1. (1) The assignor or a creditor may request a court with jurisdiction to remove the assignee, if the assignor or creditor has reasonable grounds for removal exist under Subsection (2).

2. (2) After a request under Subsection (1) or on the court's initiative in an action pending before a court with jurisdiction in accordance with Section 6-2-120, the court may remove an assignee:

   1. (a) for cause, including the assignee's fraud, dishonesty, incompetence, gross mismanagement, or failure to comply with this chapter; or
   2. (b) if removal of the assignee best serves the interests of the creditors.

3. (3)

   1. (a) After an assignee resigns, or is removed, dies, or becomes incapacitated, a successor assignee provided for in the assignment agreement becomes the assignee, unless the successor assignee is not eligible to be an assignee under Subsection 6-2-103(1) or is subject to removal under Subsection (2).

   2. (b) A court with jurisdiction shall appoint a successor assignee if:

      1. (i) the assignment agreement does not provide for a successor assignee; or
      2. (ii) the successor assignee provided for in the assignment agreement is ineligible to be an assignee under Subsection 6-2-103(1) or is subject to removal under Subsection (2).

4. (4) Subject to Section 6-2-116, an assignee that resigns, or is removed, dies, or becomes incapacitated, is discharged from the assignee's duties under this chapter when the assignee, or a representative of a deceased or incapacitated assignee:

   1. (a) accounts for and turns over to the successor assignee all assets of the assignment estate; and
   2. (b) submits to creditors a report summarizing the receipts and disbursements made during the service of the assignee.
5. (5) Subject to an applicable privilege, a court with jurisdiction may order an attorney, accountant, or other person that has information in a record relating to the assignment estate or the assignor's financial affairs to turn over or disclose the record to the successor assignee.

Enacted by Chapter 314, 2026 General Session