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§ 11701.705. Receiver

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 53 P.S. Municipal and Quasi-Municipal CorporationsEffective: June 20, 2022

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 53 P.S. Municipal and Quasi-Municipal Corporations
Part I. General Municipal Law
Chapter 30E. Municipalities Financial Recovery Act (Refs & Annos)
Chapter 7. Receivership in Municipalities (Refs & Annos)
Effective: June 20, 2022
53 P.S. § 11701.705
§ 11701.705. Receiver
Currentness
(a) Appointment.--The court shall appoint the receiver as provided under section 702.1
(b) Qualifications.--The receiver shall have the following qualifications:
(1) Have a minimum of five years' experience and demonstrable expertise in business, financial or local or state budgetary matters.
(2) Be a resident of this Commonwealth for at least one year prior to the appointment.
(c) Vacancy.--A vacancy in the office of the receiver shall be filled in the same manner as the original appointment.
(d) Revocation.--Upon application to Commonwealth Court by the secretary, the appointment of the receiver shall be revoked, and the receiver shall be replaced by the individual named in the application. The court shall have no authority to appoint anyone other than the individual named in the application as the receiver.
(e) Compensation and expenses.--The receiver's compensation and reimbursement for actual and necessary expenses shall be paid by the Commonwealth. Compensation shall be established by the secretary.
(f) Prohibitions.--The receiver may not:
(1) Seek or hold a position as any other elected or appointed public official within this Commonwealth or as a political party officer during the term of the receivership.
(2) Seek election as a public official or political party officer for one year after the person's service as receiver has ended.
(3) Engage in any conduct prohibited by the act of July 19, 1957 (P.L. 1017, No. 451),2 known as the State Adverse Interest Act, or 65 Pa.C.S. Ch. 11 (relating to ethics standards and financial disclosure).
(4) Receive any compensation, fee or commission:
(i) From the distressed municipality unless specifically authorized by the receiver's contract.
(ii) In accordance with any sale or lease of property or other financial transaction involving the distressed municipality or an authority directly or indirectly controlled by the distressed municipality.
(g) Liability.--The receiver shall not be liable personally for any obligations of the distressed municipality or authority. It is declared to be the intent of the General Assembly that the receiver shall enjoy sovereign and official immunity as provided in 1 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed; specific waiver) and shall remain immune from suit except as provided by and subject to the provisions of 42 Pa.C.S. Ch. 85 Subchs. A (relating to general provisions) and B3 (relating to actions against Commonwealth parties).
(h) Prior appointment.--A person who has previously contracted with the department or the distressed municipality as a coordinator, receiver, financial consultant, legal counsel or through a contract under the Early Intervention Program under Chapter 1-A4 may not be deemed ineligible to be appointed as a receiver under this section solely on the basis of that contract.

Credits

1987, July 10, P.L. 246, No. 47, § 705, added 2011, Oct. 20, P.L. 318, No. 79, § 2, imd. effective. Amended 2014, Oct. 31, P.L. 2983, No. 199, § 30, effective in 60 days [Dec. 30, 2014]; 2022, April 19, P.L. 64, No. 19, § 3, effective in 60 days [June 20, 2022].

Footnotes

1
53 P.S. § 11701.702.
2
71 P.S. § 776.1 et seq.
3
42 Pa.C.S.A. § 8521 et seq.
4
53 P.S. § 11701.101-A et seq.
53 P.S. § 11701.705, PA ST 53 P.S. § 11701.705
Current through Act 13 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
End of Document