Utah Code 16-6a-1416. Receivership or custodianship

Superseded 7/1/2024)

16-6a-1416. Receivership or custodianship.

(1)

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Terms Used In Utah Code 16-6a-1416

Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
board of directors: means the body authorized to manage the affairs of a domestic or foreign nonprofit corporation. See Utah Code 16-6a-102
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.
Foreign corporation: means a corporation for profit incorporated under a law other than the laws of this state. See Utah Code 16-6a-102
Foreign nonprofit corporation: means an entity:

(a)	incorporated under a law other than the laws of this state; and

(b)

that would be a nonprofit corporation if formed under the laws of this state. See Utah Code 16-6a-102

Individual: means :

(a)	a natural person;

(b)	the estate of an incompetent individual; or

(c)

the estate of a deceased individual. See Utah Code 16-6a-102

Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.

Notice: means the same as that term is defined in Section 16-6a-103. 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

Property: includes both real and personal property. See Utah Code 68-3-12.5

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)

A court in a judicial proceeding brought to dissolve a nonprofit corporation may appoint:

(i)	one or more receivers to wind up and liquidate the affairs of the nonprofit corporation; or

(ii)	one or more custodians to manage the affairs of the nonprofit corporation.

(b)

Before appointing a receiver or custodian, the court shall hold a hearing, after giving notice to:

(i)	all parties to the proceeding; and

(ii)	any interested persons designated by the court.

(c)	The court appointing a receiver or custodian has exclusive jurisdiction over the nonprofit corporation and all of its property, wherever located.

(d)

The court may appoint as a receiver or custodian:

(i)	an individual;

(ii)	a domestic or foreign corporation authorized to conduct affairs in this state; or

(iii)

a domestic or foreign nonprofit corporation authorized to conduct affairs in this state.

(e)	The court may require the receiver or custodian to post bond, with or without sureties, in an amount specified by the court.

(2)

The court shall describe the powers and duties of the receiver or custodian in its appointing order that may be amended from time to time. Among other powers the receiver shall have the power to:

(a)

dispose of all or any part of the property of the nonprofit corporation, wherever located:

(i)	at a public or private sale; and

(ii)	if authorized by the court; and

(b)	sue and defend in the receiver’s own name as receiver of the nonprofit corporation in all courts.

(3)	The custodian may exercise all of the powers of the nonprofit corporation, through or in place of its board of directors or officers, to the extent necessary to manage the affairs of the nonprofit corporation in the best interests of its members and creditors.

(4)

If doing so is in the best interests of the nonprofit corporation and its members and creditors, the court may:

(a)	during a receivership, redesignate the receiver as a custodian; and

(b)	during a custodianship, redesignate the custodian as a receiver.

(5)

The court from time to time during the receivership or custodianship may order compensation paid and expense disbursements or reimbursements made from the assets of the nonprofit corporation or proceeds from the sale of the assets to:

(a)	the receiver;

(b)	the custodian; or

(c)	the receiver’s or custodian’s attorney.

Enacted by Chapter 300, 2000 General Session

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