33-2606. Disqualification from appointment as a receiver; exceptions; nomination

215 words·~1 min read·/az/title-33/33-2606

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.

B. Except as otherwise provided in subsection C of this section, a person is disqualified from appointment as receiver if the person:

1. Is an affiliate of a party.

2. Has an interest materially adverse to an interest of a party.

3. Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver.

4. Has a debtor-creditor relationship with a party.

5. Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.

C. A person is not disqualified from appointment as receiver solely because the person:

1. 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.

2. Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family or household purposes.

3. Maintains with a party a deposit account as defined in section 47-9102.

D. A person seeking the appointment of a receiver may nominate a person to serve as receiver.