Utah Code 57-26-112. Application of proceeds
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Unless otherwise agreed, an assignee that collects rents under this chapter or collects upon a judgment in an action under Subsection 57-26-114(4) shall apply the sums collected in the following order to:
(1) | the assignee’s reasonable expenses of enforcing its assignment of rents, including, to the extent provided for by agreement and not prohibited by law of this state other than this chapter, reasonable attorney fees and costs incurred by the assignee; |
(a) | sums payable for the right to possess or occupy, or for the actual possession or occupation of, real property of another person; |
(b) | sums payable to an assignor under a policy of rental interruption insurance covering real property; |
(c) | claims arising out of a default in the payment of sums payable for the right to possess or occupy real property of another person; |
(d) | sums payable to terminate an agreement to possess or occupy real property of another person; |
(e) | sums payable to an assignor for payment or reimbursement of expenses incurred in owning, operating and maintaining, or constructing or installing improvements on, real property; or |
(f) | any other sums payable under an agreement relating to the real property of another person that constitute rents under law of this state other than this chapter. See Utah Code 57-26-102 |
(2) | reimbursement of any expenses incurred by the assignee to protect or maintain the real property subject to the assignment; |
(3) | payment of the secured obligation; |
(4) | payment of any obligation secured by a subordinate security interest or other lien on the rents if, before distribution of the proceeds, the assignor and assignee receive a notification from the holder of the interest or lien demanding payment of the proceeds; and |
(5) | the assignor. |
Enacted by Chapter 139, 2009 General Session