§ 10-21-17. Executory contract.
(a) In this section, "timeshare interestâ€� means a "time shareâ€� as defined in § 34-41-1.02.
(b) Except as otherwise provided in subsection (h) of this section, with court approval,
a receiver may adopt or reject an executory contract of the owner relating to receivership
property. The court may condition the receiver's adoption and continued performance
of the contract on terms appropriate under the circumstances. If the receiver does
not request court approval to adopt or reject the contract within a reasonable time
after the receiver's appointment, the receiver is deemed to have rejected the contract.
(c) A receiver's performance of an executory contract before court approval of its adoption
or rejection under subsection (b) of this section is not an adoption of the contract
and does not preclude the receiver from seeking approval to reject the contract.
(d) A provision in an executory contract which requires or permits a forfeiture, modification,
or termination of the contract because of the appointment of a receiver or the financial
condition of the owner does not affect a receiver's power under subsection (b) of
this section to adopt the contract.
(e) A receiver's right to possess or use receivership property pursuant to an executory
contract terminates on rejection of the contract under subsection (b) of this section.
Rejection is a breach of the contract effective immediately before appointment of
the receiver. A claim for damages for rejection of the contract must be submitted
by the later of:
(1) The time set for submitting a claim in the receivership; or
(2) Thirty (30) days after the court approves the rejection.
(f) If at the time a receiver is appointed, the owner has the right to assign an executory
contract relating to receivership property under the law of this state other than
this chapter, the receiver may assign the contract with court approval.
(g) If a receiver rejects under subsection (b) of this section an executory contract for
the sale of receivership property that is real property in possession of the purchaser
or a real-property timeshare interest, the purchaser may:
(1) Treat the rejection as a termination of the contract, and in that case the purchaser
has a lien on the property for the recovery of any part of the purchase price the
purchaser paid; or
(2) Retain the purchaser's right to possession under the contract, and in that case the
purchaser shall continue to perform all obligations arising under the contract and
may offset any damages caused by nonperformance of an obligation of the owner after
the date of the rejection, but the purchaser has no right or claim against other receivership
property or the receiver on account of the damages.
(h) A receiver may not reject an unexpired lease of real property under which the owner
is the landlord if:
(1) The tenant occupies the leased premises as the tenant's primary residence;
(2) The receiver was appointed at the request of a person other than a mortgagee; or
(3) The receiver was appointed at the request of a mortgagee and:
(i) The lease is superior to the lien of the mortgage;
(ii) The tenant has an enforceable agreement with the mortgagee or the holder of a senior
lien under which the tenant's occupancy will not be disturbed as long as the tenant
performs its obligations under the lease;
(iii) The mortgagee has consented to the lease, either in a signed record or by its failure
timely to object that the lease violated the mortgage; or
(iv) The terms of the lease were commercially reasonable at the time the lease was agreed
to and the tenant did not know or have reason to know that the lease violated the
mortgage.