2006 Utah Code - 31A-27-328 — Filing of claims.

     31A-27-328.   Filing of claims.
     (1) Proof of all claims shall be filed with the liquidator in the form required by Section 31A-27-329 on or before the last day for filing specified in the notice required under Section 31A-27-315, except that:
     (a) proof of claims under Subsections 31A-27-335(2)(a) and (2)(g) through (2)(i) need not be filed at all; and
     (b) proof of claims for unearned premiums and claims for cash surrender values or other investment values in life insurance and annuities need not be filed unless the liquidator expressly requires it.
     (2) (a) The liquidator may permit a claimant making a late filing to share in distributions, whether past or future, as if the claim were not late, to the extent that the payment will not prejudice the orderly administration of the liquidation, if one of the following exists:
     (i) (A) the existence of a claim was not known to the claimant; and
     (B) the claim was filed as promptly as reasonably possible after learning of it;
     (ii) the claim was:
     (A) for unearned premiums or for cash surrender values or other investment values in life insurance or annuities which was not required to be filed;
     (B) omitted from the liquidator's recommendations to the court under Section 31A-27-336; and
     (C) filed as promptly as reasonably possible after the claimant learned of the omission;
     (iii) a transfer to a creditor was:
     (A) avoided under Section 31A-27-319, Section 31A-27-320, or Section 31A-27-321; or
     (B) voluntarily surrendered under Subsection (5);
     (iv) valuation under Section 31A-27-334 of security held by a secured creditor shows a deficiency, which is filed within 30 days after the valuation;
     (v) the claim was:
     (A) contingent and became absolute; and
     (B) filed within 30 days after it became absolute; or
     (vi) the claim was late for some other good cause.
     (b) Until the late claim has been paid in full, a claimant described in Subsection (2)(a)(i) shall receive at each distribution:
     (i) the same percentage of the amount allowed on the late claim as is then being paid to other claimants of the same priority; plus
     (ii) the same percentage of the amount allowed on the late claim as is then being paid to claimants of any lower priority.
     (3) (a) The liquidator shall consider any claim filed late that is not covered by Subsection (2), and permit it to receive distributions, other than the first distribution, which are subsequently declared on any claims of the same or lower priority, if the payment does not prejudice the orderly administration of the liquidation.
     (b) Until the late claim has been paid in full, a late-filing claimant permitted to receive distributions under Subsection (3)(a) shall receive at each distribution:
     (i) the same percentage of the amount allowed on the late claim as is then being paid to other claimants of the same priority; plus
     (ii) the same percentage of the amount allowed on the late claim as is then being paid to claimants of any lower priority.

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     (4) Claims by guaranty associations under Chapter 28 shall be filed periodically by the associations pursuant to rules adopted by the commissioner. These claims shall share in all subsequently declared distributions as if they were not late.
     (5) (a) A claim of a creditor who has received or acquired a preference, lien, conveyance, transfer, assignment, or encumbrance, which is voidable under this chapter, may not be allowed unless the creditor surrenders the preference, lien, conveyance, transfer, assignment, or encumbrance.
     (b) If the avoidance is effected by a proceeding in which a final judgment has been entered, the claim may not be allowed unless the money is paid or the property is delivered to the liquidator within 30 days from the date of the entering of the final judgment, except that the court having jurisdiction over the liquidation may allow further time if there is an appeal or other continuation of the proceeding.
     (6) A claim allowable under Subsection (5) by reason of the avoidance, whether voluntary or involuntary, of a preference, lien, conveyance, transfer, assignment, or encumbrance may be filed as an excused late filing under Subsection (2) if it is filed within:
     (a) 30 days from the date of the avoidance; or
     (b) the further time allowed by the court under Subsection (5).

Amended by Chapter 131, 1999 General Session