State Codes and Statutes
Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-32270A-9a-322. Priorities among conflicting security interests in and agricultural lienson same collateral.
(1) Except as otherwise provided in this section, priority among conflicting securityinterests and agricultural liens in the same collateral is determined according to the followingrules:
(a) Conflicting perfected security interests and agricultural liens rank according to priorityin time of filing or perfection. Priority dates from the earlier of the time a filing covering thecollateral is first made or the security interest or agricultural lien is first perfected, if there is noperiod thereafter when there is neither filing nor perfection.
(b) A perfected security interest or agricultural lien has priority over a conflictingunperfected security interest or agricultural lien.
(c) The first security interest or agricultural lien to attach or become effective has priorityif conflicting security interests and agricultural liens are unperfected.
(2) For the purposes of Subsection (1)(a):
(a) the time of filing or perfection as to a security interest in collateral is also the time offiling or perfection as to a security interest in proceeds; and
(b) the time of filing or perfection as to a security interest in collateral supported by asupporting obligation is also the time of filing or perfection as to a security interest in thesupporting obligation.
(3) Except as otherwise provided in Subsection (6), a security interest in collateral whichqualifies for priority over a conflicting security interest under Section 70A-9a-327, 70A-9a-328,70A-9a-329, 70A-9a-330, or 70A-9a-331 also has priority over a conflicting security interest in:
(a) any supporting obligation for the collateral; and
(b) proceeds of the collateral if:
(i) the security interest in proceeds is perfected;
(ii) the proceeds are cash proceeds or of the same type as the collateral; and
(iii) in the case of proceeds that are proceeds of proceeds, all intervening proceeds arecash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.
(4) Subject to Subsection (5) and except as otherwise provided in Subsection (6), if asecurity interest in chattel paper, deposit accounts, negotiable documents, instruments, investmentproperty, or letter-of-credit rights is perfected by a method other than filing, conflicting perfectedsecurity interests in proceeds of the collateral rank according to priority in time of filing.
(5) Subsection (4) applies only if the proceeds of the collateral are not cash proceeds,chattel paper, negotiable documents, instruments, investment property, or letter-of-credit rights.
(6) Subsections (1) through (5) are subject to:
(a) Subsection (7) and the other provisions of this part;
(b) Section 70A-4-210 with respect to a security interest of a collecting bank;
(c) Section 70A-5-118 with respect to a security interest of an issuer or nominatedperson; and
(d) Section 70A-9a-110 with respect to a security interest arising under Chapter 2 or 2a.
(7) A perfected agricultural lien on collateral has priority over a conflicting securityinterest in or agricultural lien on the same collateral if the statute creating the agricultural lien soprovides.
Enacted by Chapter 252, 2000 General Session
