Utah Code
Page 80
employed by him or on his behalf. The compensation shall be fixed by the commissioner subject to
the approval of the court. The expenses of the proceedings shall be paid out of the property of the
institution in the hands of the commissioner, shall be a valid charge against that property, and shall
be paid first in order of priority. No expenses may be paid out of the property of the institution until
an account of the expense has been filed with and approved by the court.
Amended by Chapter 8, 1983 General Session
7-2-15 Priority of obligations, expenses, and claims -- Distribution of balance of assets.
(1) The following obligations, expenses, and claims have the following priority:
(a) first, any obligation the commissioner may have under Subsection 7-2-6(3)(b) to be bound
by the terms, covenants, and conditions of obligations secured by assets or property of the
institution;
(b) second, administrative expenses, including those allowed under Section 7-2-14;
(c) third, unsecured claims for wages, salaries, or commissions, including vacation, severance, or
sick leave pay, earned by an individual within 90 days before the date of the commissioner's
possession, in an amount not exceeding $2,000 for each individual;
(d) fourth, claims of depositors. Any federal deposit insurance agency or other deposit insurer is
subrogated to all rights of the depositors against the institution, its officers and directors, and
its persons in control of the institution as control is defined in Section 7-1-103 to the extent of
all payments made for the benefit of the depositors. "Payments," as used in this subsection,
includes arrangements by a federal deposit insurance agency for the assumption or payment
of the deposit liabilities by another institution whose deposits are insured by a federal deposit
insurance agency. The right of any agency of the United States insuring deposits or savings
obligations to be subrogated to the rights of depositors upon payment of their claims may
not be less extensive than the law of the United States provides with respect to subrogation
to the rights of depositors in national banks. For the purposes of this section, a contractual
commitment to advance funds, including a standby letter of credit, may not be considered a
deposit liability of the institution;
(e) fifth, all other unsecured claims in amounts allowed by the court, including claims of secured
creditors to the extent the amount of their claims exceed the present fair market value of
their collateral. The claim of a lessor for damages resulting from the termination of a lease
of property may not be allowed in an amount in excess of the rent reserved by the lease,
without acceleration, for 60 days after the lessor repossessed the leased property, or the
leased property was surrendered to the lessor, whichever first occurs, whether before or
after the commissioner took possession of the institution, plus any unpaid rent due under the
lease, without acceleration, on the date of possession or surrender. A claim for damages
resulting from the termination of an employment contract, may not be allowed in an amount
in excess of the compensation provided by the contract, without acceleration, for 90 days
after the employee was directed to terminate, or the employee terminated, performance
under the contract, whichever first occurs, whether before or after the commissioner took
possession of the institution, plus any unpaid compensation due under the contract, without
acceleration, on the date the employee was directed to terminate or the employee terminated
performance. Claims for damages resulting from the termination of employment contracts of
persons who were in control of the institution, as control is defined in Section 7-1-103, are not
entitled to priority under this subsection. Claims for damages for breach of a commitment to
advance funds shall be limited to the amount due and owing by the institution on the date the
commissioner took possession of the institution;