70A-9a-604 - Procedure if security agreement covers real property or fixtures. - Utah Statutes

70A-9a-604. Procedure if security agreement covers real property or fixtures.
(1) If a security agreement covers both personal and real property, a secured party mayproceed:
(a) under this part as to the personal property without prejudicing any rights with respectto the real property; or
(b) as to both the personal property and the real property in accordance with the rightswith respect to the real property, in which case the other provisions of this part do not apply.
(2) Subject to Subsection (3), if a security agreement covers goods that are or becomefixtures, a secured party may proceed:
(a) under this part; or
(b) in accordance with the rights with respect to real property, in which case the otherprovisions of this part do not apply.
(3) Subject to the other provisions of this part, if a secured party holding a securityinterest in fixtures has priority over all owners and encumbrancers of the real property, thesecured party, after default, may remove the collateral from the real property.
(4) A secured party that removes collateral shall promptly reimburse any encumbranceror owner of the real property, other than the debtor, for the cost of repair of any physical injurycaused by the removal. The secured party need not reimburse the encumbrancer or owner for anydiminution in value of the real property caused by the absence of the goods removed or by anynecessity of replacing them. A person entitled to reimbursement may refuse permission toremove until the secured party gives adequate assurance for the performance of the obligation toreimburse.

Enacted by Chapter 252, 2000 General Session