16-6a-1416. Receivership or custodianship

(1) (a) A court in a judicial proceeding brought to dissolve a nonprofit corporation may appoint:
            (i) one or more receivers to wind up and liquidate the affairs of the nonprofit corporation; or
            (ii) one or more custodians to manage the affairs of the nonprofit corporation.
     (b) Before appointing a receiver or custodian, the court shall hold a hearing, after giving notice to:
            (i) all parties to the proceeding; and
            (ii) any interested persons designated by the court.
     (c) The court appointing a receiver or custodian has exclusive jurisdiction over the nonprofit corporation and all of its property, wherever located.
     (d) The court may appoint as a receiver or custodian:
            (i) an individual;
            (ii) a domestic or foreign corporation authorized to conduct affairs in this state; or
            (iii) a domestic or foreign nonprofit corporation authorized to conduct affairs in this state.
     (e) The court may require the receiver or custodian to post bond, with or without sureties, in an amount specified by the court.

(2) The court shall describe the powers and duties of the receiver or custodian in its appointing order that may be amended from time to time. Among other powers the receiver shall have the power to:
     (a) dispose of all or any part of the property of the nonprofit corporation, wherever located:
            (i) at a public or private sale; and
            (ii) if authorized by the court; and
     (b) sue and defend in the receiver's own name as receiver of the nonprofit corporation in all courts.

(3) The custodian may exercise all of the powers of the nonprofit corporation, through or in place of its board of directors or officers, to the extent necessary to manage the affairs of the nonprofit corporation in the best interests of its members and creditors.

(4) If doing so is in the best interests of the nonprofit corporation and its members and creditors, the court may:
     (a) during a receivership, redesignate the receiver as a custodian; and
     (b) during a custodianship, redesignate the custodian as a receiver.

(5) The court from time to time during the receivership or custodianship may order compensation paid and expense disbursements or reimbursements made from the assets of the nonprofit corporation or proceeds from the sale of the assets to:
     (a) the receiver;
     (b) the custodian; or
     (c) the receiver's or custodian's attorney. 


Enacted by Chapter 300, 2000 General Session


Print   Email

Questions and Answers

Have questions about a statute? Ask it and an experienced Utah HOA attorney will answer it, plus see all the previous questions and answers.

Only members may post and view questions and answers. Join us by subscribing today!

Key Concepts explained

The index is the main hub of the site, where key concepts are explained

The 6 resolutions & 5 forms every HOA should have

Procedures required by law, updated as the laws change yearly, so your HOA is always in compliance. Plus other policy resolutions
*Prudent-Legal plan only

Step-by-Step Guides

Guides to walk board through owner requests for: records, assistance animal (disability), satellite dish, solar device. Avoid violating federal and Utah law!
Guides to walk a homeowner through making request for records and to keep an assistance animal for a person with a disability.

2 Hours Attorney Time

Counsel from a Utah HOA specialist attorney
*Prudent-Legal plan only

Q & A

Have questions about a statute? Ask it and an experienced HOA attorney will answer it. Plus, see all the other Q & A.

Legal Updates

Stay informed! Get updates of new HOA laws with explanations of how they affect your community and what to do to comply and minimize risk.

Tools to help you understand the law

Key words defined in hovercards, powerful search, comments, footnotes, tags, explanations and case law summaries

Plus more!