41-1a-601 - Lien validity -- Security interest.
41-1a-601. Lien validity -- Security interest.
(1) Except as provided under Subsection (2) or (3), a lien upon a vehicle, vessel, oroutboard motor, except a lien dependent upon possession, is not valid against the creditors of anowner acquiring a lien by levy or attachment, or subsequent purchasers, or encumbrancerswithout 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 registrationunder 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 freeof the security interests as provided in Section 70A-9a-320; and
(b) security interests of persons extending credit to buyers in the ordinary course ofbusiness, as defined in Section 70A-1a-201, take free of the security interests as provided inSection 70A-9a-320.
(3) Security interests in inventory consisting in part of vehicles subject to registrationunder this chapter, which are held for sale by a person in the business of selling goods of thatkind, shall be perfected under Section 70A-9a-310, except that a lienholder with a securityinterest noted on the title shall have priority unless the lienholder has been paid in full inaccordance with Section 41-3-402.
Amended by Chapter 342, 2010 General Session