70A-9a-321. Licensee of general intangible and lessee of goods in ordinary course
of business.
(1) In this section, "licensee in ordinary course of business" means a person that becomes
a licensee of a general intangible in good faith, without knowledge that the license violates the
rights of another person in the general intangible, and in the ordinary course from a person in the
business of licensing general intangibles of that kind. A person becomes a licensee in the
ordinary course if the license to the person comports with the usual or customary practices in the
kind of business in which the licensor is engaged or with the licensor's own usual or customary
practices.
(2) A licensee in ordinary course of business takes its rights under a nonexclusive license
free of a security interest in the general intangible created by the licensor, even if the security
interest is perfected and the licensee knows of its existence.
(3) A lessee in ordinary course of business takes its leasehold interest free of a security
interest in the goods created by the lessor, even if the security interest is perfected and the lessee
knows of its existence.
Enacted by Chapter 252, 2000 General Session
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Last revised: Thursday, May 28, 2009