§ 24-201
402 words·~2 min read·
/md/commercial-law/24-201·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§24–201.
(a)A court may appoint a receiver:
(1)Before judgment, to protect a party that demonstrates an apparent right to property that is the subject of the action, if the property or the revenue–producing potential of the property:
(i)Is being subjected to or is in danger of waste, loss, dissipation, or impairment; or
(ii)Has been or is about to be the subject of a fraudulent conveyance voidable under Title 15, Subtitle 2 of this article;
(2)After judgment, to:
(i)Carry the judgment into effect; or
(ii)Preserve nonexempt property:
1. Pending appeal; or
2. When an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;
(3)In an action seeking dissolution of a corporation under § 3–411 or § 3–415 of the Corporations and Associations Article; or
(4)To a receivership under § 24–103(a)(3) of this title.
(1)In connection with or anticipation of a foreclosure or any other enforcement of a mortgage, a mortgagee is entitled to the appointment of a receiver.
(2)On request, a court shall appoint a receiver for the mortgaged property if:
(i)There is a default under the mortgage; and
(ii)1. Appointment of a receiver is necessary to protect the property from waste, loss, transfer, dissipation, or impairment;
2. The mortgagor agreed in a signed record, including the mortgage or an assignment of leases and rents, to the appointment of a receiver on default;
3. The owner agreed, after default and in a signed record, to the appointment of a receiver;
4. The property and any other collateral held by the mortgagee are not sufficient to satisfy the secured obligation;
5. The owner fails to turn over to the mortgagee proceeds or rent the mortgagee was entitled to collect; or
6. The holder of a subordinate lien obtains the appointment of a receiver for the property.
(1)A court may condition appointment of a receiver without prior notice under § 24–501(b)(1) of this title, or without a prior hearing under § 24–501(b)(2) of this title, on the giving of security by the person seeking the appointment for:
(i)The payment of damages;
(ii)Reasonable attorney’s fees; or
(iii)If the court concludes that the appointment was not justified, costs incurred by any person.
(2)If the court later concludes that the appointment was justified, the court shall release the security.