§ 57-26-107. Enforcement by appointment of receiver.

(1) An assignee is entitled to the appointment of a receiver for the real property subject to the assignment of rents if:

(a) the assignor is in default and:

(i) the assignor has agreed in a signed document to the appointment of a receiver in the event of the assignor's default;

(ii) it appears likely that the real property may not be sufficient to satisfy the secured obligation;

(iii) the assignor has failed to turn over to the assignee proceeds that the assignee was entitled to collect; or

(iv) a subordinate assignee of rents obtains the appointment of a receiver for the real property; or

(b) other circumstances exist that would justify the appointment of a receiver under law of this state other than this chapter.

(2) An assignee may file a petition for the appointment of a receiver in connection with an action:

(a) to foreclose the security instrument;

(b) for specific performance of the assignment;

(c) seeking a remedy on account of waste or threatened waste of the real property subject to the assignment; or

(d) otherwise to enforce the secured obligation or the assignee's remedies arising from the assignment.

(3) An assignee that files a petition under Subsection (2) shall also give a copy of the petition in the manner specified in Section 57-26-103 to any other person that, 10 days before the date the petition is filed, held a recorded assignment of rents arising from the real property.

(4) If an assignee enforces an assignment of rents under this section, the date of enforcement is the date on which the court enters an order appointing a receiver for the real property subject to the assignment.

(5) From the date of its appointment, a receiver is entitled to collect rents as provided in Subsection 57-26-106(2). The receiver also has the authority provided in the order of appointment and law of this state other than this chapter.

(6) The following rules govern priority among receivers:

(a) If more than one assignee qualifies under this section for the appointment of a receiver, a receivership requested by an assignee entitled to priority in rents under this chapter has priority over a receivership requested by a subordinate assignee, even if a court has previously appointed a receiver for the subordinate assignee.

(b) If a subordinate assignee obtains the appointment of a receiver, the receiver may collect the rents and apply the proceeds in the manner specified in the order appointing the receiver until a receiver is appointed under a senior assignment of rents.

Enacted by Chapter 139, 2009 General Session