70A-9a-335 - Accessions.
70A-9a-335. Accessions.
(1) A security interest may be created in an accession and continues in collateral thatbecomes an accession.
(2) If a security interest is perfected when the collateral becomes an accession, thesecurity interest remains perfected in the collateral.
(3) Except as otherwise provided in Subsection (4), the other provisions of this partdetermine the priority of a security interest in an accession.
(4) A security interest in an accession is subordinate to a security interest in the wholewhich is perfected by compliance with the requirements of a certificate-of-title statute underSubsection 70A-9a-311(2).
(5) After default, subject to Part 6, a secured party may remove an accession from othergoods if the security interest in the accession has priority over the claims of every person havingan interest in the whole.
(6) A secured party that removes an accession from other goods under Subsection (5)shall promptly reimburse any holder of a security interest or other lien on, or owner of, the wholeor of the other goods, other than the debtor, for the cost of repair of any physical injury to thewhole or the other goods. The secured party need not reimburse the holder or owner for anydiminution in value of the whole or the other goods caused by the absence of the accessionremoved or by any necessity for replacing it. A person entitled to reimbursement may refusepermission to remove until the secured party gives adequate assurance for the performance of theobligation to reimburse.
Enacted by Chapter 252, 2000 General Session