Utah Code 57-26-104. Security instrument creates assignment of rents — Assignment of rents creates security interest
Current as of: 2023 | Check for updates
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| (1) | An enforceable security instrument creates an assignment of rents arising from the real property described in the security instrument, unless the security instrument provides otherwise. |
| (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) | An assignment of rents creates a presently effective security interest in all accrued and unaccrued rents arising from the real property described in the document creating the assignment, regardless of whether the document is in the form of an absolute assignment, an absolute assignment conditioned upon default, an assignment as additional security, or any other form. The security interest in rents is separate and distinct from any security interest held by the assignee in the real property. |
Enacted by Chapter 139, 2009 General Session