Full text of Utah Utah Code § 6-2-116 — Liability., with citation guidance and answers to common questions.
§ 6-2-116. Liability.
Effective 5/6/2026 6-2-116.
Liability.
(1)
An assignor is not personally liable for an act or omission by the assignee.
(2)
An assignee is not personally liable for an act or omission by the assignor.
(3)
A representative designated by an assignor under Subsection 6-2-107(2)(d) is exculpated to the same extent as a person acting on behalf of the assignor under other law had there been no assignment, except for an act or omission resulting from the representative's gross negligence or willful misconduct.
(4)
A term of an assignment agreement relieving the assignee of liability is unenforceable to the extent the agreement relieves the assignee of liability for an act or omission committed in bad faith or with reckless indifference to the purposes of the assignment or the interests of the creditors of the assignment estate.
(5)
(a)
Subject to Subsection (6), an assignee is personally liable for breach of a fiduciary duty under Subsection 6-2-108(1).
(b)
If the assignee is liable:
(i)
the assignee is personally liable to a creditor for an individualized harm to the creditor if the harm is not shared by all creditors or a class of creditors; and
(ii)
the assignee is personally liable to the assignment estate for a harm shared by all creditors or a class of creditors.
(6)
An assignee is not liable if, in the performance of the assignee's duties and exercise of the assignee's powers, the assignee relies in good faith on:
(a)
a record of the assignor;
(b)
information, an opinion, a report, or a statement presented to the assignee by the assignor's officer or employee, a committee of the assignor's board of directors, an independent director or manager of the assignor, or another representative of the assignor; or
(c)
information, an opinion, a report, or a statement presented to the assignee by another person that has been selected with reasonable care by or on behalf of the assignee as to a matter the assignee reasonably believes is within the other person's professional or expert competence.
Section 6-2-116 ("Liability.") 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 § 6-2-116?
A common citation format is "Utah Code § 6-2-116" (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 § 6-2-116 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.
