Section 554.1011 – Short Title.
554.1011 Short title. Sec. 1. This act shall be known and may be cited as the “receivership act”. History: 2018, Act 16, Eff. May 7, 2018 ;– Am. 2020, Act 210, Imd. Eff. Oct. 15, 2020
Section 554.1012 – Definitions.
554.1012 Definitions. Sec. 2. As used in this act: (a) “Affiliate” means all of the following: (i) With respect to an individual, any of the following: (A) A companion of the individual. (B) A lineal ancestor or descendant, whether by blood or adoption, of either of the following: (I) The individual. (II) A companion of […]
Section 554.1013 – Court Order; Issuance; Notice and Hearing; Circumstances.
554.1013 Court order; issuance; notice and hearing; circumstances. Sec. 3. (1) Except as otherwise provided in subsection (2), the court may issue an order under this act only after notice and opportunity for a hearing appropriate in the circumstances. (2) The court may issue an order under this act under the following circumstances: (a) Without […]
Section 554.1014 – Applicability of Act; Scope; Limitation.
554.1014 Applicability of act; scope; limitation. Sec. 4. (1) Except as otherwise provided in subsection (2) or (3), this act applies to a receivership for an interest in any of the following commercial property: (a) Real property, fixtures, and any personal property related to or used in operating the real property. (b) Personal property. (2) […]
Section 554.1015 – Selection, Appointment, Removal, and Compensation of Receiver; Establishment by Court Rule; Jurisdiction.
554.1015 Selection, appointment, removal, and compensation of receiver; establishment by court rule; jurisdiction. Sec. 5. (1) Except as provided in this act, the procedure for the selection, appointment, removal, and compensation of a receiver, or a professional engaged under section 15, under this act is as established by the court rules. (2) The court that […]
Section 554.1016 – Appointment of Receiver; Circumstances; Appointment Without Prior Notice or Hearing; Security.
554.1016 Appointment of receiver; circumstances; appointment without prior notice or hearing; security. Sec. 6. (1) The court may appoint a receiver as follows: (a) Before judgment, to protect a party that demonstrates an apparent right, title, or interest in property that is the subject of the action, under either of the following circumstances: (i) The […]
Section 554.1017 – Appointment of Receiver; Objection; Requirements; Disqualifications.
554.1017 Appointment of receiver; objection; requirements; disqualifications. Sec. 7. (1) If a court determines there is good cause to appoint a receiver, the court shall select the receiver in accordance with this section. A receiver selected by the court must have sufficient competence, qualifications, and experience to administer the receivership estate. (2) The party moving […]
Section 554.1018 – Bond; Alternative Security.
554.1018 Bond; alternative security. Sec. 8. (1) Except as otherwise provided in subsection (2), a receiver shall post with the court a bond that meets all of the following requirements: (a) The bond is conditioned on the faithful discharge of the receiver’s duties. (b) The bond has 1 or more sureties approved by the court. […]
Section 554.1019 – Status of Receiver as Lien Creditor.
554.1019 Status of receiver as lien creditor. Sec. 9. On appointment of a receiver, the receiver has the status of a lien creditor under both of the following: (a) Article 9 of the uniform commercial code, 1962 PA 174, MCL 440.9101 to 440.9809, as to receivership property that is personal property or fixtures. (b) The […]
Section 554.1020 – Acquisition of Property After Appointment as Receiver; Security Agreement.
554.1020 Acquisition of property after appointment as receiver; security agreement. Sec. 10. Except as otherwise provided by law of this state other than this act, property that a receiver or owner acquires after appointment of the receiver is subject to a security agreement entered into before the appointment to the same extent as if the […]
Section 554.1021 – Receivership Property; Duties of Person Upon Demand of Receiver; Failure to Turn Over Property; Sanction.
554.1021 Receivership property; duties of person upon demand of receiver; failure to turn over property; sanction. Sec. 11. (1) Unless the court orders otherwise, a person shall do both of the following on demand by a receiver, as applicable: (a) If the person owes a debt that is receivership property and is matured or payable […]
Section 554.1022 – Powers and Duties of Receiver.
554.1022 Powers and duties of receiver. Sec. 12. (1) Except as limited by court order or applicable law, a receiver may do all of the following: (a) Collect, control, manage, conserve, and protect receivership property. (b) Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property […]
Section 554.1023 – Duties of Owner.
554.1023 Duties of owner. Sec. 13. (1) An owner shall do all of the following: (a) Assist and cooperate with the receiver in the administration of the receivership and the discharge of the receiver’s duties. (b) Preserve and turn over to the receiver all receivership property in the owner’s possession, custody, or control. (c) Identify […]
Section 554.1024 – Stay or Injunction.
554.1024 Stay or injunction. Sec. 14. (1) Except as otherwise provided in subsection (4) or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action, or proceeding to do any of the following: (a) Obtain possession of, exercise control over, or enforce a judgment […]
Section 554.1025 – Engagement of Professional; Compensation.
554.1025 Engagement of professional; compensation. Sec. 15. (1) With court approval, a receiver may engage an attorney, accountant, appraiser, auctioneer, broker, or other professional to assist the receiver in performing a duty or exercising a power of the receiver. The receiver shall disclose all of the following to the court: (a) The identity and qualifications […]
Section 554.1026 – “Good Faith” Defined; Use or Transfer of Receivership Property Not in Ordinary Course of Business.
554.1026 “Good faith” defined; use or transfer of receivership property not in ordinary course of business. Sec. 16. (1) As used in this section, “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing. (2) With court approval, a receiver may use receivership property other than in the ordinary […]
Section 554.1027 – “Timeshare Interest” Defined; Executory Contract.
554.1027 “Timeshare interest” defined; executory contract. Sec. 17. (1) As used in this section, “timeshare interest” means either of the following, as applicable: (a) Unless subdivision (b) applies, an interest having a duration of more than 3 years that grants its holder the right to use and occupy an accommodation, facility, or recreational site, whether […]
Section 554.1028 – Defenses and Immunities of Receiver.
554.1028 Defenses and immunities of receiver. Sec. 18. (1) A receiver is entitled to all defenses and immunities provided by law of this state other than this act for an act or omission within the scope of the receiver’s appointment. (2) Leave of the appointing court must be obtained before the institution of any action […]
Section 554.1029 – Quarterly Interim Report of Receiver.
554.1029 Quarterly interim report of receiver. Sec. 19. Except as otherwise ordered by the court for cause, a receiver shall file quarterly interim reports that include all of the following: (a) The activities of the receiver since appointment or a previous report. (b) Receipts and disbursements, including a payment made or proposed to be made […]
Section 554.1030 – Notice of Order Governing Appointment; Notice to All Creditors; Claim; Distribution of Receivership Property.
554.1030 Notice of order governing appointment; notice to all creditors; claim; distribution of receivership property. Sec. 20. (1) Within 7 days after the receipt by the receiver of the list required under section 13(1)(d), the receiver shall provide all creditors and any other known interested parties with notice and a copy of any order governing […]