Appointment of receiver

Appointment of receiver. (a) The court may appoint a receiver: (1) before judgment, to protect a party that demonstrates an apparent right, title, or interest in property that is the subject of the action, if the property or its revenue-producing potential: (A) is being subjected to or is in danger of waste, loss, dissipation, or impairment; or (B) has been or is about to be the subject of a voidable transaction; (2) after judgment: (A) to enforce or otherwise carry the judgment into effect; or (B) to preserve nonexempt property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment; (3) in an action against a person that is not an individual if: (A) the object of the action is the dissolution of the person; (B) the person has been dissolved; (C) the persons in control of the person are deadlocked in the management of the person's affairs; (D) the acts of the persons in control of the person are illegal, oppressive, or fraudulent; or (E) the person is insolvent or generally is not paying the person's debts as those debts become due; (4) in an action in which a receiver may be appointed by law or on equitable grounds; or (5) during the time allowed for redemption, to preserve property sold in an execution or foreclosure sale and secure its rents to the person entitled to the rents. (b) In connection with the foreclosure or other enforcement of a lien, the court may appoint a receiver for the collateral if: (1) appointment is necessary to protect the property from waste, loss, transfer, dissipation, or impairment; (2) the debtor agreed in a signed record to appointment of a receiver on default; (3) the owner agreed, after default and in a signed record, to appointment of a receiver; (4) the collateral and any other collateral security held by the secured party are not sufficient to satisfy the secured obligation; (5) the owner fails to turn over to the secured party proceeds or rents the secured party was entitled to collect; or (6) the holder of a subordinate lien obtains appointment of a receiver for the property. (c) The court may appoint a receiver to prevent irreparable harm without prior notice under Section 3(b)(1) or without a prior hearing under Section 3(b)(2) and may condition such appointment on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorney's fees, and costs incurred or suffered by any person if the court later concludes that the appointment was not justified. If the court later concludes that the appointment was justified, the court shall release the security.(Source: P.A. 104-34, eff. 1-1-26.)