West Virginia § 55-21-16 Use or transfer of receivership property not in ordinary course of business

West Virginia Statutes

§ 55-21-16 — Use or transfer of receivership property not in ordinary course of business

West Virginia § 55-21-16

Ch. 55ACTIONS, SUITS AND ARBITRATION; JUDICIAL SALE

Art. 21UNIFORM COMMERCIAL REAL ESTATE RECEIVERSHIP ACT

This text of West Virginia § 55-21-16 (Use or transfer of receivership property not in ordinary course of business) is published on Counsel Stack Legal Research, covering West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

W. Va. Code § 55-21-16 (2026).

Text

(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, but is subject to a 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

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(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, but is subject to a 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 the person knew before the transfer of the request for reversal or modification, unless the court stayed the order before the transfer.