7-19-5.5 - Transferred assets free of encumbrances. - Utah Statutes

7-19-5.5. Transferred assets free of encumbrances.
(1) Any institution or other person to whom assets, business, and property are transferredpursuant to a supervisory merger or a supervisory acquisition shall take those assets, business,and property:
(a) free and clear of all liens, claims, and encumbrances that have been avoided ordisallowed by the commissioner under Sections 7-2-6 and 7-2-12;
(b) free and clear of all unperfected liens, claims, and encumbrances pertaining to theassets, business, and property, except to the extent expressly assumed by the transferee; and
(c) subject to all allowed perfected liens, claims, security interests, and encumbrancesrelating to such assets, business, and property.
(2) Only those deposit liabilities and other liabilities, claims, and obligations of or againstthe transferring institution, its officers, directors, employees, and agents which are expresslyassumed by the transferee shall be transferred or assigned pursuant to a supervisory merger or asupervisory acquisition. In addition, no such transferee shall be liable for any claim or obligationmade against or attributable to acts or omissions of the commissioner, the department, or any oftheir agents, arising out of or related to the supervisory merger or the supervisory acquisition.

Amended by Chapter 229, 1987 General Session