(a)  Except as limited by court order or law of this state other than this chapter, a receiver may:

(1)  Collect, control, manage, conserve, and protect receivership property;

(2)  Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary course of business;

(3)  In the ordinary course of business, incur unsecured debt and pay expenses incidental to the receiver’s preservation, use, sale, lease, license, exchange, collection, or disposition of receivership property;

(4)  Assert a right, claim, cause of action, or defense of the owner which relates to receivership property;

(5)  Seek and obtain instruction from the court concerning receivership property, exercise of the receiver’s powers, and performance of the receiver’s duties;

(6)  On subpoena, compel a person to submit to examination under oath, or to produce and permit inspection and copying of designated records or tangible things, with respect to receivership property or any other matter that may affect administration of the receivership;

(7)  Engage a professional as provided in § 10-21-15;

(8)  Apply to a court of another state for appointment as ancillary receiver with respect to receivership property located in that state; and

(9)  Exercise any power conferred by court order, this chapter, or law of this state other than this chapter.

Terms Used In Rhode Island General Laws 10-21-12

  • Contract: A legal written agreement that becomes binding when signed.
  • Court: means the superior court. See Rhode Island General Laws 10-21-2
  • Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Owner: means the person for whose property a receiver is appointed. See Rhode Island General Laws 10-21-2
  • Person: means an individual, estate, partnership, association, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. See Rhode Island General Laws 10-21-2
  • Proceeds: means the following property:

    (i)  Whatever is acquired on the sale, lease, license, exchange, or other disposition of receivership property;

    (ii)  Whatever is collected on, or distributed on account of, receivership property;

    (iii)  Rights arising out of receivership property;

    (iv)  To the extent of the value of receivership property, claims arising out of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or damage to the property; or

    (v)  To the extent of the value of receivership property and to the extent payable to the owner or secured party, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to the property. See Rhode Island General Laws 10-21-2

  • Property: means all of a person's right, title, and interest, both legal and equitable, in real and personal property, tangible and intangible, wherever located and however acquired. See Rhode Island General Laws 10-21-2
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • 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 chapter or court order, transfer, sell, lease, license, exchange, collect, or otherwise dispose of receivership property. See Rhode Island General Laws 10-21-2
  • Receivership: means a proceeding in which a receiver is appointed. See Rhode Island General Laws 10-21-2
  • Receivership property: means the property of an owner which is described in the order appointing a receiver or a subsequent order. See Rhode Island General Laws 10-21-2
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Rhode Island General Laws 10-21-2
  • Subpoena: A command to a witness to appear and give testimony.
  • town: may be construed to include city; the words "town council" include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9

(b)  With court approval, a receiver may:

(1)  Incur debt for the use or benefit of receivership property other than in the ordinary course of business;

(2)  Make improvements to receivership property;

(3)  Use or transfer receivership property other than in the ordinary course of business as provided in § 10-21-16;

(4)  Adopt or reject an executory contract of the owner as provided in § 10-21-17;

(5)  Pay compensation to the receiver as provided in § 10-21-21, and to each professional engaged by the receiver as provided in § 10-21-15;

(6)  Recommend allowance or disallowance of a claim of a creditor as provided in § 10-21-20; and

(7)  Make a distribution of receivership property as provided in § 10-21-20.

(c)  A receiver shall:

(1)  Prepare and retain appropriate business records, including a record of each receipt, disbursement, and disposition of receivership property;

(2)  Account for receivership property, including the proceeds of a sale, lease, license, exchange, collection, or other disposition of the property;

(3)  Record with the land evidence records of each city or town in which the property is located a copy of the order appointing the receiver and, if a legal description of the real property is not included in the order, the legal description;

(4)  Disclose to the court any fact arising during the receivership which would disqualify the receiver under § 10-21-7; and

(5)  Perform any duty imposed by court order, this chapter, or law of this state other than this chapter.

(d)  The powers and duties of a receiver may be expanded, modified, or limited by court order.

History of Section.
P.L. 2022, ch. 107, § 1, effective June 20, 2022; P.L. 2022, ch. 108, § 1, effective June 20, 2022.