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2016 Utah Code
Title 16 - Corporations
Chapter 16 - Uniform Limited Cooperative Association Act
Part 6 - Member's Interest in Limited Cooperative Association
Section 604 - Security interest and set-off.

UT Code § 16-16-604 (2016) What's This?
16-16-604. Security interest and set-off.
  • (1) A member or transferee may create an enforceable security interest in its financial rights in a limited cooperative association.
  • (2) Unless the organic rules otherwise provide, a member may not create an enforceable security interest in the member's governance rights in a limited cooperative association.
  • (3) The organic rules may provide that a limited cooperative association has a security interest in the financial rights of a member to secure payment of any indebtedness or other obligation of the member to the association. A security interest provided for in the organic rules is enforceable under, and governed by, Title 70A, Chapter 9a, Uniform Commercial Code - Secured Transactions.
  • (4) Unless the organic rules otherwise provide, a member may not compel the limited cooperative association to offset financial rights against any indebtedness or obligation owed to the association.


Enacted by Chapter 363, 2008 General Session

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