70A-2-402. Rights of seller‘s creditors against sold goods.
| (1) |
Except as provided in Subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer‘s rights to recover the goods under Section 70A-2-502 or 70A-2-716. |
Terms Used In Utah Code 70A-2-402
- Buyer: means a person who buys or contracts to buy goods. See Utah Code 70A-2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Utah Code 70A-2-106
- Seller: means a person who sells or contracts to sell goods. See Utah Code 70A-2-103
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
| (2) |
A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent. |
| (3) |
Nothing in this chapter shall be deemed to impair the rights of creditors of the seller:
| (b) |
where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this chapter constitute the transaction a voidable transaction or voidable preference. |
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Amended by Chapter 281, 2018 General Session
