HB 7271 — AN ACT CONCERNING THE UNIFORM COMMERCIAL REAL ESTATE RECEIVERSHIP ACT.

(4) Adopt or reject an executory contract of the ownerowner, as provided in section 17 of this act;

(5) Pay compensation to the receiverreceiver, as provided in section 21 of this act and to each professional engaged by the receiverreceiver, as provided in section 15 of this act;

(6) Recommend allowance or disallowance of a claim of a creditorcreditor, as provided in section 20 of this act;

and (7) Make a distribution of receivership propertyproperty, as provided in section 20 of this act.

(1) Prepare and retain appropriate business records, including a record of each receipt, disbursement and disposition of receivership property;LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07271-12 of 26 R01-HB.docx } Substitute Bill No.

(2)7271 Accountproperty; for receivership property, including the proceeds of a LCO No.

4975(2) 12Account offor 26receivership Raisedproperty, Billincluding No.7271the proceeds of a sale, lease, license, exchange, collection or other disposition of the property;

(4) On subpoena, submit to examination under oath by the receiver concerning the acts, conduct, property, liabilities and financial condition of the owner or any matter relating to the receivership propertyLCO or{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0727113 theof receivership;26 R01-HB.docx } Substitute Bill No.

and7271 (5)property Performor anythe dutyreceivership; imposed by court order, sections 1 to 28, LCO No.

4975and 13(5) Perform any duty imposed by court order, sections 1 to 28, inclusive, of 26this Raisedact Billor No.the law of this state other than sections 1 to 28, inclusive, of this act.

7271 inclusive, of this act or the law of this state other than sections 1 to 28, inclusive, of this act.

(c) A person whose act, action or proceeding is stayed or enjoined under this section may apply to the court for relief from the stay or injunctionLCO for{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0727114 cause.of 26 R01-HB.docx } Substitute Bill No.

(d)7271 Aninjunction orderfor undercause. subsection (a) or (b) of this section does not LCO No.

4975(d) 14An order under subsection (a) or (b) of 26this Raisedsection Billdoes No.7271not operate as a stay or injunction of:

(1)LCO The{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07215 identityof and26 qualificationsR01-HB.docx of} theSubstitute professional;Bill No.

7271 (1) The identity and qualifications of the professional;

LCO(3) No.Any potential conflict of interest;

4975 15 of 26 Raised Bill No.7271 (3) Any potential conflict of interest;

(d) A lien on receivership property which is extinguished by a transferLCO under{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07216 subsection (c) of this26 sectionR01-HB.docx attaches} toSubstitute theBill proceedsNo. 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.

LCO7271 No.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.

4975 16 of 26 Raised Bill No.7271 (e) A transfer under subsection (c) of this section may occur by means other than a public auction sale.

(c) A receiver's performance of an executory contract before court approvalLCO under{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0727117 subsection (b) of this26 sectionR01-HB.docx of} itsSubstitute adoptionBill orNo. rejection is not an adoption of the contract and does not preclude the receiver from seeking approval to reject the contract.

(d)7271 Aapproval provisionunder insubsection an(b) executoryof contractthis whichsection requiresof orits permitsadoption aor forfeiture,rejection modificationis ornot terminationan adoption of the contract becauseand ofdoes not preclude the LCOreceiver No.from seeking approval to reject the contract.

4975(d) 17A provision in an executory contract which requires or permits a forfeiture, modification or termination of 26the Raisedcontract Billbecause No.7271of 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.

or (2) Retain the purchaser's right to possession under the contract, and in that case the purchaser shall continue to perform all obligations arisingLCO under{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-072718 the contract and may offset any damages caused by nonperformance of an26 obligationR01-HB.docx of} theSubstitute ownerBill afterNo. 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.

7271 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.

LCO(1) No.The tenant occupies the leased premises as the tenant's primary residence;

4975 18 of 26 Raised Bill No.7271 (1) The tenant occupies the leased premises as the tenant's primary residence;

(b) A receiver may be sued personally for an act or omission in administering receivership property only with approval of the court thatLCO appointed{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-072719 theof receiver.26 R01-HB.docx } Substitute Bill No.

7271 that appointed the receiver.

(2) Receipts and disbursements, including a payment made or LCOproposed No.to be made to a professional engaged by the receiver;

4975 19 of 26 Raised Bill No.7271 proposed to be made to a professional engaged by the receiver;

(1) Deposit for delivery through first-classfirst class mail or other commercially reasonable delivery method to the last-known address of each creditor;

(c)LCO A{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07220 claimof submitted26 byR01-HB.docx a} creditorSubstitute underBill thisNo. section must:

7271 (c) A claim submitted by a creditor under this section must:

and LCO(5) No.Include a copy of any record on which the claim is based.

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7271 (5) Include a copy of any record on which the claim is based.

and (2)LCO A{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-0727121 distribution of receivership26 propertyR01-HB.docx to} aSubstitute creditorBill withNo. an allowed unsecured claim must be made as the court directs according to the law of this state other than sections 1 to 28, inclusive, of this act.

7271 (2) A distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs according to the law of this state other than sections 1 to 28, inclusive, of this act.

LCO(b) No.The court may order one or more of the following to pay the reasonable and necessary fees and expenses of the receivership, including reasonable attorneys' fees and costs:

4975 21 of 26 Raised Bill No.7271 (b) The court may order one or more of the following to pay the reasonable and necessary fees and expenses of the receivership, including reasonable attorneys' fees and costs:

If the court finds thatLCO the{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07222 appointmentof was26 soughtR01-HB.docx wrongfully} orSubstitute inBill badNo. faith, the court may assess against the person that sought the appointment:

7271 that the appointment was sought wrongfully or in bad faith, the court may assess against the person that sought the appointment:

(NEW) (Effective October 1, 2019) (a) On completion of a LCOreceiver's No.duties, the receiver shall file a final report including:

4975 22 of 26 Raised Bill No.7271 receiver's duties, the receiver shall file a final report including:

(NEW) (Effective October 1, 2019) (a) The court may appoint a receiver appointed in another state, or that person's nominee, as an ancillaryLCO receiver{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07223 with respect to property located in this state or subject to the jurisdiction of the26 courtR01-HB.docx for} whichSubstitute aBill receiverNo. could be appointed under sections 1 to 28, inclusive, of this act, if:

7271 ancillary receiver with respect to property located in this state or subject to the jurisdiction of the court for which a receiver could be appointed under sections 1 to 28, inclusive, of this act, if:

LCO(b) No.The court may issue an order that gives effect to an order entered in another state appointing or directing a receiver.

4975 23 of 26 Raised Bill No.7271 (b) The court may issue an order that gives effect to an order entered in another state appointing or directing a receiver.

(NEW) (Effective October 1, 2019) In applying and construing sectionsLCO 1{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07224 to 28, inclusive, of this26 act,R01-HB.docx consideration} mustSubstitute beBill givenNo. to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

7271 sections 1 to 28, inclusive, of this act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.

(NEW) (Effective October 1, 2019) Sections 1 to 28, inclusive, of this act modify, limit orand supersede the Electronic Signatures in Global and National Commerce Act, 15 USC Section 7001 et seq., but do not modify, limit or supersede Section 101(c) of said act, 15 USC Section 7001(c) or authorize electronic delivery of any of the notices described in Section 103(b) of said act, 15 USC Section 7003(b).

LCOSec. No.

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7271 Sec.

(NEW) (Effective October 1, 2019) Sections 1 to 28, inclusive, of this act do not apply to a receivership for which the receiver was appointed before October 1, 2018.2019.

21 October 1, 2019 New section Sec.LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07271- 25 of 26 R01-HB.docx } Substitute Bill No.

7271 Sec.

27 October 1, 2019 New section October 1, 2019 Sec.

28 October 1, 2019 New section Statement of Purpose:Legislative Commissioners:

ToIn adoptSection 28, the Uniformreference Realto Estate"October Receivership1, Act.2018" was changed to "October 1, 2019" for accuracy.

LCOJUD No.Joint Favorable Subst.

4975-LCO 25LCO of{\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07271- 26 Raisedof Bill26 No.R01-HB.docx }

7271 [Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] LCO No.

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