The Accelerated Marketing Group (AMG) is a professional, experienced party that occasionally accepts a Receiver position of responsibility. A Receiver is a person in a unique position of trust to a presiding Court, a neutral person who is appointed by a Court to hold temporary possession of a property belonging to one or more litigants. In virtually all cases, a lawsuit is filed in order to get a Receiver appointed.
There are many factors to be considered before deciding to appoint a Receiver. Some are outlined below and AMG will be pleased to discuss this with a lender or other qualified principal.
Most common Receivership is where there is a monetary default in an income-producing property. This is also the most common type of Receivership service offered by AMG. The process is usually:
- Lender commences judicial foreclosure and asks the Court to appoint the Receiver, and records a Notice of Default under the Deed of Trust to begin non-judicial foreclosure.
- Lender must choose between foreclosing non-judicially at a trustee's sale or by obtaining a decree of foreclosure in Court.
- Election of remedies not final until auction completed or Court enters judgment.
- Receiver collects rent for up to 4 months notice period before a sale can take place.
- Receiver pays expenses, including his or her fees and counsel's fees from rent collected.
- Balance paid to Lender at end of receivership.
- The Receiver must faithfully discharge duties and comply with the Court.
- Receiver must keep funds in insured accounts, maintained by licensed securities dealers and not in the Bank that is a party to the action.
How does the Court choose whom to appoint as Receiver?
- It is up to the judge, but the parties usually nominate AMG.
There are different types of Receivers and their duties:
- Rents and profits receivers; begins to collect accounts and rents
- Equity receivers.
- Receiver is not liable for debts incurred by the Borrower prior to the appointment of the Receiver.
- Receiver is appointed due to defaulted real estate loans.
- Receiver secures control over premises
- Receiver inventories: tangible and intangible assets.
Can the Receiver sell assets outside the ordinary course of business?
Only with Court approval.
Can the Receiver abandon assets that are too costly to maintain?
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