State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-20370A-9a-203. Attachment and enforceability of security interest -- Proceeds --Supporting obligations -- Formal requisites.
(1) A security interest attaches to collateral when it becomes enforceable against thedebtor with respect to the collateral, unless an agreement expressly postpones the time ofattachment.
(2) Except as otherwise provided in Subsections (3) through (9), a security interest isenforceable against the debtor and third parties with respect to the collateral only if:
(a) value has been given;
(b) the debtor has rights in the collateral or the power to transfer rights in the collateral toa secured party; and
(c) one of the following conditions is met:
(i) the debtor has authenticated a security agreement that provides a description of thecollateral and, if the security interest covers timber to be cut, a description of the land concerned;
(ii) the collateral is not a certificated security and is in the possession of the secured partyunder Section 70A-9a-313 pursuant to the debtor's security agreement;
(iii) the collateral is a certificated security in registered form and the security certificatehas been delivered to the secured party under Section 70A-8-301 pursuant to the debtor's securityagreement; or
(iv) the collateral is deposit accounts, electronic chattel paper, investment property, orletter-of-credit rights, or electronic documents, and the secured party has control under Section70A-7a-106, 70A-9a-104, 70A-9a-105, 70A-9a-106, or 70A-9a-107 pursuant to the debtor'ssecurity agreement.
(3) Subsection (2) is subject to Section 70A-4-210 on the security interest of a collectingbank, Section 70A-5-118 on the security interest of a letter-of-credit issuer or nominated person,Section 70A-9a-110 on a security interest arising under Chapter 2 or 2a, and Section 70A-9a-206on security interests in investment property.
(4) A person becomes bound as debtor by a security agreement entered into by anotherperson if, by operation of law other than this chapter or by contract:
(a) the security agreement becomes effective to create a security interest in the person'sproperty; or
(b) the person becomes generally obligated for the obligations of the other person,including the obligation secured under the security agreement, and acquires or succeeds to all orsubstantially all of the assets of the other person.
(5) If a new debtor becomes bound as debtor by a security agreement entered into byanother person:
(a) the agreement satisfies Subsection (2)(c) with respect to existing or after-acquiredproperty of the new debtor to the extent the property is described in the agreement; and
(b) another agreement is not necessary to make a security interest in the propertyenforceable.
(6) The attachment of a security interest in collateral gives the secured party the rights toproceeds provided by Section 70A-9a-315 and is also attachment of a security interest in asupporting obligation for the collateral.
(7) The attachment of a security interest in a right to payment or performance secured bya security interest or other lien on personal or real property is also attachment of a securityinterest in the security interest, mortgage, or other lien.
(8) The attachment of a security interest in a securities account is also attachment of asecurity interest in the security entitlements carried in the securities account.
(9) The attachment of a security interest in a commodity account is also attachment of asecurity interest in the commodity contracts carried in the commodity account.
Amended by Chapter 42, 2006 General Session
