2006 Utah Code - 31A-27-334 — Secured claims.

     31A-27-334.   Secured claims.
     (1) An allowed claim of a creditor that is secured by a lien on property in which the insurer who is subject to a liquidation has an interest, or that is subject to setoff under Section 31A-27-323, is a secured claim to the extent of the value of the creditor's interest in the insurer's interest in the property or to the extent of the amount subject to setoff.
     (2) The value of any security for a claim is determined under the supervision and control of the court:
     (a) by converting it into money according to the terms of the agreement under which the security was granted to or retained by the creditor; or
     (b) by agreement, arbitration, compromise, or litigation between the creditor and the liquidator.
     (3) The net amount received under Subsection (2)(a) or the amount determined under Subsection (2)(b) shall be credited upon the secured claim, and any deficiency shall be allowed as an unsecured claim. If the claimant surrenders the security to the liquidator, the entire claim shall be allowed as if unsecured.

Amended by Chapter 204, 1986 General Session