diff --git a/activerecord/CHANGELOG b/activerecord/CHANGELOG
index 550e5adb3a5d81bcd30e7b9a34036618824d420f..614cb2a1c0508076f77820c978fd3513a93608b2 100644
--- a/activerecord/CHANGELOG
+++ b/activerecord/CHANGELOG
@@ -1,5 +1,7 @@
 *SVN*
 
+* Fixed that default timezones for new / initialize should uphold utc setting #5709 [daniluk@yahoo.com]
+
 * Fix announcement of very long migration names.  #5722 [blake@near-time.com]
 
 * The exists? class method should treat a string argument as an id rather than as conditions.  #5698 [jeremy@planetargon.com]
diff --git a/activerecord/lib/active_record/base.rb b/activerecord/lib/active_record/base.rb
index 40dfb387ce4eb0b1466d01a8face9ad4c0f3d41b..1d9f0175bd109e5af98f293ac93a49d88f85eb6e 100755
--- a/activerecord/lib/active_record/base.rb
+++ b/activerecord/lib/active_record/base.rb
@@ -1996,7 +1996,7 @@ def execute_callstack_for_multiparameter_attributes(callstack)
             send(name + "=", nil)
           else
             begin
-              send(name + "=", Time == klass ? klass.local(*values) : klass.new(*values))
+              send(name + "=", Time == klass ? (@@default_timezone == :utc ? klass.utc(*values) : klass.local(*values)) : klass.new(*values))
             rescue => ex
               errors << AttributeAssignmentError.new("error on assignment #{values.inspect} to #{name}", ex, name)
             end
diff --git a/activerecord/test/base_test.rb b/activerecord/test/base_test.rb
index d3f2840291e2c1de5568ae808c8bba59aa3e4a4e..9518e0aca8918642617a10778b6a9d0af4f1d8b2 100755
--- a/activerecord/test/base_test.rb
+++ b/activerecord/test/base_test.rb
@@ -560,6 +560,22 @@ def test_utc_as_time_zone
     Topic.default_timezone = :local
   end
 
+  def test_utc_as_time_zone_and_new
+    # Oracle and SQLServer do not have a TIME datatype.
+    return true if current_adapter?(:SQLServerAdapter, :OracleAdapter)
+
+    Topic.default_timezone = :utc
+    attributes = { "bonus_time(1i)"=>"2000",
+                   "bonus_time(2i)"=>"1",
+                   "bonus_time(3i)"=>"1",
+                   "bonus_time(4i)"=>"10",
+                   "bonus_time(5i)"=>"35",
+                   "bonus_time(6i)"=>"50" }
+    topic = Topic.new(attributes)
+    assert_equal Time.utc(2000, 1, 1, 10, 35, 50), topic.bonus_time
+    Topic.default_timezone = :local
+  end
+
   def test_default_values_on_empty_strings
     topic = Topic.new
     topic.approved  = nil