(a) Except as limited by court order or a law of the State other than this title, a receiver may: (1) Collect, control, manage, conserve, and protect receivership property; (2) Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary course of business; (3) In the ordinary course of business: (i) Incur unsecured debt for the receiver's preservation, use, sale, lease, license, exchange, collection, or disposition of the business or receivership property; or (ii) Pay ordinary, reasonable, and necessary expenses for the receiver's preservation, use, sale, lease, license, exchange, collection, or disposition of the business or receivership property; (4) Employ and discharge agents, contractors, and employees that are necessary to manage, operate, preserve, improve, secure, and market the business or receivership property; (5) Assert a right, claim, cause of action, privilege, or defense of the owner that relates to the business or receivership property, and, in the case of a receivership under § 24-103(a) of this title, the claim, cause of action, privilege, or defense shall not be barred by the doctrine of pari delicto; (6) Seek and obtain instruction from the court regarding: (i) Managing or disposing of the business or receivership property; (ii) Exercising the powers of the receiver; or (iii) Performing the duties of the receiver; (7) After being issued a subpoena, with respect to the receivership property or any other matter that may affect administration of the receivership, compel a person to: (i) Submit to examination under oath; or (ii) Produce and allow inspection and copying of records or other tangible property; (8) Engage a professional as provided in § 24-303 of this subtitle; (9) Apply to a court of another state for appointment as ancillary receiver with respect to receivership property located in that state; (10) In a receivership under § 24-103(a)(2) or (3) of this title, exercise any rights or powers provided for in § 15-101 of this article; or (11) Exercise any other power conferred by court order, this title, or a law of the State other than this title. (b) With court approval, a receiver may: (1) Incur debt on an unsecured or secured basis for the use or benefit of the business or receivership property, other than in the ordinary course of business, and any secured debt shall be subject to existing liens; (2) Pay obligations incurred before the receiver's appointment if and to the extent that: (i) The payment is determined to be reasonable and necessary for the preservation of the business or receivership property; and (ii) The funds used under this item are not subject to any lien in favor of a creditor who has not consented to the payment, or whose interest is not adequately protected; (3) Make improvements to receivership property; (4) Use or transfer receivership property, other than in the ordinary course of business, under § 24-304 of this subtitle; (5) Assume, reject, or assume and assign an executory contract of the owner under § 24-305 of this subtitle; (6) Pay compensation to: (i) The receiver under § 24-601 or § 24-602 of this title; or (ii) Each professional engaged by the receiver under § 24-303 of this subtitle; (7) Recommend allowance or disallowance of a claim of a creditor under § 24-302 of this subtitle; (8) Abandon any property that is burdensome or not of material value to the receivership; and (9) Make a distribution of receivership property under § 24-302 of this subtitle. (c) A receiver shall: (1) Prepare and retain appropriate business records, including a record of each receipt, disbursement, and disposition of the business or receivership property; (2) Account for the business or receivership property, including the proceeds of a sale, a lease, a license, an exchange, a collection, or any other disposition of the receivership property; (3) If the receivership includes real property, file in the land records of the county where the real property is located a copy of the order appointing the receiver, and if a legal description is not included in the order, include a legal description of the real property; (4) Disclose to the court any fact arising during the receivership that would disqualify the receiver under § 24-203 of this title; and (5) Perform any duty imposed by court order, this title, or a law of the State other than this title. (d) The powers and duties of a receiver may be expanded, modified, or limited by court order.
‹ Prev All Maryland sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.