Receivership

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Receivership

A court order whereby all the property subject to dispute in a legal action is placed under the dominion and control of an independent person known as a receiver.

Receivership is an extraordinary remedy, the purpose of which is to preserve property during the time needed to prosecute a lawsuit, if a danger is present that such property will be dissipated or removed from the jurisdiction of the court if a receiver is not appointed. Receivership takes place through a court order and is utilized only in exceptional circumstances and with or without the consent of the owner of the property.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

receivership

n. the process of appointment by a court of a receiver to take custody of the property, business, rents and profits of a party to a lawsuit pending a final decision on disbursement or an agreement that a receiver control the financial receipts of a person who is deeply in debt (insolvent) for the benefit of creditors. Thus, the term "the business is in receivership." (See: receiver)

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
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about receiverships was in substance no different, but respected the
FHFA's proposal would establish a framework for conservatorship and receivership operations for Fannie Mae, Freddie Mac and the Federal Home Loan Banks, under the Housing and Economic Recovery Act of 2008 (HERA).
The number of firms going into receivership also rose in the first six months of this year, with receivers appointed to 118 companies.
Active receiverships necessarily contemplate a broad array of powers for the receiver's disposal.
After a receivership is set up for a particular association, "any unit that goes into foreclosure that has a renter in it is automatically included under the umbrella...on behalf of the association," said Ken Arnold, David Arnold's son and the founder of Association Financial, which manages accounts receivables for condo and homeowner associations.
The manager's time may be spent dealing with emergency issues for the first week or two, says Bill Hoffman, President, Trigild, which provides receivership, management and disposition services for lenders with distressed properties.
"A bank trying to recover lost assets will appoint a surveyor, which shows up as a receivership. We have all known for some time that the property and construction sector has been badly hit by the downturn and these figures are evidence of that."
"Following the demise of administrative receiverships under the Enterprise Act 2002, receiverships under the Law of Property Act are proving highly effective as a method of enforcing security held by mortgagees and as a result are becoming increasingly popular," he said.
receiverships are administered not by professional, licensed insolvency practitioners, as is the ease in the United Kingdom and many other countries, but by an individual selected by the insurance commissioner who may or may not be experienced in receivership and insurance matters.
Receiverships at housing authorities have generally resulted from long-standing, severe, and persistent management problems that led to deterioration of the housing stock.
Receiverships are statutorily permitted in a host of factual situations including real estate, business entity dissolutions, and consumer protection.