§ 29-40-107. Disqualification From Appointment as Receiver — Disclosure of Interest
The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.
Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person:
Is an affiliate of a party;
Has an interest materially adverse to an interest of a party;
Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;
Has a debtor-creditor relationship with a party; or
Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company.
A person is not disqualified from appointment as receiver solely because the person:
Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership;
Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or
Maintains with a party a deposit account as defined in § 47-9-102(a).
A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.
