The California Code of Civil Procedure Section 564 lists many of the traditional types of cases in which receivers may be appointed. They include, but are not limited to, the following: Preservation of a common fund or property in dispute and in danger of injury or dissipation;Rents, Issues and Profits (Real Estate);Substandard Housing – The…
What are the qualifications of a receiver?
The receiver is an agent, officer, or arm of the Court. By definition, a receiver is neutral and must not have any financial interest in the asset over which the receiver is appointed. There are no licenses that receivers are required to possess. However, there are many considerations regarding the qualifications of a receiver.
The qualifications of the receiver include but are not limited to, the background education and training of the receiver as it relates to the asset over which the receiver will be appointed. In addition, considerations including geography, property or business type, professional designations and licenses, access to and use of appropriate third-party professionals and prior experience as receiver may be considered by the court.
Texas as an example generally requires that a receiver be a resident of the State of Texas in order to qualify to become a receiver. In addition, a receiver must qualify to obtain a receiver’s bond. This means that the receiver must have liquid assets and good credit. In addition, a receiver must possess ECB evidencing his or her prior experience, knowledge, training, and fitness to serve as a receiver.
Finally, a receiver must execute in most instances, an oath of the receiver. The oath sets forth the receiver’s neutrality, qualifications and ability to serve, and commitment to do so in an unbiased manner. Ultimately, the court will determine the suitability of the proposed receiver. A receiver is nominated by a party but is always appointed by the court.
A receivership can be structured in a variety of ways based on the nature of the dispute, the goals and objectives of the parties, the type of asset(s) that will be placed under the control of a receiver as well as the ruling of the court. There are two core types of receiverships – a…