SB 391 Modifies residential property receivership
Sponsor: Curls
LR Number: 1397S.01I Fiscal Notes
Committee: Financial and Governmental Organizations and Elections
Last Action: 2/24/2015 - Second Read and Referred S Financial and Governmental Organizations and Elections Committee Journal Page: S424
Title: Calendar Position:
Effective Date: August 28, 2015

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Current Bill Summary


SB 391 - This act makes several changes to the residential property receivership statutes including:

1. Plaintiffs in the receivership action may be permitted by the court to enter into the property prior to appointing a receiver to assess the property;

2. Receivers may by paid reasonable expenses from the operation, encumbrance, or sale of the property rather than only from rents collected;

3. Receivers are no longer required to be bonded;

4. Receivers must file quarterly reports with the court of all expenditures and income and receipts received from the property;

5. Upon approval by the court, receivers may sell the property to a qualified buyer either at public auction or to a buyer proposed by the receiver for fair market value and proceeds from the sale must be disbursed in order of priority provided;

6. Property sold under court order by the receiver shall be conveyed free from all existing ownership interest in, liens on, and other interests in the property except for federal tax liens properly filed prior to the conveyance;

7. A receiver is not personally liable except for misfeasance or malfeasance in the performance of the functions of the office of receiver;

8. The receiver shall be discharged upon the motion of the receiver certifying that nuisance abatement or sale of the property is not economically feasible; and

9. The period after which a court can declare a property abandoned and extinguish existing ownership interest in, liens on, and other interests in the property except for federal tax liens properly filed prior the conveyance to the receiver has been shortened from two years to one year.

MICHELA BIRK