(1) An individual who owned property described in this Subsection (1) is entitled to an exemption of proceeds that are traceable for one year after the compensation for the property is received if:
(a)
(i) the property, or a part of the property, could have been claimed exempt under Subsection 78B-5-505(1)(a) or (b); or
(ii) the property is personal property subject to a value limitation under Subsection 78B-5-506(1)(a), (b), or (c); and
(b)
(i) the property has been sold or taken by condemnation; or
(ii)
(A) the property has been lost, damaged, or destroyed; and
(B) the owner has been compensated for the property.
(2) The exemption of proceeds under Subsection (1) does not entitle the individual to claim an aggregate exemption in excess of the value limitation otherwise allowable under Section 78B-5-503 or 78B-5-506.
(3) Money or other property exempt under Subsection 78B-5-505(1)(c), (d), (e), (f), (g), (m), (n), or (r) remains exempt after receipt by the individual, while in possession of the individual, or in any other form into which the money or property is traceable.
(4) Money or other property and proceeds exempt under this chapter are traceable under this section by application of:
(a) the principle of:
(i) first-in first-out; or
(ii) last-in last-out; or
(b) any other reasonable basis for tracing selected by the individual.