57-25-103 - Nature of rights -- Subordination of interests. - Utah Statutes

57-25-103. Nature of rights -- Subordination of interests.
(1) (a) Any person, including a person that owns an interest in the real property, theagency, or a municipality or other unit of local government, may be a holder.
(b) An environmental covenant may identify more than one holder.
(c) The interest of a holder is an interest in real property.
(2) A right of an agency under this chapter or under an environmental covenant, otherthan a right as a holder, is not an interest in real property.
(3) (a) An agency is bound by any obligation it affirmatively assumes in anenvironmental covenant, but an agency does not assume obligations merely by signing anenvironmental covenant.
(b) Any other person that signs an environmental covenant is bound by the obligationsthe person assumes in the covenant, but signing the covenant does not change obligations, rights,or protections granted or imposed under law other than this chapter except as provided in thecovenant.
(4) The following requirements apply to interests in real property in existence at the timean environmental covenant is created or amended:
(a) An interest that has priority under other law is not affected by an environmentalcovenant unless the person that owns the interest subordinates that interest to the covenant.
(b) This chapter does not require a person that owns a prior interest to subordinate thatinterest to an environmental covenant or to agree to be bound by the covenant.
(c) (i) A subordination agreement may be contained in an environmental covenantcovering real property or in a separate record.
(ii) If the environmental covenant covers commonly owned property in a commoninterest community, the record may be signed by any person authorized by the governing boardof the owners' association.
(d) An agreement by a person to subordinate a prior interest to an environmentalcovenant affects the priority of that person's interest but does not by itself impose any affirmativeobligation on the person with respect to the environmental covenant.

Enacted by Chapter 51, 2006 General Session