Effective 5/9/2017
78B-21-120. Notice of appointment — Claim against receivership — Distribution to creditors.
78B-21-120. Notice of appointment — Claim against receivership — Distribution to creditors.
- (1) Except as otherwise provided in Subsection (6), a receiver shall give notice of appointment of the receiver to creditors of the owner by:
- (a) deposit for delivery through first-class mail or other commercially reasonable delivery method to the last known address of each creditor; and
- (b) publication as directed by the court.
- (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.
- (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).
- (c) The court may extend the period for submitting the claim.
- (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:
- (a) state the name and address of the creditor;
- (b) state the amount and basis of the claim;
- (c) identify any property securing the claim;
- (d) be signed by the creditor under penalty of perjury; and
- (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)
- (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.
- (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:
- (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
- (b) unsecured creditors need not submit claims under this section.
- (7) Subject to Section 78B-21-121:
- (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
- (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.
Enacted by Chapter 431, 2017 General Session