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S.B. 109

             1     

UNIFORM COMMERCIAL CODE - WAREHOUSE

             2     
RECEIPTS, BILLS OF LADING, AND

             3     
OTHER DOCUMENTS OF TITLE

             4     
2006 GENERAL SESSION

             5     
STATE OF UTAH

             6     
Chief Sponsor: Lyle W. Hillyard

             7     
House Sponsor: Ross I. Romero

             8     
             9      LONG TITLE
             10      General Description:
             11          This bill modifies the Uniform Commercial Code's treatment of documents of title and
             12      related amendments.
             13      Highlighted Provisions:
             14          This bill:
             15          .    repeals Title 70A, Chapter 7, Uniform Commercial Code - Documents of Title;
             16          .    enacts the revised article 7 of the Uniform Commercial Code in Title 70A, Chapter
             17      7a, Uniform Commercial Code - Documents of Title, with provisions including:
             18              .    electronic documents of title;
             19              .    warehouse receipts;
             20              .    bills of lading; and
             21              .    the obligations, liabilities, negotiation, and transfer of documents of title;
             22          .    amends other provisions of Title 70A, Uniform Commercial Code, to conform with
             23      the adoption of Title 70A, Chapter 7a, Uniform Commercial Code - Documents of
             24      Title; and
             25          .    makes technical amendments.
             26      Monies Appropriated in this Bill:
             27          None


             28      Other Special Clauses:
             29          None
             30      Utah Code Sections Affected:
             31      AMENDS:
             32          38-8-1, as enacted by Chapter 171, Laws of Utah 1981
             33          46-4-403, as enacted by Chapter 74, Laws of Utah 2000
             34          70A-1-201, as last amended by Chapter 252, Laws of Utah 2000
             35          70A-2-103, as last amended by Chapter 252, Laws of Utah 2000
             36          70A-2-104, as enacted by Chapter 154, Laws of Utah 1965
             37          70A-2-310, as enacted by Chapter 154, Laws of Utah 1965
             38          70A-2-323, as enacted by Chapter 154, Laws of Utah 1965
             39          70A-2-401, as enacted by Chapter 154, Laws of Utah 1965
             40          70A-2-403, as last amended by Chapter 131, Laws of Utah 2003
             41          70A-2-503, as enacted by Chapter 154, Laws of Utah 1965
             42          70A-2-505, as enacted by Chapter 154, Laws of Utah 1965
             43          70A-2-506, as enacted by Chapter 154, Laws of Utah 1965
             44          70A-2-509, as enacted by Chapter 154, Laws of Utah 1965
             45          70A-2-605, as enacted by Chapter 154, Laws of Utah 1965
             46          70A-2-705, as enacted by Chapter 154, Laws of Utah 1965
             47          70A-2a-103, as last amended by Chapter 252, Laws of Utah 2000
             48          70A-2a-514, as enacted by Chapter 197, Laws of Utah 1990
             49          70A-2a-526, as enacted by Chapter 197, Laws of Utah 1990
             50          70A-4-104, as last amended by Chapter 204, Laws of Utah 1996
             51          70A-4-210, as last amended by Chapter 252, Laws of Utah 2000
             52          70A-5-110, as repealed and reenacted by Chapter 241, Laws of Utah 1997
             53          70A-8-102, as last amended by Chapter 252, Laws of Utah 2000
             54          70A-9a-102, as enacted by Chapter 252, Laws of Utah 2000
             55          70A-9a-102.1, as enacted by Chapter 252, Laws of Utah 2000
             56          70A-9a-203, as enacted by Chapter 252, Laws of Utah 2000
             57          70A-9a-207, as enacted by Chapter 252, Laws of Utah 2000
             58          70A-9a-208, as enacted by Chapter 252, Laws of Utah 2000


             59          70A-9a-301, as enacted by Chapter 252, Laws of Utah 2000
             60          70A-9a-310, as enacted by Chapter 252, Laws of Utah 2000
             61          70A-9a-312, as enacted by Chapter 252, Laws of Utah 2000
             62          70A-9a-313, as enacted by Chapter 252, Laws of Utah 2000
             63          70A-9a-314, as enacted by Chapter 252, Laws of Utah 2000
             64          70A-9a-317, as enacted by Chapter 252, Laws of Utah 2000
             65          70A-9a-331, as enacted by Chapter 252, Laws of Utah 2000
             66          70A-9a-338, as enacted by Chapter 252, Laws of Utah 2000
             67          70A-9a-601, as enacted by Chapter 252, Laws of Utah 2000
             68          70A-10-104, as last amended by Chapter 204, Laws of Utah 1996
             69          72-9-404, as renumbered and amended by Chapter 270, Laws of Utah 1998
             70      ENACTS:
             71          70A-7a-101, Utah Code Annotated 1953
             72          70A-7a-102, Utah Code Annotated 1953
             73          70A-7a-103, Utah Code Annotated 1953
             74          70A-7a-104, Utah Code Annotated 1953
             75          70A-7a-105, Utah Code Annotated 1953
             76          70A-7a-106, Utah Code Annotated 1953
             77          70A-7a-201, Utah Code Annotated 1953
             78          70A-7a-202, Utah Code Annotated 1953
             79          70A-7a-203, Utah Code Annotated 1953
             80          70A-7a-204, Utah Code Annotated 1953
             81          70A-7a-205, Utah Code Annotated 1953
             82          70A-7a-206, Utah Code Annotated 1953
             83          70A-7a-207, Utah Code Annotated 1953
             84          70A-7a-208, Utah Code Annotated 1953
             85          70A-7a-209, Utah Code Annotated 1953
             86          70A-7a-210, Utah Code Annotated 1953
             87          70A-7a-301, Utah Code Annotated 1953
             88          70A-7a-302, Utah Code Annotated 1953
             89          70A-7a-303, Utah Code Annotated 1953


             90          70A-7a-304, Utah Code Annotated 1953
             91          70A-7a-305, Utah Code Annotated 1953
             92          70A-7a-306, Utah Code Annotated 1953
             93          70A-7a-307, Utah Code Annotated 1953
             94          70A-7a-308, Utah Code Annotated 1953
             95          70A-7a-309, Utah Code Annotated 1953
             96          70A-7a-401, Utah Code Annotated 1953
             97          70A-7a-402, Utah Code Annotated 1953
             98          70A-7a-403, Utah Code Annotated 1953
             99          70A-7a-404, Utah Code Annotated 1953
             100          70A-7a-501, Utah Code Annotated 1953
             101          70A-7a-502, Utah Code Annotated 1953
             102          70A-7a-503, Utah Code Annotated 1953
             103          70A-7a-504, Utah Code Annotated 1953
             104          70A-7a-505, Utah Code Annotated 1953
             105          70A-7a-506, Utah Code Annotated 1953
             106          70A-7a-507, Utah Code Annotated 1953
             107          70A-7a-508, Utah Code Annotated 1953
             108          70A-7a-509, Utah Code Annotated 1953
             109          70A-7a-601, Utah Code Annotated 1953
             110          70A-7a-602, Utah Code Annotated 1953
             111          70A-7a-603, Utah Code Annotated 1953
             112          70A-7a-701, Utah Code Annotated 1953
             113          70A-7a-702, Utah Code Annotated 1953
             114      REPEALS:
             115          70A-7-101, as enacted by Chapter 154, Laws of Utah 1965
             116          70A-7-102, as enacted by Chapter 154, Laws of Utah 1965
             117          70A-7-103, as enacted by Chapter 154, Laws of Utah 1965
             118          70A-7-104, as enacted by Chapter 154, Laws of Utah 1965
             119          70A-7-105, as enacted by Chapter 154, Laws of Utah 1965
             120          70A-7-201, as enacted by Chapter 154, Laws of Utah 1965


             121          70A-7-202, as enacted by Chapter 154, Laws of Utah 1965
             122          70A-7-203, as enacted by Chapter 154, Laws of Utah 1965
             123          70A-7-204, as enacted by Chapter 154, Laws of Utah 1965
             124          70A-7-205, as enacted by Chapter 154, Laws of Utah 1965
             125          70A-7-206, as enacted by Chapter 154, Laws of Utah 1965
             126          70A-7-207, as enacted by Chapter 154, Laws of Utah 1965
             127          70A-7-208, as enacted by Chapter 154, Laws of Utah 1965
             128          70A-7-209, as enacted by Chapter 154, Laws of Utah 1965
             129          70A-7-210, as enacted by Chapter 154, Laws of Utah 1965
             130          70A-7-301, as last amended by Chapter 170, Laws of Utah 1996
             131          70A-7-302, as enacted by Chapter 154, Laws of Utah 1965
             132          70A-7-303, as enacted by Chapter 154, Laws of Utah 1965
             133          70A-7-304, as enacted by Chapter 154, Laws of Utah 1965
             134          70A-7-305, as enacted by Chapter 154, Laws of Utah 1965
             135          70A-7-306, as enacted by Chapter 154, Laws of Utah 1965
             136          70A-7-307, as enacted by Chapter 154, Laws of Utah 1965
             137          70A-7-308, as enacted by Chapter 154, Laws of Utah 1965
             138          70A-7-309, as enacted by Chapter 154, Laws of Utah 1965
             139          70A-7-401, as enacted by Chapter 154, Laws of Utah 1965
             140          70A-7-402, as enacted by Chapter 154, Laws of Utah 1965
             141          70A-7-403, as enacted by Chapter 154, Laws of Utah 1965
             142          70A-7-404, as enacted by Chapter 154, Laws of Utah 1965
             143          70A-7-501, as enacted by Chapter 154, Laws of Utah 1965
             144          70A-7-502, as enacted by Chapter 154, Laws of Utah 1965
             145          70A-7-503, as last amended by Chapter 252, Laws of Utah 2000
             146          70A-7-504, as enacted by Chapter 154, Laws of Utah 1965
             147          70A-7-505, as enacted by Chapter 154, Laws of Utah 1965
             148          70A-7-506, as enacted by Chapter 154, Laws of Utah 1965
             149          70A-7-507, as enacted by Chapter 154, Laws of Utah 1965
             150          70A-7-508, as enacted by Chapter 154, Laws of Utah 1965
             151          70A-7-509, as enacted by Chapter 154, Laws of Utah 1965


             152          70A-7-601, as enacted by Chapter 154, Laws of Utah 1965
             153          70A-7-602, as enacted by Chapter 154, Laws of Utah 1965
             154          70A-7-603, as enacted by Chapter 154, Laws of Utah 1965
             155     
             156      Be it enacted by the Legislature of the state of Utah:
             157          Section 1. Section 38-8-1 is amended to read:
             158           38-8-1. Definitions.
             159          As used in this chapter:
             160          (1) "Default" means the failure to perform in a timely manner any obligation or duty set
             161      forth in this chapter or the rental agreement.
             162          (2) "Last known address" means that address provided by the occupant in the latest
             163      rental agreement or the address provided by the occupant in a subsequent written notice of a
             164      change of address.
             165          (3) "Occupant" means a person, or his sublessee, successor, or assign, entitled to the
             166      use of the storage space at a self-service storage facility under a rental agreement, to the
             167      exclusion of others.
             168          (4) "Owner" means the owner, operator, lessor, or sublessor of a self-service storage
             169      facility, his agent, or any other person authorized by him to manage the facility or to receive
             170      rent from an occupant under a rental agreement.
             171          (5) "Personal property" means movable property not affixed to land and includes, but is
             172      not limited to, goods, merchandise, and household items.
             173          (6) "Rental agreement" means any written agreement or lease which establishes or
             174      modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy
             175      at a self-service storage facility and which contains a notice stating that all articles stored under
             176      the terms of the agreement will be sold or otherwise disposed of if no payment has been
             177      received for a continuous 30-day period. The agreement shall contain a provision directing the
             178      occupant to disclose any lienholders with an interest in property that is or will be stored in the
             179      self-service storage facility.
             180          (7) "Self-service storage facility" means any real property designed and used for the
             181      purpose of renting or leasing individual storage space to occupants who are to have access to
             182      the facility for the purpose of storing and removing personal property. No occupant may use a


             183      self-service storage facility for residential purposes. The owner of a self-service storage facility
             184      is not a [warehouseman] warehouse as used in [Subsection 70A-7-102 (1)(h)] Section
             185      70A-7a-102 . If an owner issues any warehouse receipt, bill of lading, or other document of title
             186      for the personal property stored, the owner and the occupant are subject to the provisions of the
             187      Uniform Commercial Code, and the provisions of this chapter do not apply.
             188          Section 2. Section 46-4-403 is amended to read:
             189           46-4-403. Transferable records.
             190          (1) As used in this section, "transferable record" means an electronic record that:
             191          (a) would be a note under Title 70A, Chapter 3, Uniform Commercial Code -
             192      Negotiable Instruments, or a document under Title 70A, Chapter [7] 7a, Uniform Commercial
             193      Code - Documents of Title, if the electronic record were in writing; and
             194          (b) the issuer of the electronic record expressly has agreed is a transferable record.
             195          (2) A person has control of a transferable record if a system employed for evidencing
             196      the transfer of interests in the transferable record reliably establishes that person as the person
             197      to which the transferable record was issued or transferred.
             198          (3) A system satisfies Subsection (2), and a person is deemed to have control of a
             199      transferable record, if the transferable record is created, stored, and assigned in such a manner
             200      that:
             201          (a) a single authoritative copy of the transferable record exists that is unique,
             202      identifiable, and, except as otherwise provided in Subsections (3)(d), (e), and (f), unalterable;
             203          (b) the authoritative copy identifies the person asserting control as:
             204          (i) the person to which the transferable record was issued; or
             205          (ii) if the authoritative copy indicates that the transferable record has been transferred,
             206      the person to which the transferable record was most recently transferred;
             207          (c) the authoritative copy is communicated to and maintained by the person asserting
             208      control or its designated custodian;
             209          (d) copies or revisions that add or change an identified assignee of the authoritative
             210      copy can be made only with the consent of the person asserting control;
             211          (e) each copy of the authoritative copy and any copy of a copy is readily identifiable as
             212      a copy that is not the authoritative copy; and
             213          (f) any revision of the authoritative copy is readily identifiable as authorized or


             214      unauthorized.
             215          (4) (a) Except as otherwise agreed, a person having control of a transferable record is
             216      the holder, as defined in Subsection 70A-1-201 (20), of the transferable record and has the same
             217      rights and defenses as a holder of an equivalent record or writing under Title 70A, Uniform
             218      Commercial Code, including, if the applicable statutory requirements under Subsection
             219      70A-3-302 (1), Section [ 70A-7-501 ] 70A-7a-501 , or Section [ 70A-9-308 ] 70A-9a-308 are
             220      satisfied, the rights and defenses of a holder in due course, a holder to which a negotiable
             221      document of title has been duly negotiated, or a purchaser, respectively.
             222          (b) Delivery, possession, and indorsement are not required to obtain or exercise any of
             223      the rights under Subsection (4)(a).
             224          (5) Except as otherwise agreed, an obligor under a transferable record has the same
             225      rights and defenses as an equivalent obligor under equivalent records or writings under Title
             226      70A, Uniform Commercial Code.
             227          (6) (a) If requested by a person against which enforcement is sought, the person
             228      seeking to enforce the transferable record shall provide reasonable proof that the person is in
             229      control of the transferable record.
             230          (b) Proof may include access to the authoritative copy of the transferable record and
             231      related business records sufficient to review the terms of the transferable record and to
             232      establish the identity of the person having control of the transferable record.
             233          Section 3. Section 70A-1-201 is amended to read:
             234           70A-1-201. General definitions.
             235          In addition to definitions contained in the subsequent chapters of this title and unless
             236      the context otherwise requires, in this title:
             237          (1) "Action" in the sense of a judicial proceeding includes recoupment, counterclaim,
             238      setoff, suit in equity, and any other proceedings in which rights are determined.
             239          (2) "Aggrieved party" means a party entitled to resort to a remedy.
             240          (3) "Agreement" means the bargain of the parties in fact as found in their language or
             241      by implication from other circumstances including course of dealing or usage of trade or course
             242      of performance as provided in Sections 70A-1-205 and 70A-2-208 . Whether an agreement has
             243      legal consequences is determined by the provisions of this title, if applicable; otherwise by the
             244      law of contracts as provided in Section 70A-1-103 . Compare the definition of "contract" in


             245      Subsection (11).
             246          (4) "Bank" means any person engaged in the business of banking.
             247          (5) "Bearer" means [the] a person in control of a negotiable electronic document of title
             248      or a person in possession of an instrument, a negotiable tangible document of title, or a
             249      certificated security payable to bearer or indorsed in blank.
             250          (6) "Bill of lading" means a document of title evidencing the receipt of goods for
             251      shipment issued by a person engaged in the business of directly or indirectly transporting or
             252      forwarding goods[, and includes an airbill. "Airbill" means a document serving for air
             253      transportation as a bill of lading does for marine or rail transportation, and includes an air
             254      consignment note or air waybill]. The term does not include a warehouse receipt.
             255          (7) "Branch" includes a separately incorporated foreign branch of a bank.
             256          (8) "Burden of establishing a fact" means the burden of persuading the triers of fact
             257      that the existence of the fact is more probable than its nonexistence.
             258          (9) "Buyer in ordinary course of business" means a person that buys goods, in good
             259      faith, without knowledge that the sale violates the rights of another person in the goods, and in
             260      the ordinary course from a person, other than a pawnbroker, in the business of selling goods of
             261      that kind. A person buys goods in the ordinary course if the sale to the person comports with
             262      the usual or customary practices in the kind of business in which the seller is engaged or with
             263      the seller's own usual or customary practices. A person that sells oil, gas, or other minerals at
             264      the wellhead or minehead is a person in the business of selling goods of that kind. A buyer in
             265      ordinary course of business may buy for cash, by exchange of other property, or on secured or
             266      unsecured credit, and may acquire goods or documents of title under a preexisting contract for
             267      sale. Only a buyer that takes possession of the goods or has a right to recover the goods from
             268      the seller under Chapter 2 may be a buyer in ordinary course of business. A person that
             269      acquires goods in a transfer in bulk or as security for or in total or partial satisfaction of a
             270      money debt is not a buyer in ordinary course of business.
             271          (10) "Conspicuous" [means a term or clause that is so written that a reasonable person
             272      against whom it is to operate ought to have noticed it. A printed heading in capitals such as:
             273      NONNEGOTIABLE BILL OF LADING is conspicuous. Language in the body of a form is
             274      "conspicuous" if it is in larger or other contrasting type or color. In a telegram any stated term
             275      is "conspicuous." Whether a term or clause is "conspicuous" or not is for decision by the


             276      court.], with reference to a term, means so written, displayed, or presented that a reasonable
             277      person against which it is to operate ought to have noticed it. Whether a term is "conspicuous"
             278      or not is a decision for the court. Conspicuous terms include the following:
             279          (a) a heading in capitals equal to or greater in size than the surrounding text, or in
             280      contrasting type, font, or color to the surrounding text of the same or lesser size; and
             281          (b) language in the body of a record or display in larger type than the surrounding text,
             282      or in contrasting type, font, or color to the surrounding text of the same size, or set off from
             283      surrounding text of the same size by symbols or other marks that call attention to the language.
             284          (11) "Contract" means the total legal obligation which results from the parties'
             285      agreement as affected by this title and any other applicable rules of law. Compare the
             286      definition of "agreement" in Subsection (3).
             287          (12) "Creditor" includes a general creditor, a secured creditor, a lien creditor, and any
             288      representative of creditors, including an assignee for the benefit of creditors, a trustee in
             289      bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtor's or
             290      assignor's estate.
             291          (13) "Defendant" includes a person in the position of defendant in a cross-action or
             292      counterclaim.
             293          (14) "Delivery" with respect to an electronic document of title means voluntary transfer
             294      of control, and with respect to instruments tangible, documents of title, chattel paper, or
             295      certificated securities means voluntary transfer of possession.
             296          (15) (a) "Document of title" [includes bill of lading, dock warrant, dock receipt,
             297      warehouse receipt, or order for the delivery of goods, and also any other document which]
             298      means a record:
             299          (i) that in the regular course of business or financing is treated as adequately
             300      representing that the person in possession [of it] or control of the record is entitled to receive,
             301      control, hold, and dispose of the [document] record and the goods [it] the record covers[. To
             302      be a document of title, a document must purport to be issued by or addressed to a bailee and
             303      purport to cover goods in the bailee's possession which are either identified or are fungible
             304      portions of an identified mass.]; and
             305          (ii) that purports to be issued by or addressed to a bailee and to cover goods in the
             306      bailee's possession that are either identified or are fungible portions of an identified mass.


             307          (b) The term includes a bill of lading, transport document, dock warrant, dock receipt,
             308      warehouse receipt, and order for delivery of goods. An electronic document of title means a
             309      document of title evidenced by a record consisting of information stored in an electronic
             310      medium. A tangible document of title means a document of title evidenced by a record
             311      consisting of information that is inscribed on a tangible medium.
             312          (16) "Fault" means wrongful act, omission, or breach.
             313          (17) "Fungible" with respect to goods or securities means goods or securities of which
             314      any unit is, by nature or usage of trade, the equivalent of any other like unit. Goods which are
             315      not fungible are considered fungible for the purposes of this title to the extent that under a
             316      particular agreement or document unlike units are treated as equivalents.
             317          (18) "Genuine" means free of forgery or counterfeiting.
             318          (19) "Good faith" means honesty in fact in the conduct or transaction concerned.
             319          (20) "Holder" [with respect to a negotiable instrument, certificated security, or
             320      document of title means the person in possession if] means:
             321          [(a) in the case of a negotiable instrument payable to bearer or to an identified person,
             322      the identified person is in possession;]
             323          [(b) in the case of a security, the person in possession is the registered owner, or the
             324      security has been indorsed to the person in possession by the registered owner, or the security is
             325      in bearer form; or]
             326          [(c) in the case of a document of title, the goods are deliverable to bearer or to the order
             327      of the person in possession.]
             328          (a) the person in possession of a negotiable instrument that is payable either to bearer
             329      or to an identified person that is the person in possession;
             330          (b) the person in possession of a negotiable tangible document of title if the goods are
             331      deliverable either to bearer or to the order of the person in possession; or
             332          (c) the person in control of a negotiable electronic document of title.
             333          (21) To "honor" is to pay or to accept and pay, or where a credit so engages to purchase
             334      or discount a draft complying with the terms of the credit.
             335          (22) "Insolvency proceedings" includes any assignment for the benefit of creditors or
             336      other proceedings intended to liquidate or rehabilitate the estate of the person involved.
             337          (23) A person is "insolvent" who either has ceased to pay his debts in the ordinary


             338      course of business or cannot pay his debts as they become due or if he is insolvent within the
             339      meaning of the federal bankruptcy law.
             340          (24) "Money" means a medium of exchange authorized or adopted by a domestic or
             341      foreign government or intergovernmental organization and includes a monetary unit of account
             342      established by an intergovernmental organization or by agreement between two or more
             343      nations.
             344          (25) Subject to Subsection (27):
             345          [(25)] (a) [A] a person has "notice" of a fact [when] if the person:
             346          (i) [he] has actual knowledge of it;
             347          (ii) [he] has received a notice or notification of it; or
             348          (iii) from all the facts and circumstances known to [him] the person at the time in
             349      question [he] has reason to know that it exists.
             350          (b) A person "knows" or has "knowledge" of a fact when [he] the person has actual
             351      knowledge of it.
             352          (c) "Discover" or "learn" or a word or phrase of similar import refers to knowledge
             353      rather than to reason to know.
             354          (d) The time and circumstances under which a notice or notification may cease to be
             355      effective are not determined by this title.
             356          (26) (a) A person "notifies" or "gives" a notice or notification to another person by
             357      taking such steps as may be reasonably required to inform the other person in ordinary course
             358      whether or not the other person actually comes to know of it.
             359          (b) [A] Subject to Subsection (27), a person "receives" a notice or notification when:
             360          (i) it comes to [his] that person's attention; or
             361          (ii) it is duly delivered in a form reasonable under the circumstances at the place of
             362      business through which the contract was made or at [any other place] another location held out
             363      by [him] that person as the place for receipt of such communications.
             364          (27) Notice, knowledge of a notice, or notification received by an organization is
             365      effective for a particular transaction from the time when it is brought to the attention of the
             366      individual conducting that transaction, and in any event from the time when it would have been
             367      brought to [his] the individual's attention if the organization had exercised due diligence. An
             368      organization exercises due diligence if it maintains reasonable routines for communicating


             369      significant information to the person conducting the transaction and there is reasonable
             370      compliance with the routines. Due diligence does not require an individual acting for the
             371      organization to communicate information unless such communication is part of [his] the
             372      individual's regular duties or [unless he] the individual has reason to know of the transaction
             373      and that the transaction would be materially affected by the information.
             374          (28) "Organization" includes a corporation, government or governmental subdivision
             375      or agency, business trust, estate, trust, partnership or association, two or more persons having a
             376      joint or common interest, or any other legal or commercial entity.
             377          (29) "Party," as distinct from "third party," means a person who has engaged in a
             378      transaction or made an agreement within this title.
             379          (30) "Person" includes an individual or an organization as provided in Section
             380      70A-1-102 .
             381          (31) "Presumption" or "presumed" means that the trier of fact must find the existence
             382      of the fact presumed unless and until evidence is introduced which would support a finding of
             383      its nonexistence.
             384          (32) "Purchase" includes taking by sale, discount, negotiation, mortgage, pledge, lien,
             385      security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in
             386      property.
             387          (33) "Purchaser" means a person who takes by purchase.
             388          (34) "Remedy" means any remedial right to which an aggrieved party is entitled with or
             389      without resort to a tribunal.
             390          (35) "Representative" includes an agent, an officer of a corporation or association, and
             391      a trustee, executor, or administrator of an estate, or any other person empowered to act for
             392      another.
             393          (36) "Rights" includes remedies.
             394          (37) (a) "Security interest" means an interest in personal property or fixtures which
             395      secures payment or performance of an obligation. The term also includes any interest of a
             396      consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in
             397      a transaction that is subject to Title 70A, Chapter 9a, Uniform Commercial Code - Secured
             398      Transactions. The special property interest of a buyer of goods on identification of those goods
             399      to a contract for sale under Section 70A-2-401 is not a "security interest," but a buyer may also


             400      acquire a "security interest" by complying with Title 70A, Chapter 9a, Uniform Commercial
             401      Code - Secured Transactions. Except as otherwise provided in Section 70A-2-505 , the right of
             402      a seller or lessor of goods under Chapter 2 or [2A] 2a to retain or acquire possession of the
             403      goods is not a "security interest," but a seller or lessor may also acquire a "security interest" by
             404      complying with Chapter 9a, Uniform Commercial Code - Secured Transactions. The retention
             405      or reservation of title by a seller of goods notwithstanding shipment or delivery to the buyer
             406      (Section 70A-2-401 ) is limited in effect to a reservation of a "security interest."
             407      Notwithstanding anything in Title 70A to the contrary, "security interest" does not include a
             408      rental purchase agreement as defined in Section 15-8-3 .
             409          (b) Whether a transaction creates a lease or security interest is determined by the facts
             410      of each case; however, a transaction creates a security interest if the consideration the lessee is
             411      to pay the lessor for the right to possession and use of the goods is an obligation for the term of
             412      the lease not subject to termination by the lessee, and:
             413          (i) the original term of the lease is equal to or greater than the remaining economic life
             414      of the goods;
             415          (ii) the lessee is bound to renew the lease for the remaining economic life of the goods
             416      or is bound to become the owner of the goods;
             417          (iii) the lessee has an option to renew the lease for the remaining economic life of the
             418      goods for no additional consideration or nominal additional consideration upon compliance
             419      with the lease agreement; or
             420          (iv) the lessee has an option to become the owner of the goods for no additional
             421      consideration or nominal additional consideration upon compliance with the lease agreement.
             422          (c) A transaction does not create a security interest merely because it provides that:
             423          (i) the present value of the consideration the lessee is obligated to pay the lessor for the
             424      right to possession and use of the goods is substantially equal to or is greater than the fair
             425      market value of the goods at the time the lease is entered into;
             426          (ii) the lessee assumes risk of loss of the goods, or agrees to pay taxes, insurance,
             427      filing, recording, or registration fees, or service or maintenance costs with respect to the goods;
             428          (iii) the lessee has an option to renew the lease or to become the owner of the goods;
             429          (iv) the lessee has an option to renew the lease for a fixed rent that is equal to or greater
             430      than the reasonably predictable fair market rent for the use of the goods for the term of the


             431      renewal at the time the option is to be performed; or
             432          (v) the lessee has an option to become the owner of the goods for a fixed price that is
             433      equal to or greater than the reasonably predictable fair market value of the goods at the time the
             434      option is to be performed.
             435          (d) For purposes of this Subsection (37):
             436          (i) Additional consideration is not nominal if, when the option to renew the lease is
             437      granted to the lessee, the rent is stated to be the fair market rent for the use of the goods for the
             438      term of the renewal determined at the time the option is to be performed, or when the option to
             439      become the owner of the goods is granted to the lessee the price is stated to be the fair market
             440      value of the goods determined at the time the option is to be performed.
             441          (ii) Additional consideration is nominal if it is less than the lessee's reasonably
             442      predictable cost of performing under the lease agreement if the option is not exercised.
             443          (iii) "Reasonably predictable" and "remaining economic life of the goods" are to be
             444      determined with reference to the facts and circumstances at the time the transaction is entered
             445      into.
             446          (iv) "Present value" means the amount as of a date certain of one or more sums payable
             447      in the future, discounted to the date certain. The discount is determined by the interest rate
             448      specified by the parties if the rate is not manifestly unreasonable at the time the transaction is
             449      entered into; otherwise, the discount is determined by a commercially reasonable rate that takes
             450      into account the facts and circumstances of each case at the time the transaction was entered
             451      into.
             452          (38) "Send" in connection with any writing or notice means:
             453          (a) to deposit in the mail or deliver for transmission by any other usual means of
             454      communication with postage or the cost of the transmission provided for and properly
             455      addressed, and, in the case of an instrument, to an address specified thereon or otherwise
             456      agreed, or if there be none to any address reasonable under the circumstances[. The receipt of
             457      any writing or notice within the time at which it would have arrived if properly sent has the
             458      effect of a proper sending.]; or
             459          (b) in any other way to cause to be received any record or notice within the time it
             460      would have arrived if properly sent.
             461          (39) "Signed" includes any symbol executed or adopted by a party with present


             462      intention to authenticate a writing.
             463          (40) "Surety" includes guarantor.
             464          (41) "Telegram" includes a message transmitted by radio, teletype, cable, any
             465      mechanical method of transmission, or the like.
             466          (42) "Term" means that portion of an agreement which relates to a particular matter.
             467          (43) "Unauthorized signature" means one made without actual, implied, or apparent
             468      authority and includes a forgery.
             469          (44) "Value." Except as otherwise provided with respect to negotiable instruments and
             470      bank collections as in Sections 70A-3-303 , 70A-4-210 , and 70A-4-211 , a person gives "value"
             471      for rights if he acquires them:
             472          (a) in return for a binding commitment to extend credit or for the extension of
             473      immediately available credit whether or not drawn upon and whether or not a charge-back is
             474      provided for in the event of difficulties in collection;
             475          (b) as security for or in total or partial satisfaction of a preexisting claim;
             476          (c) by accepting delivery pursuant to a preexisting contract for purchase; or
             477          (d) generally, in return for any consideration sufficient to support a simple contract.
             478          (45) "Warehouse receipt" means a [receipt] document of title issued by a person
             479      engaged in the business of storing goods for hire.
             480          (46) "Written" or "writing" includes printing, typewriting, or any other intentional
             481      reduction to tangible form.
             482          Section 4. Section 70A-2-103 is amended to read:
             483           70A-2-103. Definitions and index of definitions.
             484          (1) In this chapter unless the context otherwise requires:
             485          (a) "Buyer" means a person who buys or contracts to buy goods.
             486          (b) "Good faith" in the case of a merchant means honesty in fact and the observance of
             487      reasonable commercial standards of fair dealing in the trade.
             488          (c) "Receipt" of goods means taking physical possession of them.
             489          (d) "Seller" means a person who sells or contracts to sell goods.
             490          (2) Other definitions applying to this chapter or to specified parts thereof, and the
             491      sections in which they appear are:
             492          (a) "Acceptance." Section 70A-2-606 .


             493          (b) "Banker's credit." Section 70A-2-325 .
             494          (c) "Between merchants." Section 70A-2-104 .
             495          (d) "Cancellation." Subsection 70A-2-106 (4).
             496          (e) "Commercial unit." Section 70A-2-105 .
             497          (f) "Confirmed credit." Section 70A-2-325 .
             498          (g) "Conforming to contract." Section 70A-2-106 .
             499          (h) "Contract for sale." Section 70A-2-106 .
             500          (i) "Cover." Section 70A-2-712 .
             501          (j) "Entrusting." Section 70A-2-403 .
             502          (k) "Financing agency." Section 70A-2-104 .
             503          (l) "Future goods." Section 70A-2-105 .
             504          (m) "Goods." Section 70A-2-105 .
             505          (n) "Identification." Section 70A-2-501 .
             506          (o) "Installment contract." Section 70A-2-612 .
             507          (p) "Letter of Credit." Section 70A-2-325 .
             508          (q) "Lot." Section 70A-2-105 .
             509          (r) "Merchant." Section 70A-2-104 .
             510          (s) "Overseas." Section 70A-2-323 .
             511          (t) "Person in position of seller." Section 70A-2-707 .
             512          (u) "Present sale." Section 70A-2-106 .
             513          (v) "Sale." Section 70A-2-106 .
             514          (w) "Sale on approval." Section 70A-2-326 .
             515          (x) "Sale or return." Section 70A-2-326 .
             516          (y) "Termination." Section 70A-2-106 .
             517          (3) [The] "Control" as provided in Section 70A-7a-106 , and the following definitions
             518      in other chapters apply to this chapter:
             519          (a) "Check." Section 70A-3-104 .
             520          (b) "Consignee." Section [ 70A-7-102 ] 70A-7a-102 .
             521          (c) "Consignor." Section [ 70A-7-102 ] 70A-7a-102 .
             522          (d) "Consumer goods." Section 70A-9a-102 .
             523          (e) "Dishonor." Section 70A-3-502 .


             524          (f) "Draft." Section 70A-3-104 .
             525          (4) In addition Chapter 1 contains general definitions and principles of construction
             526      and interpretation applicable throughout this chapter.
             527          Section 5. Section 70A-2-104 is amended to read:
             528           70A-2-104. Definitions -- "Merchant" -- "Between merchants" -- "Financing
             529      agency."
             530          (1) "Merchant" means a person who deals in goods of the kind or otherwise by his
             531      occupation holds himself out as having knowledge or skill peculiar to the practices or goods
             532      involved in the transaction or to whom such knowledge or skill may be attributed by his
             533      employment of an agent or broker or other intermediary who by his occupation holds himself
             534      out as having such knowledge or skill.
             535          (2) "Financing agency" means a bank, finance company or other person who in the
             536      ordinary course of business makes advances against goods or documents of title or who by
             537      arrangement with either the seller or the buyer intervenes in ordinary course to make or collect
             538      payment due or claimed under the contract for sale, as by purchasing or paying the seller's draft
             539      or making advances against it or by merely taking it for collection whether or not documents of
             540      title accompany or are associated with the draft. "Financing agency" includes also a bank or
             541      other person who similarly intervenes between persons who are in the position of seller and
             542      buyer in respect to the goods (Section 70A-2-707).
             543          (3) "Between merchants" means in any transaction with respect to which both parties
             544      are chargeable with the knowledge or skill of merchants.
             545          Section 6. Section 70A-2-310 is amended to read:
             546           70A-2-310. Open time for payment or running of credit -- Authority to ship
             547      under reservation.
             548          Unless otherwise agreed:
             549          [(a)] (1) payment is due at the time and place at which the buyer is to receive the goods
             550      even though the place of shipment is the place of delivery; [and]
             551          [(b)] (2) if the seller is authorized to send the goods he may ship them under
             552      reservation, and may tender the documents of title, but the buyer may inspect the goods after
             553      their arrival before payment is due unless such inspection is inconsistent with the terms of the
             554      contract (Section 70A-2-513 ); [and]


             555          [(c)] (3) if delivery is authorized and made by way of documents of title otherwise than
             556      by Subsection [(b)] (2) then payment is due regardless of where the goods are to be received:
             557          (a) at the time and place at which the buyer is to receive delivery of the tangible
             558      documents [regardless of where the goods are to be received]; [and] or
             559          (b) at the time the buyer is to receive delivery of the electronic documents and at the
             560      seller's place of business or, if none, the seller's residence; and
             561          [(d)] (4) where the seller is required or authorized to ship the goods on credit the credit
             562      period runs from the time of shipment but postdating the invoice or delaying its dispatch will
             563      correspondingly delay the starting of the credit period.
             564          Section 7. Section 70A-2-323 is amended to read:
             565           70A-2-323. Form of bill of lading required in overseas shipment -- "Overseas."
             566          (1) Where the contract contemplates overseas shipment and contains a term C.I.F. or
             567      C.&F. or F.O.B. vessel, the seller unless otherwise agreed must obtain a negotiable bill of
             568      lading stating that the goods have been loaded on board or, in the case of a term C.I.F. or
             569      C.&F., received for shipment.
             570          (2) Where in a case within Subsection (1) a tangible bill of lading has been issued in a
             571      set of parts, unless otherwise agreed, if the documents are not to be sent from abroad, the buyer
             572      may demand tender of the full set; otherwise only one part of the bill of lading need be
             573      tendered. Even if the agreement expressly requires a full set:
             574          (a) due tender of a single part is acceptable within the provisions of this chapter on cure
             575      of improper delivery (Subsection (1) of Section 70A-2-508 ); and
             576          (b) even though the full set is demanded, if the documents are sent from abroad the
             577      person tendering an incomplete set may nevertheless require payment upon furnishing an
             578      indemnity which the buyer in good faith [deems] considers adequate.
             579          (3) A shipment by water or by air or a contract contemplating such shipment is
             580      "overseas" in so far as by usage of trade or agreement it is subject to the commercial, financing
             581      or shipping practices characteristic of international deep water commerce.
             582          Section 8. Section 70A-2-401 is amended to read:
             583           70A-2-401. Passing of title -- Reservation for security -- Limited application of
             584      this section.
             585          Each provision of this chapter with regard to the rights, obligations and remedies of the


             586      seller, the buyer, purchasers or other third parties applies irrespective of title to the goods
             587      except where the provision refers to such title. In so far as situations are not covered by the
             588      other provisions of this chapter and matters concerning title become material the following
             589      rules apply:
             590          (1) Title to goods cannot pass under a contract for sale prior to their identification to
             591      the contract (Section 70A-2-501 ), and unless otherwise explicitly agreed the buyer acquires by
             592      their identification a special property as limited by this act. Any retention or reservation by the
             593      seller of the title (property) in goods shipped or delivered to the buyer is limited in effect to a
             594      reservation of a security interest. Subject to these provisions and to the provisions of the
             595      chapter on Secured Transactions (Chapter [9] 9a), title to goods passes from the seller to the
             596      buyer in any manner and on any conditions explicitly agreed on by the parties.
             597          (2) Unless otherwise explicitly agreed, title passes to the buyer at the time and place at
             598      which the seller completes his performance with reference to the physical delivery of the
             599      goods, despite any reservation of a security interest and even though a document of title is to be
             600      delivered at a different time or place; and in particular and despite any reservation of a security
             601      interest by the bill of lading:
             602          (a) if the contract requires or authorizes the seller to send the goods to the buyer but
             603      does not require him to deliver them at destination, title passes to the buyer at the time and
             604      place of shipment; but
             605          (b) if the contract requires delivery at destination, title passes on tender there.
             606          (3) Unless otherwise explicitly agreed where delivery is to be made without moving the
             607      goods[,]:
             608          (a) if the seller is to deliver a tangible document of title, title passes at the time when
             609      and the place where he delivers such documents and if the seller is to deliver an electronic
             610      document of title, title passes when the seller delivers the document; or
             611          (b) if the goods are at the time of contracting already identified and no documents of
             612      title are to be delivered, title passes at the time and place of contracting.
             613          (4) A rejection or other refusal by the buyer to receive or retain the goods, whether or
             614      not justified, or a justified revocation of acceptance revests title to the goods in the seller. Such
             615      revesting occurs by operation of law and is not a "sale."
             616          Section 9. Section 70A-2-403 is amended to read:


             617           70A-2-403. Power to transfer -- Good faith purchase of goods -- Definition of
             618      entrusting.
             619          (1) A purchaser of goods acquires all title which his transferor had or had power to
             620      transfer except that a purchaser of a limited interest acquires rights only to the extent of the
             621      interest purchased. A person with voidable title has power to transfer a good title to a good
             622      faith purchaser for value. When goods have been delivered under a transaction of purchase the
             623      purchaser has such power even though:
             624          (a) the transferor was deceived as to the identity of the purchaser;
             625          (b) the delivery was in exchange for a check which is later dishonored;
             626          (c) it was agreed that the transaction was to be a "cash sale"; or
             627          (d) the delivery was procured through fraud punishable as larcenous under the criminal
             628      law.
             629          (2) Any entrusting of possession of goods to a merchant who deals in goods of that
             630      kind gives him power to transfer all rights of the entruster to a buyer in ordinary course of
             631      business.
             632          (3) "Entrusting" includes any delivery and any acquiescence in retention of possession
             633      regardless of any condition expressed between the parties to the delivery or acquiescence and
             634      regardless of whether the procurement of the entrusting or the possessor's disposition of the
             635      goods have been such as to be larcenous under the criminal law.
             636          (4) The rights of other purchasers of goods and of lien creditors are governed by
             637      Chapter 9a, Uniform Commercial Code - Secured Transactions and Chapter [7, Uniform
             638      Commercial Code -] 7a, Uniform Commercial Code - Documents of Title.
             639          Section 10. Section 70A-2-503 is amended to read:
             640           70A-2-503. Manner of seller's tender of delivery.
             641          (1) Tender of delivery requires that the seller put and hold conforming goods at the
             642      buyer's disposition and give the buyer any notification reasonably necessary to enable him to
             643      take delivery. The manner, time, and place for tender are determined by the agreement and this
             644      chapter, and in particular:
             645          (a) tender must be at a reasonable hour, and if it is of goods, they must be kept
             646      available for the period reasonably necessary to enable the buyer to take possession; but
             647          (b) unless otherwise agreed, the buyer must furnish facilities reasonably suited to the


             648      receipt of the goods.
             649          (2) Where the case is within the next section, respecting shipment tender requires that
             650      the seller comply with its provisions.
             651          (3) Where the seller is required to deliver at a particular destination, tender requires
             652      that he comply with Subsection (1) and also in any appropriate case tender documents as
             653      described in Subsections (4) and (5) of this section.
             654          (4) Where goods are in the possession of a bailee and are to be delivered without being
             655      moved:
             656          (a) tender requires that the seller either tender a negotiable document of title covering
             657      such goods or procure acknowledgment by the bailee of the buyer's right to possession of the
             658      goods; but
             659          (b) tender to the buyer of a nonnegotiable document of title or of a [written direction
             660      to] record directing the bailee to deliver is sufficient tender unless the buyer seasonably objects,
             661      and except as otherwise provided in Chapter 9a, Uniform Commercial Code - Secured
             662      Transactions, receipt by the bailee of notification of the buyer's rights fixes those rights as
             663      against the bailee and all third persons; but risk of loss of the goods and of any failure by the
             664      bailee to honor the nonnegotiable document of title or to obey the direction remains on the
             665      seller until the buyer has had a reasonable time to present the document or direction, and a
             666      refusal by the bailee to honor the document or to obey the direction defeats the tender.
             667          (5) Where the contract requires the seller to deliver documents:
             668          (a) he must tender all such documents in correct form, except as provided in this
             669      chapter with respect to bills of lading in a set [(Subsection (2) of Section 70A-2-323 )] as
             670      provided in Subsection 70A-2-323 (2); and
             671          (b) tender through customary banking channels is sufficient and dishonor of a draft
             672      accompanying or associated with the documents constitutes nonacceptance or rejection.
             673          Section 11. Section 70A-2-505 is amended to read:
             674           70A-2-505. Seller's shipment under reservation.
             675          (1) Where the seller has identified goods to the contract by or before shipment:
             676          (a) his procurement of a negotiable bill of lading to his own order or otherwise reserves
             677      in him a security interest in the goods. His procurement of the bill to the order of a financing
             678      agency or of the buyer indicates in addition only the seller's expectation of transferring that


             679      interest to the person named[.]; and
             680          (b) a nonnegotiable bill of lading to himself or his nominee reserves possession of the
             681      goods as security but except in a case of conditional delivery [(Subsection (2) of Section
             682      70A-2-507 )] as provided in Subsection 70A-2-507 (2), a nonnegotiable bill of lading naming
             683      the buyer as consignee reserves no security interest even though the seller retains possession or
             684      control of the bill of lading.
             685          (2) When shipment by the seller with reservation of a security interest is in violation of
             686      the contract for sale, it constitutes an improper contract for transportation within the preceding
             687      section but impairs neither the rights given to the buyer by shipment and identification of the
             688      goods to the contract nor the seller's powers as a holder of a negotiable document of title.
             689          Section 12. Section 70A-2-506 is amended to read:
             690           70A-2-506. Rights of financing agency.
             691          (1) A financing agency by paying or purchasing for value a draft which relates to a
             692      shipment of goods acquires to the extent of the payment or purchase and in addition to its own
             693      rights under the draft and any document of title securing it any rights of the shipper in the
             694      goods including the right to stop delivery and the shipper's right to have the draft honored by
             695      the buyer.
             696          (2) The right to reimbursement of a financing agency which has in good faith honored
             697      or purchased the draft under commitment to or authority from the buyer is not impaired by
             698      subsequent discovery of defects with reference to any relevant document which was apparently
             699      regular [on its face].
             700          Section 13. Section 70A-2-509 is amended to read:
             701           70A-2-509. Risk of loss in the absence of breach.
             702          (1) Where the contract requires or authorizes the seller to ship the goods by carrier:
             703          (a) if it does not require him to deliver them at a particular destination, the risk of loss
             704      passes to the buyer when the goods are duly delivered to the carrier even though the shipment
             705      is under reservation [(] as provided in Section 70A-2-505 [)]; but
             706          (b) if it does require him to deliver them at a particular destination and the goods are
             707      there duly tendered while in the possession of the carrier, the risk of loss passes to the buyer
             708      when the goods are there duly so tendered as to enable the buyer to take delivery.
             709          (2) Where the goods are held by a bailee to be delivered without being moved, the risk


             710      of loss passes to the buyer:
             711          (a) on his receipt of possession or control of a negotiable document of title covering the
             712      goods; [or]
             713          (b) on acknowledgment by the bailee of the buyer's right to possession of the goods; or
             714          (c) after his receipt of possession or control of a nonnegotiable document of title or
             715      other [written] direction to deliver in a record, as provided in Subsection 70A-2-503 (4)(b) [of
             716      Section 70A-2-503 ].
             717          (3) In any case not within Subsection (1) or (2), the risk of loss passes to the buyer on
             718      his receipt of the goods if the seller is a merchant; otherwise the risk passes to the buyer on
             719      tender of delivery.
             720          (4) The provisions of this section are subject to contrary agreement of the parties and to
             721      the provisions of this chapter on sale on approval [(] as provided in Section 70A-2-327 [)] and
             722      on effect of breach on risk of loss [(] as provided in Section 70A-2-510 [)].
             723          Section 14. Section 70A-2-605 is amended to read:
             724           70A-2-605. Waiver of buyer's objections by failure to particularize.
             725          (1) The buyer's failure to state in connection with rejection a particular defect which is
             726      ascertainable by reasonable inspection precludes him from relying on the unstated defect to
             727      justify rejection or to establish breach:
             728          (a) where the seller could have cured it if stated seasonably; or
             729          (b) between merchants when the seller has after rejection made a request in writing for
             730      a full and final written statement of all defects on which the buyer proposes to rely.
             731          (2) Payment against documents made without reservation of rights precludes recovery
             732      of the payment for defects apparent [on the face of] in the documents.
             733          Section 15. Section 70A-2-705 is amended to read:
             734           70A-2-705. Seller's stoppage of delivery in transit or otherwise.
             735          (1) The seller may stop delivery of goods in the possession of a carrier or other bailee
             736      when he discovers the buyer to be insolvent [(] as provided in Section 70A-2-702 ) and may
             737      stop delivery of carload, truckload, planeload, or larger shipments of express or freight when
             738      the buyer repudiates or fails to make a payment due before delivery or if for any other reason
             739      the seller has a right to withhold or reclaim the goods.
             740          (2) As against such buyer the seller may stop delivery until:


             741          (a) receipt of the goods by the buyer; [or]
             742          (b) acknowledgment to the buyer by any bailee of the goods except a carrier that the
             743      bailee holds the goods for the buyer; [or]
             744          (c) such acknowledgment to the buyer by a carrier by reshipment or as [warehouseman]
             745      warehouse; or
             746          (d) negotiation to the buyer of any negotiable document of title covering the goods.
             747          (3) (a) To stop delivery, the seller must so notify as to enable the bailee by reasonable
             748      diligence to prevent delivery of the goods.
             749          (b) After such notification, the bailee must hold and deliver the goods according to the
             750      directions of the seller but the seller is liable to the bailee for any ensuing charges or damages.
             751          (c) If a negotiable document of title has been issued for goods, the bailee is not obliged
             752      to obey a notification to stop until surrender of possession or control of the document.
             753          (d) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a
             754      notification to stop received from a person other than the consignor.
             755          Section 16. Section 70A-2a-103 is amended to read:
             756           70A-2a-103. Definitions -- Index of definitions.
             757          (1) In this chapter, unless the context otherwise requires:
             758          (a) "Buyer in ordinary course of business" means a person, who in good faith and
             759      without knowledge that the sale to him is in violation of the ownership rights or security
             760      interest or leasehold interest of a third party in the goods, buys in ordinary course from a person
             761      in the business of selling goods of that kind, but does not include a pawnbroker. "Buying" may
             762      be for cash or by exchange of other property or on secured or unsecured credit and includes
             763      [receiving] acquiring goods or documents of title under a preexisting contract for sale, but does
             764      not include a transfer in bulk, or as security for, or in total or partial satisfaction of a money
             765      debt.
             766          (b) "Cancellation" occurs when either party puts an end to the lease contract for default
             767      by the other party.
             768          (c) "Commercial unit" means a unit of goods which by commercial usage is a single
             769      whole for purposes of lease, and the division of which materially impairs its character or value
             770      on the market or in use. A commercial unit may be a single article, such as a machine, or a set
             771      of articles, such as a suite of furniture or a line of machinery, or a quantity, such as a gross or


             772      carload, or any other unit treated in use or in the relevant market as a single whole.
             773          (d) "Conforming goods or performance under a lease contract" means goods or
             774      performance that are in accordance with the obligations under the lease contract.
             775          (e) "Consumer lease" means a lease that a lessor, regularly engaged in the business of
             776      leasing or selling, makes to a lessee, who is an individual and who takes under the lease
             777      primarily for a personal, family, or household purpose.
             778          (f) "Fault" means wrongful act, omission, breach, or default.
             779          (g) "Finance lease" means a lease in which:
             780          (i) the lessor does not select, manufacture, or supply the goods;
             781          (ii) the lessor acquires the goods or the right to possession and use of the goods in
             782      connection with the lease; and
             783          (iii) one of the following occurs:
             784          (A) the lessee receives a copy of the contract by which the lessor acquired the goods or
             785      the right to possession and use of the goods before signing the lease contract;
             786          (B) the lessee's approval of the contract by which the lessor acquired the goods or the
             787      right to possession and use of the goods is a condition to effectiveness of the lease contract;
             788          (C) the lessee, before signing the lease contract, receives an accurate and complete
             789      statement designating the promises and warranties, and any disclaimers of warranties,
             790      limitations, or modifications of remedies, or liquidated damages, including those of a third
             791      party, such as the manufacturer of the goods, provided to the lessor by the person supplying the
             792      goods in connection with or as part of the contract by which the lessor acquired the goods or
             793      the right to possession and use of the goods; or
             794          (D) if the lease is not a consumer lease, the lessor, before the lessee signs the lease
             795      contract, informs the lessee in writing:
             796          (I) of the identity of the person supplying the goods to the lessor, unless the lessee has
             797      selected that person and directed the lessor to acquire the goods or the right to possession and
             798      use of the goods from that person;
             799          (II) that the lessee is entitled under this chapter to the promises and warranties,
             800      including those of any third party, provided to the lessor by the person supplying the goods in
             801      connection with or as part of the contract by which the lessor acquired the goods or the right to
             802      possession and use of the goods; and


             803          (III) that the lessee may communicate with the person supplying the goods to the lessor
             804      and receive an accurate and complete statement of those promises and warranties, including
             805      any disclaimers and limitations of them or of remedies.
             806          (h) "Goods" means all things that are movable at the time of identification to the lease
             807      contract, or are fixtures. The term does not include money, documents, instruments, accounts,
             808      chattel paper, general intangibles, or minerals or the like, including oil and gas, before
             809      extraction. The term also includes the unborn young of animals.
             810          (i) "Installment lease contract" means a lease contract that authorizes or requires the
             811      delivery of goods in separate lots to be separately accepted, even though the lease contract
             812      contains a clause stating "each delivery is a separate lease" or its equivalent.
             813          (j) "Lease" means a transfer of the right to possession and use of goods for a term, in
             814      return for consideration. Unless the context clearly indicates otherwise, the term includes a
             815      sublease. But a sale, including a sale on approval or a sale or return, or retention or creation of
             816      a security interest is not a lease.
             817          (k) "Lease agreement" with respect to the lease, means the bargain of the lessor and the
             818      lessee in fact as found in their language or by implication from other circumstances including
             819      course of dealing or usage of trade or course of performance as provided in this chapter.
             820      Unless the context clearly indicates otherwise, the term includes a sublease agreement.
             821          (l) "Lease contract" means the total legal obligation that results from the lease
             822      agreement as affected by this chapter and any other applicable rules of law. Unless the context
             823      clearly indicates otherwise, the term includes a sublease contract.
             824          (m) "Leasehold interest" means the interest of the lessor or the lessee under a lease
             825      contract.
             826          (n) "Lessee" means a person who acquires the right to possession and use of goods
             827      under a lease. Unless the context clearly indicates otherwise, the term includes a sublessee.
             828          (o) "Lessee in ordinary course of business" means a person who in good faith and
             829      without knowledge that the lease to him is in violation of the ownership rights, security
             830      interest, or leasehold interest of a third party in the goods, leases in ordinary course from a
             831      person in the business of selling or leasing goods of that kind, but does not include a
             832      pawnbroker. "Leasing" may be for cash or by exchange of other property, or on secured or
             833      unsecured credit, and includes [receiving] acquiring goods or documents of title under a


             834      preexisting lease contract. "Leasing" does not include a transfer in bulk or as security for or in
             835      total or partial satisfaction of a money debt.
             836          (p) "Lessor" means a person who transfers the right to possession and use of goods
             837      under a lease. Unless the context clearly indicates otherwise, the term includes a sublessor.
             838          (q) "Lessor's residual interest" means the lessor's interest in the goods after expiration,
             839      termination, or cancellation of the lease contract.
             840          (r) "Lien" means a charge against or interest in goods to secure payment of a debt or
             841      performance of an obligation, but the term does not include a security interest.
             842          (s) "Lot" means a parcel or single article that is the subject matter of a separate lease or
             843      delivery, whether or not it is sufficient to perform the lease contract.
             844          (t) "Merchant lessee" means a lessee that is a merchant with respect to goods of the
             845      kind subject to the lease.
             846          (u) "Present value" means the amount as of a date certain of one or more sums payable
             847      in the future, discounted to the date certain. The discount is determined by the interest rate
             848      specified by the parties if the rate was not manifestly unreasonable at the time the transaction
             849      was entered into; otherwise, the discount is determined by a commercially reasonable rate that
             850      takes into account the facts and circumstances of each case at the time the transaction was
             851      entered into.
             852          (v) "Purchase" includes taking by sale, lease, mortgage, security interest, pledge, gift,
             853      or any other voluntary transaction creating an interest in goods.
             854          (w) "Sublease" means a lease of goods, the right to possession and use of which was
             855      acquired by the lessor as a lessee under an existing lease.
             856          (x) "Supplier" means a person from whom a lessor buys or leases goods to be leased
             857      under a finance lease.
             858          (y) "Supply contract" means a contract under which a lessor buys or leases goods to be
             859      leased.
             860          (z) "Termination" occurs when either party, pursuant to a power created by agreement
             861      or law, puts an end to the lease contract otherwise than for default.
             862          (2) Other definitions applying to this chapter and the sections in which they appear are:
             863          (a) "Accessions," Section 70A-2a-310 ;
             864          (b) "Construction mortgage," Section 70A-2a-309 ;


             865          (c) "Encumbrance," Section 70A-2a-309 ;
             866          (d) "Fixtures," Section 70A-2a-309 ;
             867          (e) "Fixture filing," Section 70A-2a-309 ; and
             868          (f) "Purchase money lease," Section 70A-2a-309 .
             869          (3) The following definitions in other chapters apply to this chapter:
             870          (a) "Account," Subsection 70A-9a-102 (2);
             871          (b) "Between merchants," Section 70A-2-104 ;
             872          (c) "Buyer," Section 70A-2-103 ;
             873          (d) "Chattel paper," Subsection 70A-9a-102 (11);
             874          (e) "Consumer goods," Subsection 70A-9a-102 (23);
             875          (f) "Document," Subsection 70A-9a-102 (30);
             876          (g) "Entrusting," Section 70A-2-403 ;
             877          (h) "General intangible," Subsection 70A-9a-102 (42);
             878          (i) "Good faith," Section 70A-2-103 ;
             879          (j) "Instrument," Subsection 70A-9a-102 (47);
             880          (k) "Merchant," Section 70A-2-104 ;
             881          (l) "Mortgage," Subsection 70A-9a-102 (55);
             882          (m) "Pursuant to commitment," Subsection 70A-9a-102 (68);
             883          (n) "Receipt," Section 70A-2-103 ;
             884          (o) "Sale," Section 70A-2-106 ;
             885          (p) "Sale on approval," Section 70A-2-326 ;
             886          (q) "Sale or return," Section 70A-2-326 ; and
             887          (r) "Seller," Section 70A-2-103 .
             888          (4) In addition, Title 70A, Chapter 1, Uniform Commercial Code - General Provisions,
             889      contains general definitions and principles of construction and interpretation applicable
             890      throughout this chapter.
             891          Section 17. Section 70A-2a-514 is amended to read:
             892           70A-2a-514. Waiver of lessee's objections.
             893          (1) In rejecting goods, a lessee's failure to state a particular defect that is ascertainable
             894      by reasonable inspection precludes the lessee from relying on the defect to justify rejection or
             895      to establish default:


             896          (a) if, stated seasonably, the lessor or the supplier could have cured it as provided in
             897      Section 70A-2a-513 ; or
             898          (b) between merchants if the lessor or the supplier after rejection has made a request in
             899      writing for a full and final written statement of all defects on which the lessee proposes to rely.
             900          (2) A lessee's failure to reserve rights when paying rent or other consideration against
             901      documents precludes recovery of the payment for defects apparent [on the face of] in the
             902      documents.
             903          Section 18. Section 70A-2a-526 is amended to read:
             904           70A-2a-526. Lessor's stoppage of delivery in transit or otherwise.
             905          (1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if
             906      the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload,
             907      planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a
             908      payment due before delivery, whether for rent, security, or otherwise under the lease contract,
             909      or for any other reason the lessor has a right to withhold or take possession of the goods.
             910          (2) In pursuing its remedies under Subsection (1), the lessor may stop delivery until:
             911          (a) receipt of the goods by the lessee;
             912          (b) acknowledgment to the lessee by any bailee of the goods, except a carrier, that the
             913      bailee holds the goods for the lessee; or
             914          (c) such an acknowledgment to the lessee by a carrier via reshipment or as
             915      [warehouseman] a warehouse.
             916          (3) (a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable
             917      diligence to prevent delivery of the goods.
             918          (b) After notification, the bailee shall hold and deliver the goods according to the
             919      directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
             920          (c) A carrier who has issued a nonnegotiable bill of lading is not obliged to obey a
             921      notification to stop received from a person other than the consignor.
             922          Section 19. Section 70A-4-104 is amended to read:
             923           70A-4-104. Definitions and index of definitions.
             924          (1) In this chapter, unless the context otherwise requires:
             925          (a) "Account" means any deposit or credit account with a bank including a demand,
             926      time, savings, passbook, share draft, or similar account, other than the account evidenced by a


             927      certificate of deposit.
             928          (b) "Afternoon" means the period of a day between noon and midnight.
             929          (c) "Banking day" means the part of a day on which a bank is open to the public for
             930      carrying on substantially all of its banking functions other than a Saturday, a Sunday, or a legal
             931      holiday.
             932          (d) "Clearinghouse" means an association of banks or other payors regularly clearing
             933      items.
             934          (e) "Customer" means a person having an account with a bank or for whom a bank has
             935      agreed to collect items including a bank that maintains an account at another bank.
             936          (f) "Documentary draft" means a draft to be presented for acceptance or payment if
             937      specified documents, certificated securities as provided in Section 70A-8-101 , instructions for
             938      uncertificated securities as provided in Section 70A-8-101 , other certificates, statements, or the
             939      like are to be received by the drawee or other payor before acceptance or payment of the draft.
             940          (g) "Draft" means a draft as defined in Section 70A-3-104 or an item, other than an
             941      instrument, that is an order.
             942          (h) "Drawee" means a person ordered in a draft to make payment.
             943          (i) "Item" means an instrument or a promise or order to pay money handled by a bank
             944      for collection or payment. The term does not include a payment order governed by Title 70A,
             945      Chapter 4A, Uniform Commercial Code - Funds Transfers, or a credit or debit card slip.
             946          (j) "Midnight deadline" with respect to a bank is midnight on its next banking day
             947      following the banking day on which it receives the relevant item or notice or from which the
             948      time for taking action commences to run, whichever is later.
             949          (k) "Settle" means to pay in cash, by clearinghouse settlement, in a charge or credit or
             950      by remittance, or otherwise as agreed. A settlement may be either provisional or final.
             951          (l) "Suspends payments" with respect to a bank means that it has been closed by order
             952      of the supervisory authorities, that a public officer has been appointed to take it over or that it
             953      ceases or refuses to make payments in the ordinary course of business.
             954          (2) Other definitions applying to this chapter and the sections in which they appear are:
             955          (a) "Agreement for electronic presentment," Section 70A-4-110 ;
             956          (b) "Bank," Section 70A-4-105 ;
             957          (c) "Collecting bank," Section 70A-4-105 ;


             958          (d) "Depositary bank," Section 70A-4-105 ;
             959          (e) "Intermediary bank," Section 70A-4-105 ;
             960          (f) "Payor bank," Section 70A-4-105 ;
             961          (g) "Presenting bank," Section 70A-4-105 ; and
             962          (h) "Presentment notice," Section 70A-4-110 .
             963          (3) [The] "Control" as provided in Section 70A-7a-106 and the following definitions in
             964      other chapters apply to this chapter:
             965          (a) "Acceptance," Section 70A-3-409 ;
             966          (b) "Alteration," Section 70A-3-407 ;
             967          (c) "Cashier's check," Section 70A-3-104 ;
             968          (d) "Certificate of deposit," Section 70A-3-104 ;
             969          (e) "Certified check," Section 70A-3-409 ;
             970          (f) "Check," Section 70A-3-104 ;
             971          (g) "Good faith," Section 70A-3-103 ;
             972          (h) "Holder in due course," Section 70A-3-302 ;
             973          (i) "Instrument," Section 70A-3-104 ;
             974          (j) "Notice of dishonor," Section 70A-3-503 ;
             975          (k) "Order," Section 70A-3-103 ;
             976          (l) "Ordinary care," Section 70A-3-103 ;
             977          (m) "Person entitled to enforce," Section 70A-3-301 ;
             978          (n) "Presentment," Section 70A-3-501 ;
             979          (o) "Promise," Section 70A-3-103 ;
             980          (p) "Prove," Section 70A-3-103 ;
             981          (q) "Teller's check," Section 70A-3-104 ; and
             982          (r) "Unauthorized signature," Section 70A-3-403 .
             983          (4) In addition, Chapter 1, General Provisions, contains general definitions and
             984      principles of construction and interpretation applicable throughout this chapter.
             985          Section 20. Section 70A-4-210 is amended to read:
             986           70A-4-210. Security interest of collecting bank in items, accompanying
             987      documents, and proceeds.
             988          (1) A collecting bank has a security interest in an item and any accompanying


             989      documents or the proceeds of either:
             990          (a) in case of an item deposited in an account, to the extent to which credit given for
             991      the item has been withdrawn or applied;
             992          (b) in case of an item for which it has given credit available for withdrawal as of right,
             993      to the extent of the credit given, whether or not the credit is drawn upon or there is a right of
             994      charge-back; or
             995          (c) if it makes an advance on or against the item.
             996          (2) If credit given for several items received at one time or pursuant to a single
             997      agreement is withdrawn or applied in part, the security interest remains upon all the items, any
             998      accompanying documents or the proceeds of either. For the purpose of this section, credits first
             999      given are first withdrawn.
             1000          (3) Receipt by a collecting bank of a final settlement for an item is a realization on its
             1001      security interest in the item, accompanying documents, and proceeds. So long as the bank does
             1002      not receive final settlement for the item or give up possession of the item or possession or
             1003      control of the accompanying documents for purposes other than collection, the security interest
             1004      continues to that extent and is subject to [Title 70A,] Chapter 9a, Uniform Commercial Code -
             1005      Secured Transactions, but:
             1006          (a) no security agreement is necessary to make the security interest enforceable,
             1007      Subsection 70A-9a-203 (2)(c)(i);
             1008          (b) no filing is required to perfect the security interest; and
             1009          (c) the security interest has priority over conflicting perfected security interests in the
             1010      item, accompanying documents, or proceeds.
             1011          Section 21. Section 70A-5-110 is amended to read:
             1012           70A-5-110. Warranties.
             1013          (1) If its presentation is honored, the beneficiary warrants:
             1014          (a) to the issuer, any other person to whom presentation is made, and the applicant that
             1015      there is no fraud or forgery of the kind described in Subsection 70A-5-109 (1); and
             1016          (b) to the applicant that the drawing does not violate any agreement between the
             1017      applicant and beneficiary or any other agreement intended by them to be augmented by the
             1018      letter of credit.
             1019          (2) The warranties in Subsection (1) are in addition to warranties arising under Title


             1020      70A, Chapter 3, Uniform Commercial Code - Negotiable Instruments, Chapter 4, Uniform
             1021      Commercial Code - Bank Deposits and Collections, Chapter [7,] 7a, Uniform Commercial
             1022      Code - Documents of Title, and Chapter 8, Uniform Commercial Code - Investment Securities,
             1023      because of the presentation or transfer of documents covered by any of those chapters.
             1024          Section 22. Section 70A-7a-101 is enacted to read:
             1025     
CHAPTER 7a. UNIFORM COMMERCIAL CODE - DOCUMENTS OF TITLE

             1026     
Part 1. General Provisions

             1027          70A-7a-101. Title.
             1028          This chapter is known as the "Uniform Commercial Code - Documents of Title."
             1029          Section 23. Section 70A-7a-102 is enacted to read:
             1030          70A-7a-102. Definitions and index of definitions.
             1031          (1) In this chapter, unless the context otherwise requires:
             1032          (a) "Bailee" means a person that by a warehouse receipt, bill of lading, or other
             1033      document of title acknowledges possession of goods and contracts to deliver them.
             1034          (b) "Carrier" means a person that issues a bill of lading.
             1035          (c) "Consignee" means a person named in a bill of lading to which or to whose order
             1036      the bill promises delivery.
             1037          (d) "Consignor" means a person named in a bill of lading as the person from which the
             1038      goods have been received for shipment.
             1039          (e) "Delivery order" means a record that contains an order to deliver goods directed to a
             1040      warehouse, carrier, or other person that in the ordinary course of business issues warehouse
             1041      receipts or bills of lading.
             1042          (f) "Good faith" means honesty in fact and the observance of reasonable commercial
             1043      standards of fair dealing.
             1044          (g) "Goods" means all things that are treated as movable for the purposes of a contract
             1045      for storage or transportation.
             1046          (h) "Issuer" means a bailee that issues a document of title or, in the case of an
             1047      unaccepted delivery order, the person that orders the possessor of goods to deliver. The term
             1048      includes a person for which an agent or employee purports to act in issuing a document if the
             1049      agent or employee has real or apparent authority to issue documents, even if the issuer did not
             1050      receive any goods, the goods were misdescribed, or in any other respect the agent or employee


             1051      violated the issuer's instructions.
             1052          (i) "Person entitled under the document" means the holder, in the case of a negotiable
             1053      document of title, or the person to which delivery of the goods is to be made by the terms of, or
             1054      pursuant to instructions in a record under, a nonnegotiable document of title.
             1055          (j) "Record" means information that is inscribed on a tangible medium or that is stored
             1056      in an electronic or other medium and is retrievable in perceivable form.
             1057          (k) "Shipper" means a person that enters into a contract of transportation with a carrier.
             1058          (l) "Sign" means, with present intent to authenticate or adopt a record:
             1059          (i) to execute or adopt a tangible symbol; or
             1060          (ii) to attach to or logically associate with the record an electronic sound, symbol, or
             1061      process.
             1062          (m) "Warehouse" means a person engaged in the business of storing goods for hire.
             1063          (2) Definitions in other chapters applying to this chapter and the sections in which they
             1064      appear are:
             1065          (a) "Contract for sale," Section 70A-2-106 .
             1066          (b) "Lessee in the ordinary course of business," Section 70A-2a-103 .
             1067          (c) "Receipt" of goods, Section 70A-2-103 .
             1068          (3) In addition, Chapter 1, General Provisions, contains general definitions and
             1069      principles of construction and interpretation applicable throughout this chapter.
             1070          Section 24. Section 70A-7a-103 is enacted to read:
             1071          70A-7a-103. Relation of chapter to treaty or statute.
             1072          (1) This chapter is subject to any treaty or statute of the United States or regulatory
             1073      statute of this state to the extent the treaty, statute, or regulatory statute is applicable.
             1074          (2) This chapter does not modify or repeal any law prescribing the form or content of a
             1075      document of title or the services or facilities to be afforded by a bailee, or otherwise regulating
             1076      a bailee's business in respects not specifically treated in this chapter. However, violation of
             1077      such a law does not affect the status of a document of title that otherwise is within the
             1078      definition of a document of title.
             1079          (3) This chapter modifies, limits, and supersedes the federal Electronic Signatures in
             1080      Global and National Commerce Act (15 U.S.C. Section 7001, et seq.) but does not modify,
             1081      limit, or supersede Section 101(c) of that act (15 U.S.C. Section 7001(c)) or authorize


             1082      electronic delivery of any of the notices described in Section 103(b) of that act (15 U.S.C.
             1083      Section 7003(b)).
             1084          (4) To the extent there is a conflict between Title 46, Chapter 4, Uniform Electronic
             1085      Transactions Act, and this chapter, this chapter governs.
             1086          Section 25. Section 70A-7a-104 is enacted to read:
             1087          70A-7a-104. Negotiable and nonnegotiable document of title.
             1088          (1) Except as otherwise provided in Subsection (3), a document of title is negotiable if
             1089      by its terms the goods are to be delivered to bearer or to the order of a named person.
             1090          (2) A document of title other than one described in Subsection (1) is nonnegotiable. A
             1091      bill of lading that states that the goods are consigned to a named person is not made negotiable
             1092      by a provision that the goods are to be delivered only against an order in a record signed by the
             1093      same or another named person.
             1094          (3) A document of title is nonnegotiable if, at the time it is issued, the document has a
             1095      conspicuous legend, however expressed, that it is nonnegotiable.
             1096          Section 26. Section 70A-7a-105 is enacted to read:
             1097          70A-7a-105. Reissuance in alternative medium.
             1098          (1) Upon request of a person entitled under an electronic document of title, the issuer
             1099      of the electronic document may issue a tangible document of title as a substitute for the
             1100      electronic document if:
             1101          (a) the person entitled under the electronic document surrenders control of the
             1102      document to the issuer; and
             1103          (b) the tangible document when issued contains a statement that it is issued in
             1104      substitution for the electronic document.
             1105          (2) Upon issuance of a tangible document of title in substitution for an electronic
             1106      document of title in accordance with Subsection (1):
             1107          (a) the electronic document ceases to have any effect or validity; and
             1108          (b) the person that procured issuance of the tangible document warrants to all
             1109      subsequent persons entitled under the tangible document that the warrantor was a person
             1110      entitled under the electronic document when the warrantor surrendered control of the electronic
             1111      document to the issuer.
             1112          (3) Upon request of a person entitled under a tangible document of title, the issuer of


             1113      the tangible document may issue an electronic document of title as a substitute for the tangible
             1114      document if:
             1115          (a) the person entitled under the tangible document surrenders possession of the
             1116      document to the issuer; and
             1117          (b) the electronic document when issued contains a statement that it is issued in
             1118      substitution for the tangible document.
             1119          (4) Upon issuance of an electronic document of title in substitution for a tangible
             1120      document of title in accordance with Subsection (3):
             1121          (a) the tangible document ceases to have any effect or validity; and
             1122          (b) the person that procured issuance of the electronic document warrants to all
             1123      subsequent persons entitled under the electronic document that the warrantor was a person
             1124      entitled under the tangible document when the warrantor surrendered possession of the tangible
             1125      document to the issuer.
             1126          Section 27. Section 70A-7a-106 is enacted to read:
             1127          70A-7a-106. Control of electronic document of title.
             1128          (1) A person has control of an electronic document of title if a system employed for
             1129      evidencing the transfer of interests in the electronic document reliably establishes that person
             1130      as the person to which the electronic document was issued or transferred.
             1131          (2) A system satisfies Subsection (1), and a person is considered to have control of an
             1132      electronic document of title, if the document is created, stored, and assigned in such a manner
             1133      that:
             1134          (a) a single authoritative copy of the document exists which is unique, identifiable,
             1135      and, except as otherwise provided in Subsections (2)(d), (e), and (f), unalterable;
             1136          (b) the authoritative copy identifies the person asserting control as:
             1137          (i) the person to which the document was issued; or
             1138          (ii) if the authoritative copy indicates that the document has been transferred, the
             1139      person to which the document was most recently transferred;
             1140          (c) the authoritative copy is communicated to and maintained by the person asserting
             1141      control or its designated custodian;
             1142          (d) copies or amendments that add or change an identified assignee of the authoritative
             1143      copy can be made only with the consent of the person asserting control;


             1144          (e) each copy of the authoritative copy and any copy of a copy is readily identifiable as
             1145      a copy that is not the authoritative copy; and
             1146          (f) any amendment of the authoritative copy is readily identifiable as authorized or
             1147      unauthorized.
             1148          Section 28. Section 70A-7a-201 is enacted to read:
             1149     
Part 2. Warehouse Receipts - Special Provisions

             1150          70A-7a-201. Person that may issue a warehouse receipt -- Storage under bond.
             1151          (1) A warehouse receipt may be issued by any warehouse.
             1152          (2) If goods, including distilled spirits and agricultural commodities, are stored under a
             1153      statute requiring a bond against withdrawal or a license for the issuance of receipts in the
             1154      nature of warehouse receipts, a receipt issued for the goods is considered to be a warehouse
             1155      receipt even if issued by a person that is the owner of the goods and is not a warehouse.
             1156          Section 29. Section 70A-7a-202 is enacted to read:
             1157          70A-7a-202. Form of warehouse receipt -- Effect of omission.
             1158          (1) A warehouse receipt need not be in any particular form.
             1159          (2) Unless a warehouse receipt provides for each of the following, the warehouse is
             1160      liable for damages caused to a person injured by its omission:
             1161          (a) a statement of the location of the warehouse facility where the goods are stored;
             1162          (b) the date of issue of the receipt;
             1163          (c) the unique identification code of the receipt;
             1164          (d) a statement whether the goods received will be delivered to the bearer, to a named
             1165      person, or to a named person or that person's order;
             1166          (e) the rate of storage and handling charges, unless goods are stored under a field
             1167      warehousing arrangement, in which case a statement of that fact is sufficient on a
             1168      nonnegotiable receipt;
             1169          (f) a description of the goods or the packages containing them;
             1170          (g) the signature of the warehouse or its agent;
             1171          (h) if the receipt is issued for goods that the warehouse owns, either solely, jointly, or
             1172      in common with others, a statement of the fact of that ownership; and
             1173          (i) a statement of the amount of advances made and of liabilities incurred for which the
             1174      warehouse claims a lien or security interest, unless the precise amount of advances made or


             1175      liabilities incurred, at the time of the issue of the receipt, is unknown to the warehouse or to its
             1176      agent that issued the receipt, in which case a statement of the fact that advances have been
             1177      made or liabilities incurred and the purpose of the advances or liabilities is sufficient.
             1178          (3) A warehouse may insert in its receipt any terms that are not contrary to this title and
             1179      do not impair its obligation of delivery under Section 70A-7a-403 or its duty of care under
             1180      Section 70A-7a-204 . Any contrary provision is ineffective.
             1181          Section 30. Section 70A-7a-203 is enacted to read:
             1182          70A-7a-203. Liability for nonreceipt or misdescription.
             1183          A party to or purchaser for value in good faith of a document of title, other than a bill of
             1184      lading, that relies upon the description of the goods in the document may recover from the
             1185      issuer damages caused by the nonreceipt or misdescription of the goods, except to the extent
             1186      that:
             1187          (1) the document conspicuously indicates that the issuer does not know whether all or
             1188      part of the goods in fact were received or conform to the description, such as a case in which
             1189      the description is in terms of marks or labels or kind, quantity, or condition, or the receipt or
             1190      description is qualified by "contents, condition, and quality unknown," "said to contain," or
             1191      words of similar import, if the indication is true; or
             1192          (2) the party or purchaser otherwise has notice of the nonreceipt or misdescription.
             1193          Section 31. Section 70A-7a-204 is enacted to read:
             1194          70A-7a-204. Duty of care -- Contractual limitation of warehouse's liability.
             1195          (1) A warehouse is liable for damages for loss of or injury to the goods caused by its
             1196      failure to exercise care with regard to the goods that a reasonably careful person would exercise
             1197      under similar circumstances. Unless otherwise agreed, the warehouse is not liable for damages
             1198      that could not have been avoided by the exercise of that care.
             1199          (2) Damages may be limited by a term in the warehouse receipt or storage agreement
             1200      limiting the amount of liability in case of loss or damage beyond which the warehouse is not
             1201      liable. Such a limitation is not effective with respect to the warehouse's liability for conversion
             1202      to its own use. On request of the bailor in a record at the time of signing the storage agreement
             1203      or within a reasonable time after receipt of the warehouse receipt, the warehouse's liability may
             1204      be increased on part or all of the goods covered by the storage agreement or the warehouse
             1205      receipt. In this event, increased rates may be charged based on an increased valuation of the


             1206      goods.
             1207          (3) Reasonable provisions as to the time and manner of presenting claims and
             1208      commencing actions based on the bailment may be included in the warehouse receipt or storage
             1209      agreement.
             1210          Section 32. Section 70A-7a-205 is enacted to read:
             1211          70A-7a-205. Title under warehouse receipt defeated in certain cases.
             1212          A buyer in ordinary course of business of fungible goods sold and delivered by a
             1213      warehouse that is also in the business of buying and selling such goods takes the goods free of
             1214      any claim under a warehouse receipt even if the receipt is negotiable and has been duly
             1215      negotiated.
             1216          Section 33. Section 70A-7a-206 is enacted to read:
             1217          70A-7a-206. Termination of storage at warehouse's option.
             1218          (1) A warehouse, by giving notice to the person on whose account the goods are held
             1219      and any other person known to claim an interest in the goods, may require payment of any
             1220      charges and removal of the goods from the warehouse at the termination of the period of
             1221      storage fixed by the document of title or, if a period is not fixed, within a stated period not less
             1222      than 30 days after the warehouse gives notice. If the goods are not removed before the date
             1223      specified in the notice, the warehouse may sell them pursuant to Section 70A-7a-210 .
             1224          (2) If a warehouse in good faith believes that goods are about to deteriorate or decline
             1225      in value to less than the amount of its lien within the time provided in Subsection (1) and
             1226      Section 70A-7a-210 , the warehouse may specify in the notice given under Subsection (1) any
             1227      reasonable shorter time for removal of the goods and, if the goods are not removed, may sell
             1228      them at public sale held not less than one week after a single advertisement or posting.
             1229          (3) If, as a result of a quality or condition of the goods of which the warehouse did not
             1230      have notice at the time of deposit, the goods are a hazard to other property, the warehouse
             1231      facilities, or other persons, the warehouse may sell the goods at public or private sale without
             1232      advertisement or posting on reasonable notification to all persons known to claim an interest in
             1233      the goods. If the warehouse, after a reasonable effort, is unable to sell the goods, it may
             1234      dispose of them in any lawful manner and does not incur liability by reason of that disposition.
             1235          (4) A warehouse shall deliver the goods to any person entitled to them under this
             1236      chapter upon due demand made at any time before sale or other disposition under this section.


             1237          (5) A warehouse may satisfy its lien from the proceeds of any sale or disposition under
             1238      this section but shall hold the balance for delivery on the demand of any person to which the
             1239      warehouse would have been bound to deliver the goods.
             1240          Section 34. Section 70A-7a-207 is enacted to read:
             1241          70A-7a-207. Goods must be kept separate -- Fungible goods.
             1242          (1) Unless the warehouse receipt provides otherwise, a warehouse shall keep separate
             1243      the goods covered by each receipt so as to permit at all times identification and delivery of
             1244      those goods. However, different lots of fungible goods may be commingled.
             1245          (2) If different lots of fungible goods are commingled, the goods are owned in common
             1246      by the persons entitled thereto and the warehouse is severally liable to each owner for that
             1247      owner's share. If, because of overissue, a mass of fungible goods is insufficient to meet all the
             1248      receipts the warehouse has issued against it, the persons entitled include all holders to which
             1249      overissued receipts have been duly negotiated.
             1250          Section 35. Section 70A-7a-208 is enacted to read:
             1251          70A-7a-208. Altered warehouse receipts.
             1252          If a blank in a negotiable tangible warehouse receipt has been filled in without
             1253      authority, a good-faith purchaser for value and without notice of the lack of authority may treat
             1254      the insertion as authorized. Any other unauthorized alteration leaves any tangible or electronic
             1255      warehouse receipt enforceable against the issuer according to its original tenor.
             1256          Section 36. Section 70A-7a-209 is enacted to read:
             1257          70A-7a-209. Lien of warehouse.
             1258          (1) A warehouse has a lien against the bailor on the goods covered by a warehouse
             1259      receipt or storage agreement or on the proceeds thereof in its possession for charges for storage
             1260      or transportation, including demurrage and terminal charges, insurance, labor, or other charges,
             1261      present or future, in relation to the goods, and for expenses necessary for preservation of the
             1262      goods or reasonably incurred in their sale pursuant to law. If the person on whose account the
             1263      goods are held is liable for similar charges or expenses in relation to other goods whenever
             1264      deposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed
             1265      for charges and expenses in relation to other goods, the warehouse also has a lien against the
             1266      goods covered by the warehouse receipt or storage agreement or on the proceeds thereof in its
             1267      possession for those charges and expenses, whether or not the other goods have been delivered


             1268      by the warehouse. However, as against a person to which a negotiable warehouse receipt is
             1269      duly negotiated, a warehouse's lien is limited to charges in an amount or at a rate specified in
             1270      the warehouse receipt or, if no charges are so specified, to a reasonable charge for storage of
             1271      the specific goods covered by the receipt subsequent to the date of the receipt.
             1272          (2) A warehouse may also reserve a security interest against the bailor for the
             1273      maximum amount specified on the receipt for charges other than those specified in Subsection
             1274      (1), such as for money advanced and interest. The security interest is governed by Chapter 9a,
             1275      Uniform Commercial Code - Secured Transactions.
             1276          (3) A warehouse's lien for charges and expenses under Subsection (1) or a security
             1277      interest under Subsection (2) is also effective against any person that so entrusted the bailor
             1278      with possession of the goods that a pledge of them by the bailor to a good-faith purchaser for
             1279      value would have been valid. However, the lien or security interest is not effective against a
             1280      person that before issuance of a document of title had a legal interest or a perfected security
             1281      interest in the goods and that did not:
             1282          (a) deliver or entrust the goods or any document of title covering the goods to the
             1283      bailor or the bailor's nominee with:
             1284          (i) actual or apparent authority to ship, store, or sell;
             1285          (ii) power to obtain delivery under Section 70A-7a-403 ; or
             1286          (iii) power of disposition under Section 70A-2-403 , Subsection 70A-2a-304 (2),
             1287      Subsection 70A-2a-305 (2), Section 70A-9a-320 , or Subsection 70A-9a-321 (3) or other statute
             1288      or rule of law; or
             1289          (b) acquiesce in the procurement by the bailor or its nominee of any document.
             1290          (4) A warehouse's lien on household goods for charges and expenses in relation to the
             1291      goods under Subsection (1) is also effective against all persons if the depositor was the legal
             1292      possessor of the goods at the time of deposit. In this Subsection (4), "household goods" means
             1293      furniture, furnishings, or personal effects used by the depositor in a dwelling.
             1294          (5) A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably
             1295      refuses to deliver.
             1296          Section 37. Section 70A-7a-210 is enacted to read:
             1297          70A-7a-210. Enforcement of warehouse's lien.
             1298          (1) Except as otherwise provided in Subsection (2), a warehouse's lien may be enforced


             1299      by public or private sale of the goods, in bulk or in packages, at any time or place and on any
             1300      terms that are commercially reasonable, after notifying all persons known to claim an interest
             1301      in the goods. The notification must include a statement of the amount due, the nature of the
             1302      proposed sale, and the time and place of any public sale. The fact that a better price could have
             1303      been obtained by a sale at a different time or in a method different from that selected by the
             1304      warehouse is not of itself sufficient to establish that the sale was not made in a commercially
             1305      reasonable manner. The warehouse sells in a commercially reasonable manner if the
             1306      warehouse sells the goods in the usual manner in any recognized market therefor, sells at the
             1307      price current in that market at the time of the sale, or otherwise sells in conformity with
             1308      commercially reasonable practices among dealers in the type of goods sold. A sale of more
             1309      goods than apparently necessary to be offered to ensure satisfaction of the obligation is not
             1310      commercially reasonable, except in cases covered by the preceding sentence.
             1311          (2) A warehouse may enforce its lien on goods, other than goods stored by a merchant
             1312      in the course of its business, only if the following requirements are satisfied:
             1313          (a) All persons known to claim an interest in the goods must be notified.
             1314          (b) The notification must include an itemized statement of the claim, a description of
             1315      the goods subject to the lien, a demand for payment within a specified time not less than ten
             1316      days after receipt of the notification, and a conspicuous statement that unless the claim is paid
             1317      within that time the goods will be advertised for sale and sold by auction at a specified time
             1318      and place.
             1319          (c) The sale must conform to the terms of the notification.
             1320          (d) The sale must be held at the nearest suitable place to where the goods are held or
             1321      stored.
             1322          (e) After the expiration of the time given in the notification, an advertisement of the
             1323      sale must be published once a week for two weeks consecutively in a newspaper of general
             1324      circulation where the sale is to be held. The advertisement must include a description of the
             1325      goods, the name of the person on whose account the goods are being held, and the time and
             1326      place of the sale. The sale must take place at least 15 days after the first publication. If there is
             1327      no newspaper of general circulation where the sale is to be held, the advertisement must be
             1328      posted at least ten days before the sale in not fewer than six conspicuous places in the
             1329      neighborhood of the proposed sale.


             1330          (3) Before any sale pursuant to this section, any person claiming a right in the goods
             1331      may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in
             1332      complying with this section. In that event, the goods may not be sold but must be retained by
             1333      the warehouse subject to the terms of the receipt and this chapter.
             1334          (4) A warehouse may buy at any public sale held pursuant to this section.
             1335          (5) A purchaser in good faith of goods sold to enforce a warehouse's lien takes the
             1336      goods free of any rights of persons against which the lien was valid, despite the warehouse's
             1337      noncompliance with this section.
             1338          (6) A warehouse may satisfy its lien from the proceeds of any sale pursuant to this
             1339      section but shall hold the balance, if any, for delivery on demand to any person to which the
             1340      warehouse would have been bound to deliver the goods.
             1341          (7) The rights provided by this section are in addition to all other rights allowed by law
             1342      to a creditor against a debtor.
             1343          (8) If a lien is on goods stored by a merchant in the course of its business, the lien may
             1344      be enforced in accordance with Subsection (1) or (2).
             1345          (9) A warehouse is liable for damages caused by failure to comply with the
             1346      requirements for sale under this section and, in case of willful violation, is liable for
             1347      conversion.
             1348          Section 38. Section 70A-7a-301 is enacted to read:
             1349     
Part 3. Bills of Lading - Special Provisions

             1350          70A-7a-301. Liability for nonreceipt or misdescription -- "Said to contain" --
             1351      "Shipper's weight, load, and count" -- Improper handling.
             1352          (1) A consignee of a nonnegotiable bill of lading which has given value in good faith,
             1353      or a holder to which a negotiable bill has been duly negotiated, relying upon the description of
             1354      the goods in the bill or upon the date shown in the bill, may recover from the issuer damages
             1355      caused by the misdating of the bill or the nonreceipt or misdescription of the goods, except to
             1356      the extent that the bill indicates that the issuer does not know whether any part or all of the
             1357      goods in fact were received or conform to the description, such as in a case in which the
             1358      description is in terms of marks or labels or kind, quantity, or condition or the receipt or
             1359      description is qualified by "contents or condition of contents of packages unknown," "said to
             1360      contain," "shipper's weight, load, and count," or words of similar import, if that indication is


             1361      true.
             1362          (2) If goods are loaded by the issuer of a bill of lading:
             1363          (a) the issuer shall count the packages of goods if shipped in packages and ascertain the
             1364      kind and quantity if shipped in bulk; and
             1365          (b) words such as "shipper's weight, load, and count," or words of similar import
             1366      indicating that the description was made by the shipper are ineffective except as to goods
             1367      concealed in packages.
             1368          (3) If bulk goods are loaded by a shipper that makes available to the issuer of a bill of
             1369      lading adequate facilities for weighing those goods, the issuer shall ascertain the kind and
             1370      quantity within a reasonable time after receiving the shipper's request in a record to do so. In
             1371      that case, "shipper's weight" or words of similar import are ineffective.
             1372          (4) The issuer of a bill of lading, by including in the bill the words "shipper's weight,
             1373      load, and count," or words of similar import, may indicate that the goods were loaded by the
             1374      shipper, and, if that statement is true, the issuer is not liable for damages caused by the
             1375      improper loading. However, omission of such words does not imply liability for damages
             1376      caused by improper loading.
             1377          (5) A shipper guarantees to an issuer the accuracy at the time of shipment of the
             1378      description, marks, labels, number, kind, quantity, condition, and weight, as furnished by the
             1379      shipper, and the shipper shall indemnify the issuer against damage caused by inaccuracies in
             1380      those particulars. This right of indemnity does not limit the issuer's responsibility or liability
             1381      under the contract of carriage to any person other than the shipper.
             1382          Section 39. Section 70A-7a-302 is enacted to read:
             1383          70A-7a-302. Through bills of lading and similar documents of title.
             1384          (1) The issuer of a through bill of lading, or other document of title embodying an
             1385      undertaking to be performed in part by a person acting as its agent or by a performing carrier, is
             1386      liable to any person entitled to recover on the bill or other document for any breach by the other
             1387      person or the performing carrier of its obligation under the bill or other document. However, to
             1388      the extent that the bill or other document covers an undertaking to be performed overseas or in
             1389      territory not contiguous to the continental United States or an undertaking including matters
             1390      other than transportation, this liability for breach by the other person or the performing carrier
             1391      may be varied by agreement of the parties.


             1392          (2) If goods covered by a through bill of lading or other document of title embodying
             1393      an undertaking to be performed in part by a person other than the issuer are received by that
             1394      person, the person is subject, with respect to its own performance while the goods are in its
             1395      possession, to the obligation of the issuer. The person's obligation is discharged by delivery of
             1396      the goods to another person pursuant to the bill or other document and does not include liability
             1397      for breach by any other person or by the issuer.
             1398          (3) The issuer of a through bill of lading or other document of title described in
             1399      Subsection (1) is entitled to recover from the performing carrier, or other person in possession
             1400      of the goods when the breach of the obligation under the bill or other document occurred:
             1401          (a) the amount it may be required to pay to any person entitled to recover on the bill or
             1402      other document for the breach, as may be evidenced by any receipt, judgment, or transcript of
             1403      judgment; and
             1404          (b) the amount of any expense reasonably incurred by the issuer in defending any
             1405      action commenced by any person entitled to recover on the bill or other document for the
             1406      breach.
             1407          Section 40. Section 70A-7a-303 is enacted to read:
             1408          70A-7a-303. Diversion -- Reconsignment -- Change of instructions.
             1409          (1) Unless the bill of lading otherwise provides, a carrier may deliver the goods to a
             1410      person or destination other than that stated in the bill or may otherwise dispose of the goods,
             1411      without liability for misdelivery, on instructions from:
             1412          (a) the holder of a negotiable bill;
             1413          (b) the consignor on a nonnegotiable bill, even if the consignee has given contrary
             1414      instructions;
             1415          (c) the consignee on a nonnegotiable bill in the absence of contrary instructions from
             1416      the consignor, if the goods have arrived at the billed destination or if the consignee is in
             1417      possession of the tangible bill or in control of the electronic bill; or
             1418          (d) the consignee on a nonnegotiable bill, if the consignee is entitled as against the
             1419      consignor to dispose of the goods.
             1420          (2) Unless instructions described in Subsection (1) are included in a negotiable bill of
             1421      lading, a person to which the bill is duly negotiated may hold the bailee according to the
             1422      original terms.


             1423          Section 41. Section 70A-7a-304 is enacted to read:
             1424          70A-7a-304. Tangible bills of lading in a set.
             1425          (1) Except as customary in international transportation, a tangible bill of lading may
             1426      not be issued in a set of parts. The issuer is liable for damages caused by violation of this
             1427      Subsection (1).
             1428          (2) If a tangible bill of lading is lawfully issued in a set of parts, each of which contains
             1429      an identification code and is expressed to be valid only if the goods have not been delivered
             1430      against any other part, the whole of the parts constitutes one bill.
             1431          (3) If a tangible negotiable bill of lading is lawfully issued in a set of parts and different
             1432      parts are negotiated to different persons, the title of the holder to which the first due negotiation
             1433      is made prevails as to both the document of title and the goods even if any later holder may
             1434      have received the goods from the carrier in good faith and discharged the carrier's obligation by
             1435      surrendering its part.
             1436          (4) A person that negotiates or transfers a single part of a tangible bill of lading issued
             1437      in a set is liable to holders of that part as if it were the whole set.
             1438          (5) The bailee shall deliver in accordance with Chapter 4, Uniform Commercial Code -
             1439      Bank Deposits and Collections, against the first presented part of a tangible bill of lading
             1440      lawfully issued in a set. Delivery in this manner discharges the bailee's obligation on the whole
             1441      bill.
             1442          Section 42. Section 70A-7a-305 is enacted to read:
             1443          70A-7a-305. Destination bills.
             1444          (1) Instead of issuing a bill of lading to the consignor at the place of shipment, a
             1445      carrier, at the request of the consignor, may procure the bill to be issued at destination or at any
             1446      other place designated in the request.
             1447          (2) Upon request of any person entitled as against a carrier to control the goods while
             1448      in transit and on surrender of possession or control of any outstanding bill of lading or other
             1449      receipt covering the goods, the issuer, subject to Section 70A-7a-105 , may procure a substitute
             1450      bill to be issued at any place designated in the request.
             1451          Section 43. Section 70A-7a-306 is enacted to read:
             1452          70A-7a-306. Altered bills of lading.
             1453          An unauthorized alteration or filling in of a blank in a bill of lading leaves the bill


             1454      enforceable according to its original tenor.
             1455          Section 44. Section 70A-7a-307 is enacted to read:
             1456          70A-7a-307. Lien of carrier.
             1457          (1) A carrier has a lien on the goods covered by a bill of lading or on the proceeds
             1458      thereof in its possession for charges after the date of the carrier's receipt of the goods for
             1459      storage or transportation, including demurrage and terminal charges, and for expenses
             1460      necessary for preservation of the goods incident to their transportation or reasonably incurred in
             1461      their sale pursuant to law. However, against a purchaser for value of a negotiable bill of lading,
             1462      a carrier's lien is limited to charges stated in the bill or the applicable tariffs or, if no charges
             1463      are stated, a reasonable charge.
             1464          (2) A lien for charges and expenses under Subsection (1) on goods that the carrier was
             1465      required by law to receive for transportation is effective against the consignor or any person
             1466      entitled to the goods unless the carrier had notice that the consignor lacked authority to subject
             1467      the goods to those charges and expenses. Any other lien under Subsection (1) is effective
             1468      against the consignor and any person that permitted the bailor to have control or possession of
             1469      the goods unless the carrier had notice that the bailor lacked authority.
             1470          (3) A carrier loses its lien on any goods that it voluntarily delivers or unjustifiably
             1471      refuses to deliver.
             1472          Section 45. Section 70A-7a-308 is enacted to read:
             1473          70A-7a-308. Enforcement of carrier's lien.
             1474          (1) A carrier's lien on goods may be enforced by public or private sale of the goods, in
             1475      bulk or in packages, at any time or place and on any terms that are commercially reasonable,
             1476      after notifying all persons known to claim an interest in the goods. The notification must
             1477      include a statement of the amount due, the nature of the proposed sale, and the time and place
             1478      of any public sale. The fact that a better price could have been obtained by a sale at a different
             1479      time or in a method different from that selected by the carrier is not of itself sufficient to
             1480      establish that the sale was not made in a commercially reasonable manner. The carrier sells
             1481      goods in a commercially reasonable manner if the carrier sells the goods in the usual manner in
             1482      any recognized market therefor, sells at the price current in that market at the time of the sale,
             1483      or otherwise sells in conformity with commercially reasonable practices among dealers in the
             1484      type of goods sold. A sale of more goods than apparently necessary to be offered to ensure


             1485      satisfaction of the obligation is not commercially reasonable, except in cases covered by the
             1486      preceding sentence.
             1487          (2) Before any sale pursuant to this section, any person claiming a right in the goods
             1488      may pay the amount necessary to satisfy the lien and the reasonable expenses incurred in
             1489      complying with this section. In that event, the goods may not be sold but must be retained by
             1490      the carrier, subject to the terms of the bill of lading and this chapter.
             1491          (3) A carrier may buy at any public sale pursuant to this section.
             1492          (4) A purchaser in good faith of goods sold to enforce a carrier's lien takes the goods
             1493      free of any rights of persons against which the lien was valid, despite the carrier's
             1494      noncompliance with this section.
             1495          (5) A carrier may satisfy its lien from the proceeds of any sale pursuant to this section
             1496      but shall hold the balance, if any, for delivery on demand to any person to which the carrier
             1497      would have been bound to deliver the goods.
             1498          (6) The rights provided by this section are in addition to all other rights allowed by law
             1499      to a creditor against a debtor.
             1500          (7) A carrier's lien may be enforced pursuant to either Subsection (1) or the procedure
             1501      set forth in Subsection 70A-7a-210 (2).
             1502          (8) A carrier is liable for damages caused by failure to comply with the requirements
             1503      for sale under this section and, in case of willful violation, is liable for conversion.
             1504          Section 46. Section 70A-7a-309 is enacted to read:
             1505          70A-7a-309. Duty of care -- Contractual limitation of carrier's liability.
             1506          (1) A carrier that issues a bill of lading, whether negotiable or nonnegotiable, shall
             1507      exercise the degree of care in relation to the goods which a reasonably careful person would
             1508      exercise under similar circumstances. This Subsection (1) does not affect any statute,
             1509      regulation, or rule of law that imposes liability upon a common carrier for damages not caused
             1510      by its negligence.
             1511          (2) Damages may be limited by a term in the bill of lading or in a transportation
             1512      agreement that the carrier's liability may not exceed a value stated in the bill or transportation
             1513      agreement if the carrier's rates are dependent upon value and the consignor is afforded an
             1514      opportunity to declare a higher value and the consignor is advised of the opportunity.
             1515      However, such a limitation is not effective with respect to the carrier's liability for conversion


             1516      to its own use.
             1517          (3) Reasonable provisions as to the time and manner of presenting claims and
             1518      commencing actions based on the shipment may be included in a bill of lading or a
             1519      transportation agreement.
             1520          Section 47. Section 70A-7a-401 is enacted to read:
             1521     
Part 4. Warehouse Receipts and Bills of Lading - General Obligations

             1522          70A-7a-401. Irregularities in issue of receipt or bill or conduct of issuer.
             1523          The obligations imposed by this chapter on an issuer apply to a document of title even
             1524      if:
             1525          (1) the document does not comply with the requirements of this chapter or of any other
             1526      statute, rule, or regulation regarding its issuance, form, or content;
             1527          (2) the issuer violated laws regulating the conduct of its business;
             1528          (3) the goods covered by the document were owned by the bailee when the document
             1529      was issued; or
             1530          (4) the person issuing the document is not a warehouse but the document purports to be
             1531      a warehouse receipt.
             1532          Section 48. Section 70A-7a-402 is enacted to read:
             1533          70A-7a-402. Duplicate document of title -- Overissue.
             1534          A duplicate or any other document of title purporting to cover goods already
             1535      represented by an outstanding document of the same issuer does not confer any right in the
             1536      goods, except as provided in the case of tangible bills of lading in a set of parts, overissue of
             1537      documents for fungible goods, substitutes for lost, stolen, or destroyed documents, or substitute
             1538      documents issued pursuant to Section 70A-7a-105 . The issuer is liable for damages caused by
             1539      its overissue or failure to identify a duplicate document by a conspicuous notation.
             1540          Section 49. Section 70A-7a-403 is enacted to read:
             1541          70A-7a-403. Obligation of bailee to deliver -- Excuse.
             1542          (1) A bailee shall deliver the goods to a person entitled under a document of title if the
             1543      person complies with Subsections (2) and (3), unless and to the extent that the bailee
             1544      establishes any of the following:
             1545          (a) delivery of the goods to a person whose receipt was rightful as against the claimant;
             1546          (b) damage to or delay, loss, or destruction of the goods for which the bailee is not


             1547      liable;
             1548          (c) previous sale or other disposition of the goods in lawful enforcement of a lien or on
             1549      a warehouse's lawful termination of storage;
             1550          (d) the exercise by a seller of its right to stop delivery pursuant to Section 70A-2-705
             1551      or by a lessor of its right to stop delivery pursuant to Section 70A-2a-526 ;
             1552          (e) a diversion, reconsignment, or other disposition pursuant to Section 70A-7a-303 ;
             1553          (f) release, satisfaction, or any other personal defense against the claimant; or
             1554          (g) any other lawful excuse.
             1555          (2) A person claiming goods covered by a document of title shall satisfy the bailee's
             1556      lien if the bailee so requests or if the bailee is prohibited by law from delivering the goods until
             1557      the charges are paid.
             1558          (3) Unless a person claiming the goods is a person against which the document of title
             1559      does not confer a right under Subsection 70A-7a-503 (1)(a):
             1560          (a) the person claiming under a document shall surrender possession or control of any
             1561      outstanding negotiable document covering the goods for cancellation or indication of partial
             1562      deliveries; and
             1563          (b) the bailee shall cancel the document or conspicuously indicate in the document the
             1564      partial delivery or the bailee is liable to any person to which the document is duly negotiated.
             1565          Section 50. Section 70A-7a-404 is enacted to read:
             1566          70A-7a-404. No liability for good-faith delivery pursuant to document of title.
             1567          A bailee that in good faith has received goods and delivered or otherwise disposed of
             1568      the goods according to the terms of a document of title or pursuant to this chapter is not liable
             1569      for the goods even if:
             1570          (1) the person from which the bailee received the goods did not have authority to
             1571      procure the document or to dispose of the goods; or
             1572          (2) the person to which the bailee delivered the goods did not have authority to receive
             1573      the goods.
             1574          Section 51. Section 70A-7a-501 is enacted to read:
             1575     
Part 5. Warehouse Receipts and Bills of Lading - Negotiation and Transfer

             1576          70A-7a-501. Form of negotiation and requirements of due negotiation.
             1577          (1) The following rules apply to a negotiable tangible document of title:


             1578          (a) If the document's original terms run to the order of a named person, the document is
             1579      negotiated by the named person's indorsement and delivery. After the named person's
             1580      indorsement in blank or to bearer, any person may negotiate the document by delivery alone.
             1581          (b) If the document's original terms run to bearer, it is negotiated by delivery alone.
             1582          (c) If the document's original terms run to the order of a named person and it is
             1583      delivered to the named person, the effect is the same as if the document had been negotiated.
             1584          (d) Negotiation of the document after it has been indorsed to a named person requires
             1585      indorsement by the named person and delivery.
             1586          (e) A document is duly negotiated if it is negotiated in the manner stated in this
             1587      Subsection (1) to a holder that purchases it in good faith, without notice of any defense against
             1588      or claim to it on the part of any person, and for value, unless it is established that the
             1589      negotiation is not in the regular course of business or financing or involves receiving the
             1590      document in settlement or payment of a monetary obligation.
             1591          (2) The following rules apply to a negotiable electronic document of title:
             1592          (a) If the document's original terms run to the order of a named person or to bearer, the
             1593      document is negotiated by delivery of the document to another person. Indorsement by the
             1594      named person is not required to negotiate the document.
             1595          (b) If the document's original terms run to the order of a named person and the named
             1596      person has control of the document, the effect is the same as if the document had been
             1597      negotiated.
             1598          (c) A document is duly negotiated if it is negotiated in the manner stated in this
             1599      subsection to a holder that purchases it in good faith, without notice of any defense against or
             1600      claim to it on the part of any person, and for value, unless it is established that the negotiation
             1601      is not in the regular course of business or financing or involves taking delivery of the document
             1602      in settlement or payment of a monetary obligation.
             1603          (3) Indorsement of a nonnegotiable document of title neither makes it negotiable nor
             1604      adds to the transferee's rights.
             1605          (4) The naming in a negotiable bill of lading of a person to be notified of the arrival of
             1606      the goods does not limit the negotiability of the bill or constitute notice to a purchaser of the
             1607      bill of any interest of that person in the goods.
             1608          Section 52. Section 70A-7a-502 is enacted to read:


             1609          70A-7a-502. Rights acquired by due negotiation.
             1610          (1) Subject to Sections 70A-7a-205 and 70A-7a-503 , a holder to which a negotiable
             1611      document of title has been duly negotiated acquires thereby:
             1612          (a) title to the document;
             1613          (b) title to the goods;
             1614          (c) all rights accruing under the law of agency or estoppel, including rights to goods
             1615      delivered to the bailee after the document was issued; and
             1616          (d) the direct obligation of the issuer to hold or deliver the goods according to the
             1617      terms of the document free of any defense or claim by the issuer except those arising under the
             1618      terms of the document or under this chapter, but in the case of a delivery order, the bailee's
             1619      obligation accrues only upon the bailee's acceptance of the delivery order and the obligation
             1620      acquired by the holder is that the issuer and any indorser will procure the acceptance of the
             1621      bailee.
             1622          (2) Subject to Section 70A-7a-503 , title and rights acquired by due negotiation are not
             1623      defeated by any stoppage of the goods represented by the document of title or by surrender of
             1624      the goods by the bailee and are not impaired even if:
             1625          (a) the due negotiation or any prior due negotiation constituted a breach of duty;
             1626          (b) any person has been deprived of possession of a negotiable tangible document or
             1627      control of a negotiable electronic document by misrepresentation, fraud, accident, mistake,
             1628      duress, loss, theft, or conversion; or
             1629          (c) a previous sale or other transfer of the goods or document has been made to a third
             1630      person.
             1631          Section 53. Section 70A-7a-503 is enacted to read:
             1632          70A-7a-503. Document of title to goods defeated in certain cases.
             1633          (1) A document of title confers no right in goods against a person that before issuance
             1634      of the document had a legal interest or a perfected security interest in the goods and that did
             1635      not:
             1636          (a) deliver or entrust the goods or any document of title covering the goods to the
             1637      bailor or the bailor's nominee with:
             1638          (i) actual or apparent authority to ship, store, or sell;
             1639          (ii) power to obtain delivery under Section 70A-7a-403 ; or


             1640          (iii) power of disposition under Section 70A-2-403 , Subsection 70A-2a-304 (2),
             1641      Subsection 70A-2a-305 (2), Section 70A-9a-320 , or Subsection 70A-9a-321 (3) or other statute
             1642      or rule of law; or
             1643          (b) acquiesce in the procurement by the bailor or its nominee of any document.
             1644          (2) Title to goods based upon an unaccepted delivery order is subject to the rights of
             1645      any person to which a negotiable warehouse receipt or bill of lading covering the goods has
             1646      been duly negotiated. That title may be defeated under Section 70A-7a-504 to the same extent
             1647      as the rights of the issuer or a transferee from the issuer.
             1648          (3) Title to goods based upon a bill of lading issued to a freight forwarder is subject to
             1649      the rights of any person to which a bill issued by the freight forwarder is duly negotiated.
             1650      However, delivery by the carrier in accordance with Part 4, Warehouse Receipts and Bills of
             1651      Lading: General Obligations, pursuant to its own bill of lading discharges the carrier's
             1652      obligation to deliver.
             1653          Section 54. Section 70A-7a-504 is enacted to read:
             1654          70A-7a-504. Rights acquired in absence of due negotiation -- Effect of diversion --
             1655      Stoppage of delivery.
             1656          (1) A transferee of a document of title, whether negotiable or nonnegotiable, to which
             1657      the document has been delivered but not duly negotiated, acquires the title and rights that its
             1658      transferor had or had actual authority to convey.
             1659          (2) In the case of a transfer of a nonnegotiable document of title, until but not after the
             1660      bailee receives notice of the transfer, the rights of the transferee may be defeated:
             1661          (a) by those creditors of the transferor which could treat the transfer as void under
             1662      Section 70A-2-402 or 70A-2a-308 ;
             1663          (b) by a buyer from the transferor in ordinary course of business if the bailee has
             1664      delivered the goods to the buyer or received notification of the buyer's rights;
             1665          (c) by a lessee from the transferor in ordinary course of business if the bailee has
             1666      delivered the goods to the lessee or received notification of the lessee's rights; or
             1667          (d) as against the bailee, by good-faith dealings of the bailee with the transferor.
             1668          (3) A diversion or other change of shipping instructions by the consignor in a
             1669      nonnegotiable bill of lading which causes the bailee not to deliver the goods to the consignee
             1670      defeats the consignee's title to the goods if the goods have been delivered to a buyer in ordinary


             1671      course of business or a lessee in ordinary course of business and, in any event, defeats the
             1672      consignee's rights against the bailee.
             1673          (4) Delivery of the goods pursuant to a nonnegotiable document of title may be stopped
             1674      by a seller under Section 70A-2-705 or a lessor under Section 70A-2a-526 , subject to the
             1675      requirements of due notification in those sections. A bailee that honors the seller's or lessor's
             1676      instructions is entitled to be indemnified by the seller or lessor against any resulting loss or
             1677      expense.
             1678          Section 55. Section 70A-7a-505 is enacted to read:
             1679          70A-7a-505. Indorser not guarantor for other parties.
             1680          The indorsement of a tangible document of title issued by a bailee does not make the
             1681      indorser liable for any default by the bailee or previous indorsers.
             1682          Section 56. Section 70A-7a-506 is enacted to read:
             1683          70A-7a-506. Delivery without indorsement -- Right to compel indorsement.
             1684          The transferee of a negotiable tangible document of title has a specifically enforceable
             1685      right to have its transferor supply any necessary indorsement, but the transfer becomes a
             1686      negotiation only as of the time the indorsement is supplied.
             1687          Section 57. Section 70A-7a-507 is enacted to read:
             1688          70A-7a-507. Warranties on negotiation or delivery of document of title.
             1689          If a person negotiates or delivers a document of title for value, otherwise than as a mere
             1690      intermediary under Section 70A-7a-508 , unless otherwise agreed, the transferor, in addition to
             1691      any warranty made in selling or leasing the goods, warrants to its immediate purchaser only
             1692      that:
             1693          (1) the document is genuine;
             1694          (2) the transferor does not have knowledge of any fact that would impair the
             1695      document's validity or worth; and
             1696          (3) the negotiation or delivery is rightful and fully effective with respect to the title to
             1697      the document and the goods it represents.
             1698          Section 58. Section 70A-7a-508 is enacted to read:
             1699          70A-7a-508. Warranties of collecting bank as to documents of title.
             1700          A collecting bank or other intermediary known to be entrusted with documents of title
             1701      on behalf of another or with collection of a draft or other claim against delivery of documents


             1702      warrants by the delivery of the documents only its own good faith and authority even if the
             1703      collecting bank or other intermediary has purchased or made advances against the claim or
             1704      draft to be collected.
             1705          Section 59. Section 70A-7a-509 is enacted to read:
             1706          70A-7a-509. Adequate compliance with commercial contract.
             1707          Whether a document of title is adequate to fulfill the obligations of a contract for sale, a
             1708      contract for lease, or the conditions of a letter of credit is determined by Chapter 2, Uniform
             1709      Commercial Code - Sales, 2a, Uniform Commercial Code - Leases, or 5, Uniform Commercial
             1710      Code - Letters of Credit.
             1711          Section 60. Section 70A-7a-601 is enacted to read:
             1712     
Part 6. Warehouse Receipts and Bills of Lading - Miscellaneous Provisions

             1713          70A-7a-601. Lost, stolen, or destroyed documents of title.
             1714          (1) If a document of title is lost, stolen, or destroyed, a court may order delivery of the
             1715      goods or issuance of a substitute document and the bailee may without liability to any person
             1716      comply with the order. If the document was negotiable, a court may not order delivery of the
             1717      goods or issuance of a substitute document without the claimant's posting security unless it
             1718      finds that any person that may suffer loss as a result of nonsurrender of possession or control of
             1719      the document is adequately protected against the loss. If the document was nonnegotiable, the
             1720      court may require security. The court may also order payment of the bailee's reasonable costs
             1721      and attorney's fees in any action under this Subsection (1).
             1722          (2) A bailee that, without a court order, delivers goods to a person claiming under a
             1723      missing negotiable document of title is liable to any person injured thereby. If the delivery is
             1724      not in good faith, the bailee is liable for conversion. Delivery in good faith is not conversion if
             1725      the claimant posts security with the bailee in an amount at least double the value of the goods
             1726      at the time of posting to indemnify any person injured by the delivery which files a notice of
             1727      claim within one year after the delivery.
             1728          Section 61. Section 70A-7a-602 is enacted to read:
             1729          70A-7a-602. Judicial process against goods covered by negotiable document of
             1730      title.
             1731          Unless a document of title was originally issued upon delivery of the goods by a person
             1732      that did not have power to dispose of them, a lien does not attach by virtue of any judicial


             1733      process to goods in the possession of a bailee for which a negotiable document of title is
             1734      outstanding unless possession or control of the document is first surrendered to the bailee or
             1735      the document's negotiation is enjoined. The bailee may not be compelled to deliver the goods
             1736      pursuant to process until possession or control of the document is surrendered to the bailee or
             1737      to the court. A purchaser of the document for value without notice of the process or injunction
             1738      takes free of the lien imposed by judicial process.
             1739          Section 62. Section 70A-7a-603 is enacted to read:
             1740          70A-7a-603. Conflicting claims -- Interpleader.
             1741          If more than one person claims title to or possession of the goods, the bailee is excused
             1742      from delivery until the bailee has a reasonable time to ascertain the validity of the adverse
             1743      claims or to commence an action for interpleader. The bailee may assert an interpleader either
             1744      in defending an action for nondelivery of the goods or by original action.
             1745          Section 63. Section 70A-7a-701 is enacted to read:
             1746     
Part 7. Miscellaneous Provisions

             1747          70A-7a-701. Applicability.
             1748          This chapter applies to a document of title that is issued or a bailment that arises on or
             1749      after May 1, 2006. This chapter does not apply to a document of title that is issued or a
             1750      bailment that arises before May 1, 2006 even if the document of title or bailment would be
             1751      subject to this chapter if the document of title had been issued or bailment had arisen on or
             1752      after May 1, 2006. This chapter does not apply to a right of action that has accrued before May
             1753      1, 2006.
             1754          Section 64. Section 70A-7a-702 is enacted to read:
             1755          70A-7a-702. Savings clause.
             1756          A document of title issued or a bailment that arises before May 1, 2006 and the rights,
             1757      obligations, and interests flowing from that document or bailment are governed by any statute
             1758      or other rule amended or repealed by this chapter as if amendment or repeal had not occurred
             1759      and may be terminated, completed, consummated, or enforced under that statute or other rule.
             1760          Section 65. Section 70A-8-102 is amended to read:
             1761           70A-8-102. Rules for determining whether certain obligations and interests are
             1762      securities or financial assets.
             1763          (1) A share or similar equity interest issued by a corporation, business trust, joint stock


             1764      company, or similar entity is a security.
             1765          (2) An "investment company security" is a security. "Investment company security"
             1766      means a share or similar equity interest issued by an entity that is registered as an investment
             1767      company under the federal investment company laws, an interest in a unit investment trust that
             1768      is so registered, or a face-amount certificate issued by a face-amount certificate company that is
             1769      so registered. Investment company security does not include an insurance policy or
             1770      endowment policy or annuity contract issued by an insurance company.
             1771          (3) An interest in a partnership or limited liability company is not a security unless it is
             1772      dealt in or traded on securities exchanges or in securities markets, its terms expressly provide
             1773      that it is a security governed by this chapter, or it is an investment company security. However,
             1774      an interest in a partnership or limited liability company is a financial asset if it is held in a
             1775      securities account.
             1776          (4) A writing that is a security certificate is governed by this chapter and not by
             1777      Chapter 3, Uniform Commercial Code - Negotiable Instruments, even though it also meets the
             1778      requirements of that chapter. However, a negotiable instrument governed by Chapter 3 is a
             1779      financial asset if it is held in a securities account.
             1780          (5) An option or similar obligation issued by a clearing corporation to its participants is
             1781      not a security, but is a financial asset.
             1782          (6) A commodity contract, as defined in Subsection 70A-9a-102 (15), is not a security
             1783      or a financial asset.
             1784          (7) A document of title is not a financial asset unless Subsection 70A-8-101 (1)(i)(i)(C)
             1785      applies.
             1786          Section 66. Section 70A-9a-102 is amended to read:
             1787           70A-9a-102. Definitions and index of definitions.
             1788          In this chapter:
             1789          (1) "Accession" means goods that are physically united with other goods in such a
             1790      manner that the identity of the original goods is not lost.
             1791          (2) (a) "Account," except as used in "account for," means a right to payment of a
             1792      monetary obligation, whether or not earned by performance:
             1793          (i) for property that has been or is to be sold, leased, licensed, assigned, or otherwise
             1794      disposed of;


             1795          (ii) for services rendered or to be rendered;
             1796          (iii) for a policy of insurance issued or to be issued;
             1797          (iv) for a secondary obligation incurred or to be incurred;
             1798          (v) for energy provided or to be provided;
             1799          (vi) for the use or hire of a vessel under a charter or other contract;
             1800          (vii) arising out of the use of a credit or charge card or information contained on or for
             1801      use with the card; or
             1802          (viii) as winnings in a lottery or other game of chance operated or sponsored by a state,
             1803      governmental unit of a state, or person licensed or authorized to operate the game by a state or
             1804      governmental unit of a state.
             1805          (b) "Account" includes health-care-insurance receivables.
             1806          (c) "Account" does not include:
             1807          (i) rights to payment evidenced by chattel paper or an instrument;
             1808          (ii) commercial tort claims;
             1809          (iii) deposit accounts;
             1810          (iv) investment property;
             1811          (v) letter-of-credit rights or letters of credit; or
             1812          (vi) rights to payment for money or funds advanced or sold, other than rights arising
             1813      out of the use of a credit or charge card or information contained on or for use with the card.
             1814          (3) (a) "Account debtor" means a person obligated on an account, chattel paper, or
             1815      general intangible.
             1816          (b) "Account debtor" does not include persons obligated to pay a negotiable
             1817      instrument, even if the instrument constitutes part of chattel paper.
             1818          (4) "Accounting," except as used in "accounting for," means a record:
             1819          (a) authenticated by a secured party;
             1820          (b) indicating the aggregate unpaid secured obligations as of a date not more than 35
             1821      days earlier or 35 days later than the date of the record; and
             1822          (c) identifying the components of the obligations in reasonable detail.
             1823          (5) "Agricultural lien" means an interest, other than a security interest, in farm
             1824      products:
             1825          (a) which secures payment or performance of an obligation for:


             1826          (i) goods or services furnished in connection with a debtor's farming operation; or
             1827          (ii) rent on real property leased by a debtor in connection with its farming operation;
             1828          (b) which is created by statute in favor of a person that:
             1829          (i) in the ordinary course of its business furnished goods or services to a debtor in
             1830      connection with a debtor's farming operation; or
             1831          (ii) leased real property to a debtor in connection with the debtor's farming operation;
             1832      and
             1833          (c) whose effectiveness does not depend on the person's possession of the personal
             1834      property.
             1835          (6) "As-extracted collateral" means:
             1836          (a) oil, gas, or other minerals that are subject to a security interest that:
             1837          (i) is created by a debtor having an interest in the minerals before extraction; and
             1838          (ii) attaches to the minerals as extracted; or
             1839          (b) accounts arising out of the sale at the wellhead or minehead of oil, gas, or other
             1840      minerals in which the debtor had an interest before extraction.
             1841          (7) "Authenticate" means:
             1842          (a) to sign; or
             1843          (b) to execute or otherwise adopt a symbol, or encrypt or similarly process a record in
             1844      whole or in part, with the present intent of the authenticating person to identify the person and
             1845      adopt or accept a record.
             1846          (8) (a) "Bank" means an organization that is engaged in the business of banking.
             1847          (b) "Bank" includes:
             1848          (i) a depository institution as defined in Section 7-1-103 ; and
             1849          (ii) a trust company.
             1850          (9) "Cash proceeds" means proceeds that are money, checks, deposit accounts, or the
             1851      like.
             1852          (10) "Certificate of title" means a certificate of title with respect to which a statute
             1853      provides for the security interest in question to be indicated on the certificate as a condition or
             1854      result of the security interest's obtaining priority over the rights of a lien creditor with respect to
             1855      the collateral.
             1856          (11) (a) "Chattel paper" means a record or records that evidence both a monetary


             1857      obligation and a security interest in specific goods, a security interest in specific goods and
             1858      software used in the goods, a security interest in specific goods and license of software used in
             1859      the goods, a lease of specific goods, or a lease of specific goods and license of software used in
             1860      the goods. In this Subsection (11), "monetary obligation" means a monetary obligation secured
             1861      by the goods or owed under a lease of the goods and includes a monetary obligation with
             1862      respect to software used in the goods.
             1863          (b) "Chattel paper" does not include:
             1864          (i) charters or other contracts involving the use or hire of a vessel; or
             1865          (ii) records that evidence a right to payment arising out of the use of a credit or charge
             1866      card or information contained or for use with the card.
             1867          (c) If a transaction is evidenced by records that include an instrument or series of
             1868      instruments, the group of records taken together constitutes chattel paper.
             1869          (12) "Collateral" means the property subject to a security interest or agricultural lien.
             1870      "Collateral" includes:
             1871          (a) proceeds to which a security interest attaches;
             1872          (b) accounts, chattel paper, payment intangibles, and promissory notes that have been
             1873      sold; and
             1874          (c) goods that are the subject of a consignment.
             1875          (13) "Commercial tort claim" means a claim arising in tort with respect to which:
             1876          (a) the claimant is an organization; or
             1877          (b) the claimant is an individual and the claim:
             1878          (i) arose in the course of the claimant's business or profession; and
             1879          (ii) does not include damages arising out of personal injury to or the death of an
             1880      individual.
             1881          (14) "Commodity account" means an account maintained by a commodity intermediary
             1882      in which a commodity contract is carried for a commodity customer.
             1883          (15) "Commodity contract" means a commodity futures contract, an option on a
             1884      commodity futures contract, a commodity option, or another contract if the contract or option
             1885      is:
             1886          (a) traded on or subject to the rules of a board of trade that has been designated as a
             1887      contract market for such a contract pursuant to federal commodities laws; or


             1888          (b) traded on a foreign commodity board of trade, exchange, or market, and is carried
             1889      on the books of a commodity intermediary for a commodity customer.
             1890          (16) "Commodity customer" means a person for which a commodity intermediary
             1891      carries a commodity contract on its books.
             1892          (17) "Commodity intermediary" means a person that:
             1893          (a) is registered as a futures commission merchant under federal commodities law; or
             1894          (b) in the ordinary course of its business provides clearance or settlement services for a
             1895      board of trade that has been designated as a contract market pursuant to federal commodities
             1896      law.
             1897          (18) "Communicate" means:
             1898          (a) to send a written or other tangible record;
             1899          (b) to transmit a record by any means agreed upon by the persons sending and
             1900      receiving the record; or
             1901          (c) in the case of transmission of a record to or by a filing office, to transmit a record
             1902      by any means prescribed by filing-office rule.
             1903          (19) "Consignee" means a merchant to which goods are delivered in a consignment.
             1904          (20) "Consignment" means a transaction, regardless of its form, in which a person
             1905      delivers goods to a merchant for the purpose of sale and:
             1906          (a) the merchant:
             1907          (i) deals in goods of that kind under a name other than the name of the person making
             1908      delivery;
             1909          (ii) is not an auctioneer; and
             1910          (iii) is not generally known by its creditors to be substantially engaged in selling the
             1911      goods of others;
             1912          (b) with respect to each delivery, the aggregate value of the goods is $1,000 or more at
             1913      the time of delivery;
             1914          (c) the goods are not consumer goods immediately before delivery; and
             1915          (d) the transaction does not create a security interest that secures an obligation.
             1916          (21) "Consignor" means a person that delivers goods to a consignee in a consignment.
             1917          (22) "Consumer debtor" means a debtor in a consumer transaction.
             1918          (23) "Consumer goods" means goods that are used or bought for use primarily for


             1919      personal, family, or household purposes.
             1920          (24) "Consumer-goods transaction" means a consumer transaction in which:
             1921          (a) an individual incurs an obligation primarily for personal, family, or household
             1922      purposes; and
             1923          (b) a security interest in consumer goods secures the obligation.
             1924          (25) "Consumer obligor" means an obligor who is an individual and who incurred the
             1925      obligation as part of a transaction entered into primarily for personal, family, or household
             1926      purposes.
             1927          (26) (a) "Consumer transaction" means a transaction in which:
             1928          (i) an individual incurs an obligation primarily for personal, family, or household
             1929      purposes;
             1930          (ii) a security interest secures the obligation; and
             1931          (iii) the collateral is held or acquired primarily for personal, family, or household
             1932      purposes.
             1933          (b) "Consumer transaction" includes consumer-goods transactions.
             1934          (27) "Continuation statement" means an amendment of a financing statement which:
             1935          (a) identifies, by its file number, the initial financing statement to which it relates; and
             1936          (b) indicates that it is a continuation statement for, or that it is filed to continue the
             1937      effectiveness of, the identified financing statement.
             1938          (28) "Debtor" means:
             1939          (a) a person having an interest, other than a security interest or other lien, in the
             1940      collateral, whether or not the person is an obligor;
             1941          (b) a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
             1942          (c) a consignee.
             1943          (29) (a) "Deposit account" means a demand, time, savings, passbook, or similar
             1944      account maintained with a bank.
             1945          (b) "Deposit account" does not include investment property or accounts evidenced by
             1946      an instrument.
             1947          (30) "Document" means a document of title or a receipt of the type described in
             1948      Subsection [ 70A-7-201 ] 70A-7a-201 (2).
             1949          (31) "Electronic chattel paper" means chattel paper evidenced by a record or records


             1950      consisting of information stored in an electronic medium.
             1951          (32) "Encumbrance" means a right, other than an ownership interest, in real property.
             1952      "Encumbrance" includes mortgages and other liens on real property.
             1953          (33) "Equipment" means goods other than inventory, farm products, or consumer
             1954      goods.
             1955          (34) "Farm products" means goods, other than standing timber, with respect to which
             1956      the debtor is engaged in a farming operation and which are:
             1957          (a) crops grown, growing, or to be grown, including:
             1958          (i) crops produced on trees, vines, and bushes; and
             1959          (ii) aquatic goods produced in aquacultural operations;
             1960          (b) livestock, born or unborn, including aquatic goods produced in aquacultural
             1961      operations;
             1962          (c) supplies used or produced in a farming operation; or
             1963          (d) products of crops or livestock in their unmanufactured states.
             1964          (35) "Farming operation" means raising, cultivating, propagating, fattening, grazing, or
             1965      any other farming, livestock, or aquacultural operation.
             1966          (36) "File number" means the number assigned to an initial financing statement
             1967      pursuant to Subsection 70A-9a-519 (1).
             1968          (37) "Filing office" means an office designated in Section 70A-9a-501 as the place to
             1969      file a financing statement.
             1970          (38) "Filing-office rule" means a rule adopted pursuant to Section 70A-9a-526 .
             1971          (39) "Financing statement" means a record or records composed of an initial financing
             1972      statement and any filed record relating to the initial financing statement.
             1973          (40) (a) "Fixture filing" means the filing of a financing statement covering goods that
             1974      are or are to become fixtures and satisfying Subsections 70A-9a-502 (1) and (2).
             1975          (b) "Fixture filing" includes the filing of a financing statement covering goods of a
             1976      transmitting utility which are or are to become fixtures.
             1977          (41) "Fixtures" means goods that have become so related to particular real property that
             1978      an interest in them arises under real property law.
             1979          (42) (a) "General intangible" means any personal property, including things in action,
             1980      other than accounts, chattel paper, commercial tort claims, deposit accounts, documents, goods,


             1981      instruments, investment property, letter-of-credit rights, letters of credit, money, and oil, gas, or
             1982      other minerals before extraction.
             1983          (b) "General intangible" includes payment intangibles and software.
             1984          (43) "Good faith" means honesty in fact and the observance of reasonable commercial
             1985      standards of fair dealing.
             1986          (44) (a) "Goods" means all things that are movable when a security interest attaches.
             1987          (b) "Goods" includes:
             1988          (i) fixtures;
             1989          (ii) standing timber that is to be cut and removed under a conveyance or contract for
             1990      sale;
             1991          (iii) the unborn young of animals;
             1992          (iv) crops grown, growing, or to be grown, even if the crops are produced on trees,
             1993      vines, or bushes; and
             1994          (v) manufactured homes.
             1995          (c) "Goods" also includes a computer program embedded in goods and any supporting
             1996      information provided in connection with a transaction relating to the program if:
             1997          (i) the program is associated with the goods in such a manner that it customarily is
             1998      considered part of the goods; or
             1999          (ii) by becoming the owner of the goods, a person acquires a right to use the program
             2000      in connection with the goods.
             2001          (d) "Goods" does not include a computer program embedded in goods that consist
             2002      solely of the medium in which the program is embedded.
             2003          (e) "Goods" also does not include accounts, chattel paper, commercial tort claims,
             2004      deposit accounts, documents, general intangibles, instruments, investment property,
             2005      letter-of-credit rights, letters of credit, money, or oil, gas, or other minerals before extraction.
             2006          (45) (a) "Governmental unit" means a subdivision, agency, department, county, parish,
             2007      municipality, or other unit of the government of the United States, a state, or a foreign country.
             2008          (b) "Governmental unit" includes an organization having a separate corporate existence
             2009      if the organization is eligible to issue debt on which interest is exempt from income taxation
             2010      under the laws of the United States.
             2011          (46) "Health-care-insurance receivable" means an interest in or claim under a policy of


             2012      insurance which is a right to payment of a monetary obligation for health-care goods or
             2013      services provided.
             2014          (47) (a) "Instrument" means a negotiable instrument or any other writing that evidences
             2015      a right to the payment of a monetary obligation, is not itself a security agreement or lease, and
             2016      is of a type that in ordinary course of business is transferred by delivery with any necessary
             2017      indorsement or assignment.
             2018          (b) "Instrument" does not include:
             2019          (i) investment property;
             2020          (ii) letters of credit; or
             2021          (iii) writings that evidence a right to payment arising out of the use of a credit or charge
             2022      card or information contained on or for use with the card.
             2023          (48) "Inventory" means goods, other than farm products, which:
             2024          (a) are leased by a person as lessor;
             2025          (b) are held by a person for sale or lease or to be furnished under a contract of service;
             2026          (c) are furnished by a person under a contract of service; or
             2027          (d) consist of raw materials, work in process, or materials used or consumed in a
             2028      business.
             2029          (49) "Investment property" means a security, whether certificated or uncertificated,
             2030      security entitlement, securities account, commodity contract, or commodity account.
             2031          (50) "Jurisdiction of organization," with respect to a registered organization, means the
             2032      jurisdiction under whose law the organization is organized.
             2033          (51) (a) "Letter-of-credit right" means a right to payment or performance under a letter
             2034      of credit, whether or not the beneficiary has demanded or is at the time entitled to demand
             2035      payment or performance.
             2036          (b) "Letter-of-credit right" does not include the right of a beneficiary to demand
             2037      payment or performance under a letter of credit.
             2038          (52) "Lien creditor" means:
             2039          (a) a creditor that has acquired a lien on the property involved by attachment, levy, or
             2040      the like;
             2041          (b) an assignee for benefit of creditors from the time of assignment;
             2042          (c) a trustee in bankruptcy from the date of the filing of the petition; or


             2043          (d) a receiver in equity from the time of appointment.
             2044          (53) (a) "Manufactured home" means a structure, transportable in one or more sections,
             2045      which, in the traveling mode, is eight body feet or more in width or 40 body feet or more in
             2046      length, or, when erected on site, is 320 or more square feet, and which is built on a permanent
             2047      chassis and designed to be used as a dwelling with or without a permanent foundation when
             2048      connected to the required utilities, and includes the plumbing, heating, air-conditioning, and
             2049      electrical systems contained therein.
             2050          (b) "Manufactured home" includes any structure that meets all of the requirements of
             2051      this Subsection (53) except the size requirements and with respect to which the manufacturer
             2052      voluntarily files a certification required by the United States Secretary of Housing and Urban
             2053      Development and complies with the standards established under Title 42 of the United States
             2054      Code.
             2055          (54) "Manufactured-home transaction" means a secured transaction:
             2056          (a) that creates a purchase-money security interest in a manufactured home, other than
             2057      a manufactured home held as inventory; or
             2058          (b) in which a manufactured home, other than a manufactured home held as inventory,
             2059      is the primary collateral.
             2060          (55) "Mortgage" means a consensual interest in real property, including fixtures, which
             2061      secures payment or performance of an obligation.
             2062          (56) "New debtor" means a person that becomes bound as debtor under Subsection
             2063      70A-9a-203 (4) by a security agreement previously entered into by another person.
             2064          (57) (a) "New value" means:
             2065          (i) money;
             2066          (ii) money's worth in property, services, or new credit; or
             2067          (iii) release by a transferee of an interest in property previously transferred to the
             2068      transferee.
             2069          (b) "New value" does not include an obligation substituted for another obligation.
             2070          (58) "Noncash proceeds" means proceeds other than cash proceeds.
             2071          (59) (a) "Obligor" means a person that, with respect to an obligation secured by a
             2072      security interest in or an agricultural lien on the collateral:
             2073          (i) owes payment or other performance of the obligation;


             2074          (ii) has provided property other than the collateral to secure payment or other
             2075      performance of the obligation; or
             2076          (iii) is otherwise accountable in whole or in part for payment or other performance of
             2077      the obligation.
             2078          (b) "Obligor" does not include issuers or nominated persons under a letter of credit.
             2079          (60) "Original debtor," except as used in Subsection 70A-9a-310 (3), means a person
             2080      that, as debtor, entered into a security agreement to which a new debtor has become bound
             2081      under Subsection 70A-9a-203 (4).
             2082          (61) "Payment intangible" means a general intangible under which the account debtor's
             2083      principal obligation is a monetary obligation.
             2084          (62) "Person related to," with respect to an individual, means:
             2085          (a) the spouse of the individual;
             2086          (b) a brother, brother-in-law, sister, or sister-in-law of the individual;
             2087          (c) an ancestor or lineal descendant of the individual or the individual's spouse; or
             2088          (d) any other relative, by blood or marriage, of the individual or the individual's spouse
             2089      who shares the same home with the individual.
             2090          (63) "Person related to," with respect to an organization, means:
             2091          (a) a person directly or indirectly controlling, controlled by, or under common control
             2092      with the organization;
             2093          (b) an officer or director of, or a person performing similar functions with respect to,
             2094      the organization;
             2095          (c) an officer or director of, or a person performing similar functions with respect to, a
             2096      person described in Subsection (63)(a);
             2097          (d) the spouse of an individual described in Subsection (63)(a), (b), or (c); or
             2098          (e) an individual who is related by blood or marriage to an individual described in
             2099      Subsection (63)(a), (b), (c), or (d) and shares the same home with the individual.
             2100          (64) "Proceeds," except as used in Subsection 70A-9a-609 (2), means the following
             2101      property:
             2102          (a) whatever is acquired upon the sale, lease, license, exchange, or other disposition of
             2103      collateral;
             2104          (b) whatever is collected on, or distributed on account of, collateral;


             2105          (c) rights arising out of collateral;
             2106          (d) to the extent of the value of collateral, claims arising out of the loss,
             2107      nonconformity, or interference with the use of, defects or infringement of rights in, or damage
             2108      to, the collateral; or
             2109          (e) to the extent of the value of collateral and to the extent payable to the debtor or the
             2110      secured party, insurance payable by reason of the loss or nonconformity of, defects or
             2111      infringement of rights in, or damage to, the collateral.
             2112          (65) "Promissory note" means an instrument that evidences a promise to pay a
             2113      monetary obligation, does not evidence an order to pay, and does not contain an
             2114      acknowledgment by a bank that the bank has received for deposit a sum of money or funds.
             2115          (66) "Proposal" means a record authenticated by a secured party which includes the
             2116      terms on which the secured party is willing to accept collateral in full or partial satisfaction of
             2117      the obligation it secures pursuant to Sections 70A-9a-620 , 70A-9a-621 , and 70A-9a-622 .
             2118          (67) "Public-finance transaction" means a secured transaction in connection with
             2119      which:
             2120          (a) debt securities are issued;
             2121          (b) all or a portion of the securities issued have an initial stated maturity of at least 20
             2122      years; and
             2123          (c) the debtor, obligor, secured party, account debtor or other person obligated on
             2124      collateral, assignor or assignee of a secured obligation, or assignor or assignee of a security
             2125      interest is a state or a governmental unit of a state.
             2126          (68) "Pursuant to commitment," with respect to an advance made or other value given
             2127      by a secured party, means pursuant to the secured party's obligation, whether or not a
             2128      subsequent event of default or other event not within the secured party's control has relieved or
             2129      may relieve the secured party from its obligation.
             2130          (69) "Record," except as used in "for record," "of record," "record or legal title," and
             2131      "record owner," means information that is inscribed on a tangible medium or which is stored in
             2132      an electronic or other medium and is retrievable in perceivable form.
             2133          (70) "Registered organization" means an organization organized solely under the law
             2134      of a single state or the United States and as to which the state or the United States must
             2135      maintain a public record showing the organization to have been organized.


             2136          (71) "Secondary obligor" means an obligor to the extent that:
             2137          (a) the obligor's obligation is secondary; or
             2138          (b) the obligor has a right of recourse with respect to an obligation secured by collateral
             2139      against the debtor, another obligor, or property of either.
             2140          (72) "Secured party" means:
             2141          (a) a person in whose favor a security interest is created or provided for under a
             2142      security agreement, whether or not any obligation to be secured is outstanding;
             2143          (b) a person that holds an agricultural lien;
             2144          (c) a consignor;
             2145          (d) a person to which accounts, chattel paper, payment intangibles, or promissory notes
             2146      have been sold;
             2147          (e) a trustee, indenture trustee, agent, collateral agent, or other representative in whose
             2148      favor a security interest or agricultural lien is created or provided for; or
             2149          (f) a person that holds a security interest arising under Section 70A-2-401 , 70A-2-505 ,
             2150      70A-4-210 , or 70A-5-118 or Subsection 70A-2-711 (3) or 70A-2a-508 (5).
             2151          (73) "Security agreement" means an agreement that creates or provides for a security
             2152      interest.
             2153          (74) "Send," in connection with a record or notification, means:
             2154          (a) to deposit in the mail, deliver for transmission, or transmit by any other usual
             2155      means of communication, with postage or cost of transmission provided for, addressed to any
             2156      address reasonable under the circumstances; or
             2157          (b) to cause the record or notification to be received within the time that it would have
             2158      been received if properly sent under Subsection (74)(a).
             2159          (75) (a) "Software" means a computer program and any supporting information
             2160      provided in connection with a transaction relating to the program.
             2161          (b) "Software" does not include a computer program that is included in the definition
             2162      of goods.
             2163          (76) "State" means a state of the United States, the District of Columbia, Puerto Rico,
             2164      the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction
             2165      of the United States.
             2166          (77) "Supporting obligation" means a letter-of-credit right or secondary obligation that


             2167      supports the payment or performance of an account, chattel paper, a document, a general
             2168      intangible, an instrument, or investment property.
             2169          (78) "Tangible chattel paper" means chattel paper evidenced by a record or records
             2170      consisting of information that is inscribed on a tangible medium.
             2171          (79) "Termination statement" means an amendment of a financing statement which:
             2172          (a) identifies, by its file number, the initial financing statement to which it relates; and
             2173          (b) indicates either that it is a termination statement or that the identified financing
             2174      statement is no longer effective.
             2175          (80) "Transmitting utility" means a person primarily engaged in the business of:
             2176          (a) operating a railroad, subway, street railway, or trolley bus;
             2177          (b) transmitting communications electrically, electromagnetically, or by light;
             2178          (c) transmitting goods by pipeline or sewer; or
             2179          (d) transmitting or producing and transmitting electricity, steam, gas, or water.
             2180          Section 67. Section 70A-9a-102.1 is amended to read:
             2181           70A-9a-102.1. Definitions from other chapters.
             2182          (1) [The] "Control" as provided in Section 70A-7a-106 and the following definitions in
             2183      other chapters of this title apply to this chapter:
             2184          (a) "Applicant" Section 70A-5-102 .
             2185          (b) "Beneficiary" Section 70A-5-102 .
             2186          (c) "Broker" Section 70A-8-101 .
             2187          (d) "Certificated security" Section 70A-8-101 .
             2188          (e) "Check" Section 70A-3-104 .
             2189          (f) "Clearing corporation" Section 70A-8-101 .
             2190          (g) "Contract for sale" Section 70A-2-106 .
             2191          (h) "Customer" Section 70A-4-104 .
             2192          (i) "Entitlement holder" Section 70A-8-101 .
             2193          (j) "Financial asset" Section 70A-8-101 .
             2194          (k) "Holder in due course" Section 70A-3-302 .
             2195          (l) (i) "Issuer" (with respect to a letter of credit or letter-of-credit right) Section
             2196      70A-5-102 .
             2197          (ii) "Issuer" (with respect to a security) Section 70A-8-201 .


             2198          (iii) "Issuer" (with respect to documents of title) Section 70A-7a-102 .
             2199          (m) "Lease" Section 70A-2a-103 .
             2200          (n) "Lease agreement" Section 70A-2a-103 .
             2201          (o) "Lease contract" Section 70A-2a-103 .
             2202          (p) "Leasehold interest" Section 70A-2a-103 .
             2203          (q) "Lessee" Section 70A-2a-103 .
             2204          (r) "Lessee in ordinary course of business" Section 70A-2a-103 .
             2205          (s) "Lessor" Section 70A-2a-103 .
             2206          (t) "Lessor's residual interest" Section 70A-2a-103 .
             2207          (u) "Letter of credit" Section 70A-5-102 .
             2208          (v) "Merchant" Section 70A-2-104 .
             2209          (w) "Negotiable instrument" Section 70A-3-104 .
             2210          (x) "Nominated person" Section 70A-5-102 .
             2211          (y) "Note" Section 70A-3-104 .
             2212          (z) "Proceeds of a letter of credit" Section 70A-5-114 .
             2213          (aa) "Prove" Section 70A-3-103 .
             2214          (bb) "Sale" Section 70A-2-106 .
             2215          (cc) "Securities account" Section 70A-8-501 .
             2216          (dd) "Securities intermediary" Section 70A-8-101 .
             2217          (ee) "Security" Section 70A-8-101 .
             2218          (ff) "Security certificate" Section 70A-8-101 .
             2219          (gg) "Security entitlement" Section 70A-8-101 .
             2220          (hh) "Uncertificated security" Section 70A-8-101 .
             2221          (2) Chapter 1, General Provisions, contains general definitions and principles of
             2222      construction and interpretation applicable throughout this chapter.
             2223          Section 68. Section 70A-9a-203 is amended to read:
             2224           70A-9a-203. Attachment and enforceability of security interest -- Proceeds --
             2225      Supporting obligations -- Formal requisites.
             2226          (1) A security interest attaches to collateral when it becomes enforceable against the
             2227      debtor with respect to the collateral, unless an agreement expressly postpones the time of
             2228      attachment.


             2229          (2) Except as otherwise provided in Subsections (3) through (9), a security interest is
             2230      enforceable against the debtor and third parties with respect to the collateral only if:
             2231          (a) value has been given;
             2232          (b) the debtor has rights in the collateral or the power to transfer rights in the collateral
             2233      to a secured party; and
             2234          (c) one of the following conditions is met:
             2235          (i) the debtor has authenticated a security agreement that provides a description of the
             2236      collateral and, if the security interest covers timber to be cut, a description of the land
             2237      concerned;
             2238          (ii) the collateral is not a certificated security and is in the possession of the secured
             2239      party under Section 70A-9a-313 pursuant to the debtor's security agreement;
             2240          (iii) the collateral is a certificated security in registered form and the security certificate
             2241      has been delivered to the secured party under Section 70A-8-301 pursuant to the debtor's
             2242      security agreement; or
             2243          (iv) the collateral is deposit accounts, electronic chattel paper, investment property, or
             2244      letter-of-credit rights, or electronic documents, and the secured party has control under Section
             2245      70A-7a-106 , 70A-9a-104 , 70A-9a-105 , 70A-9a-106 , or 70A-9a-107 pursuant to the debtor's
             2246      security agreement.
             2247          (3) Subsection (2) is subject to Section 70A-4-210 on the security interest of a
             2248      collecting bank, Section 70A-5-118 on the security interest of a letter-of-credit issuer or
             2249      nominated person, Section 70A-9a-110 on a security interest arising under Chapter 2 or 2a, and
             2250      Section 70A-9a-206 on security interests in investment property.
             2251          (4) A person becomes bound as debtor by a security agreement entered into by another
             2252      person if, by operation of law other than this chapter or by contract:
             2253          (a) the security agreement becomes effective to create a security interest in the person's
             2254      property; or
             2255          (b) the person becomes generally obligated for the obligations of the other person,
             2256      including the obligation secured under the security agreement, and acquires or succeeds to all
             2257      or substantially all of the assets of the other person.
             2258          (5) If a new debtor becomes bound as debtor by a security agreement entered into by
             2259      another person:


             2260          (a) the agreement satisfies Subsection (2)(c) with respect to existing or after-acquired
             2261      property of the new debtor to the extent the property is described in the agreement; and
             2262          (b) another agreement is not necessary to make a security interest in the property
             2263      enforceable.
             2264          (6) The attachment of a security interest in collateral gives the secured party the rights
             2265      to proceeds provided by Section 70A-9a-315 and is also attachment of a security interest in a
             2266      supporting obligation for the collateral.
             2267          (7) The attachment of a security interest in a right to payment or performance secured
             2268      by a security interest or other lien on personal or real property is also attachment of a security
             2269      interest in the security interest, mortgage, or other lien.
             2270          (8) The attachment of a security interest in a securities account is also attachment of a
             2271      security interest in the security entitlements carried in the securities account.
             2272          (9) The attachment of a security interest in a commodity account is also attachment of a
             2273      security interest in the commodity contracts carried in the commodity account.
             2274          Section 69. Section 70A-9a-207 is amended to read:
             2275           70A-9a-207. Rights and duties of secured party having possession or control of
             2276      collateral.
             2277          (1) Except as otherwise provided in Subsection (4), a secured party shall use
             2278      reasonable care in the custody and preservation of collateral in the secured party's possession.
             2279      In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to
             2280      preserve rights against prior parties unless otherwise agreed.
             2281          (2) Except as otherwise provided in Subsection (4), if a secured party has possession of
             2282      collateral:
             2283          (a) reasonable expenses, including the cost of insurance and payment of taxes or other
             2284      charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable
             2285      to the debtor and are secured by the collateral;
             2286          (b) the risk of accidental loss or damage is on the debtor to the extent of a deficiency in
             2287      any effective insurance coverage;
             2288          (c) the secured party shall keep the collateral identifiable, but fungible collateral may
             2289      be commingled; and
             2290          (d) the secured party may use or operate the collateral:


             2291          (i) for the purpose of preserving the collateral or its value;
             2292          (ii) as permitted by an order of a court having competent jurisdiction; or
             2293          (iii) except in the case of consumer goods, in the manner and to the extent agreed by
             2294      the debtor.
             2295          (3) Except as otherwise provided in Subsection (4), a secured party having possession
             2296      of collateral or control of collateral under Section 70A-7a-106 , 70A-9a-104 , 70A-9a-105 ,
             2297      70A-9a-106 , or 70A-9a-107 :
             2298          (a) may hold as additional security any proceeds, except money or funds, received from
             2299      the collateral;
             2300          (b) shall apply money or funds received from the collateral to reduce the secured
             2301      obligation, unless remitted to the debtor; and
             2302          (c) may create a security interest in the collateral.
             2303          (4) If the secured party is a buyer of accounts, chattel paper, payment intangibles, or
             2304      promissory notes or a consignor:
             2305          (a) Subsection (1) does not apply unless the secured party is entitled under an
             2306      agreement:
             2307          (i) to charge back uncollected collateral; or
             2308          (ii) otherwise to full or limited recourse against the debtor or a secondary obligor based
             2309      on the nonpayment or other default of an account debtor or other obligor on the collateral; and
             2310          (b) Subsections (2) and (3) do not apply.
             2311          Section 70. Section 70A-9a-208 is amended to read:
             2312           70A-9a-208. Additional duties of secured party having control of collateral.
             2313          (1) This section applies to cases in which there is no outstanding secured obligation
             2314      and the secured party is not committed to make advances, incur obligations, or otherwise give
             2315      value.
             2316          (2) Within ten days after receiving an authenticated demand by the debtor:
             2317          (a) a secured party having control of a deposit account under Subsection
             2318      70A-9a-104 (1)(b) shall send to the bank with which the deposit account is maintained an
             2319      authenticated statement that releases the bank from any further obligation to comply with
             2320      instructions originated by the secured party;
             2321          (b) a secured party having control of a deposit account under Subsection


             2322      70A-9a-104 (1)(c) shall:
             2323          (i) pay the debtor the balance on deposit in the deposit account; or
             2324          (ii) transfer the balance on deposit into a deposit account in the debtor's name;
             2325          (c) a secured party, other than a buyer, having control of electronic chattel paper under
             2326      Section 70A-9a-105 shall:
             2327          (i) communicate the authoritative copy of the electronic chattel paper to the debtor or
             2328      its designated custodian;
             2329          (ii) if the debtor designates a custodian that is the designated custodian with which the
             2330      authoritative copy of the electronic chattel paper is maintained for the secured party,
             2331      communicate to the custodian an authenticated record releasing the designated custodian from
             2332      any further obligation to comply with instructions originated by the secured party and
             2333      instructing the custodian to comply with instructions originated by the debtor; and
             2334          (iii) take appropriate action to enable the debtor or its designated custodian to make
             2335      copies of or revisions to the authoritative copy which add or change an identified assignee of
             2336      the authoritative copy without the consent of the secured party;
             2337          (d) a secured party having control of investment property under Subsection
             2338      70A-8-105 (4)(b) or 70A-9a-106 (2) shall send to the securities intermediary or commodity
             2339      intermediary with which the security entitlement or commodity contract is maintained an
             2340      authenticated record that releases the securities intermediary or commodity intermediary from
             2341      any further obligation to comply with entitlement orders or directions originated by the secured
             2342      party; [and]
             2343          (e) a secured party having control of a letter-of-credit right under Section 70A-9a-107
             2344      shall send to each person having an unfulfilled obligation to pay or deliver proceeds of the
             2345      letter of credit to the secured party an authenticated release from any further obligation to pay
             2346      or deliver proceeds of the letter of credit to the secured party[.]; and
             2347          (f) a secured party having control of an electronic document shall:
             2348          (i) give control of the electronic document to the debtor or the debtor's designated
             2349      custodian;
             2350          (ii) if the debtor designates a custodian that is the designated custodian with which the
             2351      authoritative copy of the electronic document is maintained for the secured party, communicate
             2352      to the custodian an authenticated record releasing the designated custodian from any further


             2353      obligation to comply with instructions originated by the secured party and instructing the
             2354      custodian to comply with instructions originated by the debtor; and
             2355          (iii) take appropriate action to enable to the debtor or its designated custodian to make
             2356      copies of or revisions to the authoritative copy without the consent of the secured party.
             2357          Section 71. Section 70A-9a-301 is amended to read:
             2358           70A-9a-301. Law governing perfection and priority of security interests.
             2359          Except as otherwise provided in Sections 70A-9a-303 through 70A-9a-306 , the
             2360      following rules determine the law governing perfection, the effect of perfection or
             2361      nonperfection, and the priority of a security interest in collateral:
             2362          (1) Except as otherwise provided in this section, while a debtor is located in a
             2363      jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or
             2364      nonperfection, and the priority of a security interest in collateral.
             2365          (2) While collateral is located in a jurisdiction, the local law of that jurisdiction
             2366      governs perfection, the effect of perfection or nonperfection, and the priority of a possessory
             2367      security interest in that collateral.
             2368          (3) Except as otherwise provided in Subsection (4), while tangible negotiable
             2369      documents, goods, instruments, money, or tangible chattel paper is located in a jurisdiction, the
             2370      local law of that jurisdiction governs:
             2371          (a) perfection of a security interest in the goods by filing a fixture filing;
             2372          (b) perfection of a security interest in timber to be cut; and
             2373          (c) the effect of perfection or nonperfection and the priority of a nonpossessory security
             2374      interest in the collateral.
             2375          (4) The local law of the jurisdiction in which the wellhead or minehead is located
             2376      governs perfection, the effect of perfection or nonperfection, and the priority of a security
             2377      interest in as-extracted collateral.
             2378          Section 72. Section 70A-9a-310 is amended to read:
             2379           70A-9a-310. When filing required to perfect security interest or agricultural lien
             2380      -- Security interests and agricultural liens to which filing provisions do not apply.
             2381          (1) Except as otherwise provided in Subsection (2) and Subsection 70A-9a-312 (2), a
             2382      financing statement must be filed to perfect all security interests and agricultural liens.
             2383          (2) The filing of a financing statement is not necessary to perfect a security interest:


             2384          (a) that is perfected under Subsection 70A-9a-308 (4), (5), (6), or (7);
             2385          (b) that is perfected under Section 70A-9a-309 when it attaches;
             2386          (c) in property subject to a statute, regulation, or treaty described in Subsection
             2387      70A-9a-311 (1);
             2388          (d) in goods in possession of a bailee which is perfected under Subsection
             2389      70A-9a-312 (4)(a) or (b);
             2390          (e) in certificated securities, documents, goods, or instruments which is perfected
             2391      without filing, control, or possession under Subsection 70A-9a-312 (5), (6), or (7);
             2392          (f) in collateral in the secured party's possession under Section 70A-9a-313 ;
             2393          (g) in a certificated security which is perfected by delivery of the security certificate to
             2394      the secured party under Section 70A-9a-313 ;
             2395          (h) in deposit accounts, electronic chattel paper, electronic documents, investment
             2396      property, or letter-of-credit rights which is perfected by control under Section 70A-9a-314 ;
             2397          (i) in proceeds which is perfected under Section 70A-9a-315 ; or
             2398          (j) that is perfected under Section 70A-9a-316 .
             2399          (3) If a secured party assigns a perfected security interest or agricultural lien, a filing
             2400      under this chapter is not required to continue the perfected status of the security interest against
             2401      creditors of and transferees from the original debtor.
             2402          Section 73. Section 70A-9a-312 is amended to read:
             2403           70A-9a-312. Perfection of security interests in chattel paper, deposit accounts,
             2404      documents, goods covered by documents, instruments, investment property,
             2405      letter-of-credit rights, and money -- Perfection by permissive filing -- Temporary
             2406      perfection without filing or transfer of possession.
             2407          (1) A security interest in chattel paper, negotiable documents, instruments, or
             2408      investment property may be perfected by filing.
             2409          (2) Except as otherwise provided in Subsections 70A-9a-315 (3) and (4) for proceeds:
             2410          (a) a security interest in a deposit account may be perfected only by control under
             2411      Section 70A-9a-314 ;
             2412          (b) and except as otherwise provided in Subsection 70A-9a-308 (4), a security interest
             2413      in a letter-of-credit right may be perfected only by control under Section 70A-9a-314 ; and
             2414          (c) a security interest in money may be perfected only by the secured party's taking


             2415      possession under Section 70A-9a-313 .
             2416          (3) While goods are in the possession of a bailee that has issued a negotiable document
             2417      covering the goods:
             2418          (a) a security interest in the goods may be perfected by perfecting a security interest in
             2419      the document; and
             2420          (b) a security interest perfected in the document has priority over any security interest
             2421      that becomes perfected in the goods by another method during that time.
             2422          (4) While goods are in the possession of a bailee that has issued a nonnegotiable
             2423      document covering the goods, a security interest in the goods may be perfected by:
             2424          (a) issuance of a document in the name of the secured party;
             2425          (b) the bailee's receipt of notification of the secured party's interest; or
             2426          (c) filing as to the goods.
             2427          (5) A security interest in certificated securities, negotiable documents, or instruments is
             2428      perfected without filing or the taking of possession or control for a period of 20 days from the
             2429      time it attaches to the extent that it arises for new value given under an authenticated security
             2430      agreement.
             2431          (6) A perfected security interest in a negotiable document or goods in possession of a
             2432      bailee, other than one that has issued a negotiable document for the goods, remains perfected
             2433      for 20 days without filing if the secured party makes available to the debtor the goods or
             2434      documents representing the goods for the purpose of:
             2435          (a) ultimate sale or exchange; or
             2436          (b) loading, unloading, storing, shipping, transshipping, manufacturing, processing, or
             2437      otherwise dealing with them in a manner preliminary to their sale or exchange.
             2438          (7) A perfected security interest in a certificated security or instrument remains
             2439      perfected for 20 days without filing if the secured party delivers the security certificate or
             2440      instrument to the debtor for the purpose of:
             2441          (a) ultimate sale or exchange; or
             2442          (b) presentation, collection, enforcement, renewal, or registration of transfer.
             2443          (8) After the 20-day period specified in Subsection (5), (6), or (7) expires, perfection
             2444      depends upon compliance with this chapter.
             2445          Section 74. Section 70A-9a-313 is amended to read:


             2446           70A-9a-313. When possession by or delivery to secured party perfects security
             2447      interest without filing.
             2448          (1) Except as otherwise provided in Subsection (2), a secured party may perfect a
             2449      security interest in tangible negotiable documents, goods, instruments, money, or tangible
             2450      chattel paper by taking possession of the collateral. A secured party may perfect a security
             2451      interest in certificated securities by taking delivery of the certificated securities under Section
             2452      70A-8-301 .
             2453          (2) With respect to goods covered by a certificate of title issued by this state, a secured
             2454      party may perfect a security interest in the goods by taking possession of the goods only in the
             2455      circumstances described in Subsection 70A-9a-316 (4).
             2456          (3) With respect to collateral other than certificated securities and goods covered by a
             2457      document, a secured party takes possession of collateral in the possession of a person other
             2458      than the debtor, the secured party, or a lessee of the collateral from the debtor in the ordinary
             2459      course of the debtor's business, when:
             2460          (a) the person in possession authenticates a record acknowledging that it holds
             2461      possession of the collateral for the secured party's benefit; or
             2462          (b) the person takes possession of the collateral after having authenticated a record
             2463      acknowledging that it will hold possession of collateral for the secured party's benefit.
             2464          (4) If perfection of a security interest depends upon possession of the collateral by a
             2465      secured party, perfection occurs no earlier than the time the secured party takes possession and
             2466      continues only while the secured party retains possession.
             2467          (5) A security interest in a certificated security in registered form is perfected by
             2468      delivery when delivery of the certificated security occurs under Section 70A-8-301 and remains
             2469      perfected by delivery until the debtor obtains possession of the security certificate.
             2470          (6) A person in possession of collateral is not required to acknowledge that it holds
             2471      possession for a secured party's benefit.
             2472          (7) If a person acknowledges that it holds possession for the secured party's benefit:
             2473          (a) the acknowledgment is effective under Subsection (3) or Subsection 70A-8-301 (1),
             2474      even if the acknowledgment violates the rights of a debtor; and
             2475          (b) unless the person otherwise agrees or law other than this chapter otherwise
             2476      provides, the person does not owe any duty to the secured party and is not required to confirm


             2477      the acknowledgment to another person.
             2478          (8) A secured party having possession of collateral does not relinquish possession by
             2479      delivering the collateral to a person other than the debtor or a lessee of the collateral from the
             2480      debtor in the ordinary course of the debtor's business if the person was instructed before the
             2481      delivery or is instructed contemporaneously with the delivery:
             2482          (a) to hold possession of the collateral for the secured party's benefit; or
             2483          (b) to redeliver the collateral to the secured party.
             2484          (9) A secured party does not relinquish possession, even if a delivery under Subsection
             2485      (8) violates the rights of a debtor. A person to which collateral is delivered under Subsection
             2486      (8) does not owe any duty to the secured party and is not required to confirm the delivery to
             2487      another person unless the person otherwise agrees or law other than this chapter otherwise
             2488      provides.
             2489          Section 75. Section 70A-9a-314 is amended to read:
             2490           70A-9a-314. Perfection by control.
             2491          (1) A security interest in investment property, deposit accounts, letter-of-credit rights,
             2492      or electronic chattel paper, or electronic documents may be perfected by control of the
             2493      collateral under Section 70A-7a-106 , 70A-9a-104 , 70A-9a-105 , 70A-9a-106 , or 70A-9a-107 .
             2494          (2) A security interest in deposit accounts, electronic chattel paper, or letter-of-credit
             2495      rights, or electronic documents is perfected by control under Section 70A-7a-106 , 70A-9a-104 ,
             2496      70A-9a-105 , or 70A-9a-107 when the secured party obtains control and remains perfected by
             2497      control only while the secured party retains control.
             2498          (3) A security interest in investment property is perfected by control under Section
             2499      70A-9a-106 from the time the secured party obtains control and remains perfected by control
             2500      until:
             2501          (a) the secured party does not have control; and
             2502          (b) one of the following occurs:
             2503          (i) if the collateral is a certificated security, the debtor has or acquires possession of the
             2504      security certificate;
             2505          (ii) if the collateral is an uncertificated security, the issuer has registered or registers the
             2506      debtor as the registered owner; or
             2507          (iii) if the collateral is a security entitlement, the debtor is or becomes the entitlement


             2508      holder.
             2509          Section 76. Section 70A-9a-317 is amended to read:
             2510           70A-9a-317. Interests that take priority over or take free of security interest or
             2511      agricultural lien.
             2512          (1) A security interest or agricultural lien is subordinate to the rights of:
             2513          (a) a person entitled to priority under Section 70A-9a-322 ; and
             2514          (b) except as otherwise provided in Subsection (5), a person that becomes a lien
             2515      creditor before the earlier of the time:
             2516          (i) the security interest or agricultural lien is perfected; or
             2517          (ii) one of the conditions specified in Subsection 70A-9a-203 (2)(c) is met and a
             2518      financing statement covering the collateral is filed.
             2519          (2) Except as otherwise provided in Subsection (5), a buyer, other than a secured party,
             2520      of tangible chattel paper, tangible documents, goods, instruments, or a security certificate takes
             2521      free of a security interest or agricultural lien if the buyer gives value and receives delivery of
             2522      the collateral without knowledge of the security interest or agricultural lien and before it is
             2523      perfected.
             2524          (3) Except as otherwise provided in Subsection (5), a lessee of goods takes free of a
             2525      security interest or agricultural lien if the lessee gives value and receives delivery of the
             2526      collateral without knowledge of the security interest or agricultural lien and before it is
             2527      perfected.
             2528          (4) A licensee of a general intangible or a buyer, other than a secured party, of accounts,
             2529      electronic chattel paper, electronic documents, general intangibles, or investment property
             2530      other than a certificated security takes free of a security interest if the licensee or buyer gives
             2531      value without knowledge of the security interest and before it is perfected.
             2532          (5) Except as otherwise provided in Sections 70A-9a-320 and 70A-9a-321 , if a person
             2533      files a financing statement with respect to a purchase-money security interest before or within
             2534      20 days after the debtor receives delivery of the collateral, the security interest takes priority
             2535      over the rights of a buyer, lessee, or lien creditor which arise between the time the security
             2536      interest attaches and the time of filing.
             2537          Section 77. Section 70A-9a-331 is amended to read:
             2538           70A-9a-331. Priority of rights of purchasers of instruments, documents, and


             2539      securities under other chapters -- Priority of interests in financial assets and security
             2540      entitlements under Chapter 8, Uniform Commercial Code - Investment Securities.
             2541          (1) This chapter does not limit the rights of a holder in due course of a negotiable
             2542      instrument, a holder to which a negotiable document of title has been duly negotiated, or a
             2543      protected purchaser of a security. These holders or purchasers take priority over an earlier
             2544      security interest, even if perfected, to the extent provided in Chapters 3, [7] Uniform
             2545      Commercial Code - Negotiable Instruments, 7a, Uniform Commercial Code - Documents of
             2546      Title, and 8, Uniform Commercial Code - Investment Securities.
             2547          (2) This chapter does not limit the rights of or impose liability on a person to the extent
             2548      that the person is protected against the assertion of a claim under Chapter 8, Uniform
             2549      Commercial Code - Investment Securities.
             2550          (3) Filing under this chapter does not constitute notice of a claim or defense to the
             2551      holders, or purchasers, or persons described in Subsections (1) and (2).
             2552          Section 78. Section 70A-9a-338 is amended to read:
             2553           70A-9a-338. Priority of security interest or agricultural lien perfected by filed
             2554      financing statement providing certain incorrect information.
             2555          If a security interest or agricultural lien is perfected by a filed financing statement
             2556      providing information described in Subsection 70A-9a-516 (2)(e) which is incorrect at the time
             2557      the financing statement is filed:
             2558          (1) the security interest or agricultural lien is subordinate to a conflicting perfected
             2559      security interest in the collateral to the extent that the holder of the conflicting security interest
             2560      gives value in reasonable reliance upon the incorrect information; and
             2561          (2) a purchaser, other than a secured party, of the collateral takes free of the security
             2562      interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect
             2563      information, the purchaser gives value and, in the case of tangible chattel paper, tangible
             2564      documents, goods, instruments, or a security certificate, receives delivery of the collateral.
             2565          Section 79. Section 70A-9a-601 is amended to read:
             2566           70A-9a-601. Rights after default -- Judicial enforcement -- Consignor or buyer
             2567      of accounts, chattel paper, payment intangibles, or promissory notes.
             2568          (1) After default, a secured party has the rights provided in this part and, except as
             2569      otherwise provided in Section 70A-9a-602 , those provided by agreement of the parties. A


             2570      secured party:
             2571          (a) may reduce a claim to judgment, foreclose, or otherwise enforce the claim, security
             2572      interest, or agricultural lien by any available judicial procedure; and
             2573          (b) if the collateral is documents, may proceed either as to the documents or as to the
             2574      goods they cover.
             2575          (2) A secured party in possession of collateral or control of collateral under Section
             2576      70A-7a-106 , 70A-9a-104 , 70A-9a-105 , 70A-9a-106 , or 70A-9a-107 has the rights and duties
             2577      provided in Section 70A-9a-207 .
             2578          (3) The rights under Subsections (1) and (2) are cumulative and may be exercised
             2579      simultaneously.
             2580          (4) Except as otherwise provided in Subsection (7) and Section 70A-9a-605 , after
             2581      default, a debtor and an obligor have the rights provided in this part and by agreement of the
             2582      parties.
             2583          (5) If a secured party has reduced its claim to judgment, the lien of any levy that may
             2584      be made upon the collateral by virtue of an execution based upon the judgment relates back to
             2585      the earliest of:
             2586          (a) the date of perfection of the security interest or agricultural lien in the collateral;
             2587          (b) the date of filing a financing statement covering the collateral; or
             2588          (c) any date specified in a statute under which the agricultural lien was created.
             2589          (6) A sale pursuant to an execution is a foreclosure of the security interest or
             2590      agricultural lien by judicial procedure within the meaning of this section. A secured party may
             2591      purchase at the sale and thereafter hold the collateral free of any other requirements of this
             2592      chapter.
             2593          (7) Except as otherwise provided in Subsection 70A-9a-607 (3), this part imposes no
             2594      duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment
             2595      intangibles, or promissory notes.
             2596          Section 80. Section 70A-10-104 is amended to read:
             2597           70A-10-104. Laws not repealed.
             2598           [The chapter on Documents of Title (Chapter 7)] Chapter 7a, Uniform Commercial
             2599      Code - Documents of Title, does not repeal or modify any laws prescribing the form or
             2600      contents of documents of title or the services or facilities to be afforded by bailees, or otherwise


             2601      regulating bailees' businesses in respects not specifically dealt with herein; but the fact that
             2602      such laws are violated does not affect the status of a document of title which otherwise
             2603      complies with the definition of a document of title [(] as defined in Section 70A-1-201 [)].
             2604          Section 81. Section 72-9-404 is amended to read:
             2605           72-9-404. Bills of lading -- Form.
             2606          Bills of lading issued by any motor carrier for the transportation of goods within this
             2607      state shall conform to this chapter, rules made under this chapter, and Title 70A, Chapter [7]
             2608      7a, Part 3, Bills of Lading -- Special Provisions, that are not in conflict with this chapter.
             2609          Section 82. Repealer.
             2610          This bill repeals:
             2611          Section 70A-7-101, Short title.
             2612          Section 70A-7-102, Definitions and index of definitions.
             2613          Section 70A-7-103, Relation of chapter to treaty, statute, tariff, classification or
             2614      regulation.
             2615          Section 70A-7-104, Negotiable and nonnegotiable warehouse receipt, bill of lading
             2616      or other document of title.
             2617          Section 70A-7-105, Construction against negative implication.
             2618          Section 70A-7-201, Who may issue a warehouse receipt -- Storage under
             2619      government bond.
             2620          Section 70A-7-202, Form of warehouse receipt -- Essential terms -- Optional terms.
             2621          Section 70A-7-203, Liability for nonreceipt or misdescription.
             2622          Section 70A-7-204, Duty of care -- Contractual limitation of warehouseman's
             2623      liability.
             2624          Section 70A-7-205, Title under warehouse receipt defeated in certain cases.
             2625          Section 70A-7-206, Termination of storage at warehouseman's option.
             2626          Section 70A-7-207, Goods must be kept separate -- Fungible goods.
             2627          Section 70A-7-208, Altered warehouse receipts.
             2628          Section 70A-7-209, Lien of warehouseman.
             2629          Section 70A-7-210, Enforcement of warehouseman's lien -- Notice and advertising
             2630      requirements.
             2631          Section 70A-7-301, Liability for nonreceipt or misdescription -- "Said to contain"


             2632      -- "Shipper's load and count" -- Improper handling.
             2633          Section 70A-7-302, Through bills of lading and similar documents.
             2634          Section 70A-7-303, Diversion -- Reconsignment -- Change of instructions.
             2635          Section 70A-7-304, Bills of lading in a set.
             2636          Section 70A-7-305, Destination bills.
             2637          Section 70A-7-306, Altered bills of lading.
             2638          Section 70A-7-307, Lien of carrier.
             2639          Section 70A-7-308, Enforcement of carrier's lien.
             2640          Section 70A-7-309, Duty of care -- Contractual limitation of carrier's liability.
             2641          Section 70A-7-401, Irregularities in issue of receipt or bill or conduct of issuer.
             2642          Section 70A-7-402, Duplicate receipt or bill -- Overissue.
             2643          Section 70A-7-403, Obligation of warehouseman or carrier to deliver -- Excuse.
             2644          Section 70A-7-404, No liability for good faith delivery pursuant to receipt or bill.
             2645          Section 70A-7-501, Form of negotiation and requirements of "due negotiation."
             2646          Section 70A-7-502, Rights acquired by due negotiation.
             2647          Section 70A-7-503, Document of title to goods defeated in certain cases.
             2648          Section 70A-7-504, Rights acquired in the absence of due negotiation -- Effect of
             2649      diversion -- Seller's stoppage of delivery.
             2650          Section 70A-7-505, Indorser not a guarantor for other parties.
             2651          Section 70A-7-506, Delivery without indorsement -- Right to compel indorsement.
             2652          Section 70A-7-507, Warranties on negotiation or transfer of receipt or bill.
             2653          Section 70A-7-508, Warranties of collecting bank as to documents.
             2654          Section 70A-7-509, Receipt or bill -- When adequate compliance with commercial
             2655      contract.
             2656          Section 70A-7-601, Lost and missing documents.
             2657          Section 70A-7-602, Attachment of goods covered by a negotiable document.
             2658          Section 70A-7-603, Conflicting claims -- Interpleader.





Legislative Review Note
    as of 12-7-05 1:10 PM


Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel


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