S.B. 151 Enrolled

UNIFORM COMMERCIAL CODE - TECHNICAL
AMENDMENTS
2001 GENERAL SESSION
STATE OF UTAH
Sponsor: Lyle W. Hillyard
This act modifies the Uniform Commercial Code - Secured Transactions by correcting cross
references. This act takes effect on July 1, 2001.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
70A-9a-334 (Effective 07/01/01), as enacted by Chapter 252, Laws of Utah 2000
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 70A-9a-334 (Effective 07/01/01) is amended to read:
70A-9a-334 (Effective 07/01/01). Priority of security interests in fixtures and crops.
(1) A security interest under this chapter may be created in goods that are fixtures or may
continue in goods that become fixtures. A security interest does not exist under this chapter in
ordinary building materials incorporated into an improvement on land.
(2) This chapter does not prevent creation of an encumbrance upon fixtures under real
property law.
(3) In cases not governed by Subsections (4) through (8), a security interest in fixtures is
subordinate to a conflicting interest of an encumbrancer or owner of the related real property other
than the debtor.
(4) Except as otherwise provided in Subsection (8), a perfected security interest in fixtures
has priority over a conflicting interest of an encumbrancer or owner of the real property if the
debtor has an interest of record in or is in possession of the real property and:
(a) the security interest is a purchase-money security interest;
(b) the interest of the encumbrancer or owner arises before the goods become fixtures; and
(c) the security interest is perfected by a fixture filing before the goods become fixtures
or within 20 days thereafter.
(5) A perfected security interest in fixtures has priority over a conflicting interest of an

encumbrancer or owner of the real property if:
(a) the debtor has an interest of record in the real property or is in possession of the real
property and the security interest:
(i) is perfected by a fixture filing before the interest of the encumbrancer or owner is of
record; and
(ii) has priority over any conflicting interest of a predecessor in title of the encumbrancer or
owner;
(b) before the goods become fixtures, the security interest is perfected by any method
permitted by this chapter and the fixtures are readily removable:
(i) factory or office machines;
(ii) equipment that is not primarily used or leased for use in the operation of the real
property; or
(iii) replacements of domestic appliances that are consumer goods;
(c) the conflicting interest is a lien on the real property obtained by legal or equitable
proceedings after the security interest was perfected by any method permitted by this chapter; or
(d) the security interest is:
(i) created in a manufactured home in a manufactured-home transaction; and
(ii) perfected pursuant to a statute described in Subsection 70A-9a-311 (1)(b).
(6) A security interest in fixtures, whether or not perfected, has priority over a conflicting
interest of an encumbrancer or owner of the real property if:
(a) the encumbrancer or owner has, in an authenticated record, consented to the security
interest or disclaimed an interest in the goods as fixtures; or
(b) the debtor has a right to remove the goods as against the encumbrancer or owner.
(7) The priority of the security interest under Subsection (6)(b) continues for a reasonable
time if the debtor's right to remove the goods as against the encumbrancer or owner terminates.
(8) A mortgage is a construction mortgage to the extent that it secures an obligation incurred
for the construction of an improvement on land, including the acquisition cost of the land, if a
recorded record of the mortgage so indicates. Except as otherwise provided in Subsections (5) and

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(6), a security interest in fixtures is subordinate to a construction mortgage if a record of the
mortgage is recorded before the goods become fixtures and the goods become fixtures before the
completion of the construction. A mortgage has this priority to the same extent as a construction
mortgage to the extent that it is given to refinance a construction mortgage.
(9) A perfected security interest in crops growing on real property has priority over a
conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of
record in or is in possession of the real property.
Section 2. Effective date.
This act takes effect on July 1, 2001.

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