Utah Code 16-6a-119. Execution against a mutual benefit corporation

(1)

As used in this section:

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Terms Used In Utah Code 16-6a-119

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. ^{Source: U.S. Courts}
Lien: A claim against real or personal property in satisfaction of a debt.
Mutual benefit corporation: means a nonprofit corporation:

(a)	that issues shares of stock to its members evidencing a right to receive distribution of water or otherwise representing property rights; or

(b)

all of whose assets are contributed or acquired by or for the members of the nonprofit corporation or their predecessors in interest to serve the mutual purposes of the members. See Utah Code 16-6a-102

Proceeding: includes :

(a)	a civil suit;

(b)	arbitration;

(c)	mediation;

(d)	a criminal action;

(e)	an administrative action; or

(f)

an investigatory action. See Utah Code 16-6a-102

Process: means a writ or summons issued in the course of a judicial proceeding. See Utah Code 68-3-12.5

Shareholder: means a person in whose name a share is registered in the records of a nonprofit corporation. See Utah Code 16-6a-102

(a)

“Judicial lien” means one or more of the following:

(i)	a judgment lien; or

(ii)	other lien obtained by a judicial or equitable process or proceeding.

(b)

“Water right” means:

(i)	a right to use water evidenced by a means identified in Section 73-1-10; or

(ii)

a right to use water under an approved application:

(A)	to appropriate;

(B)	for a change of use; or

(C)	for the exchange of water.

(c)

“Water rights and related assets” means a water right or title to:

(i)	a water conveyance facility; or

(ii)	other asset of a mutual benefit corporation necessary to divert or distribute water to its members.

(2)

Except as provided in Subsection (3), a court may not do the following with regard to a judicial lien recorded on or after May 12, 2009 against the water rights and related assets of a mutual benefit corporation earlier than 180 days after the day on which the judicial lien is recorded or takes effect:

(a)	execute the judicial lien;

(b)	impose a levy as a result of the judicial lien; or

(c)	force the sale, transfer, or change in ownership of the water rights and related assets pursuant to the judicial lien.

(3)	This section does not apply to a judicial lien related to a cause of action brought against a mutual benefit corporation by a shareholder under Section 73-3-3.5.

Enacted by Chapter 37, 2009 General Session

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