§ 7-56-716 — Receivership or custodianship

(1) A court in a proceeding to
dissolve a cooperative may appoint one or more receivers to wind up and liquidate,
or one or more custodians to manage the business and affairs, of the cooperative.
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 pursuant to this section. The court appointing a receiver or custodian has
exclusive jurisdiction over the cooperative and all of its property, wherever located.

(2) The court may appoint an individual, a domestic entity, or a foreign entity
or other entity 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 the court directs.

(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:

(a) The receiver may:

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

(II) Sue and defend in the receiver's own name as receiver of the cooperative
in all courts; or

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

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

(5) 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
cooperative or proceeds from the sale of the assets.

Legislative History

Source: L. 96: Entire article R&RE, p. 533, � 1, effective July 1. L. 2003: (1) and (2) amended, p. 2235, � 108, effective July 1, 2004. L. 2004: (1) amended, p. 1421, � 66, effective July 1.