Home Table of Contents

§ 24-201. Appointment of receiver

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 2. Appointment of Receiver (Refs & Annos)
Effective: October 1, 2019
MD Code, Commercial Law, § 24-201
§ 24-201. Appointment of receiver
Currentness
(a) A court may appoint a receiver:
(1) Before judgment, to protect a party that demonstrates an apparent right to property that is the subject of the action, if the property or the revenue-producing potential of the property:
(i) Is being subjected to or is in danger of waste, loss, dissipation, or impairment; or
(ii) Has been or is about to be the subject of a fraudulent conveyance voidable under Title 15, Subtitle 2 of this article;
(2) After judgment, to:
(i) Carry the judgment into effect; or
(ii) Preserve nonexempt property:
1. Pending appeal; or
2. When an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;
(3) In an action seeking dissolution of a corporation under § 3-411 or § 3-415 of the Corporations and Associations Article; or
(4) To a receivership under § 24-103(a)(3) of this title.
(b)(1) In connection with or anticipation of a foreclosure or any other enforcement of a mortgage, a mortgagee is entitled to the appointment of a receiver.
(2) On request, a court shall appoint a receiver for the mortgaged property if:
(i) There is a default under the mortgage; and
(ii) 1. Appointment of a receiver is necessary to protect the property from waste, loss, transfer, dissipation, or impairment;
2. The mortgagor agreed in a signed record, including the mortgage or an assignment of leases and rents, to the appointment of a receiver on default;
3. The owner agreed, after default and in a signed record, to the appointment of a receiver;
4. The property and any other collateral held by the mortgagee are not sufficient to satisfy the secured obligation;
5. The owner fails to turn over to the mortgagee proceeds or rent the mortgagee was entitled to collect; or
6. The holder of a subordinate lien obtains the appointment of a receiver for the property.
(c)(1) A court may condition appointment of a receiver without prior notice under § 24-501(b)(1) of this title, or without a prior hearing under § 24-501(b)(2) of this title, on the giving of security by the person seeking the appointment for:
(i) The payment of damages;
(ii) Reasonable attorney's fees; or
(iii) If the court concludes that the appointment was not justified, costs incurred by any person.
(2) If the court later concludes that the appointment was justified, the court shall release the security.

Credits

Added by Acts 2019, c. 284, § 1, eff. Oct. 1, 2019.
MD Code, Commercial Law, § 24-201, MD COML § 24-201
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.
End of Document