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 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.
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