Arizona Laws 6-395.05. Effect of receivership proceedings on liens and limitations
A. Every lien against any asset of a bank obtained by attachment, judgment, levy or other legal or equitable process or proceedings after the filing of the application for the appointment of a receiver under this article shall be null and void as to the receiver and to any purchaser from the receiver where the sale is ordered by the court to be free and clear of such liens.
Terms Used In Arizona Laws 6-395.05
- Action: includes any matter or proceeding in a court, civil or criminal. See Arizona Laws 1-215
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Bank: means a corporation that holds a banking permit issued pursuant to chapter 2 of this title. See Arizona Laws 6-101
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Lien: A claim against real or personal property in satisfaction of a debt.
- Process: means a citation, writ or summons issued in the course of judicial proceedings. See Arizona Laws 1-215
- Statute: A law passed by a legislature.
B. A receiver, upon his appointment shall be vested by operation of law with the title to all of the assets of the bank as of the time of filing of the application for the appointment of the receiver; and as to all assets of the bank, whether or not coming into his physical possession, upon which a creditor of the bank could have obtained a lien by legal or equitable proceedings at the time of filing of the application for the appointment of the receiver, the receiver shall be vested as of the time of such filing with all of the rights, remedies and powers of a creditor then holding a lien thereon by such proceedings, whether or not such a creditor actually exists.
C. Upon the filing of the application for the appointment of a receiver under this article there shall be a postponement for a period of six months of the date upon which any period of limitations fixed by statute or agreement would otherwise expire on a claim or right of action of the bank or upon which an appeal must be taken or a pleading or other document must be filed by the bank in any pending action or proceeding.