§490:9-604  Procedure if security agreement
covers real property or fixtures.  (a)  If a security agreement covers both
personal and real property, a secured party may proceed:



(1)  Under this part as to the personal property
without prejudicing any rights with respect to the real property; or



(2)  As to both the personal property and the real
property in accordance with the rights with respect to the real property, in
which case the other provisions of this part do not apply.



(b)  Subject to subsection (c), if a security
agreement covers goods that are or become fixtures, a secured party may
proceed:



(1)  Under this part; or



(2)  In accordance with the rights with respect to
real property, in which case the other provisions of this part do not apply.



(c)  Subject to the other provisions of this
part, if a secured party holding a security interest in fixtures has priority
over all owners and encumbrancers of the real property, the secured party,
after default, may remove the collateral from the real property.



(d)  A secured party that removes collateral
shall promptly reimburse any encumbrancer or owner of the real property, other
than the debtor, for the cost of repair of any physical injury caused by the
removal.  The secured party need not reimburse the encumbrancer or owner for
any diminution in value of the real property caused by the absence of the goods
removed or by any necessity of replacing them.  A person entitled to
reimbursement may refuse permission to remove until the secured party gives adequate
assurance for the performance of the obligation to reimburse. [L 2000, c 241,
pt of §1]