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§ 24-401. Effect of receivership

West's Annotated Code of MarylandCommercial LawEffective: October 1, 2019

West's Annotated Code of Maryland
Commercial Law
Title 24. Maryland Commercial Receivership Act (Refs & Annos)
Subtitle 4. Effect of Receivership (Refs & Annos)
Effective: October 1, 2019
MD Code, Commercial Law, § 24-401
§ 24-401. Effect of receivership
Currentness
(a) Except as provided in subsection (c) of this section or ordered by the court, the entry of an order appointing a receiver under § 24-103(a)(2) or (3) of this title shall operate as a stay of an act to:
(1) Commence or continue a judicial, administrative, or other action or proceeding against the owner that was or could have been commenced before entry of the order;
(2) Collect, assess, or recover a claim against the owner that arose before entry of the order;
(3) Obtain possession of, exercise control over, or enforce a judgment against the receivership property obtained before entry of the order; or
(4) Create, perfect, or enforce a lien or other claim against the receivership property that arose before entry of the order.
(b)(1) Except as provided in paragraph (2) of this subsection, a court may order a stay of an act against or relating to an owner if the stay is necessary to:
(i) Protect the receivership property or business; or
(ii) Facilitate administration of the receivership.
(2) A court may not order a stay under paragraph (1) of this subsection, with respect to a governmental unit commencing or continuing an action or proceeding to enforce its police or regulatory power, that includes enforcing a nonmonetary judgment.
(c) Unless an order is entered under subsection (b) of this section, the following matters are not stayed:
(1) An act to foreclose or otherwise enforce a mortgage by the person seeking appointment of the receiver;
(2) An act to perfect, maintain, or continue the perfection of an interest in receivership property;
(3) Commencement or continuation of a criminal proceeding;
(4) Commencement or continuation of an action or a proceeding by a governmental unit to enforce its police or regulatory power;
(5) Enforcement of a judgment other than a money judgment in an action or a proceeding by a governmental unit to enforce its police or regulatory power;
(6) Establishment by a governmental unit of a tax liability against the owner or receivership property or an appeal of the liability;
(7) The exercise of the right of setoff or recoupment;
(8) The commencement of a bankruptcy case under Title 11 of the United States Code; or
(9) Any other matter provided under 11 U.S.C. § 362(b) to the extent not inconsistent with any provision of this section.
(d) A person whose act is stayed under this section may apply to the court for relief from the stay for cause shown.
(e) Except as provided in subsections (c) and (d) of this section, the stay shall terminate as to receivership property when:
(1) The property is no longer receivership property; or
(2) The court enters:
(i) An order approving the final report; or
(ii) An order dismissing the case.
(f) The court may void an act that violates a stay under this section.
(g) If a person willfully violates a stay under this section, the court may:
(1) Award the receiver actual damages caused by the violation, including reasonable fees and costs; and
(2) Sanction the violation as civil contempt.

Credits

Added by Acts 2019, c. 284, § 1, eff. Oct. 1, 2019.
MD Code, Commercial Law, § 24-401, MD COML § 24-401
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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