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. …
Gianni Pattas will be presenting a CLE on ER 1.6 (Confidentiality of Information) with fellow State Bar of Arizona Ethics Advisory Group Members, Nancy Greenlee and Pat Sallen, on Wednesday, October 6, 2020 through the State Bar of Arizona.
Sale & Use of Receivership Property. The ability of receivers to sell property and the power of courts to authorize sales, especially sales free and clear of liens, was an issue of doubt in Arizona for years. Section 33-2615(B) explicitly authorizes the “transfer”, including sales and leases, of receivership property, including sales free and clear …
Receiver As Lien Creditor. A significant right vested in receivers under the Act is the status of a lien creditor having priority over unperfected security interests in personal property and priority over unrecorded liens on real property. A.R.S. §33-2608. This section does not give the receiver the power to void unperfected liens as the authors …
Payment of Debts & Turnover of Property. As a general matter, a person who owes money or is in the possession of property that is receivership property is required to pay that debt or turnover that asset to the receiver. If that person has notice of the receivership, but, pays the owner instead of the …