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

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Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-205

70A-9a-205. Use or disposition of collateral permissible.
(1) A security interest is not invalid or fraudulent against creditors solely because:
(a) the debtor has the right or ability to:
(i) use, commingle, or dispose of all or part of the collateral, including returned orrepossessed goods;
(ii) collect, compromise, enforce, or otherwise deal with collateral;
(iii) accept the return of collateral or make repossessions; or
(iv) use, commingle, or dispose of proceeds; or
(b) the secured party fails to require the debtor to account for proceeds or replacecollateral.
(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 securedparty.

Enacted by Chapter 252, 2000 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-205

70A-9a-205. Use or disposition of collateral permissible.
(1) A security interest is not invalid or fraudulent against creditors solely because:
(a) the debtor has the right or ability to:
(i) use, commingle, or dispose of all or part of the collateral, including returned orrepossessed goods;
(ii) collect, compromise, enforce, or otherwise deal with collateral;
(iii) accept the return of collateral or make repossessions; or
(iv) use, commingle, or dispose of proceeds; or
(b) the secured party fails to require the debtor to account for proceeds or replacecollateral.
(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 securedparty.

Enacted by Chapter 252, 2000 General Session

State Codes and Statutes

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State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-205

70A-9a-205. Use or disposition of collateral permissible.
(1) A security interest is not invalid or fraudulent against creditors solely because:
(a) the debtor has the right or ability to:
(i) use, commingle, or dispose of all or part of the collateral, including returned orrepossessed goods;
(ii) collect, compromise, enforce, or otherwise deal with collateral;
(iii) accept the return of collateral or make repossessions; or
(iv) use, commingle, or dispose of proceeds; or
(b) the secured party fails to require the debtor to account for proceeds or replacecollateral.
(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 securedparty.

Enacted by Chapter 252, 2000 General Session