70A-9a-608 - Application of proceeds of collection or enforcement -- Liability for deficiency and right to surplus. - Utah Statutes

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Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-608

70A-9a-608. Application of proceeds of collection or enforcement -- Liability fordeficiency and right to surplus.
(1) If a security interest or agricultural lien secures payment or performance of anobligation, the following rules apply:
(a) A secured party shall apply or pay over for application the cash proceeds of collectionor enforcement under Section 70A-9a-607 in the following order to:
(i) the reasonable expenses of collection and enforcement and, to the extent provided forby agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred bythe secured party;
(ii) the satisfaction of obligations secured by the security interest or agricultural lien underwhich the collection or enforcement is made; and
(iii) the satisfaction of obligations secured by any subordinate security interest in or otherlien on the collateral subject to the security interest or agricultural lien under which the collectionor enforcement is made if the secured party receives an authenticated demand for proceeds beforedistribution of the proceeds is completed.
(b) If requested by a secured party, a holder of a subordinate security interest or other lienshall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holdercomplies, the secured party need not comply with the holder's demand under Subsection(1)(a)(iii).
(c) A secured party need not apply or pay over for application noncash proceeds ofcollection and enforcement under Section 70A-9a-607 unless the failure to do so would becommercially unreasonable. A secured party that applies or pays over for application noncashproceeds shall do so in a commercially reasonable manner.
(d) A secured party shall account to and pay a debtor for any surplus, and the obligor isliable for any deficiency.
(2) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for anydeficiency.

Enacted by Chapter 252, 2000 General Session

State Codes and Statutes

Statutes > Utah > Title-70a > Chapter-09a > 70a-9a-608

70A-9a-608. Application of proceeds of collection or enforcement -- Liability fordeficiency and right to surplus.
(1) If a security interest or agricultural lien secures payment or performance of anobligation, the following rules apply:
(a) A secured party shall apply or pay over for application the cash proceeds of collectionor enforcement under Section 70A-9a-607 in the following order to:
(i) the reasonable expenses of collection and enforcement and, to the extent provided forby agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred bythe secured party;
(ii) the satisfaction of obligations secured by the security interest or agricultural lien underwhich the collection or enforcement is made; and
(iii) the satisfaction of obligations secured by any subordinate security interest in or otherlien on the collateral subject to the security interest or agricultural lien under which the collectionor enforcement is made if the secured party receives an authenticated demand for proceeds beforedistribution of the proceeds is completed.
(b) If requested by a secured party, a holder of a subordinate security interest or other lienshall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holdercomplies, the secured party need not comply with the holder's demand under Subsection(1)(a)(iii).
(c) A secured party need not apply or pay over for application noncash proceeds ofcollection and enforcement under Section 70A-9a-607 unless the failure to do so would becommercially unreasonable. A secured party that applies or pays over for application noncashproceeds shall do so in a commercially reasonable manner.
(d) A secured party shall account to and pay a debtor for any surplus, and the obligor isliable for any deficiency.
(2) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for anydeficiency.

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-608

70A-9a-608. Application of proceeds of collection or enforcement -- Liability fordeficiency and right to surplus.
(1) If a security interest or agricultural lien secures payment or performance of anobligation, the following rules apply:
(a) A secured party shall apply or pay over for application the cash proceeds of collectionor enforcement under Section 70A-9a-607 in the following order to:
(i) the reasonable expenses of collection and enforcement and, to the extent provided forby agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred bythe secured party;
(ii) the satisfaction of obligations secured by the security interest or agricultural lien underwhich the collection or enforcement is made; and
(iii) the satisfaction of obligations secured by any subordinate security interest in or otherlien on the collateral subject to the security interest or agricultural lien under which the collectionor enforcement is made if the secured party receives an authenticated demand for proceeds beforedistribution of the proceeds is completed.
(b) If requested by a secured party, a holder of a subordinate security interest or other lienshall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holdercomplies, the secured party need not comply with the holder's demand under Subsection(1)(a)(iii).
(c) A secured party need not apply or pay over for application noncash proceeds ofcollection and enforcement under Section 70A-9a-607 unless the failure to do so would becommercially unreasonable. A secured party that applies or pays over for application noncashproceeds shall do so in a commercially reasonable manner.
(d) A secured party shall account to and pay a debtor for any surplus, and the obligor isliable for any deficiency.
(2) If the underlying transaction is a sale of accounts, chattel paper, payment intangibles,or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for anydeficiency.

Enacted by Chapter 252, 2000 General Session