§ 10-21-12.1 — § 10-21-12.1. Powers and duties of temporary non-liquidating receiver — Operating plan.

Rhode Island § 10-21-12.1

• Jurisdiction: Rhode Island
• Title 10: Courts and civil procedure–Procedure in particular actions
• Ch. 10-21: Rhode Island Commercial Receivership Act

Text

§ 10-21-12.1. Powers and duties of temporary non-liquidating receiver — Operating plan.

(a) A temporary non-liquidating receiver shall:

(1) Assist the owner in developing an operating plan in consultation;

(2) Present the operating plan to the court for approval; and

(3) Monitor the owner's business operations and the owner's compliance with the plan.

(b) An operating plan must:

(1) Except to the extent that a particular creditor has agreed to a different treatment of its claim:

(i) Provide for the payment of any secured obligation of the owner on the terms of the secured obligation;

(ii) Provide for the payment of the owner's debts accruing or arising after the appointment of the receiver when such debts become due; and

(iii) Provide for the payment of each of the owner's other debts either:

(A) In periodic installments over a term of not more than three (3) years after the court approves the plan; or

(B) As to a particular debt, in such other manner as the owner and the creditor may agree in a record; and

(2) Include such other measures as necessary to justify the termination of the receivership.

(c) The court may modify the operating plan.

(d) A temporary non-liquidating receiver may not exercise any of the powers under §§ 10-21-12(a)(1) through (4) unless:

(1) The court directs otherwise for cause; or

(2) The owner defaults on an approved operating plan after such notice and opportunity to cure the default as the court specifies.

Legislative History

P.L. 2022, ch. 107, § 1, effective June 20, 2022; P.L. 2022, ch. 108, § 1, effective June 20, 2022.