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Utah Code § 6-2-117

Assignee removal -- Successor assignee

Enacted by Chapter 314, 2026 General Session

(1) The assignor or a creditor may request a court with jurisdiction to remove the assignee, if the assignor or creditor has reasonable grounds for removal exist under Subsection (2).

(2) After a request under Subsection (1) or on the court's initiative in an action pending before a court with jurisdiction in accordance with Section 6-2-120, the court may remove an assignee:

(a) for cause, including the assignee's fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with this chapter; or

(b) if removal of the assignee best serves the interests of the creditors.

(3)

(a) After an assignee resigns, or is removed, dies, or becomes incapacitated, a successor assignee provided for in the assignment agreement becomes the assignee, unless the successor assignee is not eligible to be an assignee under Subsection 6-2-103(1) or is subject to removal under Subsection (2).

(b) A court with jurisdiction shall appoint a successor assignee if:

(i) the assignment agreement does not provide for a successor assignee; or

(ii) the successor assignee provided for in the assignment agreement is ineligible to be an assignee under Subsection 6-2-103(1) or is subject to removal under Subsection (2).

(4) Subject to Section 6-2-116, an assignee that resigns, or is removed, dies, or becomes incapacitated, is discharged from the assignee's duties under this chapter when the assignee, or a representative of a deceased or incapacitated assignee:

(a) accounts for and turns over to the successor assignee all assets of the assignment estate; and

(b) submits to creditors a report summarizing the receipts and disbursements made during the service of the assignee.

(5) Subject to an applicable privilege, a court with jurisdiction may order an attorney, accountant, or other person that has information in a record relating to the assignment estate or the assignor's financial affairs to turn over or disclose the record to the successor assignee.

Official source: Utah State Legislature. Reproduced from public-domain Utah statutes; confirm against the official source for the current text. Not legal advice.