37.250 Use or transfer of estate property outside ordinary course of business; transfer of co-owned property; limitation on disposition of resident
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/or/ors-chapter-37/receivership/37-250·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
37.250 Use or transfer of estate property outside ordinary course of business; transfer of co-owned property; limitation on disposition of residential property.
(1)Upon court order, a receiver may use estate property outside the ordinary course of business.
(2)Upon court order, a receiver may transfer estate property other than in the ordinary course of business by sale, lease, license, exchange or other disposition. Unless the transfer agreement provides otherwise, a transfer under this section is free and clear of a lien of the person that obtained appointment of the receiver, any subordinate liens and any right of redemption, but is subject to any senior liens. A transfer under this section may occur by means other than a public auction sale. On motion by any party or interested person, the court may prescribe standards or procedures calculated to maximize the proceeds of the transfer.
(3)If a lien on estate property is extinguished by a transfer under this section, the lien attaches to the proceeds of the transfer with the same validity, perfection and priority that the extinguished lien had on the transferred property immediately before the transfer, regardless of whether the proceeds are sufficient to satisfy all obligations secured by the lien.
(4)A creditor holding a valid lien on the property to be transferred may purchase the property and offset against the purchase price all or part of the allowed amount secured by the lien, if the creditor tenders sufficient funds to satisfy the reasonable expenses of transfer and any obligation secured by any senior lien extinguished by the transfer.
(5)A reversal or modification of an order authorizing a transfer under this section does not affect the validity of the transfer to a person that acquired the property in good faith or revive against any person any lien extinguished by the transfer, regardless of whether the transferee knew of the request for reversal or modification before the transfer, unless the court stayed the order before the transfer.
(6)If estate property includes an interest as a co-owner of property, the receiver has all rights and powers of a co-owner afforded by applicable law, including any rights of partition.
(7)If at the time of appointment of a receiver an owner holds an undivided interest in property as a tenant in common, joint tenant or tenant by the entirety, the receiver may sell both the interest that is estate property and the interest of any co-owner upon court order if the court determines that:
(a)Partition in kind of the property is impracticable;
(b)Sale of the estate’s undivided interest in the property would realize significantly less for the estate than sale of the property free and clear of the interests of the co-owner; and
(c)The benefit to the estate of the sale outweighs the detriment, if any, to the co-owner.
(8)A receiver may not sell, transfer or otherwise dispose of residential property, or an undivided interest therein, without specific judicial approval, which a court may grant only in case of waste, destruction, obstruction of marketing of the property, enforcement of an order in a domestic relations suit or other good cause shown.
(9)As used in this section, “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing. [2017 c.358 §25]