§ 78B-21-107 — Disqualification from appointment as receiver -- Disclosure of interest.

Utah § 78B-21-107

• Jurisdiction: Utah
• Title 78B: Judicial Code
• Ch. 78B-21: Uniform Commercial Real Estate Receivership Act

Text

(1) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.
(2) Except as otherwise provided in Subsection (3), a person is disqualified from appointment as receiver if the person:

(2)(a) is an affiliate of a party;
(2)(b) has an interest materially adverse to an interest of a party;
(2)(c) has a material financial interest in the outcome of the action, other than the compensation the court may allow the receiver;
(2)(d) has a debtor-creditor relationship with a party; or
(2)(e) holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.
(3) A person is not disqualified from appointment as receiver solely because the person:

(3)(a) was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership;
(3)(b) is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or
(3)(c) maintains with a party a deposit account as defined in Section 70A-9a-102.
(4) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

Legislative History

Enacted by Chapter 431, 2017 General Session