§ 7-134-303 — Receivership or custodianship

(1) A court in a judicial
proceeding to dissolve a nonprofit corporation may appoint one or more receivers to
wind up and liquidate, or one or more custodians to manage, the affairs of the
nonprofit corporation. The court shall hold a hearing, after giving notice to all
parties to the proceeding and any interested persons designated by the court,
before appointing a receiver or custodian. The court appointing a receiver or
custodian has exclusive jurisdiction over the nonprofit corporation and all of its
property, wherever located.

(2) The court may appoint an individual, a domestic entity, or a foreign entity
authorized to transact business or conduct activities in this state, or a domestic or
foreign nonprofit corporation authorized to transact business or conduct activities
in this state as a receiver or custodian. The court may require the receiver or
custodian to post bond, with or without sureties, in an amount stated by the court.

(3) The court shall describe the powers and duties of the receiver or
custodian in its appointing order which may be amended from time to time. Among
other powers the receiver shall have the power to:

(a) Dispose of all or any part of the property of the nonprofit corporation,
wherever located, at a public or private sale, if authorized by the court; and

(b) Sue and defend in the receiver's own name as receiver of the nonprofit
corporation in all courts.

(4) The custodian may exercise all of the powers of the nonprofit
corporation, through or in place of its board of directors or officers, to the extent
necessary to manage the affairs of the nonprofit corporation in the best interests of
its members and creditors.

(5) The court, during a receivership, may redesignate the receiver a
custodian and during a custodianship may redesignate the custodian a receiver if
doing so is in the best interests of the nonprofit corporation and its members and
creditors.

(6) The court from time to time during the receivership or custodianship may
order compensation paid and expense disbursements or reimbursements made to
the receiver or custodian and such person's counsel from the assets of the
nonprofit corporation or proceeds from the sale of the assets.

Legislative History

Source: L. 97: Entire article added, p. 730, � 3, effective July 1, 1998. L. 2003: (2) amended, p. 2349, � 329, effective July 1, 2004. L. 2004: (1) amended, p. 1515, � 309, effective July 1.