1-507.40. Turnover of receivership property. (a) Demand by Receiver. – Except as expressly provided in this section, and unless otherwise ordered by the court, upon demand by a receiver: (i) subject to subsection (b) of this section, any person shall turn over to the receiver any receivership property that is within the possession, custody, or […]
1-507.41. Ancillary receiverships. (a) Ancillary Receiverships in Foreign Jurisdictions. – A receiver appointed by a court of this State may, without first seeking approval of the court, apply in any foreign jurisdiction for appointment as receiver with respect to any receivership property which is located within the foreign jurisdiction. (b) Ancillary Receiverships in This State. […]
1-507.42. Stays. (a) Control of Property. – All receivership property shall be under the control and supervision of the court appointing the receiver. (b) Stay by Court Order. – In addition to any stay provided in this section, the court may order a stay or stays to protect receivership property and to facilitate the administration […]
1-507.43. Utility service. (a) No Discontinuance of Utility Service. – Except as provided in subsection (b) of this section, a utility providing service to receivership property that has received written notice from the receiver of the appointment of the receiver may not alter, refuse, or discontinue service to the receivership property. (b) Adequate Assurance of […]
1-507.44. Receivership financing. (a) Unsecured Financing. – Without necessity of a court order, the receiver may obtain unsecured credit and incur unsecured debt on behalf of the receivership. (b) Secured Financing. – On motion by the receiver and after notice and a hearing, the court may authorize the receiver to obtain secured credit or incur […]
1-507.45. Executory contracts. (a) Adoption or Rejection of Executory Contract. – Except as otherwise provided in subsection (g) of this section, with court approval, a receiver may adopt or reject an executory contract of the debtor that is part of the receivership property. The court may condition the receiver’s adoption and continued performance of the […]
1-507.46. Use or transfer of receivership property not in ordinary course. (a) Use Not in Ordinary Course. – With court approval, a receiver may use receivership property other than in the ordinary course of business. (b) Transfer Not in Ordinary Course. – On motion by the receiver and after notice and a hearing, the court […]
1-507.47. Abandonment of property. With court approval, the receiver may abandon any receivership property that is burdensome or is not of material value to the receivership. Property that is abandoned is no longer receivership property and not subject to the provisions of this Article. (2020-75, s. 1.)
1-507.48. Liens against after-acquired property. Except as otherwise provided for by laws of this State, property that becomes receivership property after the time of appointment is subject to a lien to the same extent as it would have been in the absence of the receivership. (2020-75, s. 1.)
1-507.49. Claims process. (a) Recommendation of Receiver. – In a general receivership, and in a limited receivership if the circumstances require, the receiver shall submit to the court a recommendation concerning a claims process appropriate to the particular receivership. (b) Order Establishing Process. – In a general receivership and, if the court orders, in a […]
1-507.50. Objection to and allowance of claims. (a) Objections and Allowance. – The receiver or any party in interest may file an objection to a claim stating the grounds for the objection. The court may order that a copy of the objection be served on the persons on the master service list at least 14 […]
1-507.51. Priority of claims. (a) Priorities. – Allowed claims shall receive distribution under this Article in the following order of priority and, except as set forth in subsection (a)(1) of this section, on a pro rata basis: (1) Subject to subsection (b) of this section, claims secured by liens on receivership property, which liens are […]
1-507.52. Interest on unsecured claims. To the extent that funds are available to pay in full the allowed unsecured claims under G.S. 1-507.51(a)(7), the holder of each allowed unsecured claim shall also be entitled to receive interest, calculated from the time of appointment on the amount of its allowed unsecured claim at the legal rate […]
1-507.53. Distributions. (a) Proposed Distributions. – Before any interim or final distribution is made, the receiver shall file a distribution schedule listing the proposed distributions. The distribution schedule may be filed at any time during the receivership or may be included in the final report. (b) Notice. – The receiver shall give notice of the […]
1-507.54. Effect of enforcement by secured party. A request by a secured party for the appointment of a receiver, the appointment of a receiver, or application by a secured party of receivership property to the secured obligation does not do any of the following: (1) Make the secured party a mortgagee in possession of real […]
