Removal & Termination. A court may only remove a receiver “for cause.” A.R.S. §33-2620(A). “Cause” is not defined in the Act. The comment to UCRERA §22 is not particularly helpful in understanding the circumstances that may constitute “cause”. Citing to Clark on Receivers the Commissioners state that “[c]ertainly, ‘cause’ would include the …
Receiver’s Immunities & Procedure for Suing Receivers. A receiver, as an agent of the court, has historically been entitled to certain immunities and protections. Section 33-2617(A) provides that a receiver appointed under the act is entitled to all of the defenses and immunities “provided by law” for any act or omission which is “within the …
Receiver’s Reports & Discharge. Section 33-2618 provides a nonexclusive list of the types of things that a receiver may include in an interim report filed with the court. Any such report should include any fees paid or proposed to be paid to a professional and the receiver’s own fees and expenses. A final report must …
Lien on After-Acquired Property Any asset the receiver or owner acquires after the date of the receiver’s appointment is subject to any security agreement entered into between the owner and the creditor before appointment. A.R.S. §33-2609. This is markedly different from Section 552(a) of the Bankruptcy Code which provides that an after-acquired property provision …
Leases and Executory Contracts. The Act also vests receivers with significant new powers relating to existing leases and executory contracts which provides another possible benefit for lenders from a receivership. A receiver may “adopt or reject an executory contract,” which includes leases under the definition of “executory contract” in Section 33-2601(4), with court approval. …