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§ 24-302. Notice of appointment of receiver to creditors; claims submitted by creditor; distrib...

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 3. Rights, Powers, and Duties of a Receiver (Refs & Annos)
Effective: October 1, 2019
MD Code, Commercial Law, § 24-302
§ 24-302. Notice of appointment of receiver to creditors; claims submitted by creditor; distribution of receivership property
Currentness
(a) Except as provided in subsection (f) of this section, a receiver shall give notice of the appointment of the receiver to creditors of the owner if:
(1) The receivership is a receivership under § 24-103(a)(2) or (3) of this title; or
(2) Ordered by a court.
(b)(1) The receiver shall provide the notice required under subsection (a) of this section:
(i) To each creditor holding a claim against the owner that arose before the appointment of the receiver; and
(ii) By:
1. First-class mail or other commercially reasonable delivery method to the last known address of the creditor and the creditor's attorney, if known; and
2. Publication as directed by the court.
(2)(i) The notice shall specify the date by which the creditor must submit the claim to the receiver.
(ii) Unless the court extends the period for submitting a claim, the date specified in the notice shall be at least 120 days after the later of the date of:
1. The notice; or
2. The most recent publication as directed by the court under paragraph (1)(ii)2 of this subsection.
(iii) Unless the court orders otherwise, a claim that is not submitted within the appropriate time period under subparagraph (ii) of this paragraph is not entitled to a distribution from the receivership property.
(c) A claim submitted by a creditor under this section shall:
(1) State the name and address of the creditor;
(2) State the amount and basis of the creditor's claim;
(3) Identify any property securing the creditor's claim;
(4) Be signed by the creditor under penalty of perjury; and
(5) Include a copy of any record on which the creditor's claim is based.
(d) An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record.
(e)(1) At any time before entry of an order approving a receiver's final report, the receiver may file with the court an objection to a claim of a creditor, stating the basis for the objection.
(2) The court shall allow or disallow the claim.
(f) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that:
(1) The receiver does not need to give notice of the appointment under subsection (a) of this section to all unsecured creditors of the owner, but only to the unsecured creditors as the court directs; and
(2) An unsecured creditor does not need to submit a claim under this section.
(g)(1) Subject to § 24-701 of this title, a distribution of receivership property to a creditor holding a perfected lien on the property shall be made in accordance with the creditor's priority under applicable law.
(2) A distribution of receivership property to a creditor with an allowed unsecured claim shall be made as the court directs.

Credits

Added by Acts 2019, c. 284, § 1, eff. Oct. 1, 2019.
MD Code, Commercial Law, § 24-302, MD COML § 24-302
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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