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RULE 13-603. USE AND TRANSFER OF ESTATE PROPERTY OTHER THAN IN THE ORDINARY COURSE OF BUSINESS

West's Annotated Code of MarylandMaryland RulesEffective: August 1, 2020

West's Annotated Code of Maryland
Maryland Rules
Title 13. Receivers and Assignees
Chapter 600. Disposition of Property
Effective: August 1, 2020
MD Rules, Rule 13-603
RULE 13-603. USE AND TRANSFER OF ESTATE PROPERTY OTHER THAN IN THE ORDINARY COURSE OF BUSINESS
Currentness
(a) Definition. In this Rule, “transfer” includes a sale, lease, license, exchange or other disposition of estate property.
(b) Court Approval. A receiver or assignee may not (1) use or (2) transfer other than pursuant to Rule 13-601, receivership property outside of the ordinary course of business unless the use or transfer is authorized by the court upon motion filed by the receiver or assignee.
(c) Motion.
(1) Generally. The motion shall be accompanied by a proposed order and any proposed purchase, license, exchange agreement, or lease and shall state why the proposed transaction is in the best interest of the receivership or assignment.
(2) Sale. A sale of property outside the ordinary course of business may be by private sale or public sale. If the motion seeks a private sale of the property, it shall describe the terms of the proposed sale, the basis for the receiver's or assignee's belief as to the fairness and reasonableness of the proposed terms and, to the extent applicable, shall include the following information:
(A) if an appraisal has been performed at the request of the receiver or assignee: (i) the appraised value of the property being sold; (ii) the date of the appraisal; and (iii) the name and address of the appraiser;
(B) the purchaser's identity;
(C) a full description of the relationship between the purchaser and the receiver, assignee, owner of the property, or other parties in interest;
(D) the statement of all consideration to be paid the purchaser and the payment terms;
(E) a statement of all charges and costs to be paid by the estate and all concessions to be made by the estate;
(F) any provision in which the receiver or assignee has agreed not to solicit competing offers for the property subject to the motion or to otherwise limit shopping of the property;
(G) any deadline for the closing of the proposed sale and any other condition to closing the proposed sale;
(H) the amount of any deposit that the purchaser has paid or will be required to pay;
(I) the terms of any interim operating or management agreement between the receiver or assignee and the proposed purchaser;
(J) the proposed use of the sale proceeds;
(K) whether the proposed sale will be free and clear of any lien;
(L) whether the proposed sale will be free and clear of a possessory leasehold interest, license or other right; and
(M) whether the receiver or assignee seeks to allow, disallow, or affect, in any manner, credit bidding pursuant to § 24-304(g) of the Commercial Law Article.
(d) Report of Sale. As soon as practicable, but not more than 30 days after the closing of a sale, the receiver or assignee shall file and serve a report of the sale listing the amount paid by the purchaser, all closing expenses, including any sales commission paid by the receiver or assignee, any amount paid to discharge liens on the property, and any amount to be retained by the estate.
(e) Inapplicability of Title 14, Chapter 300. The provisions of Title 14, Chapter 300 of the Rules do not apply to a sale by a receiver or assignee under this Title.
Committee note: Title 14, Chapter 300 does apply to a foreclosure, whether or not in conjunction with a receivership. Section (d) only applies to sales by the receiver or assignee.
Source: This Rule is new.

Credits

[Adopted June 29, 2020, eff. Aug. 1, 2020.]
MD Rules, Rule 13-603, MD R RECEIVERS AND ASSIGNEES Rule 13-603
Current with amendments received through February 1, 2024. Some sections may be more current, see credits for details.
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