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Receiver
Practical Law Glossary Item w-001-3370 (Approx. 3 pages)
Glossary
Receiver
A person appointed by a court to protect property pending a resolution of the underlying dispute. A receiver generally takes control over and manages:
- Real property, including the right to collect income and profits from the property.
- The financial affairs of a business or person.
Courts generally appoint receivers to:
- Preserve the value of real property and the income from the property during the pendency of foreclosure proceedings.
- Preserve property subject to litigation or appeal to prevent waste, deterioration, or removal of the property.
- Execute or enforce a judgment.
- Preserve the property of a corporation, limited liability company, or partnership that is dissolving or winding up business.
- Manage the financial affairs of a business or a person in bankruptcy.
- Liquidate and distribute the assets of a debtor in bankruptcy to ensure that its creditors are paid back as much as possible.
A receiver is a fiduciary that serves as an officer of the court, and acts solely on the court's behalf.
The appointment of a receiver is a typical remedy available to foreclosing lenders or other parties with an interest in the commercial real property. A receiver is appointed by the application of a party to a court on notice to the other party or by ex parte application. An ex parte application is conducted without notice to, and outside the presence of, the other party, but only if permitted in a mortgage or other contract.