An assignee is entitled to the appointment of a receiver for the real property subject to the assignment of rents if:
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Terms Used In Utah Code 57-26-107
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
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
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
Proceeds: means personal property that is received or collected on account of a tenant's obligation to pay rents. See Utah Code 57-26-102
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
Secured obligation: means an obligation the performance of which is secured by an assignment of rents. See Utah Code 57-26-102
Security instrument: means a document, however denominated, that creates or provides for a security interest in real property, whether or not it also creates or provides for a security interest in personal property. 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
(a)
the assignor is in default and:
(i)
the assignor has agreed in a signed document to the appointment of a receiver in the event of the assignor’s default;
(ii)
it appears likely that the real property may not be sufficient to satisfy the secured obligation;
(iii)
the assignor has failed to turn over to the assignee proceeds that the assignee was entitled to collect; or
(iv)
a subordinate assignee of rents obtains the appointment of a receiver for the real property; or
(b)
other circumstances exist that would justify the appointment of a receiver under law of this state other than this chapter.
(2)
An assignee may file a petition for the appointment of a receiver in connection with an action:
(a)
to foreclose the security instrument;
(b)
for specific performance of the assignment;
(c)
seeking a remedy on account of waste or threatened waste of the real property subject to the assignment; or
(d)
otherwise to enforce the secured obligation or the assignee’s remedies arising from the assignment.
(3)
An assignee that files a petition under Subsection (2) shall also give a copy of the petition in the manner specified in Section 57-26-103 to any other person that, 10 days before the date the petition is filed, held a recorded assignment of rents arising from the real property.
(4)
If an assignee enforces an assignment of rents under this section, the date of enforcement is the date on which the court enters an order appointing a receiver for the real property subject to the assignment.
(5)
From the date of its appointment, a receiver is entitled to collect rents as provided in Subsection 57-26-106(2). The receiver also has the authority provided in the order of appointment and law of this state other than this chapter.
(6)
The following rules govern priority among receivers:
(a)
If more than one assignee qualifies under this section for the appointment of a receiver, a receivership requested by an assignee entitled to priority in rents under this chapter has priority over a receivership requested by a subordinate assignee, even if a court has previously appointed a receiver for the subordinate assignee.
(b)
If a subordinate assignee obtains the appointment of a receiver, the receiver may collect the rents and apply the proceeds in the manner specified in the order appointing the receiver until a receiver is appointed under a senior assignment of rents.
