Section 107 – Disqualification from appointment as receiver — Disclosure of interest.

• (1) 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.

• (2) Except as otherwise provided in Subsection (3), a person is disqualified from appointment as receiver if the person:
  • (a) is an affiliate of a party;
  • (b) has an interest materially adverse to an interest of a party;
  • (c) has a material financial interest in the outcome of the action, other than the compensation the court may allow the receiver;
  • (d) has a debtor-creditor relationship with a party; or
  • (e) holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.

• (3) A person is not disqualified from appointment as receiver solely because the person:
  • (a) 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;
  • (b) 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
  • (c) maintains with a party a deposit account as defined in Section 70A-9a-102.

• (4) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

Enacted by Chapter 431, 2017 General Session