State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-02 > 7-2-9

7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointmentof receiver -- Review of actions.
(1) Upon taking possession of the institution, the commissioner may appoint a receiver toperform the duties of the commissioner. Subject to any limitations, conditions, or requirementsspecified by the commissioner and approved by the court, a receiver shall have all the powers andduties of the commissioner under this chapter and the laws of this state to act as a conservator,receiver, or liquidator of the institution. Actions of the commissioner in appointing a receivershall be subject to review only as provided in Section 7-2-2.
(2) (a) If the deposits of the institution are to any extent insured by a federal depositinsurance agency, the commissioner may appoint that agency as receiver. After receiving noticein writing of the acceptance of the appointment, the commissioner shall file a certificate ofappointment in the commissioner's office and with the clerk of the district court. After the filingof the certificate, the possession of all assets, business, and property of the institution isconsidered transferred from the institution and the commissioner to the agency, and title to allassets, business, and property of the institution is vested in the agency without the execution ofany instruments of conveyance, assignment, transfer, or endorsement.
(b) If a federal deposit insurance agency accepts an appointment as receiver, it has all thepowers and privileges provided by the laws of this state and the United States with respect to theconservatorship, receivership, or liquidation of an institution and the rights of its depositors, andother creditors, including authority to make an agreement for the purchase of assets andassumption of deposit and other liabilities by another depository institution or take other actionauthorized by Title 12 of the United States Code to maintain the stability of the banking system. Such action by a federal deposit insurance agency may be taken upon approval by the court, withor without prior notice. Such actions or agreements may be disapproved, amended, or rescindedonly upon a finding by the court that the decisions or actions of the receiver are arbitrary,capricious, fraudulent, or contrary to law. In the event of any conflict between state and federallaw, including provisions for adjudicating claims against the institution or receiver, the receivershall comply with the federal law and any resulting violation of state law does not by itselfconstitute grounds for the court to disapprove the actions of the receiver or impose any penaltyfor such violation.
(c) The commissioner or any receiver appointed by him shall possess all the rights andclaims of the institution against any person whose breach of fiduciary duty or violations of thelaws of this state or the United States applicable to depository institutions may have caused orcontributed to a condition which resulted in any loss incurred by the institution or to its assets inthe possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary dutyincludes those duties and standards applicable under statutes and laws of this state and the UnitedStates to a director, officer, or other party employed by or rendering professional services to adepository institution whose deposits are insured by a federal deposit insurance agency. Upontaking possession of an institution, no person other than the commissioner or receiver shall havestanding to assert any such right or claim of the institution, including its depositors, creditors, orshareholders unless the right or claim has been abandoned by the commissioner or receiver withapproval of the court. Any judgment based on the rights and claims of the commissioner orreceiver shall have priority in payment from the assets of the judgment debtors.
(d) For the purposes of this section, the term "federal deposit insurance agency" shallinclude the Federal Deposit Insurance Corporation, the National Credit Union Administration

and any departments thereof or successors thereto, and any other federal agency authorized byfederal law to act as a conservator, receiver, and liquidator of a federally insured depositoryinstitution, including the Resolution Trust Corporation and any department thereof or successorthereto.
(3) The receiver may employ assistants, agents, accountants, and legal counsel. If thereceiver is not a federal deposit insurance agency, the compensation to be paid such assistants,agents, accountants, and legal counsel shall be approved by the commissioner. All expensesincident to the receivership shall be paid out of the assets of the institution. If a receiver is not afederal deposit insurance agency, the receiver and any assistants and agents shall provide bond orother security specified by the commissioner and approved by the court for the faithful dischargeof all duties and responsibilities in connection with the receivership including the accounting formoney received and paid. The cost of the bond shall be paid from the assets of the institution. Suit may be maintained on the bond by the commissioner or by any person injured by a breach ofthe condition of the bond.
(4) (a) Upon the appointment of a receiver for an institution in possession pursuant tothis chapter, the commissioner and the department are exempt from liability or damages for anyact or omission of any receiver appointed pursuant to this section.
(b) This section does not limit the right of the commissioner to prescribe and enforcerules regulating a receiver in carrying out its duties with respect to an institution subject to thejurisdiction of the department.
(c) Any act or omission of the commissioner or of any federal deposit insurance agencyas a receiver appointed by him while acting pursuant to this chapter shall be deemed to be theexercise of a discretionary function within the meaning of Section 63G-7-301 of the laws of thisstate or Section 28 U.S.C. 2680(a) of the laws of the United States.
(5) Actions, decisions, or agreements of a receiver under this chapter, other thanallowance or disallowance of claims under Section 7-2-6, shall be subject to judicial review onlyas follows:
(a) A petition for review shall be filed with the court having jurisdiction under Section7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or itsterms are filed with the court.
(b) The petition shall state in simple, concise, and direct terms the facts and principles oflaw upon which the petitioner claims the act, decision, or agreement of the receiver was or wouldbe arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may bedamaged thereby. The court shall dismiss any petition which fails to allege that the petitionerwould be directly injured or damaged by the act, decision, or agreement which is the subject ofthe petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties with respectto the allegations set forth in a petition or response.
(c) The receiver shall have 30 days after service of the petition within which to respond.
(d) All further proceedings are to be conducted in accordance with the Utah Rules ofCivil Procedure.
(6) All notices required under this section shall be made in accordance with the UtahRules of Civil Procedure and served upon the attorney general of the state of Utah, thecommissioner of financial institutions, the receiver of the institution appointed under thischapter, and upon the designated representative of any party in interest who requests in writingsuch notice.

Amended by Chapter 378, 2010 General Session

State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-02 > 7-2-9

7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointmentof receiver -- Review of actions.
(1) Upon taking possession of the institution, the commissioner may appoint a receiver toperform the duties of the commissioner. Subject to any limitations, conditions, or requirementsspecified by the commissioner and approved by the court, a receiver shall have all the powers andduties of the commissioner under this chapter and the laws of this state to act as a conservator,receiver, or liquidator of the institution. Actions of the commissioner in appointing a receivershall be subject to review only as provided in Section 7-2-2.
(2) (a) If the deposits of the institution are to any extent insured by a federal depositinsurance agency, the commissioner may appoint that agency as receiver. After receiving noticein writing of the acceptance of the appointment, the commissioner shall file a certificate ofappointment in the commissioner's office and with the clerk of the district court. After the filingof the certificate, the possession of all assets, business, and property of the institution isconsidered transferred from the institution and the commissioner to the agency, and title to allassets, business, and property of the institution is vested in the agency without the execution ofany instruments of conveyance, assignment, transfer, or endorsement.
(b) If a federal deposit insurance agency accepts an appointment as receiver, it has all thepowers and privileges provided by the laws of this state and the United States with respect to theconservatorship, receivership, or liquidation of an institution and the rights of its depositors, andother creditors, including authority to make an agreement for the purchase of assets andassumption of deposit and other liabilities by another depository institution or take other actionauthorized by Title 12 of the United States Code to maintain the stability of the banking system. Such action by a federal deposit insurance agency may be taken upon approval by the court, withor without prior notice. Such actions or agreements may be disapproved, amended, or rescindedonly upon a finding by the court that the decisions or actions of the receiver are arbitrary,capricious, fraudulent, or contrary to law. In the event of any conflict between state and federallaw, including provisions for adjudicating claims against the institution or receiver, the receivershall comply with the federal law and any resulting violation of state law does not by itselfconstitute grounds for the court to disapprove the actions of the receiver or impose any penaltyfor such violation.
(c) The commissioner or any receiver appointed by him shall possess all the rights andclaims of the institution against any person whose breach of fiduciary duty or violations of thelaws of this state or the United States applicable to depository institutions may have caused orcontributed to a condition which resulted in any loss incurred by the institution or to its assets inthe possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary dutyincludes those duties and standards applicable under statutes and laws of this state and the UnitedStates to a director, officer, or other party employed by or rendering professional services to adepository institution whose deposits are insured by a federal deposit insurance agency. Upontaking possession of an institution, no person other than the commissioner or receiver shall havestanding to assert any such right or claim of the institution, including its depositors, creditors, orshareholders unless the right or claim has been abandoned by the commissioner or receiver withapproval of the court. Any judgment based on the rights and claims of the commissioner orreceiver shall have priority in payment from the assets of the judgment debtors.
(d) For the purposes of this section, the term "federal deposit insurance agency" shallinclude the Federal Deposit Insurance Corporation, the National Credit Union Administration

and any departments thereof or successors thereto, and any other federal agency authorized byfederal law to act as a conservator, receiver, and liquidator of a federally insured depositoryinstitution, including the Resolution Trust Corporation and any department thereof or successorthereto.
(3) The receiver may employ assistants, agents, accountants, and legal counsel. If thereceiver is not a federal deposit insurance agency, the compensation to be paid such assistants,agents, accountants, and legal counsel shall be approved by the commissioner. All expensesincident to the receivership shall be paid out of the assets of the institution. If a receiver is not afederal deposit insurance agency, the receiver and any assistants and agents shall provide bond orother security specified by the commissioner and approved by the court for the faithful dischargeof all duties and responsibilities in connection with the receivership including the accounting formoney received and paid. The cost of the bond shall be paid from the assets of the institution. Suit may be maintained on the bond by the commissioner or by any person injured by a breach ofthe condition of the bond.
(4) (a) Upon the appointment of a receiver for an institution in possession pursuant tothis chapter, the commissioner and the department are exempt from liability or damages for anyact or omission of any receiver appointed pursuant to this section.
(b) This section does not limit the right of the commissioner to prescribe and enforcerules regulating a receiver in carrying out its duties with respect to an institution subject to thejurisdiction of the department.
(c) Any act or omission of the commissioner or of any federal deposit insurance agencyas a receiver appointed by him while acting pursuant to this chapter shall be deemed to be theexercise of a discretionary function within the meaning of Section 63G-7-301 of the laws of thisstate or Section 28 U.S.C. 2680(a) of the laws of the United States.
(5) Actions, decisions, or agreements of a receiver under this chapter, other thanallowance or disallowance of claims under Section 7-2-6, shall be subject to judicial review onlyas follows:
(a) A petition for review shall be filed with the court having jurisdiction under Section7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or itsterms are filed with the court.
(b) The petition shall state in simple, concise, and direct terms the facts and principles oflaw upon which the petitioner claims the act, decision, or agreement of the receiver was or wouldbe arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may bedamaged thereby. The court shall dismiss any petition which fails to allege that the petitionerwould be directly injured or damaged by the act, decision, or agreement which is the subject ofthe petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties with respectto the allegations set forth in a petition or response.
(c) The receiver shall have 30 days after service of the petition within which to respond.
(d) All further proceedings are to be conducted in accordance with the Utah Rules ofCivil Procedure.
(6) All notices required under this section shall be made in accordance with the UtahRules of Civil Procedure and served upon the attorney general of the state of Utah, thecommissioner of financial institutions, the receiver of the institution appointed under thischapter, and upon the designated representative of any party in interest who requests in writingsuch notice.

Amended by Chapter 378, 2010 General Session


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State Codes and Statutes

Statutes > Utah > Title-07 > Chapter-02 > 7-2-9

7-2-9. Conservatorship, receivership, or liquidation of institution -- Appointmentof receiver -- Review of actions.
(1) Upon taking possession of the institution, the commissioner may appoint a receiver toperform the duties of the commissioner. Subject to any limitations, conditions, or requirementsspecified by the commissioner and approved by the court, a receiver shall have all the powers andduties of the commissioner under this chapter and the laws of this state to act as a conservator,receiver, or liquidator of the institution. Actions of the commissioner in appointing a receivershall be subject to review only as provided in Section 7-2-2.
(2) (a) If the deposits of the institution are to any extent insured by a federal depositinsurance agency, the commissioner may appoint that agency as receiver. After receiving noticein writing of the acceptance of the appointment, the commissioner shall file a certificate ofappointment in the commissioner's office and with the clerk of the district court. After the filingof the certificate, the possession of all assets, business, and property of the institution isconsidered transferred from the institution and the commissioner to the agency, and title to allassets, business, and property of the institution is vested in the agency without the execution ofany instruments of conveyance, assignment, transfer, or endorsement.
(b) If a federal deposit insurance agency accepts an appointment as receiver, it has all thepowers and privileges provided by the laws of this state and the United States with respect to theconservatorship, receivership, or liquidation of an institution and the rights of its depositors, andother creditors, including authority to make an agreement for the purchase of assets andassumption of deposit and other liabilities by another depository institution or take other actionauthorized by Title 12 of the United States Code to maintain the stability of the banking system. Such action by a federal deposit insurance agency may be taken upon approval by the court, withor without prior notice. Such actions or agreements may be disapproved, amended, or rescindedonly upon a finding by the court that the decisions or actions of the receiver are arbitrary,capricious, fraudulent, or contrary to law. In the event of any conflict between state and federallaw, including provisions for adjudicating claims against the institution or receiver, the receivershall comply with the federal law and any resulting violation of state law does not by itselfconstitute grounds for the court to disapprove the actions of the receiver or impose any penaltyfor such violation.
(c) The commissioner or any receiver appointed by him shall possess all the rights andclaims of the institution against any person whose breach of fiduciary duty or violations of thelaws of this state or the United States applicable to depository institutions may have caused orcontributed to a condition which resulted in any loss incurred by the institution or to its assets inthe possession of the commissioner or receiver. As used in this Subsection (2)(c), fiduciary dutyincludes those duties and standards applicable under statutes and laws of this state and the UnitedStates to a director, officer, or other party employed by or rendering professional services to adepository institution whose deposits are insured by a federal deposit insurance agency. Upontaking possession of an institution, no person other than the commissioner or receiver shall havestanding to assert any such right or claim of the institution, including its depositors, creditors, orshareholders unless the right or claim has been abandoned by the commissioner or receiver withapproval of the court. Any judgment based on the rights and claims of the commissioner orreceiver shall have priority in payment from the assets of the judgment debtors.
(d) For the purposes of this section, the term "federal deposit insurance agency" shallinclude the Federal Deposit Insurance Corporation, the National Credit Union Administration

and any departments thereof or successors thereto, and any other federal agency authorized byfederal law to act as a conservator, receiver, and liquidator of a federally insured depositoryinstitution, including the Resolution Trust Corporation and any department thereof or successorthereto.
(3) The receiver may employ assistants, agents, accountants, and legal counsel. If thereceiver is not a federal deposit insurance agency, the compensation to be paid such assistants,agents, accountants, and legal counsel shall be approved by the commissioner. All expensesincident to the receivership shall be paid out of the assets of the institution. If a receiver is not afederal deposit insurance agency, the receiver and any assistants and agents shall provide bond orother security specified by the commissioner and approved by the court for the faithful dischargeof all duties and responsibilities in connection with the receivership including the accounting formoney received and paid. The cost of the bond shall be paid from the assets of the institution. Suit may be maintained on the bond by the commissioner or by any person injured by a breach ofthe condition of the bond.
(4) (a) Upon the appointment of a receiver for an institution in possession pursuant tothis chapter, the commissioner and the department are exempt from liability or damages for anyact or omission of any receiver appointed pursuant to this section.
(b) This section does not limit the right of the commissioner to prescribe and enforcerules regulating a receiver in carrying out its duties with respect to an institution subject to thejurisdiction of the department.
(c) Any act or omission of the commissioner or of any federal deposit insurance agencyas a receiver appointed by him while acting pursuant to this chapter shall be deemed to be theexercise of a discretionary function within the meaning of Section 63G-7-301 of the laws of thisstate or Section 28 U.S.C. 2680(a) of the laws of the United States.
(5) Actions, decisions, or agreements of a receiver under this chapter, other thanallowance or disallowance of claims under Section 7-2-6, shall be subject to judicial review onlyas follows:
(a) A petition for review shall be filed with the court having jurisdiction under Section7-2-2 not more than 90 days after the date the act, decision, or agreement became effective or itsterms are filed with the court.
(b) The petition shall state in simple, concise, and direct terms the facts and principles oflaw upon which the petitioner claims the act, decision, or agreement of the receiver was or wouldbe arbitrary, capricious, fraudulent, or contrary to law and how the petitioner is or may bedamaged thereby. The court shall dismiss any petition which fails to allege that the petitionerwould be directly injured or damaged by the act, decision, or agreement which is the subject ofthe petition. Rule 11 of the Utah Rules of Civil Procedure shall apply to all parties with respectto the allegations set forth in a petition or response.
(c) The receiver shall have 30 days after service of the petition within which to respond.
(d) All further proceedings are to be conducted in accordance with the Utah Rules ofCivil Procedure.
(6) All notices required under this section shall be made in accordance with the UtahRules of Civil Procedure and served upon the attorney general of the state of Utah, thecommissioner of financial institutions, the receiver of the institution appointed under thischapter, and upon the designated representative of any party in interest who requests in writingsuch notice.

Amended by Chapter 378, 2010 General Session


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