HB 28 — ILLINOIS RECEIVERSHIP ACT

HB0028 EngrossedEnrolled LRB104 03780 JRC 13804 b AN ACT concerning receivership.

(iv) a sibling, aunt, uncle, great aunt, great uncle, first cousin, niece, nephew, grandniece, or grandnephew of the individual, whether related by the whole or the half blood or adoption, or a companion of HB0028 EngrossedEnrolled - 2 - LRB104 03780 JRC 13804 b any of them;

HB0028 EngrossedEnrolled - 3 - LRB104 03780 JRC 13804 b (B) the domestic partner of an individual;

HB0028 EngrossedEnrolled - 4 - LRB104 03780 JRC 13804 b (13) "Mortgagee" means a person entitled to enforce an obligation secured by a mortgage.

HB0028 EngrossedEnrolled - 5 - LRB104 03780 JRC 13804 b (18) "Property" means all of a person's right, title, and interest, both legal and equitable, in real and personal property, tangible and intangible, wherever located and however acquired.

(25) "Secured party" means a person entitled to enforce a HB0028 EngrossedEnrolled - 6 - LRB104 03780 JRC 13804 b secured obligation.

(c) In connection with any sale of receivership property HB0028 EngrossedEnrolled - 7 - LRB104 03780 JRC 13804 b under Section 16 of this Act, notice shall be provided to:

(6) Section 15-1704 of the Illinois HB0028 EngrossedEnrolled - 8 - LRB104 03780 JRC 13804 b Mortgage Foreclosure Law;

and (d) over all matters otherwise arising in or relating to the receivership, the receivership property, the exercise of the receiver's powers, or the performance of HB0028 EngrossedEnrolled - 9 - LRB104 03780 JRC 13804 b the receiver's duties.

HB0028 EngrossedEnrolled - 10 - LRB104 03780 JRC 13804 b (D) the acts of the persons in control of the person are illegal, oppressive, or fraudulent;

HB0028 EngrossedEnrolled - 11 - LRB104 03780 JRC 13804 b (c) The court may appoint a receiver to prevent irreparable harm without prior notice under Section 3(b)(1) or without a prior hearing under Section 3(b)(2) and may condition such appointment on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorney's fees, and costs incurred or suffered by any person if the court later concludes that the appointment was not justified.

HB0028 EngrossedEnrolled - 12 - LRB104 03780 JRC 13804 b (3) has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;

(a) Except as otherwise provided in subsection (b) and HB0028 EngrossedEnrolled - 13 - LRB104 03780 JRC 13804 b (c), a receiver shall post with the court a bond that:

HB0028 EngrossedEnrolled - 14 - LRB104 03780 JRC 13804 b (2) under Sections 1 to 39 of the Conveyances Act as to receivership property that is real property as to persons with actual or constructive notice of the appointment and to all other persons from the time of recording of the order appointing the receiver pursuant to Section 12(c)(3) of this Act;

(1) a person that owes a debt that is receivership property and is matured or payable on demand or on order shall pay the debt to or on the order of the receiver, except to the extent the debt is subject to setoff or HB0028 EngrossedEnrolled - 15 - LRB104 03780 JRC 13804 b recoupment;

(a) Except as limited by court order or law of this State HB0028 EngrossedEnrolled - 16 - LRB104 03780 JRC 13804 b other than this Act, a receiver may:

(5) assert a right, claim, cause of action, or defense of the owner which relates to receivership property and maintain in the receiver's name or owner's name any action to enforce any such right, claim, cause of action, or HB0028 EngrossedEnrolled - 17 - LRB104 03780 JRC 13804 b defense and intervene in actions in which owner is a party for the purpose of exercising any rights pursuant to this subsection (a)(5) or requesting transfer of venue of the action to the court;

(1) Except as otherwise provided in subsection (a)(4), incur debt for the use or benefit of receivership property other than in the ordinary course of business provided that any lien securing such indebtedness is junior to any existing liens on the receivership property, unless otherwise authorized by the law of this State other than HB0028 EngrossedEnrolled - 18 - LRB104 03780 JRC 13804 b this Act;

(1) prepare and retain appropriate business records from the receiver's appointment until the receiver's discharge, including a record of each receipt, HB0028 EngrossedEnrolled - 19 - LRB104 03780 JRC 13804 b disbursement, and disposition of receivership property;

HB0028 EngrossedEnrolled - 20 - LRB104 03780 JRC 13804 b Section 13.

HB0028 EngrossedEnrolled - 21 - LRB104 03780 JRC 13804 b (1) A list of all receivership property and exempt property of the owner, identifying:

HB0028 EngrossedEnrolled - 22 - LRB104 03780 JRC 13804 b Section 14.

(1) an act, action, or proceeding to perfect, or maintain or continue the perfection of, an interest in receivership property, provided that if perfection of an interest would require seizure of receivership property or HB0028 EngrossedEnrolled - 23 - LRB104 03780 JRC 13804 b commencement of an action, the perfection shall instead be accomplished by filing with the court, and by serving upon the receiver, notice of the interest within the time fixed by law for seizure or commencement;

(1) award actual damages caused by the violation, HB0028 EngrossedEnrolled - 24 - LRB104 03780 JRC 13804 b reasonable attorney's fees, and costs;

(b) A person is not disqualified from engagement under this Section solely because of the person's engagement by, HB0028 EngrossedEnrolled - 25 - LRB104 03780 JRC 13804 b representation of, or other relationship with the receiver, a creditor, or a party.

HB0028 EngrossedEnrolled - 26 - LRB104 03780 JRC 13804 b Section 16.

HB0028 EngrossedEnrolled - 27 - LRB104 03780 JRC 13804 b (e) A transfer under subsection (c) may occur by means other than a public auction sale.

An HB0028 EngrossedEnrolled - 28 - LRB104 03780 JRC 13804 b executory contract may only be assumed or rejected by court order.

A claim for damages for rejection of the contract HB0028 EngrossedEnrolled - 29 - LRB104 03780 JRC 13804 b shall be presented or filed in the same manner as other claims in the receivership no later than:

HB0028 EngrossedEnrolled - 30 - LRB104 03780 JRC 13804 b (h) A receiver may not reject an unexpired lease of real property under which the owner is the landlord if:

(a) A receiver is entitled to all defenses and immunities provided by law of this State for an act or omission within the HB0028 EngrossedEnrolled - 31 - LRB104 03780 JRC 13804 b scope of the receiver's appointment.

HB0028 EngrossedEnrolled - 32 - LRB104 03780 JRC 13804 b Section 20.

and HB0028 EngrossedEnrolled - 33 - LRB104 03780 JRC 13804 b (5) include a copy of any record on which the claim is based.

(g) Claims subject to estimation under subsection (f) shall be allowed in the estimated amount as determined by the HB0028 EngrossedEnrolled - 34 - LRB104 03780 JRC 13804 b court.

(a) The court may award a receiver from receivership property the reasonable and necessary fees and expenses of performing the duties of the receiver and exercising the HB0028 EngrossedEnrolled - 35 - LRB104 03780 JRC 13804 b powers of the receiver.

(d) The court may discharge a receiver and terminate the court's administration of the receivership property if the court finds that appointment of the receiver was improvident or that the circumstances no longer warrant continuation of HB0028 EngrossedEnrolled - 36 - LRB104 03780 JRC 13804 b the receivership.

(6) if not filed separately, a request for approval of the payment of fees and expenses of the receiver and the HB0028 EngrossedEnrolled - 37 - LRB104 03780 JRC 13804 b receiver's professionals;

HB0028 EngrossedEnrolled - 38 - LRB104 03780 JRC 13804 b (c) Unless the court orders otherwise, an ancillary receiver appointed under subsection (a) has the rights, powers, duties and obligations of a receiver appointed under this Act.

HB0028 EngrossedEnrolled - 39 - LRB104 03780 JRC 13804 b Section 27.