Utah § 6-2-109 - Powers of assignee.

Full text of Utah Utah Code § 6-2-109 — Powers of assignee., with citation guidance and answers to common questions.

§ 6-2-109. Powers of assignee.

Effective 5/6/2026
6-2-109.  Powers of assignee.
(1)An assignee has the powers necessary or appropriate to perform the assignee's duties.
(2)Unless the assignment agreement expressly provides otherwise, the assignee has power to:
(a)operate an existing business that uses an assigned asset, including preservation of the asset and collection on, or the sale, lease, license, or other disposition of, the asset;
(b)incur secured or unsecured debt and pay expenses incidental to the exercise of the power under Subsection (1);
(c)assert a right, claim, cause of action, or defense the assignor could have asserted that relates to the assignment estate;
(d)engage professionals, including a professional previously engaged by the assignor, to give advice, to prosecute or defend litigation, or for other purposes as the assignee considers appropriate, and pay professionals reasonable fees for services from the assignment estate;
(e)collect on, or sell, lease, license, or otherwise dispose of, an asset of the assignment estate regardless of whether the asset is subject to a lien or other encumbrance;
(f)exercise a right to redeem an asset of the assignment estate that is subject to a mortgage, deed of trust, security interest, or other encumbrance;
(g)settle a matter involving a debtor of the assignor;
(h)prosecute or defend a litigation pending on the effective date of the assignment agreement in favor of or against the assignor in the manner and with the same effect as the assignor could have done if the assignment had not been made;
(i)recover an asset in the manner and with the same effect as the assignor could have done if the assignment had not been made;
(j)settle claims against the assignment estate;
(k)abandon an assigned asset;
(l)subject to Subsections (3) and (5), avoid a transfer or the incurrence of an obligation which a creditor that has filed a proof of claim could have avoided under other law if the assignment had not been made; and
(m)invest funds, subject to applicable prudent investor standards under other law.
(3)
(a)The power under Subsection (2)(l) is exclusive to the assignee with respect to a creditor that submits a proof of claim.
(b)A recovery by the assignee in the exercise of this power must be for the benefit of the assignment estate but may not exceed the amount, asset, or other value the creditor could have obtained by the avoidance.
(4)For the purpose of exercising the assignee's power under Subsection (2)(l), exercising a voidable-transaction remedy, or otherwise establishing the priority of the assignee's interest, an assignee has a lien on the assignment estate and the status of:
(a)a lien creditor, as defined in Section 70A-9a-102, as to an asset that is a legal or equitable interest in personal property or fixtures;
(b)a bona fide purchaser as to an asset that is a legal or equitable interest in real property, other than fixtures, located in this state; and
(c)a bona fide purchaser under the law of another state as to an asset that is a legal or equitable interest in real property, other than fixtures, located in the other state.
(5)An assignee's power under Subsection (2)(l) to avoid a transfer made before the effective date of the assignment agreement, under or in connection with a swap agreement, securities contract, commodity contract, forward contract, repurchase agreement, or master netting agreement, is limited to the extent a trustee would not have the power to avoid the transfer under the Bankruptcy Code, 11 U.S.C. Sec. 101 et seq., as amended.
(6)An assignee shall exercise the powers under this section consistent with the assignee's fiduciary duty under Subsection 6-2-108(l).


Enacted by Chapter 314, 2026 General Session

Source: official Utah text · Last verified 2026-08-27

Frequently Asked Questions About Utah § 6-2-109

What does Utah Code § 6-2-109 cover?

Section 6-2-109 ("Powers of assignee.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 6-2-109?

A common citation format is "Utah Code § 6-2-109" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

How does Utah § 6-2-109 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

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