(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.

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Terms Used In Utah Code 57-26-104

  • 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
  • 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
  • Property: includes both real and personal property. See Utah Code 68-3-12.5
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • real property: includes :
         (31)(a) land;
         (31)(b) a tenement;
         (31)(c) a hereditament;
         (31)(d) a water right;
         (31)(e) a possessory right; and
         (31)(f) a claim. See Utah Code 68-3-12.5
  • Rents: means :
         (12)(a) sums payable for the right to possess or occupy, or for the actual possession or occupation of, real property of another person;
         (12)(b) sums payable to an assignor under a policy of rental interruption insurance covering real property;
         (12)(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;
         (12)(d) sums payable to terminate an agreement to possess or occupy real property of another person;
         (12)(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
         (12)(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 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
  • Security interest: means an interest in property that arises by agreement and secures performance of an obligation. 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.