Utah Code 78B-21-120. Notice of appointment — Claim against receivership — Distribution to creditors
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(1) Except as otherwise provided in Subsection (6), a receiver shall give notice of appointment of the receiver to creditors of the owner by:
Terms Used In Utah Code 78B-21-120
- 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
- Lien: A claim against real or personal property in satisfaction of a debt.
- Lien: means an interest in property that secures payment or performance of an obligation. See Utah Code 78B-21-102
- Owner: means the person for whose property a receiver is appointed. See Utah Code 78B-21-102
- 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
- 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
- Receivership: means a proceeding in which a receiver is appointed. See Utah Code 78B-21-102
- Receivership property: means the property of an owner that is described in the order appointing a receiver or a subsequent order. See Utah Code 78B-21-102
- 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
- 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
(1)(a) deposit for delivery through first-class mail or other commercially reasonable delivery method to the last known address of each creditor; and
(1)(b) publication as directed by the court.
(2)
(2)(a) Except as otherwise provided in Subsection (6), the notice required by Subsection (1) must specify the date by which each creditor holding a claim against the owner that arose before appointment of the receiver must submit the claim to the receiver.
(2)(b) The date specified must be at least 90 days after the later of the notice under Subsection (1)(a) or the last publication under Subsection (1)(b).
(2)(c) The court may extend the period for submitting the claim.
(2)(d) Unless the court orders otherwise, a claim that is not submitted timely is not entitled to a distribution from the receivership.
(3) A claim submitted by a creditor under this section must:
(3)(a) state the name and address of the creditor;
(3)(b) state the amount and basis of the claim;
(3)(c) identify any property securing the claim;
(3)(d) be signed by the creditor under penalty of perjury; and
(3)(e) include a copy of any record on which the claim is based.
(4) An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record.
(5)
(5)(a) At any time before entry of an order approving a receiver’s final report, the receiver may file with the court an objection to a claim of a creditor, stating the basis for the objection.
(5)(b) The court shall allow or disallow the claim according to law of this state other than this chapter.
(6) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that:
(6)(a) the receiver need not give notice under Subsection (1) of the appointment to all creditors of the owner, but only such creditors as the court directs; and
(6)(b) unsecured creditors need not submit claims under this section.
(7) Subject to Section 78B-21-121:
(7)(a) a distribution of receivership property to a creditor holding a perfected lien on the property must be made in accordance with the creditor’s priority under law of this state other than this chapter; and
(7)(b) a distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs according to law of this state other than this chapter.