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…
When may a California receiver be appointed by the court?
A California court-appointed receiver may be appointed pursuant to the State of California Code of Civil Procedure 564. This code identifies the following circumstances under which the court may seek the appointment of a receiver:
- In an action by a vendor to vacate a fraudulent purchase of property, or by a creditor to subject any property or fund to the creditor’s claim, or between partners or others jointly owning or interested in any property or fund;
- In an action by a secured lender for the foreclosure of a deed of trust or mortgage and sale of property upon which there is a lien under a deed of trust or mortgage when certain additional circumstances exist;
- Post-judgment, to carry the judgment into effect;
- After judgment, to dispose of the property according to the judgment, or to preserve it during the pendency of an appeal, or pursuant to the enforcement of judgments Law, or after the selling of real property pursuant to a decree of foreclosure, during the redemption.;
- In connection with the dissolution of a corporation;
- Where a corporation is insolvent, in imminent danger of insolvency, or has forfeited its corporate rights;
- In an unlawful detainer;
- At the request of the Public Utilities Commission;
- In all other cases where necessary to preserve the property or rights of any party;
- At the request of the office of statewide health planning and development, or the Atty. Gen. in connection with Health & Safety Code matters;
- In an action by a secured lender for specific performance of an assignment of rents provision in a deed of trust, mortgage, or separate assignment document;
- In a case brought by the assignee under an assignment of leases, rents, issues, or profits;
- In an action filed by a secured lender to take certain actions including inspection of property related to possible hazardous conditions.
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…
All court receiverships are not created equally, but the life-cycle of a court receivership has similarities that can be seen in almost every case.