§ 16-6a-119. Execution against a mutual benefit corporation.

(1) As used in this section:

(a) "Judicial lien" means one or more of the following:

(i) a judgment lien; or

(ii) other lien obtained by a judicial or equitable process or proceeding.

(b) "Water right" means:

(i) a right to use water evidenced by a means identified in Section 73-1-10; or

(ii) a right to use water under an approved application:

(A) to appropriate;

(B) for a change of use; or

(C) for the exchange of water.

(c) "Water rights and related assets" means a water right or title to:

(i) a water conveyance facility; or

(ii) other asset of a mutual benefit corporation necessary to divert or distribute water to its members.

(2) Except as provided in Subsection (3), a court may not do the following with regard to a judicial lien recorded on or after May 12, 2009 against the water rights and related assets of a mutual benefit corporation earlier than 180 days after the day on which the judicial lien is recorded or takes effect:

(a) execute the judicial lien;

(b) impose a levy as a result of the judicial lien; or

(c) force the sale, transfer, or change in ownership of the water rights and related assets pursuant to the judicial lien.

(3) This section does not apply to a judicial lien related to a cause of action brought against a mutual benefit corporation by a shareholder under Section 73-3-3.5.

Enacted by Chapter 37, 2009 General Session