(1)  A document creating an assignment of rents may be submitted for recording in the office of the county recorder for the county in which the property is situated in the same manner as any other document evidencing a conveyance of an interest in real property.

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Terms Used In Utah Code 57-26-105

  • Assignee: means a person entitled to enforce an assignment of rents. See Utah Code 57-26-102
  • Assignment of rents: means a transfer of an interest in rents in connection with an obligation secured by real property located in this state and from which the rents arise. See Utah Code 57-26-102
  • Assignor: means a person that makes an assignment of rents or the successor owner of the real property from which the rents arise. See Utah Code 57-26-102
  • Document: means information that is inscribed on a tangible medium or that is stored on an electronic or other medium and is retrievable in perceivable form. See Utah Code 57-26-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See Utah Code 57-26-102
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • real property: includes :Utah Code 68-3-12.5
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Rents: means :
(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
  • Security interest: means an interest in property that arises by agreement and secures performance of an obligation. See Utah Code 57-26-102
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Utah Code 57-26-102
    • (2)  Upon recording, the security interest in rents created by an assignment of rents is fully perfected, even if a provision of the document creating the assignment or law of this state other than this chapter would preclude or defer enforcement of the security interest until the occurrence of a subsequent event, including a subsequent default of the assignor, the assignee‘s obtaining possession of the real property, or the appointment of a receiver.

    (3)  Except as otherwise provided in Subsection (4), a perfected security interest in rents takes priority over the rights of a person that, after the security interest is perfected:

    (a)  acquires a judicial lien against the rents or the real property from which the rents arise; or

    (b)  purchases an interest in the rents or the real property from which the rents arise.

    (4)  A perfected security interest in rents has priority over the rights of a person described in Subsection (3) with respect to future advances to the same extent as the assignee’s security interest in the real property has priority over the rights of that person with respect to future advances.

    Enacted by Chapter 139, 2009 General Session

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