78B-21-107. Disqualification from appointment as receiver -- Disclosure of interest.
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Effective 5/9/2017
78B-21-107. Disqualification from appointment as receiver -- Disclosure of interest.
(1)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.
(2)Except as otherwise provided in Subsection
(3), a person is disqualified from appointment as receiver if the person:
(a)is an affiliate of a party;
(b)has an interest materially adverse to an interest of a party;
(c)has a material financial interest in the outcome of the action, other than the compensation the court may allow the receiver;
(d)has a debtor-creditor relationship with a party; or
(e)holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.
(3)A person is not disqualified from appointment as receiver solely because the person:
(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;
(b)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; or
(c)maintains with a party a deposit account as defined in Section 70A-9a-102 .
(4)A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.
Enacted by Chapter 431 , 2017 General Session