(a) Unless the court orders otherwise, on demand by a receiver:

Terms Used In Tennessee Code 29-40-111

  • Court: means a chancery court in this state. See Tennessee Code 29-40-102
  • Lien: means an interest in property that secures payment or performance of an obligation. See Tennessee Code 29-40-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Owner: means the person for whose property a receiver is appointed. See Tennessee Code 29-40-102
  • Person: means an individual. See Tennessee Code 29-40-102
  • Property: includes proceeds, products, offspring, rents, or profits of or from the property. See Tennessee Code 29-40-102
  • 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 Tennessee Code 29-40-102
  • Receivership: means a proceeding in which a receiver is appointed. See Tennessee Code 29-40-102
  • Receivership property: includes any proceeds, products, offspring, rents, or profits of or from the property. See Tennessee Code 29-40-102
(1) A person that owes a debt that is receivership property and is matured or payable on demand or on order shall pay the debt to or on the order of the receiver, except to the extent the debt is subject to setoff or recoupment; and
(2) Subject to subsection (c), a person that has possession, custody, or control of receivership property shall turn the property over to the receiver.
(b) A person that has notice of the appointment of a receiver and owes a debt that is receivership property may not satisfy the debt by payment to the owner.
(c) If a creditor has possession, custody, or control of receivership property and the validity, perfection, or priority of the creditor’s lien on the property depends on the creditor’s possession, custody, or control, the creditor may retain possession, custody, or control until the court orders adequate protection of the creditor’s lien.
(d) Unless a bona fide dispute exists about a receiver’s right to possession, custody, or control of receivership property, the court may sanction as civil contempt a person’s failure to turn the property over when required by this section.
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