| (1) |
Except as otherwise provided in Subsection (3), for purposes of determining the priority of a perfected security interest under Subsection 70A-9a-322(1)(a), perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:
Terms Used In Utah Code 70A-9a-323- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means :Utah Code 68-3-12.5
| (a) |
is made while the security interest is perfected only:
|
| (b) |
is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Section 70A-9a-309 or Subsection 70A-9a-312(5), (6), or (7). |
|
| (2) |
Except as otherwise provided in Subsection (3), a security interest is subordinate to the rights of a person that becomes a lien creditor to the extent that the security interest secures an advance made more than 45 days after the person becomes a lien creditor unless the advance is made:
| (a) |
without knowledge of the lien; or |
| (b) |
pursuant to a commitment entered into without knowledge of the lien. |
|
| (3) |
Subsections (1) and (2) do not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor. |
| (4) |
Except as otherwise provided in Subsection (5), a buyer of goods other than a buyer in ordinary course of business takes free of a security interest to the extent that it secures advances made after the earlier of:
| (a) |
the time the secured party acquires knowledge of the buyer’s purchase; or |
| (b) |
45 days after the purchase. |
|
| (5) |
Subsection (4) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer’s purchase and before the expiration of the 45-day period. |
| (6) |
Except as otherwise provided in Subsection (7), a lessee of goods, other than a lessee in ordinary course of business, takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:
| (a) |
the time the secured party acquires knowledge of the lease; or |
| (b) |
45 days after the lease contract becomes enforceable. |
|
| (7) |
Subsection (6) does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the 45-day period. |
Enacted by Chapter 252, 2000 General Session
