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Utah Code § 70A-9a-325

Priority of security interests in transferred collateral

Known as the Uniform Commercial Code

The act spans §§ 70A-12-101 to 70A-9a-904 (293 sections).

Enacted by Chapter 252, 2000 General Session

(1) Except as otherwise provided in Subsection (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

(a) the debtor acquired the collateral subject to the security interest created by the other person;

(b) the security interest created by the other person was perfected when the debtor acquired the collateral; and

(c) there is no period thereafter when the security interest is unperfected.

(2) Subsection (1) subordinates a security interest only if the security interest:

(a) otherwise would have priority solely under Subsection 70A-9a-322(1) or Section 70A-9a-324; or

(b) arose solely under Subsection 70A-2-711(3) or 70A-2a-508(5).

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.