(1) |
Except as otherwise provided in Subsections (3) and (4), this chapter applies to:
Terms Used In Utah Code 70A-9a-109- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- real property: includes :Utah Code 68-3-12.5
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- 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
- Statute: A law passed by a legislature.
- Tort: A civil wrong or breach of a duty to another person, as outlined by law. A very common tort is negligent operation of a motor vehicle that results in property damage and personal injury in an automobile accident.
- United States: includes each state, district, and territory of the United States of America. See Utah Code 68-3-12.5
(a) |
a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; |
(b) |
an agricultural lien; |
(c) |
a sale of accounts, chattel paper, payment intangibles, or promissory notes; |
|
(2) |
The application of this chapter to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this chapter does not apply. |
(3) |
This chapter does not apply to the extent that:
(a) |
a statute, regulation, or treaty of the United States preempts this chapter; |
(b) |
another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state; |
(c) |
a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or |
(d) |
the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Section 70A-5-114. |
|
(4) |
This chapter does not apply to:
(a) |
a landlord’s lien, other than an agricultural lien; |
(b) |
a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Section 70A-9a-333 applies with respect to priority of the lien; |
(c) |
an assignment of a claim for wages, salary, or other compensation of an employee; |
(d) |
a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose; |
(e) |
an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only; |
(f) |
an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract; |
(g) |
an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness; |
(h) |
a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health-care provider of a health-care-insurance receivable and any subsequent assignment of the right to payment, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds; |
(i) |
an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral; |
(j) |
a right of recoupment or set-off, but:
(i) |
Section 70A-9a-340 applies with respect to the effectiveness of rights of recoupment or set-off against deposit accounts; and |
(ii) |
Section 70A-9a-404 applies with respect to defenses or claims of an account debtor; |
|
(k) |
the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(iv) |
security agreements covering personal and real property in Section 70A-9a-604; |
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(l) |
an assignment of a claim arising in tort, other than a commercial tort claim, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds; |
(m) |
an assignment of a deposit account in a consumer transaction, but Sections 70A-9a-315 and 70A-9a-322 apply with respect to proceeds and priorities in proceeds; |
(n) |
an assignment of a claim or right to receive compensation for injuries or sickness as described in 26 U.S.C. § 104(a)(1) or (2); or |
(o) |
an assignment of a claim or right to receive benefits under a special needs trust as described in 42 U.S.C. § 1396p(d)(4). |
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(5) |
Notwithstanding anything to the contrary in this section, Subsections (4)(n) and (o) shall only be effective to security interests created on or after May 6, 2002. |
Amended by Chapter 99, 2002 General Session