§ 10-21-16. Use or transfer of receivership property not in the ordinary course of business.
(a) In this section, "good faith� means honesty in fact and the observance of reasonable
commercial standards of fair dealing.
(b) With court approval, a receiver may use receivership property other than in the ordinary
course of business.
(c) With court approval, a receiver may transfer receivership property other than in the
ordinary course of business by sale, lease, license, exchange, or other disposition.
Unless the agreement of sale provides otherwise, a sale under this section is free
and clear of a lien of the person that obtained appointment of the receiver, any subordinate
lien, and any right of redemption. However, unless the holder of a senior lien consents,
such a sale:
(1) Is subject to the senior lien and to the rights and remedies of the holder of the
senior lien under law other than this chapter; and
(2) Does not affect the obligation secured by the senior lien.
(d) A lien on receivership property which is extinguished by a transfer under subsection
(c) of this section attaches to the proceeds of the transfer with the same validity,
perfection, and priority the lien had on the property immediately before the transfer,
even if the proceeds are not sufficient to satisfy all obligations secured by the
lien.
(e) A transfer under subsection (c) of this section may occur by means other than a public
auction sale. A creditor holding a valid lien on the property to be transferred may
purchase the property and offset against the purchase price part or all of the allowed
amount secured by the lien, if the creditor tenders funds sufficient to satisfy in
full the reasonable expenses of transfer and the obligation secured by any senior
lien extinguished by the transfer.
(f) A reversal or modification of an order approving a transfer under subsection (c) of
this section does not affect the validity of the transfer to a person that acquired
the property in good faith or revive against the person any lien extinguished by the
transfer, whether or not the person knew before the transfer of the request for reversal
or modification, unless the court stayed the order before the transfer.