Conclusion. The Act and UCRERA are any excellent innovation that provide needed clarity and certainty in an important area of the law. Each of the provisions discussed above should benefit all parties in receivership proceedings and the judge’s handling the cases. Receiverships properly administered under the act by professionals able to properly utilize …
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 …
Receiverships in Another State Section 33-2622 is a significant provision that will aid receivers appointed in another state where property relating to that proceeding is located in Arizona. It allows an Arizona court to appoint the foreign receiver or his nominee as an “ancillary receiver” as to property in Arizona if she is eligible …
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 …