Order to liquidate.

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  • (1) If the trustee determines that further efforts to rehabilitate a provider's facility are impractical or useless, the trustee may petition a court for liquidation of the facility.
  • (2) A court that issues an order to liquidate a facility under Subsection (1) shall appoint a trustee to collect and liquidate all of the provider's assets located in this state.
  • (3) An individual may not enter into a continuing care contract at a facility after a court enters an order to liquidate the facility.
  • (4)
    • (a) For a facility subject to a ground lease, a court may, in an order to liquidate under this section, direct a trustee to purchase from the ground lessor, or assign to another person that agrees to operate the facility, for market value, the ground lessor's interest in the land and the infrastructure improvements to the land on which the facility is located.
    • (b) A court may direct a trustee under Subsection (4)(a) to purchase from a ground lessor the land and infrastructure improvements to the land on which a facility is located, regardless of the terms of the ground lease agreement.
    • (c) If a court directs a trustee to purchase or assign land and infrastructure improvements to the land under Subsection (4)(a), the ground lessor shall sell or assign the land and infrastructure improvements to the land in compliance with the court order.
    • (d) The commissioner shall determine market value in accordance with rules made by the commissioner in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act.
    • (e) In determining market value under Subsection (4)(d), the commissioner shall:
      • (i) value the land and infrastructure improvements to the land on which the facility is located as though the land and infrastructure improvements to the land were not subject to the ground lease; and
      • (ii) disregard the monetized value of an existing ground lease.
  • (5) Solely for the purpose of enforcing this section, a court has personal jurisdiction in a proceeding under this section over:
    • (a) the owner of a facility; and
    • (b) the owner of the land and infrastructure improvements to the land on which a facility is located.




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