6-2-117. Assignee removal -- Successor assignee.

329 words·~1 min read·/ut/title-6/chapter-2/6-2-117

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(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.

(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.

Enacted by Chapter 314 , 2026 General Session