400.9-604. Procedure if security agreement covers real property or fixtures. - Missouri Statutes

Procedure if security agreement covers real property or fixtures.

400.9-604. (a) If a security agreement covers both personal and realproperty, a secured party may proceed:

(1) Under this part as to the personal property without prejudicingany rights with respect to the real property; or

(2) As to both the personal property and the real property inaccordance with the rights with respect to the real property, in which casethe other provisions of this part do not apply.

(b) Subject to subsection (c), if a security agreement covers goodsthat are or become fixtures, a secured party may proceed:

(1) Under this part; or

(2) In accordance with the rights with respect to real property, inwhich case the other provisions of this part do not apply.

(c) Subject to the other provisions of this part, if a secured partyholding a security interest in fixtures has priority over all owners andencumbrancers of the real property, the secured party, after default, mayremove the collateral from the real property.

(d) A secured party that removes collateral shall promptly reimburseany encumbrancer or owner of the real property, other than the debtor, forthe cost of repair of any physical injury caused by the removal. Thesecured party need not reimburse the encumbrancer or owner for anydiminution in value of the real property caused by the absence of the goodsremoved or by any necessity of replacing them. A person entitled toreimbursement may refuse permission to remove until the secured party givesadequate assurance for the performance of the obligation to reimburse.

(L. 2001 S.B. 288)

Effective 7-01-01