduciary: A trustee, executor, or administrator.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Property: includes both real and personal property. See Arizona Laws 1-215
- Work of fine art: means an original or multiple original art work which is:
(a) A visual rendition, including a painting, drawing, sculpture, mosaic or photograph. See Arizona Laws 44-1771
B. If the art dealer resells a work of fine art to which subsection A of this section applies to a bona fide third party before the artist has been paid in full, the work of fine art ceases to be trust property and the proceeds of the resale are trust funds in the hands of the art dealer for the benefit of the artist to the extent necessary to pay any balance still due to the artist. The trusteeship of the proceeds continues until the fiduciary obligation of the art dealer with respect to the transaction is discharged in full.