§ 3-418

Maryland § 3-418

• Jurisdiction: Maryland
• Article gca: Corporations and Associations
• Title: 3

Text

(a) The receiver of a Maryland corporation being voluntarily or involuntarily dissolved is vested with full title to all the assets of the corporation and has full power to enforce obligations or liabilities in its favor. He shall liquidate the assets of the corporation and wind up its affairs under the supervision of the court and has all powers necessary for that purpose.

(b) (1) Any preference, payment, or transfer made by the corporation which would be void, voidable, or fraudulent under State law or the federal Bankruptcy Code if made by an insolvent or bankrupt is to the same extent void, voidable, or fraudulent, respectively, as to the corporation, and the receiver has the powers of a trustee in bankruptcy with respect to setting them aside.

(2) For the purpose of this subsection, the date of filing a petition for appointment of a receiver has the same effect as the date of filing a petition in bankruptcy.

(c) If assets of a corporation are sold to foreclose a mortgage, deed of trust, security interest, or similar instrument:

(1) The receiver may sell only the corporation’s equity of redemption in the assets, unless the other parties in interest agree otherwise in writing; and

(2) If the other parties do not agree otherwise in writing, the sale may take place as if the proceedings for dissolution had not been instituted.