ARIZONA’S NEW RECEIVERSHIP STATUTE: REVIEWED, INTERPRETED AND APPLIED©, PART XXIII
October 23, 2020
Impact on Rights of Lender.
Section 33-2623 explicitly provides that a lender holding a deed of trust does not waive certain rights and does not become an agent of the owner or a “mortgagee in possession” of the real estate that is the subject of the receivership simply because it asked for or obtained the appointment of a receiver.
What is Missing from AZ Statute?
One significant provision of UCRERA is conspicuously, but inexplicably, missing from the Act. Section 20 of the UCRERA provides an entire process for the filing and ultimately adjudication of claims of creditors against the receivership. This includes notice to the creditors of the requirement to file claims by a bar date.
The author has not been able to locate anything in the legislative history indicating the reasons the Arizona legislators elected not to adopt this provision. Its absence, however, should reduce the expense of administering a receivership.
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