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