AB 235 — Enacts the Uniform Commercial Real Estate Receivership Act. (BDR 3-714)
Last action — Approved by the Governor. Chapter 232.
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✓Introduced
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✓In Committee
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✓Passed Assembly
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✓Passed Senate
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✓To Executive
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6Enacted
This bill has been enacted into law. Introduced February 24, 2017. Enacted.
Odds of enactment
High chanceBased on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.
Upgrade to see the exact probability and what's driving it.
A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.
Prognosis
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Enacted
Current position in the legislative process.
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8 sponsors
6 primary, 2 co-sponsors signed on.
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Single-party support
Sponsorship is currently within one party (4 D).
Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.
Bill Text
What changed in the latest version
780 added · 822 removed780 line(s) added, 822 removed.
(ReprintedAssembly withBill amendmentsNo. adopted on April 19, 2017) FIRST REPRINT A.B.
235235–Assemblymen AMonroe-Moreno, SSEMBLYCohen, BOhrenschall, ILLWatkins, NOCarrillo; .
235–AJauregui SSEMBLYMENand MYeager ONROEJoint -MSponsor: ORENO , COHEN , OHRENSCHALL , W ATKINS , CARRILLO ;
JAUREGUISenator ANDSegerblom YCHAPTER.......... EAGER F EBRUARY 24, 2017 ____________ JINT S PONSOR :
ENATOR S EGERBLOM ____________ Referred to Committee on Judiciary SUMMARY—Enacts the Uniform Commercial Real Estate Receivership Act.
(BDR 3-714) FISCAL NOTE:
Effect on Local Government:
No.
Effect on the State:
No.
~ EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
LegExistingLegislative lawCounsel’s authorizesDigest: a court to appoint a receiver in certain cases and under certain circumstances.
(NRSExisting 32.010,law 32.015)authorizes Thisa billcourt enactsto theappoint Uniforma receiver in certain cases and under Commercial Real Estate Receivership Act to establish provisions governing the appointment and powers of a receiver for real property that is used for certain commercial purposes and any personal property related to or used in operating that real property.
Section 29 of this bill sets forth the circumstances under which a court is authorized to appoint a receiver:receiver for such property.
Under section 29, a court is authorized to appoint a receiver:
(2) to carry a judgment into effect or preserve property pending an appeal or when an owner of the property refuses to apply the propertyequitable ingrounds satisfactionestablish of the judgment;need for a receiver;
(3)or when(4) theto courtpreserve determinesproperty that equitablehas groundsbeen establishsold in an execution or foreclosure sale during the needperiod forthat athe receiver;property may be redeemed by the debtor.
orSection (4)29 tofurther preserveprovides property that hasa beenmortgagee soldunder in an execution or foreclosure sale during the period that the property a mortgage for certain commercial real property is entitled to the appointment of a receiver under certain circumstances.
Section 30 of this bill establishes the circumstances under which a person is disqualified from appointment as a receiver because the person has certain conflicts - *AB235_R1* – 2 – of interest.
Section 30.5 of this bill requiresindependence theof Nevadareceivers; Supreme Court to adopt rules:
(1) governing the ethics and independence of receivers;
Section 32 provides that a receiver has the status and 33,priority the appointment of a receiverlien doescreditor notwith affectrespect the validity of any security interest granted before the appointment of the receiver, and any property acquired by a receiver is subject to a security interest granted under an agreement entered into before the appointmentreceivership ofproperty. the receiver.
SectionUnder 34section requires33, the appointment of a personreceiver whodoes possessesnot propertyaffect forthe whichvalidity aof receiverany hassecurity beeninterest appointedgranted tobefore turnthe overappointment of the receiver, and any property toacquired theby a receiver onis demandsubject byto a security interest granted under an agreement entered into before the appointment of the receiver.
Section 3534 setsrequires forth the powers and duties of a receiverperson withwho respectpossesses to the receivership property, including, without limitation, the authority to manage and protect receivership property, operate a business constituting receivership property, pay expenses and assert the rights, claims and of property for which a receiver hason beendemand appointed,by including, without limitation, a requirement to assist and cooperate with the receiver,receiver. preserve and turn over to the receiver receivership property in the owner’s possession or control and making available to the receiver certain records.
Section 35 sets forth the powers and duties of a receiver with respect to the receivership property, including, without limitation, the authority to manage and protect receivership property, operate a business constituting receivership property, pay expenses and assert the rights, claims and defenses of the owner of the property.
Section 36 sets forth the duties of the owner of property for which a receiver has been appointed, including, without limitation, a - 79th Session (2017) – 2 – requirement to assist and cooperate with the receiver, preserve and turn over to the receiver receivership property in the owner’s possession or control and making available to the receiver certain records.
Sections 38-46 of this bill enact provisions governing the administration of the receivership.professionals to assist in the administration of the receivership upon approval of the court.
Section 3839 authorizes thea receiver to hiredispose andof payreceivership certainproperty outside of the ordinary court of business with the approval of the court.
Section 39 authorizes a receiver to dispose of receivership property outsidethe of the ordinary court of business with the approval of the court.
Section 40 authorizes a receiver to adopt or reject contracts under which a party has an unperformed obligationSection upon41 approvalprovides ofimmunity theto courta receiver and establishesrequires the proceduresapproval forof doingtheing so.
Sectionappointing 41court providesbefore immunity to a receiver andmay requiresbe thesued approvalpersonally offor thean act or omission in administering receivership property.
Under section 47 of this bill, when the court of another state has appointed a person as receiver, a court in this State may appoint that person as an ancillary receiver for the purpose of obtaining possession and control of receivership property located in this State.
Section 47 further authorizes the court to enter any directingorder anecessary receiver.fectuateto effectuate an order of a court in another state appointing or Sectiondirecting 48 of this bill sets forth certain effects of the appointment of a receiverreceiver. upon the request of a mortgagee or assignee of rents.
-Section *AB235_R1*48 –of 3this –bill THEsets PEOPLEforth OFcertain THEeffects STATEof OFthe NEVADA,appointment REPRESENTEDof INa SENATEreceiver ANDupon ASSEMBLY,the DOrequest ENACTof ASa FOLLOWS:mortgagee or assignee of rents.
EXPLANATION – Matter in bolded italics is new;
matter between brackets [omitted material] is material to be omitted.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
- 79th Session (2017) – 3 – (b) A lineal ancestor or descendant, whether by blood or adoption, of:
(c)paragraph A(b);nion companion of an ancestor or descendant described in paragraph(d) (b);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 any of them;
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(d) 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 any of them;
-division, *AB235_R1*bureau, –board, 4commission –or Sec.other agency of this State or a subdivision of this State.
8.
“Governmental unit” means an office, department, division, bureau, board, commission or other agency of this State or a subdivision of this State.
- 79th Session (2017) – 4 – Sec.
“Person” means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision,subSec. agency or instrumentality, or other legal entity.
Sec.15., a“Proceeds” means the following property:
15.entity.
“Proceeds” means the following property:
“Receiver” means a person appointed by the court as the court’s agent, and subject to the court’s direction, to take possession of, manage and, if authorized by sections 2 to 50, inclusive, of this act or court order, transfer, sell, lease, license, exchange,excSec. collect or otherwise dispose of receivership property.
18.oll“Receivership” means a proceeding in which aperty.
receiver is appointed.
18.
“Receivership” means a proceeding in which a receiver is appointed.
- *AB235_R1* – 5 – Sec.
- 79th Session (2017) – 5 – 2.
Sums payable to a mortgagor for payment or reimbursement of expenses incurred in owning, operating and maintaining real property or constructing or installing improvementsimp6.veOther onsums payable under an agreement relating to the real property;property of another person that constitute rents under law of this State other than sections 2 to 50, inclusive, of this act.
or 6.
Other sums payable under an agreement relating to the real property of another person that constitute rents under law of this State other than sections 2 to 50, inclusive, of this act.
- *AB235_R1* – 6 – (a) Without prior notice if the circumstances require issuance of an order before notice is given;
Except as otherwise provided in subsection 2 or 3, sections 2 to 50, inclusive, of this act apply to a receivership for - 79th Session (2017) – 6 – an interest in real property and any personal property related to or used in operating the real property.
Sections 2 to 50, inclusive, of this act do not apply to a receivership for an interest in real property improved by one to fourfou(a) dwellingThe unitsinterest unless:is used for agricultural, commercial, industrial or mineral-extraction purposes, other than incidental uses by an owner occupying the property as the owner’s primary residence;
(a) The interest is used for agricultural, commercial, industrial or mineral-extraction purposes, other than incidental uses by an owner occupying the property as the owner’s primary residence;
to 50, inclusive, of this act has exclusive jurisdiction to direct the receiver and determine any controversy related to the receivership or receivership property.
28.
The court that appoints a receiver under sections 2 to 50, inclusive, of this act has exclusive jurisdiction to direct the receiver and determine any controversy related to the receivership or receivership property.
Sec.
- *AB235_R1* – 7 – (1) Is being subjected to or is in danger of waste, loss, dissipation or impairment;
or - 79th Session (2017) – 7 – (2) To preserve nonexempt real property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;
(c) In an action in which a receiver for real property may be appointedapp(d) onDuring equitablethe grounds;time allowed for redemption, to preserve real property sold in an execution or foreclosure sale and secure its rents to the person entitled to the rents.
or (d) During the time allowed for redemption, to preserve real property sold in an execution or foreclosure sale and secure its rents to the person entitled to the rents.
The court may condition appointment of a receiver without prior notice under paragraph (a) of subsection 2 of section 26 of this act or without a prior hearing under paragraph (b) of subsection 2 of section 26 of this act 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.
- *AB235_R1* – 8 – (c) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;
or - 79th Session (2017) – 8 – (e) Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company.
(a) Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership;
or (e)income Transfer to, or useassets byof or for the receivership.the benefit of, a receiver of the incomeSec. or assets of the receivership.
Sec.
- *AB235_R1*79th Session (2017) – 9 – 3.
A claim against a receiver’s bond or alternative security mustdischarged.e be made not later than 6 months after the date the receiver is discharged.Sec.
Sec.
A person that has notice of the appointment of a receiver anddebt owesby apayment debtto thatthe isowner.vership receivership property may not satisfy the debt3. by payment to the owner.
3.
- 79th Session (2017) – 10 – (a) Collect, control, manage, conserve and protect receivership property;
- *AB235_R1* – 10 – (b) Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collectionbusiness;n or disposition of the property in the ordinary course of business;(c) In the ordinary course of business, incur unsecured debt and pay expenses incidental to the receiver’s preservation, use, sale, lease, license, exchange, collection or disposition of receivership property;
(c) In the ordinary course of business, incur unsecured debt and pay expenses incidental to the receiver’s preservation, use, sale, lease, license, exchange, collection or disposition of receivership property;
(a)other Incurthan debtin for the useordinary orcourse benefit of receivershipbusiness;ceivership property other(b) thanMake inimprovements theto ordinaryreceivership courseproperty; of business;
(b) Make improvements to receivership property;
- 79th Session (2017) – 11 – 3.
- *AB235_R1* – 11 – (b) Account for receivership property, including the proceeds of a sale, lease, license, exchange, collection or other disposition of the property;
(c) Identify all records and other information relating to the receivership property, including a password, authorization or other information needed to obtain or maintain access to or control of the receivership property, and make available to the receiver the records and information in the owner’s possession, custody or control;
- 79th Session (2017) – 12 – 3.
and (b)Sec. Sanction the failure as civil contempt.
-37.tio1.theExcept *AB235_R1*as –otherwise 12provided –in Sec.subsection 4 or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action or proceeding:
37.
1.
Except as otherwise provided in subsection 4 or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action or proceeding:
(d) Commencement or continuation of an action or proceeding, or enforcement of a judgment other than a moneymoneyction or judgment in an action or proceeding, by a governmental unit to enforce its police or regulatory power;
- 79th Session (2017) – 13 – Sec.
The receiver shall disclose to the(a) The identity and qualifications of the court:professional;
(a) The identity and qualifications of the professional;
and - *AB235_R1* – 13 – (d) The proposed compensation.
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.
lien and any right of redemption but is 3.
- 79th Session (2017) – 14 – 5.
A reversal or modification of an order approving a transfer under subsection 2 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.
Except as otherwise provided in subsection 7, with court approval, a receiver may adopt or reject an executory - *AB235_R1* – 14 – contract of the owner relating to receivership property.
A receiver’s right to possess or use receivership property pursuant to an executory contract terminates on rejection of the contracteffective underimmediately subsectionbefore 1.appointment of the receiver.
RejectionA isclaimt afor breachdamages for rejection of the contract effectivemust immediatelybe beforesubmitted appointmentby of the receiver.later of:
A claim for damages for rejection of the contract must be submitted by the later of:
- 79th Session (2017) – 15 – (a) 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 (b) 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 anyanyrform 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.
- *AB235_R1* – 15 – (a) The tenant occupies the leased premises as the tenant’s primary residence;
or (4) The terms of the lease were commercially reasonable at the time the lease was agreed to and the tenant did not know or havehav8.reaAs reasonused toin knowthis thatsection, the“timeshare leaseinterest” violatedmeans an interest having a duration of more than 3 years which grants its holder the mortgage.right to use and occupy an accommodation, facility or recreational site, whether improved or not, for a specific period less than a full year during any given year.
8.
As used in this section, “timeshare interest” means an interest having a duration of more than 3 years which grants its holder the right to use and occupy an accommodation, facility or recreational site, whether improved or not, for a specific period less than a full year during any given year.
- 79th Session (2017) – 16 – 1.
3.
Receipts and dispositions of receivership property;
- *AB235_R1* – 16 – (a) Deposit for delivery through first-class mail or other commercially reasonable delivery method to the last known address of each creditor;
(b) State the amount and basis of the claim;
- 79th Session (2017) – 17 – (a) The receiver need not give notice under subsection 1 of the appointment to all creditors of the owner, but only such creditors as the court directs;
and (b) Unsecured creditors need not submit claims under this section.sec7.on.Subject to section 44 of this act:
7.
Subject to section 44 of this act:
- *AB235_R1* – 17 – Sec.
or (b) A person whose conduct justified or would have justified the appointment of the receiver under paragraph (a) of subsection 1 of section 29 of this act.
2.removed.The court shall replace a receiver that dies, resigns or is 3.
The court shall replace a receiver that dies, resigns or is removed.
3.
- 79th Session (2017) – 18 – (a) The fees and expenses of the receivership, including reasonable attorney’s fees and costs;
Sec.receiver shall file a final report including:r’s duties, the (a) A description of the activities of the receiver in the conduct of the receivership;
46.
1.
On completion of a receiver’s duties, the receiver shall file a final report including:
(a) A description of the activities of the receiver in the conduct of the receivership;
- *AB235_R1* – 18 – (f) If not filed separately, a request for approval of the payment of fees and expenses of the receiver;
(a) The person or nominee would be eligible to serve as receiverrec(b) underThe sectionappointment 30furthers the person’s possession, custody, control or disposition of thisproperty act;subject to the receivership in the other state.
and (b) The appointment furthers the person’s possession, custody, control or disposition of property subject to the receivership in the other state.
- 79th Session (2017) – 19 – (b) Make the mortgagee an agent of the owner;
or (g) Except as otherwise provided in subsection 2, bar a deficiency judgment pursuant to law of this State other than sectionsdeficiency 2judgment.clusive, to 50, inclusive, of this act governing or relating to a deficiency2. judgment.
2.
- *AB235_R1* – 19 – Sec.
H~~~~~ 17 - *AB235_R1*79th Session (2017)
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View plain text versions (3)
- Enrolled As Enrolled Current pdf
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- Introduced As Introduced pdf
Action History
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Approved by the Governor. Chapter 232.
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Enrolled and delivered to Governor.
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In Assembly. To enrollment.
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Read third time. Passed. Title approved. (Yeas: 21, Nays: None.) To Assembly.
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Read second time.
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Placed on Second Reading File.
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From committee: Do pass.
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Read first time. Referred to Committee on Judiciary. To committee.
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In Senate.
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Read third time. Passed, as amended. Title approved. (Yeas: 42, Nays: None.) To Senate.
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Taken from General File. Placed on General File for next legislative day.
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Taken from General File. Placed on General File for next legislative day.
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Taken from General File. Placed on General File for next legislative day.
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From printer. To engrossment. Engrossed. First reprint .
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Read second time. Amended. (Amend. No. 266.) To printer.
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From committee: Amend, and do pass as amended.
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From printer. To committee.
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Read first time. Referred to Committee on Judiciary. To printer.
Sponsors
- Daniele Monroe-Moreno · Primary
- James Ohrenschall · Primary
- Sandra Jauregui · Cosponsor
- Steve Yeager · Cosponsor
- Justin Watkins · Primary
- Richard Carrillo · Primary
- Tick Segerblom · Primary
- Lesley Cohen · Primary
Sponsorship breakdown
Export CSV (upgrade) →6 sponsors · 2 co-sponsors · 59 not signed on
Sponsors (6)
- Monroe-Moreno, Daniele Democratic
- Ohrenschall, James Democratic
- Justin Watkins
- Richard Carrillo
- Tick Segerblom
- Cohen, Lesley
Co-sponsors (2)
- Jauregui, Sandra Democratic
- Yeager, Steve Democratic
Not signed on (59)
59 members have not signed on to this bill.
Show all 59 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Subjects
Frequently asked questions
- Who sponsors AB 235?
- AB 235 is sponsored by Monroe-Moreno, Daniele (Democratic), Ohrenschall, James (Democratic), Jauregui, Sandra (Democratic), Yeager, Steve (Democratic), Justin Watkins, Richard Carrillo, Tick Segerblom, and Cohen, Lesley.
- What is the current status of AB 235?
- This bill has been enacted into law. Introduced February 24, 2017. Enacted.
- Where can I track AB 235?
- Track AB 235 free on One Click Politics — get push/email alerts when it moves.
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