70A-9a-102 - Definitions and index of definitions. - Utah Statutes

70A-9a-102. Definitions and index of definitions.
In this chapter:
(1) "Accession" means goods that are physically united with other goods in such amanner that the identity of the original goods is not lost.
(2) (a) "Account," except as used in "account for," means a right to payment of amonetary obligation, whether or not earned by performance:
(i) for property that has been or is to be sold, leased, licensed, assigned, or otherwisedisposed of;
(ii) for services rendered or to be rendered;
(iii) for a policy of insurance issued or to be issued;
(iv) for a secondary obligation incurred or to be incurred;
(v) for energy provided or to be provided;
(vi) for the use or hire of a vessel under a charter or other contract;
(vii) arising out of the use of a credit or charge card or information contained on or foruse with the card; or
(viii) as winnings in a lottery or other game of chance operated or sponsored by a state,governmental unit of a state, or person licensed or authorized to operate the game by a state orgovernmental unit of a state.
(b) "Account" includes health-care-insurance receivables.
(c) "Account" does not include:
(i) rights to payment evidenced by chattel paper or an instrument;
(ii) commercial tort claims;
(iii) deposit accounts;
(iv) investment property;
(v) letter-of-credit rights or letters of credit; or
(vi) rights to payment for money or funds advanced or sold, other than rights arising outof the use of a credit or charge card or information contained on or for use with the card.
(3) (a) "Account debtor" means a person obligated on an account, chattel paper, orgeneral intangible.
(b) "Account debtor" does not include persons obligated to pay a negotiable instrument,even if the instrument constitutes part of chattel paper.
(4) "Accounting," except as used in "accounting for," means a record:
(a) authenticated by a secured party;
(b) indicating the aggregate unpaid secured obligations as of a date not more than 35days earlier or 35 days later than the date of the record; and
(c) identifying the components of the obligations in reasonable detail.
(5) "Agricultural lien" means an interest, other than a security interest, in farm products:
(a) which secures payment or performance of an obligation for:
(i) goods or services furnished in connection with a debtor's farming operation; or
(ii) rent on real property leased by a debtor in connection with its farming operation;
(b) which is created by statute in favor of a person that:
(i) in the ordinary course of its business furnished goods or services to a debtor inconnection with a debtor's farming operation; or
(ii) leased real property to a debtor in connection with the debtor's farming operation; and
(c) whose effectiveness does not depend on the person's possession of the personal

property.
(6) "As-extracted collateral" means:
(a) oil, gas, or other minerals that are subject to a security interest that:
(i) is created by a debtor having an interest in the minerals before extraction; and
(ii) attaches to the minerals as extracted; or
(b) accounts arising out of the sale at the wellhead or minehead of oil, gas, or otherminerals in which the debtor had an interest before extraction.
(7) "Authenticate" means:
(a) to sign; or
(b) to execute or otherwise adopt a symbol, or encrypt or similarly process a record inwhole or in part, with the present intent of the authenticating person to identify the person andadopt or accept a record.
(8) (a) "Bank" means an organization that is engaged in the business of banking.
(b) "Bank" includes:
(i) a depository institution as defined in Section 7-1-103; and
(ii) a trust company.
(9) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or thelike.
(10) "Certificate of title" means a certificate of title with respect to which a statuteprovides for the security interest in question to be indicated on the certificate as a condition orresult of the security interest's obtaining priority over the rights of a lien creditor with respect tothe collateral.
(11) (a) "Chattel paper" means a record or records that evidence both a monetaryobligation and a security interest in specific goods, a security interest in specific goods andsoftware used in the goods, a security interest in specific goods and license of software used inthe goods, a lease of specific goods, or a lease of specific goods and license of software used inthe goods. In this Subsection (11), "monetary obligation" means a monetary obligation securedby the goods or owed under a lease of the goods and includes a monetary obligation with respectto software used in the goods.
(b) "Chattel paper" does not include:
(i) charters or other contracts involving the use or hire of a vessel; or
(ii) records that evidence a right to payment arising out of the use of a credit or chargecard or information contained or for use with the card.
(c) If a transaction is evidenced by records that include an instrument or series ofinstruments, the group of records taken together constitutes chattel paper.
(12) "Collateral" means the property subject to a security interest or agricultural lien. "Collateral" includes:
(a) proceeds to which a security interest attaches;
(b) accounts, chattel paper, payment intangibles, and promissory notes that have beensold; and
(c) goods that are the subject of a consignment.
(13) "Commercial tort claim" means a claim arising in tort with respect to which:
(a) the claimant is an organization; or
(b) the claimant is an individual and the claim:
(i) arose in the course of the claimant's business or profession; and

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(ii) does not include damages arising out of personal injury to or the death of anindividual.
(14) "Commodity account" means an account maintained by a commodity intermediaryin which a commodity contract is carried for a commodity customer.
(15) "Commodity contract" means a commodity futures contract, an option on acommodity futures contract, a commodity option, or another contract if the contract or option is:
(a) traded on or subject to the rules of a board of trade that has been designated as acontract market for such a contract pursuant to federal commodities laws; or
(b) traded on a foreign commodity board of trade, exchange, or market, and is carried onthe books of a commodity intermediary for a commodity customer.
(16) "Commodity customer" means a person for which a commodity intermediary carriesa commodity contract on its books.
(17) "Commodity intermediary" means a person that:
(a) is registered as a futures commission merchant under federal commodities law; or
(b) in the ordinary course of its business provides clearance or settlement services for aboard of trade that has been designated as a contract market pursuant to federal commodities law.
(18) "Communicate" means:
(a) to send a written or other tangible record;
(b) to transmit a record by any means agreed upon by the persons sending and receivingthe record; or
(c) in the case of transmission of a record to or by a filing office, to transmit a record byany means prescribed by filing-office rule.
(19) "Consignee" means a merchant to which goods are delivered in a consignment.
(20) "Consignment" means a transaction, regardless of its form, in which a persondelivers goods to a merchant for the purpose of sale and:
(a) the merchant:
(i) deals in goods of that kind under a name other than the name of the person makingdelivery;
(ii) is not an auctioneer; and
(iii) is not generally known by its creditors to be substantially engaged in selling thegoods of others;
(b) with respect to each delivery, the aggregate value of the goods is $1,000 or more atthe time of delivery;
(c) the goods are not consumer goods immediately before delivery; and
(d) the transaction does not create a security interest that secures an obligation.
(21) "Consignor" means a person that delivers goods to a consignee in a consignment.
(22) "Consumer debtor" means a debtor in a consumer transaction.
(23) "Consumer goods" means goods that are used or bought for use primarily forpersonal, family, or household purposes.
(24) "Consumer-goods transaction" means a consumer transaction in which:
(a) an individual incurs an obligation primarily for personal, family, or householdpurposes; and
(b) a security interest in consumer goods secures the obligation.
(25) "Consumer obligor" means an obligor who is an individual and who incurred theobligation as part of a transaction entered into primarily for personal, family, or household

purposes.
(26) (a) "Consumer transaction" means a transaction in which:
(i) an individual incurs an obligation primarily for personal, family, or householdpurposes;
(ii) a security interest secures the obligation; and
(iii) the collateral is held or acquired primarily for personal, family, or householdpurposes.
(b) "Consumer transaction" includes consumer-goods transactions.
(27) "Continuation statement" means an amendment of a financing statement which:
(a) identifies, by its file number, the initial financing statement to which it relates; and
(b) indicates that it is a continuation statement for, or that it is filed to continue theeffectiveness of, the identified financing statement.
(28) "Debtor" means:
(a) a person having an interest, other than a security interest or other lien, in thecollateral, whether or not the person is an obligor;
(b) a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(c) a consignee.
(29) (a) "Deposit account" means a demand, time, savings, passbook, or similar accountmaintained with a bank.
(b) "Deposit account" does not include investment property or accounts evidenced by aninstrument.
(30) "Document" means a document of title or a receipt of the type described inSubsection 70A-7a-201(2).
(31) "Electronic chattel paper" means chattel paper evidenced by a record or recordsconsisting of information stored in an electronic medium.
(32) "Encumbrance" means a right, other than an ownership interest, in real property. "Encumbrance" includes mortgages and other liens on real property.
(33) "Equipment" means goods other than inventory, farm products, or consumer goods.
(34) "Farm products" means goods, other than standing timber, with respect to which thedebtor is engaged in a farming operation and which are:
(a) crops grown, growing, or to be grown, including:
(i) crops produced on trees, vines, and bushes; and
(ii) aquatic goods produced in aquacultural operations;
(b) livestock, born or unborn, including aquatic goods produced in aquaculturaloperations;
(c) supplies used or produced in a farming operation; or
(d) products of crops or livestock in their unmanufactured states.
(35) "Farming operation" means raising, cultivating, propagating, fattening, grazing, orany other farming, livestock, or aquacultural operation.
(36) "File number" means the number assigned to an initial financing statement pursuantto Subsection 70A-9a-519(1).
(37) "Filing office" means an office designated in Section 70A-9a-501 as the place to filea financing statement.
(38) "Filing-office rule" means a rule adopted pursuant to Section 70A-9a-526.
(39) "Financing statement" means a record or records composed of an initial financing

statement and any filed record relating to the initial financing statement.
(40) (a) "Fixture filing" means the filing of a financing statement covering goods that areor are to become fixtures and satisfying Subsections 70A-9a-502(1) and (2).
(b) "Fixture filing" includes the filing of a financing statement covering goods of atransmitting utility which are or are to become fixtures.
(41) "Fixtures" means goods that have become so related to particular real property thatan interest in them arises under real property law.
(42) (a) "General intangible" means any personal property, including things in action,other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods,instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, orother minerals before extraction.
(b) "General intangible" includes payment intangibles and software.
(43) "Good faith" means honesty in fact and the observance of reasonable commercialstandards of fair dealing.
(44) (a) "Goods" means all things that are movable when a security interest attaches.
(b) "Goods" includes:
(i) fixtures;
(ii) standing timber that is to be cut and removed under a conveyance or contract for sale;
(iii) the unborn young of animals;
(iv) crops grown, growing, or to be grown, even if the crops are produced on trees, vines,or bushes; and
(v) manufactured homes.
(c) "Goods" also includes a computer program embedded in goods and any supportinginformation provided in connection with a transaction relating to the program if:
(i) the program is associated with the goods in such a manner that it customarily isconsidered part of the goods; or
(ii) by becoming the owner of the goods, a person acquires a right to use the program inconnection with the goods.
(d) "Goods" does not include a computer program embedded in goods that consist solelyof the medium in which the program is embedded.
(e) "Goods" also does not include accounts, chattel paper, commercial tort claims,deposit accounts, documents, general intangibles, instruments, investment property,letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
(45) (a) "Governmental unit" means a subdivision, agency, department, county, parish,municipality, or other unit of the government of the United States, a state, or a foreign country.
(b) "Governmental unit" includes an organization having a separate corporate existence ifthe organization is eligible to issue debt on which interest is exempt from income taxation underthe laws of the United States.
(46) "Health-care-insurance receivable" means an interest in or claim under a policy ofinsurance which is a right to payment of a monetary obligation for health-care goods or servicesprovided.
(47) (a) "Instrument" means a negotiable instrument or any other writing that evidences aright to the payment of a monetary obligation, is not itself a security agreement or lease, and is ofa type that in ordinary course of business is transferred by delivery with any necessaryindorsement or assignment.

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(b) "Instrument" does not include:
(i) investment property;
(ii) letters of credit; or
(iii) writings that evidence a right to payment arising out of the use of a credit or chargecard or information contained on or for use with the card.
(48) "Inventory" means goods, other than farm products, which:
(a) are leased by a person as lessor;
(b) are held by a person for sale or lease or to be furnished under a contract of service;
(c) are furnished by a person under a contract of service; or
(d) consist of raw materials, work in process, or materials used or consumed in abusiness.
(49) "Investment property" means a security, whether certificated or uncertificated,security entitlement, securities account, commodity contract, or commodity account.
(50) "Jurisdiction of organization," with respect to a registered organization, means thejurisdiction under whose law the organization is organized.
(51) (a) "Letter-of-credit right" means a right to payment or performance under a letter ofcredit, whether or not the beneficiary has demanded or is at the time entitled to demand paymentor performance.
(b) "Letter-of-credit right" does not include the right of a beneficiary to demand paymentor performance under a letter of credit.
(52) "Lien creditor" means:
(a) a creditor that has acquired a lien on the property involved by attachment, levy, or thelike;
(b) an assignee for benefit of creditors from the time of assignment;
(c) a trustee in bankruptcy from the date of the filing of the petition; or
(d) a receiver in equity from the time of appointment.
(53) (a) "Manufactured home" means a structure, transportable in one or more sections,which, in the traveling mode, is eight body feet or more in width or 40 body feet or more inlength, or, when erected on site, is 320 or more square feet, and which is built on a permanentchassis and designed to be used as a dwelling with or without a permanent foundation whenconnected to the required utilities, and includes the plumbing, heating, air-conditioning, andelectrical systems contained therein.
(b) "Manufactured home" includes any structure that meets all of the requirements of thisSubsection (53) except the size requirements and with respect to which the manufacturervoluntarily files a certification required by the United States Secretary of Housing and UrbanDevelopment and complies with the standards established under Title 42 of the United StatesCode.
(54) "Manufactured-home transaction" means a secured transaction:
(a) that creates a purchase-money security interest in a manufactured home, other than amanufactured home held as inventory; or
(b) in which a manufactured home, other than a manufactured home held as inventory, isthe primary collateral.
(55) "Mortgage" means a consensual interest in real property, including fixtures, whichsecures payment or performance of an obligation.
(56) "New debtor" means a person that becomes bound as debtor under Subsection

70A-9a-203(4) by a security agreement previously entered into by another person.
(57) (a) "New value" means:
(i) money;
(ii) money's worth in property, services, or new credit; or
(iii) release by a transferee of an interest in property previously transferred to thetransferee.
(b) "New value" does not include an obligation substituted for another obligation.
(58) "Noncash proceeds" means proceeds other than cash proceeds.
(59) (a) "Obligor" means a person that, with respect to an obligation secured by asecurity interest in or an agricultural lien on the collateral:
(i) owes payment or other performance of the obligation;
(ii) has provided property other than the collateral to secure payment or otherperformance of the obligation; or
(iii) is otherwise accountable in whole or in part for payment or other performance of theobligation.
(b) "Obligor" does not include issuers or nominated persons under a letter of credit.
(60) "Original debtor," except as used in Subsection 70A-9a-310(3), means a person that,as debtor, entered into a security agreement to which a new debtor has become bound underSubsection 70A-9a-203(4).
(61) "Payment intangible" means a general intangible under which the account debtor'sprincipal obligation is a monetary obligation.
(62) "Person related to," with respect to an individual, means:
(a) the spouse of the individual;
(b) a brother, brother-in-law, sister, or sister-in-law of the individual;
(c) an ancestor or lineal descendant of the individual or the individual's spouse; or
(d) any other relative, by blood or marriage, of the individual or the individual's spousewho shares the same home with the individual.
(63) "Person related to," with respect to an organization, means:
(a) a person directly or indirectly controlling, controlled by, or under common controlwith the organization;
(b) an officer or director of, or a person performing similar functions with respect to, theorganization;
(c) an officer or director of, or a person performing similar functions with respect to, aperson described in Subsection (63)(a);
(d) the spouse of an individual described in Subsection (63)(a), (b), or (c); or
(e) an individual who is related by blood or marriage to an individual described inSubsection (63)(a), (b), (c), or (d) and shares the same home with the individual.
(64) "Proceeds," except as used in Subsection 70A-9a-609(2), means the followingproperty:
(a) whatever is acquired upon the sale, lease, license, exchange, or other disposition ofcollateral;
(b) whatever is collected on, or distributed on account of, collateral;
(c) rights arising out of collateral;
(d) to the extent of the value of collateral, claims arising out of the loss, nonconformity,or interference with the use of, defects or infringement of rights in, or damage to, the collateral;

or
(e) to the extent of the value of collateral and to the extent payable to the debtor or thesecured party, insurance payable by reason of the loss or nonconformity of, defects orinfringement of rights in, or damage to, the collateral.
(65) "Promissory note" means an instrument that evidences a promise to pay a monetaryobligation, does not evidence an order to pay, and does not contain an acknowledgment by abank that the bank has received for deposit a sum of money or funds.
(66) "Proposal" means a record authenticated by a secured party which includes the termson which the secured party is willing to accept collateral in full or partial satisfaction of theobligation it secures pursuant to Sections 70A-9a-620, 70A-9a-621, and 70A-9a-622.
(67) "Public-finance transaction" means a secured transaction in connection with which:
(a) debt securities are issued;
(b) all or a portion of the securities issued have an initial stated maturity of at least 20years; and
(c) the debtor, obligor, secured party, account debtor or other person obligated oncollateral, assignor or assignee of a secured obligation, or assignor or assignee of a securityinterest is a state or a governmental unit of a state.
(68) "Pursuant to commitment," with respect to an advance made or other value given bya secured party, means pursuant to the secured party's obligation, whether or not a subsequentevent of default or other event not within the secured party's control has relieved or may relievethe secured party from its obligation.
(69) "Record," except as used in "for record," "of record," "record or legal title," and"record owner," means information that is inscribed on a tangible medium or which is stored inan electronic or other medium and is retrievable in perceivable form.
(70) "Registered organization" means an organization organized solely under the law of asingle state or the United States and as to which the state or the United States must maintain apublic record showing the organization to have been organized.
(71) "Secondary obligor" means an obligor to the extent that:
(a) the obligor's obligation is secondary; or
(b) the obligor has a right of recourse with respect to an obligation secured by collateralagainst the debtor, another obligor, or property of either.
(72) "Secured party" means:
(a) a person in whose favor a security interest is created or provided for under a securityagreement, whether or not any obligation to be secured is outstanding;
(b) a person that holds an agricultural lien;
(c) a consignor;
(d) a person to which accounts, chattel paper, payment intangibles, or promissory noteshave been sold;
(e) a trustee, indenture trustee, agent, collateral agent, or other representative in whosefavor a security interest or agricultural lien is created or provided for; or
(f) a person that holds a security interest arising under Section 70A-2-401, 70A-2-505,70A-4-210, or 70A-5-118 or Subsection 70A-2-711(3) or 70A-2a-508(5).
(73) "Security agreement" means an agreement that creates or provides for a securityinterest.
(74) "Send," in connection with a record or notification, means:

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(a) to deposit in the mail, deliver for transmission, or transmit by any other usual meansof communication, with postage or cost of transmission provided for, addressed to any addressreasonable under the circumstances; or
(b) to cause the record or notification to be received within the time that it would havebeen received if properly sent under Subsection (74)(a).
(75) (a) "Software" means a computer program and any supporting information providedin connection with a transaction relating to the program.
(b) "Software" does not include a computer program that is included in the definition ofgoods.
(76) "State" means a state of the United States, the District of Columbia, Puerto Rico, theUnited States Virgin Islands, or any territory or insular possession subject to the jurisdiction ofthe United States.
(77) "Supporting obligation" means a letter-of-credit right or secondary obligation thatsupports the payment or performance of an account, chattel paper, a document, a generalintangible, an instrument, or investment property.
(78) "Tangible chattel paper" means chattel paper evidenced by a record or recordsconsisting of information that is inscribed on a tangible medium.
(79) "Termination statement" means an amendment of a financing statement which:
(a) identifies, by its file number, the initial financing statement to which it relates; and
(b) indicates either that it is a termination statement or that the identified financingstatement is no longer effective.
(80) "Transmitting utility" means a person primarily engaged in the business of:
(a) operating a railroad, subway, street railway, or trolley bus;
(b) transmitting communications electrically, electromagnetically, or by light;
(c) transmitting goods by pipeline or sewer; or
(d) transmitting or producing and transmitting electricity, steam, gas, or water.

Amended by Chapter 42, 2006 General Session