Alabama § 6-6-786 Disqualification from Appointment as Receiver; Disclosure of Interest

Alabama Statutes

§ 6-6-786 — Disqualification from Appointment as Receiver; Disclosure of Interest

Alabama·Title 6 Civil Practice·Ch. 6 Remedies·Art. 18 Alabama Uniform Commercial Real Estate Receivership Act

(a)The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.

(b)Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person satisfies any of the following:

(1)Is an affiliate of a party.

(2)Has an interest materially adverse to an interest of a party.

(3)Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver.

(4)Has a debtor-creditor relationship with a party.

(5)Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.

(c)A person is not disqualified from appointment as receiver solely because the person satisfies a

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(a) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.
(b) Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person satisfies any of the following:
(1) Is an affiliate of a party.
(2) Has an interest materially adverse to an interest of a party.
(3) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver.
(4) Has a debtor-creditor relationship with a party.
(5) Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.
(c) A person is not disqualified from appointment as receiver solely because the person satisfies any of the following:
(1) Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership.
(2) Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes.
(3) Maintains with a party a deposit account as defined in Section 7-9A-102(a).
(d) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

Alabama § 6-6-786 (Disqualification from Appointment as Receiver; Disclosure of Interest) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.