16-16-1210 - Court proceeding. - Utah Statutes

16-16-1210. Court proceeding.
(1) Upon application by a dissolved limited cooperative association that has published anotice under Section 16-16-1209, the district court in the county where the association's principaloffice is located or, if the association does not have a principal office in this state where itsdesignated office in this state is located, may determine the amount and form of security to beprovided for payment of claims against the association that are contingent, have not been madeknown to the association, or are based on an event occurring after the effective date ofdissolution but that, based on the facts known to the association, are reasonably anticipated toarise after the effective date of dissolution.
(2) Not later than 10 days after filing an application under Subsection (1), a dissolvedlimited cooperative association shall give notice of the proceeding to each known claimantholding a contingent claim.
(3) The court may appoint a representative in a proceeding brought under this section torepresent all claimants whose identities are unknown. The dissolved limited cooperativeassociation shall pay reasonable fees and expenses of the representative, including all reasonableattorney and expert witness fees.
(4) Provision by the dissolved limited cooperative association for security in the amountand the form ordered by the court satisfies the association's obligations with respect to claims thatare contingent, have not been made known to the association, or are based on an event occurringafter the effective date of dissolution, and the claims may not be enforced against a member thatreceived a distribution.

Enacted by Chapter 363, 2008 General Session