70A-9a-338 - Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information. - Utah Statutes

70A-9a-338. Priority of security interest or agricultural lien perfected by filedfinancing statement providing certain incorrect information.
If a security interest or agricultural lien is perfected by a filed financing statementproviding information described in Subsection 70A-9a-516(2)(e) which is incorrect at the timethe financing statement is filed:
(1) the security interest or agricultural lien is subordinate to a conflicting perfectedsecurity interest in the collateral to the extent that the holder of the conflicting security interestgives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free of the securityinterest or agricultural lien to the extent that, in reasonable reliance upon the incorrectinformation, the purchaser gives value and, in the case of tangible chattel paper, tangibledocuments, goods, instruments, or a security certificate, receives delivery of the collateral.

Amended by Chapter 42, 2006 General Session