Utah Code 78B-21-106. Appointment of receiver

(1)

The court may appoint a receiver:

Terms Used In Utah Code 78B-21-106

Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
Court: means a court of this state with jurisdiction over the action under Title 78A, Judiciary and Judicial Administration. See Utah Code 78B-21-102 v2
Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
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}
Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. ^{Source: OCC}
Mortgagee: means a person entitled to enforce an obligation secured by a mortgage. See Utah Code 78B-21-102 v2
Mortgagee: The person to whom property is mortgaged and who has loaned the money.
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.
Owner: means the person for whose property a receiver is appointed. See Utah Code 78B-21-102 v2
Person: means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. See Utah Code 78B-21-102 v2
Proceeds: means the following property:

(a)	whatever is acquired on the sale, lease, license, exchange, or other disposition of receivership property;

(b)	whatever is collected on, or distributed on account of, receivership property;

(c)	rights arising out of receivership property;

(d)	to the extent of the value of receivership property, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to the property; or

(e)

to the extent of the value of receivership property and to the extent payable to the owner or mortgagee, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to the property. See Utah Code 78B-21-102 v2

Property: means all of a person's right, title, and interest, both legal and equitable, in real and personal property, tangible and intangible, wherever located and however acquired. See Utah Code 78B-21-102 v2

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.

Receiver: means a person appointed by the court as the court's agent, and subject to the court's direction, to take possession of, manage, and, if authorized by this chapter or court order, transfer, sell, lease, license, exchange, collect, or otherwise dispose of receivership property. See Utah Code 78B-21-102 v2

Record: means , when used as a noun, 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 78B-21-102 v2

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 a mortgagor 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 a mortgagor for payment or reimbursement of expenses incurred in owning, operating, and maintaining real property or constructing or installing improvements on real property; or

(f)

other sums payable under an agreement relating to the real property of another person which constitute rents under law of the state other than this chapter. See Utah Code 78B-21-102 v2

(a)

before judgment, to protect a party that demonstrates an apparent right, title, or interest in real property that is the subject of the action, if the property or the property’s revenue-producing potential:

(i)	is being subjected to or is in danger of waste, loss, dissipation, or impairment; or

(ii)	has been or is about to be the subject of a voidable transaction;

(b)

after judgment:

(i)	to carry the judgment into effect; or

(ii)	to preserve nonexempt real property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;

(c)	in an action in which a receiver for real property may be appointed on equitable grounds; or

(d)	during the time allowed for redemption, to preserve a property sold in an execution or foreclosure sale and secure the property’s rents to the person entitled to the property’s rents.

(2)

In connection with the foreclosure or other enforcement of a mortgage, a mortgagee is entitled to appointment of a receiver for the mortgaged property if:

(a)	appointment is necessary to protect the property from waste, loss, transfer, dissipation, or impairment;

(b)	the mortgagor agreed in a signed record to appointment of a receiver on default;

(c)	the owner agreed, after default and in a signed record, to appointment of a receiver;

(d)	the property and any other collateral held by the mortgagee are not sufficient to satisfy the secured obligation;

(e)	the owner fails to turn over to the mortgagee proceeds or rents the mortgagee was entitled to collect; or

(f)	the holder of a subordinate lien obtains appointment of a receiver for the property.

(3)

(a)

The court may condition appointment of a receiver without prior notice under Subsection 78B-21-103(2)(a) or without a prior hearing under Subsection 78B-21-103(2)(b) on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorney fees, and costs incurred or suffered by any person if the court later concludes that the appointment was not justified.

(b)	If the court later concludes that the appointment described in Subsection (3)(a) was justified, the court shall release the security.

Enacted by Chapter 431, 2017 General Session

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