41-1a-601. Lien validity -- Security interest.

242 words·~1 min read·/ut/title-41/chapter-1a/41-1a-601

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Except as provided under Subsection

(2)or

(3), a lien upon a vehicle, vessel, or outboard motor, except a lien dependent upon possession, is not valid against the creditors of an owner acquiring a lien by levy or attachment, or subsequent purchasers, or encumbrancers without notice until Sections 41-1a-602 through 41-1a-606 have been complied with.

(2)Security interests in inventory consisting in part of vehicles subject to registration under this chapter, that are held for sale by a person in the business of selling goods of that kind, shall be perfected under Section 70A-9a-310 , except that:

(a)buyers in the ordinary course of business, as defined in Section 70A-1a-201 , take free of the security interests as provided in Section 70A-9a-320 ; and

(b)security interests of persons extending credit to buyers in the ordinary course of business, as defined in Section 70A-1a-201 , take free of the security interests as provided in Section 70A-9a-320 .

(3)Security interests in inventory consisting in part of vehicles subject to registration under this chapter, which are held for sale by a person in the business of selling goods of that kind, shall be perfected under Section 70A-9a-310 , except that a lienholder with a security interest noted on the title shall have priority unless the lienholder has been paid in full in accordance with Section 41-3-402 .

Amended by Chapter 342 , 2010 General Session