57-25-103. Nature of rights -- Subordination of interests.
(1) (a) Any person, including a person that owns an interest in the real property, the
agency, or a municipality or other unit of local government, may be a holder.
(b) An environmental covenant may identify more than one holder.
(c) The interest of a holder is an interest in real property.
(2) A right of an agency under this chapter or under an environmental covenant, other
than a right as a holder, is not an interest in real property.
(3) (a) An agency is bound by any obligation it affirmatively assumes in an
environmental covenant, but an agency does not assume obligations merely by signing an
environmental covenant.
(b) Any other person that signs an environmental covenant is bound by the obligations
the person assumes in the covenant, but signing the covenant does not change obligations, rights,
or protections granted or imposed under law other than this chapter except as provided in the
covenant.
(4) The following requirements apply to interests in real property in existence at the time
an environmental covenant is created or amended:
(a) An interest that has priority under other law is not affected by an environmental
covenant unless the person that owns the interest subordinates that interest to the covenant.
(b) This chapter does not require a person that owns a prior interest to subordinate that
interest to an environmental covenant or to agree to be bound by the covenant.
(c) (i) A subordination agreement may be contained in an environmental covenant
covering real property or in a separate record.
(ii) If the environmental covenant covers commonly owned property in a common
interest community, the record may be signed by any person authorized by the governing board
of the owners' association.
(d) An agreement by a person to subordinate a prior interest to an environmental
covenant affects the priority of that person's interest but does not by itself impose any affirmative
obligation on the person with respect to the environmental covenant.
Enacted by Chapter 51, 2006 General Session
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Last revised: Thursday, May 28, 2009