State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-208

70A-9a-208. Additional duties of secured party having control of collateral.
(1) This section applies to cases in which there is no outstanding secured obligation andthe secured party is not committed to make advances, incur obligations, or otherwise give value.
(2) Within 10 days after receiving an authenticated demand by the debtor:
(a) a secured party having control of a deposit account under Subsection70A-9a-104(1)(b) shall send to the bank with which the deposit account is maintained anauthenticated statement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(b) a secured party having control of a deposit account under Subsection70A-9a-104(1)(c) shall:
(i) pay the debtor the balance on deposit in the deposit account; or
(ii) transfer the balance on deposit into a deposit account in the debtor's name;
(c) a secured party, other than a buyer, having control of electronic chattel paper underSection 70A-9a-105 shall:
(i) communicate the authoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for the secured party,communicate to the custodian an authenticated record releasing the designated custodian fromany further obligation to comply with instructions originated by the secured party and instructingthe custodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable the debtor or its designated custodian to makecopies of or revisions to the authoritative copy which add or change an identified assignee of theauthoritative copy without the consent of the secured party;
(d) a secured party having control of investment property under Subsection70A-8-105(4)(b) or 70A-9a-106(2) shall send to the securities intermediary or commodityintermediary with which the security entitlement or commodity contract is maintained anauthenticated record that releases the securities intermediary or commodity intermediary fromany further obligation to comply with entitlement orders or directions originated by the securedparty;
(e) a secured party having control of a letter-of-credit right under Section 70A-9a-107shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letterof credit to the secured party an authenticated release from any further obligation to pay ordeliver proceeds of the letter of credit to the secured party; and
(f) a secured party having control of an electronic document shall:
(i) give control of the electronic document to the debtor or the debtor's designatedcustodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the secured party, communicateto the custodian an authenticated record releasing the designated custodian from any furtherobligation to comply with instructions originated by the secured party and instructing thecustodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable to the debtor or its designated custodian to makecopies of or revisions to the authoritative copy without the consent of the secured party.

Amended by Chapter 42, 2006 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-208

70A-9a-208. Additional duties of secured party having control of collateral.
(1) This section applies to cases in which there is no outstanding secured obligation andthe secured party is not committed to make advances, incur obligations, or otherwise give value.
(2) Within 10 days after receiving an authenticated demand by the debtor:
(a) a secured party having control of a deposit account under Subsection70A-9a-104(1)(b) shall send to the bank with which the deposit account is maintained anauthenticated statement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(b) a secured party having control of a deposit account under Subsection70A-9a-104(1)(c) shall:
(i) pay the debtor the balance on deposit in the deposit account; or
(ii) transfer the balance on deposit into a deposit account in the debtor's name;
(c) a secured party, other than a buyer, having control of electronic chattel paper underSection 70A-9a-105 shall:
(i) communicate the authoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for the secured party,communicate to the custodian an authenticated record releasing the designated custodian fromany further obligation to comply with instructions originated by the secured party and instructingthe custodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable the debtor or its designated custodian to makecopies of or revisions to the authoritative copy which add or change an identified assignee of theauthoritative copy without the consent of the secured party;
(d) a secured party having control of investment property under Subsection70A-8-105(4)(b) or 70A-9a-106(2) shall send to the securities intermediary or commodityintermediary with which the security entitlement or commodity contract is maintained anauthenticated record that releases the securities intermediary or commodity intermediary fromany further obligation to comply with entitlement orders or directions originated by the securedparty;
(e) a secured party having control of a letter-of-credit right under Section 70A-9a-107shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letterof credit to the secured party an authenticated release from any further obligation to pay ordeliver proceeds of the letter of credit to the secured party; and
(f) a secured party having control of an electronic document shall:
(i) give control of the electronic document to the debtor or the debtor's designatedcustodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the secured party, communicateto the custodian an authenticated record releasing the designated custodian from any furtherobligation to comply with instructions originated by the secured party and instructing thecustodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable to the debtor or its designated custodian to makecopies of or revisions to the authoritative copy without the consent of the secured party.

Amended by Chapter 42, 2006 General Session


State Codes and Statutes

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-208

70A-9a-208. Additional duties of secured party having control of collateral.
(1) This section applies to cases in which there is no outstanding secured obligation andthe secured party is not committed to make advances, incur obligations, or otherwise give value.
(2) Within 10 days after receiving an authenticated demand by the debtor:
(a) a secured party having control of a deposit account under Subsection70A-9a-104(1)(b) shall send to the bank with which the deposit account is maintained anauthenticated statement that releases the bank from any further obligation to comply withinstructions originated by the secured party;
(b) a secured party having control of a deposit account under Subsection70A-9a-104(1)(c) shall:
(i) pay the debtor the balance on deposit in the deposit account; or
(ii) transfer the balance on deposit into a deposit account in the debtor's name;
(c) a secured party, other than a buyer, having control of electronic chattel paper underSection 70A-9a-105 shall:
(i) communicate the authoritative copy of the electronic chattel paper to the debtor or itsdesignated custodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic chattel paper is maintained for the secured party,communicate to the custodian an authenticated record releasing the designated custodian fromany further obligation to comply with instructions originated by the secured party and instructingthe custodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable the debtor or its designated custodian to makecopies of or revisions to the authoritative copy which add or change an identified assignee of theauthoritative copy without the consent of the secured party;
(d) a secured party having control of investment property under Subsection70A-8-105(4)(b) or 70A-9a-106(2) shall send to the securities intermediary or commodityintermediary with which the security entitlement or commodity contract is maintained anauthenticated record that releases the securities intermediary or commodity intermediary fromany further obligation to comply with entitlement orders or directions originated by the securedparty;
(e) a secured party having control of a letter-of-credit right under Section 70A-9a-107shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the letterof credit to the secured party an authenticated release from any further obligation to pay ordeliver proceeds of the letter of credit to the secured party; and
(f) a secured party having control of an electronic document shall:
(i) give control of the electronic document to the debtor or the debtor's designatedcustodian;
(ii) if the debtor designates a custodian that is the designated custodian with which theauthoritative copy of the electronic document is maintained for the secured party, communicateto the custodian an authenticated record releasing the designated custodian from any furtherobligation to comply with instructions originated by the secured party and instructing thecustodian to comply with instructions originated by the debtor; and
(iii) take appropriate action to enable to the debtor or its designated custodian to makecopies of or revisions to the authoritative copy without the consent of the secured party.

Amended by Chapter 42, 2006 General Session