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ARIZONA’S NEW RECEIVERSHIP STATUTE: REVIEWED, INTERPRETED AND APPLIED©, PART VIII

September 1, 2020

Disqualification from Serving as Receiver.

A person proposed to be the receiver must file an affidavit which demonstrates that he or she is not disqualified from serving in that position.  A.R.S. §33-2606(A).  A person may not serve as a receiver in a particular action under the Act if she:

(1)       Is an “affiliate” of a party.   The term “affiliate” is defined by Section 33-2601(1) as to individuals and entities;

(2)         Holds an interest which is materially adverse to the interests of a party;

(3)       Has a material financial interest in the outcome of the proceeding other than being paid as the receiver;

(4)       Is a creditor of or owes money to a party;

(5)       Holds an equity interest in a party other than a non-controlling interest in a public company.

A.R.S. §33-2606(B). 

A person may serve as a receiver even if she:

(1)       Either was (a) appointed as a receiver in an unrelated proceeding regarding a party; or (b) is owed money in an unrelated proceeding regarding a party; or (c) was engaged in an unrelated proceeding by a party;

(2)       Owes money to a party on a consumer debt which is not in default;

(3)       Is the owner of a bank account held at a party.

A.R.S. §33-2606(C). 

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