1-507.20. Short title; definitions. (a) Short Title. – This Article may be cited as the North Carolina Commercial Receivership Act. (b) Definitions. – The following definitions apply throughout this Article: (1) Affiliate. – As defined in G.S. 39-23.1(1). (2) Business trust. – As defined in G.S. 39-44. (3) Collateral. – The property subject to a […]
1-507.21. Applicability of Article and of common law. (a) Application of Article. – Except as provided in subsection (b) of this section, this Article applies to receiverships pursuant to any provision of the General Statutes, as well as any receiverships instituted under common law and the equitable power of the courts, in each case in […]
1-507.22. Powers of the court. The court that appoints a receiver under this Article has the exclusive authority to direct the receiver and determine all controversies relating to the receivership or receivership property, wherever located, including, without limitation, authority to determine all controversies relating to the collection, preservation, improvement, disposition, and distribution of receivership property, […]
1-507.23. Types of receiverships. A receivership may be either a limited receivership or a general receivership. Any receivership which is based upon the foreclosure or enforcement of a security agreement, judgment lien, mechanic’s lien, or other lien pursuant to which the debtor or any holder of a lien would have a statutory right of redemption, […]
1-507.24. Appointment of receivers; receivership not a trust. (a) Action in Which Receivers Appointed. – A receiver may be appointed under this Article by the filing of a civil action by a creditor or other party in interest in which the sole relief requested is the appointment of a receiver or is combined with, or […]
1-507.25. Eligibility of receiver. (a) Who May Serve as Receiver. – Unless otherwise prohibited by law or prior order, any person, whether or not a resident of this State, may serve as a receiver, provided that the court, in its order appointing the receiver, makes written conclusions based in the record that the person proposed […]
1-507.26. Bond. (a) Receiver’s Bond. – After appointment, a receiver shall give a bond in the sum, nature, and with the conditions that the court shall order in its discretion. Unless otherwise ordered by the court, the receiver’s bond shall be conditioned on the receiver’s faithful discharge of its duties in accordance with the orders […]
1-507.27. Defenses and immunities; discovery. (a) A receiver shall be entitled to all defenses and immunities provided by the laws of this State for an act or omission within the scope of the receiver’s appointment. (b) A receiver may not be sued personally for an act or omission in administering receivership property without approval of […]
1-507.28. Powers and duties of receivers. (a) Powers; Generally. – Except as otherwise provided in subsection (d) of this section, a receiver, whether general or limited, shall have the following powers in addition to those specifically conferred by this Article or otherwise by statute, rule, or order of the court: (1) The power to take […]
1-507.29. Receiver as lien creditor; real estate recording; subsequent sales of real estate. (a) Receiver as Lien Creditor. – As of the time of appointment, the receiver shall have the powers and priority as if it were a creditor that obtained a judicial lien at the time of appointment on all of the receivership property, […]
1-507.30. Duties of debtor. (a) Duties. – In addition to those duties conferred by statute or order of the court, the debtor has the following duties: (1) To assist and cooperate fully with the receiver in the administration of the receivership and the receivership property and the discharge of the receiver’s duties and to comply […]
1-507.31. Employment and compensation of professionals. (a) Employment. – To represent or assist the receiver in carrying out the receiver’s duties, the receiver may employ attorneys, accountants, appraisers, brokers, agents, auctioneers, or other professionals that do not hold or represent an interest adverse to the receivership. A person is not disqualified for employment under this […]
1-507.32. Schedules of property and claims. (a) The court shall order the debtor or a general receiver to file under oath within 60 days from the time of appointment, or at such earlier or later time as the court shall direct, the following: (1) A schedule of all receivership property and exempt property of the […]
1-507.33. Notice. In a general receivership, unless the court orders otherwise, the receiver shall give notice of the receivership to all creditors and other parties in interest actually known to the receiver by first-class mail within 30 days after the time of appointment or in such other manner and within such earlier or later time […]
1-507.34. Notices; motions; orders. (a) Notice of Appearance. – Any party in interest may make an appearance in a receivership by filing a written notice of appearance, including the name, mailing address, e-mail address, and telephone number of the party in interest and its attorney, if any, and by serving a copy on the receiver […]
1-507.35. Records; interim reports; status hearings. (a) Preparation and Retention of Records. – The receiver shall prepare and retain appropriate business records, including records of all cash receipts, disbursements and dispositions of receivership property. After due consideration of issues of confidentiality, the records may be provided by the receiver to parties in interest or shall […]
1-507.36. Removal of receivers. (a) Removal of Receiver. – The court may remove the receiver if: (i) the receiver fails to execute and file the bond required by G.S. 1-507.26; (ii) the receiver dies, resigns, refuses, or fails to serve for any reason; or (iii) for other good cause. (b) Successor Receiver. – Upon removal […]
1-507.37. Termination of receiverships; final report. (a) Termination of Receivership. – The court may discharge a receiver and terminate the receivership by order entered in the proceeding if the court finds that the appointment of the receiver was improvident or that the circumstances no longer warrant continuation of the receivership and upon approval by the […]
1-507.38. Actions by or against receiver; actions relating to receivership property. (a) Actions By or Against Receiver. – The receiver may sue in the receiver’s capacity and, subject to other sections of this Article and all immunities provided at common law, may be sued in that capacity. (b) Venue. – Unless the court orders otherwise, […]
1-507.39. Procedure for determining individual business debtor’s exempt property. If the debtor is an individual business debtor, the provisions of G.S. 1C-1603 for designating the debtor’s exempt property shall apply, except to the extent that any of the provisions of G.S. 1C-1603 conflict with or are inconsistent with the provisions of this Article, and except […]
