Utah Code § 38-3 § 38-3-2
Preference of lessor's lien over other liens and claims -- Exceptions -- Limit.
Operative Text
Preference of lessor's lien over other liens and claims -- Exceptions -- Limit. (1) A lien under this chapter has preference over all other liens or claims except: (a) claims for taxes; (b) preconstruction or construction liens under Title 38, Chapter 1a, Preconstruction and Construction Liens; (c) perfected security interests; and (d) claims of employees for wages which are preferred by law. (2) If a lessee is adjudicated as bankrupt or makes an assignment for the benefit of creditors, or if the lessee's property is put into the possession of a receiver, a lien under this chapter is limited to the rent for 90 days before the adjudication, assignment, or receivership.
Utah Code Ann. § 38-3-2 establishes a priority ranking for a landlord's statutory lien on a tenant's property located on the leased premises. That lien takes precedence over most competing claims, but it yields to tax claims, perfected security interests, certain construction-related liens, and legally preferred employee wage claims. Additionally, if a tenant enters bankruptcy, makes a general assignment for creditors' benefit, or has a receiver appointed over their property, the landlord's lien is capped at rent that accrued during the 90 days immediately before that insolvency event.
Plain English — not legal advice.
Under Utah Code Ann. § 38-3-2, operators who hold a statutory lessor's lien should be aware that the lien's priority is not absolute — it is subordinate to tax claims, perfected security interests, preconstruction and construction liens, and preferred employee wage claims. When a commercial tenant shows signs of financial distress, compliant operators typically monitor whether insolvency proceedings are imminent, because a bankruptcy filing, creditor assignment, or receivership appointment triggers the 90-day rent cap on the lien's enforceable amount. Keeping accurate, dated rent ledgers helps document which rent amounts fall within that 90-day window.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Utah Code Ann. § 38-3-2 limits the reach of a landlord's statutory lien against a tenant's property, particularly in insolvency situations where the lien cannot cover more than 90 days of pre-petition rent. Tenants — especially commercial tenants facing financial difficulty — may find this cap relevant when a bankruptcy case, creditor assignment, or receivership is involved, since it constrains how much of the landlord's claim can be secured by the lien. Tenants seeking to understand how this provision interacts with their specific circumstances can consult a tenant-rights organization or a licensed attorney familiar with Utah landlord-tenant and bankruptcy law.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 16, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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