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RECEIVERSHIP - Coggle Diagram
RECEIVERSHIP
APPOINTMENT OF RECEIVER
Section 1. Appointment of receiver. – Upon a verified application, one or more receivers of the property subject of the action or proceeding may be appointed by the court where the action is pending, or by the Court of Appeals or by the Supreme Court, or a member thereof, in the following cases:
GRANTED WHEN:
INTEREST IN DANGER OF LOSS/REMOVAL/MATERIAL INJURY
- APPLICANT HAS INTEREST IN PROPERTY or FUND
(a) SUBJECT OF ACTION OR PROCEEDING
- SUCH PROPERTY OR FUND IS IN DANGER OF BEING LOST/REMOVED/ MATERIALLY* INJURED UNLESS RECEIVER BE APPOINTED TO ADMINISTER & PRESERVE IT
(a) When it appears from the verified application, and such other proof as the court may require, that the party applying for the appointment of a receiver has an interest in the property or fund which is the subject of the action or proceeding, and that such property or fund is in danger of being lost, removed, or materially injured unless a receiver be appointed to administer and preserve it;
MORTGAGED PROPERTY
- MORTGAGED PROPERTY IN DANGER OF BEING WASTED/DISSIPATED/MATERIALLY INJURED
====OR====
- VALUE IS INSUFFICIENT TO DISCHARGE DEBT
====OR====
- PARTIES HAVE STIPULATED IN CONTRACT OF MORTGAGE
(b) When it appears in an action by the mortgagee for the foreclosure of a mortgage that the property is in danger of being wasted or dissipated or materially injured, and that its value is probably insufficient to discharge the mortgage debt, or that the parties have so stipulated in the contract of mortgage;
AFTER JUDGMENT
- TO PRESERVE DURING PENDENCY OF APPEAL
====OR====
- TO DISPOSE OF IT ACCORDING TO JUDGMENT
====OR====
- TO AID EXECUTION RETURNED AND UNSATISFIED
====OR====
- JUDGMENT OBLIGOR REFUSES TO APPLY PROPERTY TO SATISFACTION OF JUDGMENT
====OR====
- JUDGMENT OBLIGOR REFUSES TO CARRY JUDGMENT INTO EFFECT
(c) After judgment, to preserve the property during the pendency of an appeal, or to dispose of it according to the judgment, or to aid execution when the execution has been returned unsatisfied or the judgment obligor refuses to apply his property in satisfaction of the judgment, or otherwise to carry the judgment into effect;
APPOINTMENT OF RECEIVER IS MOST CONVENIENT AND FEASIBLE MEANS OF PRESERVING, ADMINISTERING, OR DISPOSING OF PROPERTY IN LITIGATION
(d) Whenever in other cases it appears that the appointment of a receiver is the most convenient and feasible means of preserving, administering, or disposing of the property in litigation.
APPELLATE COURT MAY ALLOW APPLICATION TO BE FILED IN COURT OF ORIGIN AND RECEIVER TO BE APPOINTED SUBJECT TO CONTROL OF SAID COURT
During the pendency of an appeal, the appellate court may allow an application for the appointment of a receiver to be filed in and decided by the court of origin and the receiver appointed to be subject to the control of said court. (1a)
-
BOND REQUIRED BEFORE APPOINTMENT
- BOND EXECUTED TO THE PARTY AGAINST WHOM APPLICATION IS PRESENTED
- IN AN AMOUNT FIXED BY THE COURT
- COVERING ALL DAMAGES THE PARTY MAY SUSTAIN BECAUSE OF APPOINTMENT
- IN CASE APPLICANT PROCURED APPOINTMENT W/O SUFFICIENT CAUSE
Section 2. Bond on appointment of receiver. – Before issuing the order appointing a receiver the court shall require the applicant to file a bond executed to the party against whom the application is presented, in an amount to be fixed by the court, to the effect that the applicant will pay such party all damages he may sustain by reason of the appointment of such receiver in case the applicant shall have procured such appointment without sufficient cause; and the court may, in its discretion, at any time after the appointment, require an additional bond as further security for such damages. (3a)
AFTER APPOINTMENT, COURT MAY ALSO REQUIRE AN ADDITIONAL BOND AS FURTHER SECURITY
BEFORE ENTERING UPON HIS DUTIES, RECEIVER SHALL
- SWEAR TO PERFORM THEM FAITHFULLY
- FILE A BOND
(a) AS THE COURT MAY DIRECT
(b) TO THE EFFECT THAT HE WILL FAITHFULLY DISCHARGE HIS DUTIES IN THE ACTION; and
(c) OBEY THE ORDERS OF THE COURT
Section 4. Oath and bond of receiver. – Before entering upon his duties, the receiver shall be sworn to perform them faithfully, and shall file a bond, executed to such person and in such sum as the court may direct, to the effect that he will faithfully discharge his duties in the action or proceeding and obey the orders of the court. (5a)
- PERSON FILING BOND
- SHALL SERVE COPY OF SUCH BOND
(a) TO EACH INTERESTED PARTY
(b) WHO MAY EXCEPT TO ITS SUFFICIENCY OR OF THE SURETY OR SURETIES THEREON
Section 5. Service of copies of bonds; effect of disapproval of same. – The person filing a bond in accordance with the provisions of this Rule shall forthwith serve a copy thereof on each interested party, who may except to its sufficiency or of the surety or sureties thereon.
APPLICATION DENIED OR DISCHARGED
(INSUFFICIENT or UNJUSTIFIED BOND)
[IF]
- INSUFFICIENT BOND OF APPLICANT OR RECEIVER
====OR====
- SURETY OR SURETIES FAIL TO JUSTIFY
===AND===
- NO SUFFICIENT & JUSTIFIED BOND FILED
If either the applicant’s or the receiver’s bond is found to be insufficient in amount, or if the surety or sureties thereon fail to justify, and a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the application shall be denied or the receiver discharged, as the case may be.
RECEIVER APPOINTED OR RE-APPOINTED
IF ==COUNTERBOND== IS INSUFFICIENT OR UNJUSTIFIED
If bond of the adverse party is found to be insufficient in amount or the surety or sureties thereon fail to justify, and a bond sufficient in amount with sufficient sureties approved after justification is not filed forthwith, the receiver shall be appointed or re-appointed, as the case may be. (6a)
GENERAL POWERS OF RECEIVER
Section 6. General powers of receiver. – Subject to the control of the court in which the action or proceeding is pending, a receiver shall have the power
- BRING AND DEFEND IN ACTIONS - to bring and defend, in such capacity, actions in his own name;
- TAKE AND KEEP POSSESION OF PROPERTY IN CONTROVERSY - to take and keep possession of the property in controversy;
- RECEIVE RENTS - to receive rents;
- COLLECT DEBTS DUE TO HIM AS RECEIRVER OR TO THE FUND, PROPERTY, ESTATE, PERSON, or CORPORATION OF WHICH HE IS A RECEIVER - to collect debts due to himself as receiver or to the fund, property, estate, person, or corporation of which he is the receiver;
- COMPOUND AND COMPROMISE - to compound for and compromise the same;
- TRANSFER - to make transfers;
- PAY OUTSTANDING DEBTS - to pay outstanding debts;
- DIVIDE MONEY AND OTHER PROPERTY THAT SHALL REMAIN AMONG THE PERSONS LEGALLY ENTITLED
to divide the money and other property that shall remain among the persons legally entitled to receive the same; and
- ACTS
(a) RESPECTING THE PROPERTY
(b) AS THE COURT MAY AUTHORIZE
generally to do such acts respecting the property as the court may authorize.
FUNDS IN HANDS OF A RECEIVER MAY BE INVESTED ONLY
- BY ORDER OF COURT
- UPON CONSENT
- CONSENT IS WRITTEN
- OF ALL PARTIES TO ACTION
However, funds in the hands of a receiver may be invested only by order of the court upon the written consent of all the parties to the action. (7a)
NO ACTION MAY BE FILED BY OR AGAINST A RECEIVER WITHOUT LEAVE OF COURT
No action may be filed by or against a receiver without leave of the court which appointed him. (n
LIABILITY FOR REFUSAL OR NEGLECT
Section 7. Liability for refusal or neglect to deliver property to receiver. –
[IF]
- PERSON REFUSES OR NEGLECTS TO DELIVER TO RECEIVER
(a) ALL BOOKS, DEEDS, NOTES, BILLS, DOCUMENTS, AND PAPERS WITHIN HIS POWER OR CONTROL
(b) SUBJECT OF OR INVOLVED IN ACTION OR PROCEEDING
- UPON REASONABLE DEMAND
[THEN]
SUCH PERSON IS LIABLE FOR:
(a) CONTEMPT
(b) FOR MONEY OR VALUE OF PROPERTY
(c) DAMAGES MAY HAVE BEEN SUSTAINED BY PARTY OR PARTIES ENTITLED THERETO, AS A CONSEQUENCE OF SUCH REFUSAL OR NEGLECT
A person who refuses or neglects, upon reasonable demand, to deliver to the receiver all the property, money, books, deeds, notes, bills, documents and papers within his power or control, subject of or involved in the action or proceeding, or in case of disagreement, as determined and ordered by the court, may be punished for contempt and shall be liable to the receiver for the money or the value of the property and other things so refused or neglected to be surrendered, together with all damages that may have been sustained by the party or parties entitled thereto as a consequence of such refusal or neglect. (n)
IN CASE OF
[IF]
- MOTU PROPRIO OR MOTION
(a) OF EITHER PARTY
- COURT DETERMINES RECEIVER IS NO LOGNER NECESSARY
- AFTER DUE NOTICE AND HEARING
(a) TO ALL INTERESTED PARTIES
[THEN]
COURT SHALL:
- SETTLE ACCOUNTS OF RECEIVER
- DIRECT DELIVERY OF FUNDS AND OTHER PROPERTY IN RECEIVER'S POSSESSION
- ORDER DISCHARGE OF RECEIVER
Section 8. Termination of receivership; compensation of receiver. – Whenever the court, motu proprio or on motion of either party,
shall determine that the necessity for a receiver no longer exists, it shall, after due notice to all interested parties and hearing, settle the accounts of the receiver, direct the delivery of the funds and other property in his possession to the person adjudged to be entitled to receive them, and order the discharge of the receiver from further duty as such.
AMOUNT TO BE AWARDED TO ANY PARTY UPON ANY BOND FILED SHALL BE CLAIMED AS UNDER SEC. 20 OF RULE 57
Section 9. Judgment to include recovery against sureties. – The amount, if any, to be awarded to any party upon any bond filed in accordance with the provisions of this Rule, shall be claimed, ascertained, and granted under the same procedure prescribed in section 20 of Rule 57. (9a)
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RECEIVER'S REASONABLE COMPENSATION, AS CIRCUMSTANCES OF CASE WARRANT
TAXES AGAINST DEFEATED PARTY or APPORTIONED
The court shall allow the receiver such reasonable compensation as the circumstances of the case warrant, to be taxed as costs against the defeated party, or apportioned, as justice requires. (8a)
IN CASE OF DISAGREEMENT
- AS DETERMINED BY COURT
APPLICATION DENIED
(COUNTERBOND)
- COUNTERBOND
(a) AS FIXED BY COURT
(b) TO PAY APPLICANT ALL DAMAGES HE MAY SUFFER
(c) BY REASON OF ACTS, OMISSIONS, OR OTHER MATTERS SPECIFIED IN THE APPLICATION
Section 3. Denial of application or discharge of receiver. – The application may be denied, or the receiver discharged, when the adverse party files a bond executed to the applicant, in an amount to be fixed by the court, to the effect that such party will pay the applicant all damages he may suffer by reason of the acts, omissions, or other matters specified in the application as ground for such appointment. The receiver may also be discharged if it is shown that his appointment was obtained without sufficient cause. (4a)
RECEIVER DISCHARGED
- IF APPOINTMENT WAS WITHOUT SUFFICIENT CAUSE
-
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