Michigan Laws 554.1016 – Appointment of receiver; circumstances; appointment without prior notice or hearing; security
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Terms Used In Michigan Laws 554.1016
- 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.
- Court: means the circuit court. See Michigan Laws 554.1012
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- 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
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Lien: means an interest in property that secures payment or performance of an obligation. See Michigan Laws 554.1012
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Owner: means the person for whose property a receiver is appointed. See Michigan Laws 554.1012
- Person: means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. See Michigan Laws 554.1012
- Proceeds: means any of the following property:
(i) Whatever is acquired on the sale, lease, license, exchange, or other disposition of receivership property. See Michigan Laws 554.1012Property: means all of a person's right, title, and interest, both legal and equitable, in real property, personal property, and fixtures tangible and intangible, wherever located and however acquired. See Michigan Laws 554.1012 Receiver: means a person appointed by the court as the court's agent, and subject to the court's direction, to take possession of, manage, and, if authorized by this act or court order, transfer, sell, lease, license, exchange, collect, or otherwise dispose of receivership property. See Michigan Laws 554.1012 Rents: means all of the following:
(i) Sums payable for the right to possess or occupy, or for the actual possession or occupation of, real or personal property of another person. See Michigan Laws 554.1012Secured party: means a person entitled to enforce a secured obligation or lien. See Michigan Laws 554.1012 Security agreement: means an agreement that creates or provides for a lien, including a mortgage. See Michigan Laws 554.1012
(1) The court may appoint a receiver as follows:
(a) Before judgment, to protect a party that demonstrates an apparent right, title, or interest in property that is the subject of the action, under either of the following circumstances:
(i) The property or its revenue-producing potential is being subjected to or is in danger of waste, loss, dissipation, or impairment.
(ii) The property or its revenue-producing potential has been or is about to be the subject of a voidable transaction.
(b) After judgment for any of the following reasons:
(i) To carry the judgment into effect.
(ii) To preserve nonexempt property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment.
(c) If a receiver may be appointed on equitable grounds.
(d) During the time allowed for redemption, to preserve property sold in an execution or foreclosure sale and secure its rents to the person entitled to the rents.
(2) In connection with the foreclosure or other enforcement of a security agreement or lien, the court may appoint a receiver for the property under any of the following circumstances:
(a) Appointment is necessary to protect the property from waste, loss, transfer, dissipation, or impairment.
(b) The person that granted a lien in the property agreed in a signed record to appointment of a receiver on default.
(c) The owner agreed, after default and in a signed record, to appointment of a receiver.
(d) The property held by the secured party is not sufficient to satisfy the secured obligation.
(e) The owner fails to turn over to the secured party proceeds or rents the secured party was entitled to collect.
(f) The holder of a subordinate lien obtains appointment of a receiver for the property.
(3) The court may condition appointment of a receiver without prior notice under section 3(2)(a) or without a prior hearing under section 3(2)(b) on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorney fees, and costs incurred or suffered by any person if the court later concludes that the appointment was not justified. If the court later concludes that the appointment was justified, the court shall release the security.