Full text of Utah Utah Code § 4-30-110 — Custodial accounts for trust funds., with citation guidance and answers to common questions.
§ 4-30-110. Custodial accounts for trust funds.
Effective 7/1/2017
4-30-110.
Custodial accounts for trust funds.
| (1) |
| (a) |
Each payment that a livestock buyer makes to a livestock market selling on commission is a trust fund. |
| (b) |
Funds deposited into custodial accounts are trust funds. |
|
| (2) |
Each livestock market engaged in selling livestock on a commission or agency basis shall establish and maintain a separate bank account designated as "custodial account for shippers' proceeds," or some similar identifying designation, to disclose that the depositor is acting as a fiduciary and that the funds in the account are trust funds. |
| (3) |
| (a) |
The livestock market shall deposit into its custodial account before the close of the next business day after the livestock is sold:
| (i) |
the proceeds that have been collected from the sale of the livestock; and |
| (ii) |
an amount equal to the proceeds receivable from the sale of livestock that are due from:
| (A) |
the livestock market; |
| (B) |
any owner, officer, or employee of the livestock market; and |
| (C) |
any buyer to whom the livestock market has extended credit. |
|
|
| (b) |
The livestock market shall thereafter deposit into the custodial account all proceeds collected until the account has been reimbursed in full and shall, before the close of the seventh day following the sale of livestock, deposit an amount equal to all the remaining proceeds receivable regardless of whether the proceeds have been collected by the livestock market. |
|
| (4) |
The custodial account shall be drawn on only:
| (a) |
for payment of the net proceeds to the consignor or shipper, or to any person that the livestock market knows is entitled to payment; |
| (b) |
to pay lawful charges against the consignment of livestock which the market agency shall, in its capacity as agent, be required to pay; and |
| (c) |
to obtain any sums due the livestock market as compensation for its services. |
|
| (5) |
| (a) |
Each livestock market shall keep accounts and records that will disclose at all times the handling of funds in the custodial account. |
| (b) |
Accounts and records shall at all times disclose the name of the consignors and the amount due and payable to each from funds in the custodial account. |
|
| (6) |
The custodial account shall be established and maintained in a bank whose deposits are insured by the Federal Deposit Insurance Corporation. |
Renumbered and Amended by Chapter
345, 2017 General Session
Frequently Asked Questions About Utah § 4-30-110
What does Utah Code § 4-30-110 cover?
Section 4-30-110 ("Custodial accounts for trust funds.") 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 § 4-30-110?
A common citation format is "Utah Code § 4-30-110" (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 § 4-30-110 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.
