70A-2a-308 - Special rights of creditors. - Utah Statutes

70A-2a-308. Special rights of creditors.
(1) A creditor of a lessor in possession of goods subject to a lease contract may treat thelease contract as void if as against the creditor retention of possession by the lessor is fraudulentor voids the lease contract under any statute or rule of law, but retention of possession in goodfaith and current course of trade by the lessor for a commercially reasonable time after the leasecontract becomes enforceable is not fraudulent and does not void the lease contract.
(2) Nothing in this chapter impairs the rights of creditors of a lessor if the lease contract ismade under circumstances which under any statute or rule of law apart from the chapter wouldconstitute the transaction a fraudulent transfer or voidable preference.
(3) A creditor of a seller may treat a sale or an identification of goods to a contract forsale as void if as against the creditor retention of possession by the seller is fraudulent under anystatute or rule of law, but retention of possession of the goods pursuant to a lease contract enteredinto by the seller as lessee and the buyer as lessor in connection with the sale or identification ofthe goods is not fraudulent if the buyer bought for value and in good faith.

Enacted by Chapter 197, 1990 General Session