Sec. 52-620. (Note: This section is effective July 1, 2023.) Definitions.
Sec. 52-621. (Note: This section is effective July 1, 2023.) Notice and opportunity for hearing.
Sec. 52-622. (Note: This section is effective July 1, 2023.) Scope. Exclusions.
Sec. 52-623. (Note: This section is effective July 1, 2023.) Power of court.
Sec. 52-624. (Note: This section is effective July 1, 2023.) Appointment of receiver.
Sec. 52-626. (Note: This section is effective July 1, 2023.) Receiver's bond; alternative security.
Sec. 52-627. (Note: This section is effective July 1, 2023.) Status of receiver as lien creditor.
Sec. 52-630. (Note: This section is effective July 1, 2023.) Powers and duties of receiver.
Sec. 52-631. (Note: This section is effective July 1, 2023.) Duties of owner.
Sec. 52-632. (Note: This section is effective July 1, 2023.) Stay; injunction.
Sec. 52-635. (Note: This section is effective July 1, 2023.) Executory contract.
Sec. 52-636. (Note: This section is effective July 1, 2023.) Defenses and immunities of receiver.
Sec. 52-637. (Note: This section is effective July 1, 2023.) Interim report of receiver.
Sec. 52-639. (Note: This section is effective July 1, 2023.) Fees and expenses.
Sec. 52-641. (Note: This section is effective July 1, 2023.) Final report of receiver; discharge.
Sec. 52-643. (Note: This section is effective July 1, 2023.) Effect of enforcement by mortgagee.
Sec. 52-646. (Note: This section is effective July 1, 2023.) Transition.
Secs. 52-647 to 52-654. Reserved
Sec. 52-619. (Note: This section is effective July 1, 2023.) Short title: Uniform Commercial Real Estate Receivership Act. Sections 52-619 to 52-646, inclusive, may be cited as the Uniform Commercial Real Estate Receivership Act.
(P.A. 21-80, S. 1; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 1, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-620. (Note: This section is effective July 1, 2023.) Definitions. As used in sections 52-619 to 52-646, inclusive:
(1) “Affiliate” means:
(A) With respect to an individual:
(i) A companion of the individual;
(ii) A lineal ancestor or descendant, whether by blood or adoption, of (I) the individual; or (II) a companion of the individual;
(iii) A companion of an ancestor or descendant described in subparagraph (A)(ii) of this subdivision;
(iv) A sibling, aunt, uncle, great aunt, great uncle, first cousin, niece, nephew, grandniece or grandnephew of the individual, whether related by the whole or the half blood or adoption, or a companion of any of them; or
(v) Any other individual occupying the residence of the individual; and
(B) With respect to a person other than an individual:
(i) Another person that directly or indirectly controls, is controlled by, or is under common control with the person;
(ii) An officer, director, manager, member, partner, employee or trustee or other fiduciary of the person; or
(iii) A companion of, or an individual occupying the residence of, an individual described in subparagraph (B)(i) or (B)(ii) of this subdivision.
(2) “Companion” means the spouse of an individual.
(3) “Court” means the Superior Court.
(4) “Executory contract” means a contract, including a lease, under which each party has an unperformed obligation and the failure of a party to complete performance would constitute a material breach.
(5) “Governmental unit” means an office, department, division, bureau, board, commission or other agency of this state or a subdivision of this state.
(6) “Lien” means an interest in property which secures payment or performance of an obligation.
(7) “Mortgage” means a record, however denominated, that creates or provides for a consensual lien on real property or rents, even if the record also creates or provides for a lien on personal property.
(8) “Mortgagee” means a person entitled to enforce an obligation secured by a mortgage.
(9) “Mortgagor” means a person that grants a mortgage or a successor in ownership of the real property described in the mortgage.
(10) “Owner” means the person for whose property a receiver is appointed.
(11) “Person” means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, instrumentality or other legal entity.
(12) “Proceeds” means the following property:
(A) Whatever is acquired on the sale, lease, license, exchange or other disposition of receivership property;
(B) Whatever is collected on, or distributed on account of, receivership property;
(c) Rights arising out of receivership property;
(D) To the extent of the value of receivership property, claims arising out of the loss, nonconformity or interference with the use of, defects or infringement of rights in, or damage to, the property; or
(E) To the extent of the value of receivership property and to the extent payable to the owner or mortgagee, insurance payable by reason of the loss or nonconformity of, defects or infringement of rights in, or damage to, the property.
(13) “Property” means all of a person's right, title and interest, both legal and equitable, in real and personal property, tangible and intangible, wherever located and however acquired. “Property” includes proceeds, products, offspring, rents or profits of or from the property.
(14) “Receiver” means a person appointed by the court as the court's agent, and subject to the court's direction, to take possession of, manage and, if authorized by sections 52-619 to 52-646, inclusive, or court order, transfer, sell, lease, license, exchange, collect or otherwise dispose of receivership property.
(15) “Receivership” means a proceeding in which a receiver is appointed.
(16) “Receivership property” means the property of an owner which is described in the order appointing a receiver or a subsequent order. “Receivership property” includes any proceeds, products, offspring, rents or profits of or from the property.
(17) “Record”, used as a noun, means information that is inscribed on a tangible medium or that is stored on an electronic or other medium and is retrievable in perceivable form.
(18) “Rents” means:
(A) Sums payable for the right to possess or occupy, or for the actual possession or occupation of, real property of another person;
(B) Sums payable to a mortgagor under a policy of rental-interruption insurance covering real property;
(c) Claims arising out of a default in the payment of sums payable for the right to possess or occupy real property of another person;
(D) Sums payable to terminate an agreement to possess or occupy real property of another person;
(E) Sums payable to a mortgagor for payment or reimbursement of expenses incurred in owning, operating and maintaining real property or constructing or installing improvements on real property; or
(F) Other sums payable under an agreement relating to the real property of another person which constitute rents under the law of this state other than sections 52-619 to 52-646, inclusive.
(19) “Secured obligation” means an obligation the payment or performance of which is secured by a security agreement.
(20) “Security agreement” means an agreement that creates or provides for a lien.
(21) “Sign” means, with present intent to authenticate or adopt a record:
(A) To execute or adopt a tangible symbol; or
(B) To attach to or logically associate with the record an electronic sound, symbol or process.
(22) “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands or any territory or insular possession subject to the jurisdiction of the United States.
(P.A. 21-80, S. 2; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 2, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-621. (Note: This section is effective July 1, 2023.) Notice and opportunity for hearing. (a) Except as provided in subsection (b) of this section, the court may issue an order under sections 52-619 to 52-646, inclusive, only after notice and an opportunity for a hearing that the court deems appropriate in the circumstances.
(b) The court may issue an order under sections 52-619 to 52-646, inclusive:
(1) Without prior notice if the circumstances require issuance of an order before notice is given;
(2) After notice and without a prior hearing if the circumstances require issuance of an order before a hearing is held; or
(3) After notice and without a hearing if no interested party timely requests a hearing.
(P.A. 21-80, S. 3; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 3, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-622. (Note: This section is effective July 1, 2023.) Scope. Exclusions. (a) Except as provided in subsection (b) or (c) of this section, sections 52-619 to 52-646, inclusive, apply to a receivership for an interest in real property and any personal property related to or used in operating the real property.
(b) Sections 52-619 to 52-646, inclusive, do not apply to a receivership for an interest in real property improved by one to four dwelling units unless:
(1) The interest is used for agricultural, commercial, industrial or mineral-extraction purposes, other than incidental uses by an owner occupying the property as the owner's primary residence;
(2) The interest secures an obligation incurred at a time when the property was used or planned for use for agricultural, commercial, industrial or mineral-extraction purposes;
(3) The owner planned or is planning to develop the property into one or more dwelling units to be sold or leased in the ordinary course of the owner's business; or
(4) The owner is collecting or has the right to collect rents or other income from the property from a person other than an affiliate of the owner.
(c) Sections 52-619 to 52-646, inclusive, do not apply to a receivership authorized by the law of this state other than sections 52-619 to 52-646, inclusive, in which the receiver is a governmental unit or an individual acting in an official capacity on behalf of the governmental unit.
(d) Sections 52-619 to 52-646, inclusive, do not limit the authority of a court to appoint a receiver under the law of this state other than sections 52-619 to 52-646, inclusive.
(e) Unless displaced by a particular provision of sections 52-619 to 52-646, inclusive, the principles of law and equity supplement sections 52-619 to 52-646, inclusive.
(P.A. 21-80, S. 4; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 4, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-623. (Note: This section is effective July 1, 2023.) Power of court. The court that appoints a receiver under sections 52-619 to 52-646, inclusive, has exclusive jurisdiction to direct the receiver and determine any controversy related to the receivership or receivership property.
(P.A. 21-80, S. 5; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 5, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-624. (Note: This section is effective July 1, 2023.) Appointment of receiver. (a) The court may appoint a receiver:
(1) Before judgment, to protect a party that demonstrates an apparent right, title or interest in real property that is the subject of the action, if the property or its revenue-producing potential:
(A) Is being subjected to or is in danger of waste, loss, dissipation or impairment; or
(B) Has been or is about to be the subject of a voidable transaction;
(2) After judgment:
(A) To carry the judgment into effect; or
(B) To preserve nonexempt real property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment; or
(3) In an action in which a receiver for real property may be appointed on equitable grounds.
(b) In connection with the foreclosure or other enforcement of a mortgage, a mortgagee is entitled to appointment of a receiver for the mortgaged property if:
(1) Appointment is necessary to protect the property from waste, loss, transfer, dissipation or impairment;
(2) The mortgagor agreed in a signed record to appointment of a receiver on default;
(3) The owner agreed, after default and in a signed record, to 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 rents the mortgagee was entitled to collect; or
(6) The holder of a subordinate lien obtains appointment of a receiver for the property.
(c) The court may condition appointment of a receiver without prior notice under subdivision (1) of subsection (b) of section 52-621 or without a prior hearing under subdivision (2) of subsection (b) of section 52-621 on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorneys' fees and costs incurred or suffered by any person if the court later concludes that the appointment was not justified. If the court later concludes that the appointment was justified, the court shall release the security.
(P.A. 21-80, S. 6; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 6, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-625. (Note: This section is effective July 1, 2023.) Disqualification from appointment as receiver; disclosure of interest. (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 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; or
(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; or
(3) Maintains with a party a deposit account, as defined in subdivision (29) of subsection (a) of section 42a-9-102.
(d) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.
(P.A. 21-80, S. 7; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 7, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-626. (Note: This section is effective July 1, 2023.) Receiver's bond; alternative security. (a) Except as provided in subsection (b) of this section, a receiver shall post with the court a bond that:
(1) Is conditioned on the faithful discharge of the receiver's duties;
(2) Has one or more sureties approved by the court;
(3) Is in an amount the court specifies; and
(4) Is effective as of the date of the receiver's appointment.
(b) The court may approve the posting by a receiver with the court of alternative security such as a letter of credit or deposit of funds. The receiver may not use receivership property as alternative security. Interest that accrues on deposited funds must be paid to the receiver on the receiver's discharge.
(c) The court may authorize a receiver to act before the receiver posts the bond or alternative security required by this section.
(d) A claim against a receiver's bond or alternative security must be made not later than one year after the date the receiver is discharged.
(P.A. 21-80, S. 8; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 8, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-627. (Note: This section is effective July 1, 2023.) Status of receiver as lien creditor. On appointment of a receiver, the receiver has the status of a lien creditor under:
(1) Article 9 of title 42a as to receivership property that is personal property or fixtures; and
(2) Any provision of the general statutes that provides for filing on the land records of a town a certificate as to receivership property that is real property.
(P.A. 21-80, S. 9; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 9, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-628. (Note: This section is effective July 1, 2023.) Security agreement covering after-acquired property. Except as provided by the law of this state other than sections 52-619 to 52-646, inclusive, property that a receiver or owner acquires after appointment of the receiver is subject to a security agreement entered into before the appointment to the same extent as if the court had not appointed the receiver.
(P.A. 21-80, S. 10; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 10, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-629. (Note: This section is effective July 1, 2023.) Collection and turnover of receivership property. (a) Unless the court orders otherwise, on demand by a receiver:
(1) A person that owes a debt that is receivership property and is matured or payable on demand or on order shall pay the debt to or on the order of the receiver, except to the extent the debt is subject to setoff or recoupment; and
(2) Subject to subsection (c) of this section, a person that has possession, custody or control of receivership property shall turn the property over to the receiver.
(b) A person that has notice of the appointment of a receiver and owes a debt that is receivership property may not satisfy the debt by payment to the owner.
(c) If a creditor has possession, custody or control of receivership property and the validity, perfection or priority of the creditor's lien on the property depends on the creditor's possession, custody or control, the creditor may retain possession, custody or control until the court orders adequate protection of the creditor's lien.
(d) Unless a bona fide dispute exists about a receiver's right to possession, custody or control of receivership property, the court may sanction as civil contempt a person's failure to turn the property over when required by this section.
(P.A. 21-80, S. 11; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 11, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-630. (Note: This section is effective July 1, 2023.) Powers and duties of receiver. (a) Except as limited by court order or law of this state other than sections 52-619 to 52-646, inclusive, 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, incur unsecured debt and pay expenses incidental to the receiver's preservation, use, sale, lease, license, exchange, collection or disposition of receivership property;
(4) Assert a right, claim, cause of action or defense of the owner which relates to receivership property;
(5) Seek and obtain instruction from the court concerning receivership property, exercise of the receiver's powers and performance of the receiver's duties;
(6) On subpoena, compel a person to submit to examination under oath, or to produce and permit inspection and copying of designated records or tangible things, with respect to receivership property or any other matter that may affect administration of the receivership;
(7) Engage a professional, as provided in section 52-633;
(8) Apply to a court of another state for appointment as ancillary receiver with respect to receivership property located in that state; and
(9) Exercise any power conferred by court order, sections 52-619 to 52-646, inclusive, or the law of this state other than sections 52-619 to 52-646, inclusive.
(b) With court approval, a receiver may:
(1) Incur debt for the use or benefit of receivership property other than in the ordinary course of business;
(2) Make improvements to receivership property;
(3) Use or transfer receivership property other than in the ordinary course of business, as provided in section 52-634;
(4) Adopt or reject an executory contract of the owner, as provided in section 52-635;
(5) Pay compensation to the receiver, as provided in section 52-639 and to each professional engaged by the receiver, as provided in section 52-633;
(6) Recommend allowance or disallowance of a claim of a creditor, as provided in section 52-638; and
(7) Make a distribution of receivership property, as provided in section 52-638.
(c) A receiver shall:
(1) Prepare and retain appropriate business records, including a record of each receipt, disbursement and disposition of receivership property;
(2) Account for receivership property, including the proceeds of a sale, lease, license, exchange, collection or other disposition of the property;
(3) File on the land records of the town where the real property is located a copy of the order appointing the receiver and, if a legal description of the real property is not included in the order, the legal description;
(4) Disclose to the court any fact arising during the receivership which would disqualify the receiver under section 52-625; and
(5) Perform any duty imposed by court order, sections 52-619 to 52-646, inclusive, or the law of this state other than sections 52-619 to 52-646, inclusive.
(d) The powers and duties of a receiver may be expanded, modified or limited by court order.
(P.A. 21-80, S. 12; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 12, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-631. (Note: This section is effective July 1, 2023.) Duties of owner. (a) An owner shall:
(1) Assist and cooperate with the receiver in the administration of the receivership and the discharge of the receiver's duties;
(2) Preserve and turn over to the receiver all receivership property in the owner's possession, custody or control;
(3) Identify all records and other information relating to the receivership property, including a password, authorization or other information needed to obtain or maintain access to or control of the receivership property, and make available to the receiver the records and information in the owner's possession, custody or control;
(4) On subpoena, submit to examination under oath by the receiver concerning the acts, conduct, property, liabilities and financial condition of the owner or any matter relating to the receivership property or the receivership; and
(5) Perform any duty imposed by court order, sections 52-619 to 52-646, inclusive, or the law of this state other than sections 52-619 to 52-646, inclusive.
(b) If an owner is a person other than an individual, this section applies to each officer, director, manager, member, partner, trustee or other person exercising or having the power to exercise control over the affairs of the owner.
(c) If a person knowingly fails to perform a duty imposed by this section, the court may:
(1) Award the receiver actual damages caused by the person's failure, reasonable attorneys' fees and costs; and
(2) Sanction the failure as civil contempt.
(P.A. 21-80, S. 13; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 13, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-632. (Note: This section is effective July 1, 2023.) Stay; injunction. (a) Except as provided in subsection (d) of this section or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action or proceeding:
(1) To obtain possession of, exercise control over or enforce a judgment against receivership property; and
(2) To enforce a lien against receivership property to the extent the lien secures a claim against the owner which arose before entry of the order.
(b) Except as provided in subsection (d) of this section, the court may enjoin an act, action or proceeding against or relating to receivership property if the injunction is necessary to protect the property or facilitate administration of the receivership.
(c) A person whose act, action or proceeding is stayed or enjoined under this section may apply to the court for relief from the stay or injunction for cause.
(d) An order under subsection (a) or (b) of this section does not operate as a stay or injunction of:
(1) An act, action or proceeding to foreclose or otherwise enforce a mortgage by the person seeking appointment of the receiver;
(2) An act, action or proceeding to perfect, or maintain or continue the perfection of, an interest in receivership property;
(3) Commencement or continuation of a criminal proceeding;
(4) Commencement or continuation of an action or proceeding, or enforcement of a judgment other than a money judgment in an action or proceeding, by a governmental unit to enforce its police or regulatory power; or
(5) Establishment by a governmental unit of a tax liability against the owner or receivership property or an appeal of the liability.
(e) The court may void an act that violates a stay or injunction under this section.
(f) If a person knowingly violates a stay or injunction under this section, the court may:
(1) Award actual damages caused by the violation, reasonable attorneys' fees and costs; and
(2) Sanction the violation as civil contempt.
(P.A. 21-80, S. 14; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 14, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-633. (Note: This section is effective July 1, 2023.) Engagement and compensation of professional. (a) With court approval, a receiver may engage an attorney, accountant, appraiser, auctioneer, broker or other professional to assist the receiver in performing a duty or exercising a power of the receiver. The receiver shall disclose to the court:
(1) The identity and qualifications of the professional;
(2) The scope and nature of the proposed engagement;
(3) Any potential conflict of interest; and
(4) The proposed compensation.
(b) A person is not disqualified from engagement under this section solely because of the person's engagement by, representation of, or other relationship with the receiver, a creditor or a party. Sections 52-619 to 52-646, inclusive, do not prevent the receiver from serving in the receivership as an attorney, accountant, auctioneer or broker when authorized by law.
(c) A receiver or professional engaged under subsection (a) of this section shall file with the court an itemized statement of the time spent, work performed and billing rate of each person that performed the work and an itemized list of expenses. The receiver shall pay the amount approved by the court.
(P.A. 21-80, S. 15; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 15, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-634. (Note: This section is effective July 1, 2023.) Use or transfer of receivership property not in ordinary course of business. (a) In this section, “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(b) With court approval, a receiver may use receivership property other than in the ordinary course of business.
(c) With court approval, a receiver may transfer receivership property other than in the ordinary course of business by sale, lease, license, exchange or other disposition. Unless the agreement of sale provides otherwise, a sale under this section is free and clear of a lien of the person that obtained appointment of the receiver, any subordinate lien and any right of redemption, but is subject to a senior lien.
(d) A lien on receivership property which is extinguished by a transfer under subsection (c) of this section attaches to the proceeds of the transfer with the same validity, perfection and priority the lien had on the property immediately before the transfer, even if the proceeds are not sufficient to satisfy all obligations secured by the lien.
(e) A transfer under subsection (c) of this section may occur by means other than a public auction sale. A creditor holding a valid lien on the property to be transferred may purchase the property and offset against the purchase price part or all of the allowed amount secured by the lien, if the creditor tenders funds sufficient to satisfy in full the reasonable expenses of transfer and the obligation secured by any senior lien extinguished by the transfer.
(f) A reversal or modification of an order approving a transfer under subsection (c) of this section does not affect the validity of the transfer to a person that acquired the property in good faith or revive against the person any lien extinguished by the transfer, whether the person knew before the transfer of the request for reversal or modification, unless the court stayed the order before the transfer.
(P.A. 21-80, S. 16; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 16, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-635. (Note: This section is effective July 1, 2023.) Executory contract. (a) In this section, “timeshare interest” means an interest having a duration of more than three years which grants its holder the right to use and occupy an accommodation, facility or recreational site, whether improved or not, for a specific period less than a full year during any given year.
(b) Except as provided in subsection (h) of this section, with court approval, a receiver may adopt or reject an executory contract of the owner relating to receivership property. The court may condition the receiver's adoption and continued performance of the contract on terms appropriate under the circumstances. If the receiver does not request court approval to adopt or reject the contract within a reasonable time after the receiver's appointment, the receiver is deemed to have rejected the contract.
(c) A receiver's performance of an executory contract before court approval under subsection (b) of this section of its adoption or rejection is not an adoption of the contract and does not preclude the receiver from seeking approval to reject the contract.
(d) A provision in an executory contract which requires or permits a forfeiture, modification or termination of the contract because of the appointment of a receiver or the financial condition of the owner does not affect a receiver's power under subsection (b) of this section to adopt the contract.
(e) A receiver's right to possess or use receivership property pursuant to an executory contract terminates on rejection of the contract under subsection (b) of this section. Rejection is a breach of the contract effective immediately before appointment of the receiver. A claim for damages for rejection of the contract must be submitted by the later of:
(1) The time set for submitting a claim in the receivership; or
(2) Thirty days after the court approves the rejection.
(f) If at the time a receiver is appointed, the owner has the right to assign an executory contract relating to receivership property under the law of this state other than sections 52-619 to 52-646, inclusive, the receiver may assign the contract with court approval.
(g) If a receiver rejects under subsection (b) of this section an executory contract for the sale of receivership property that is real property in possession of the purchaser or a real-property timeshare interest, the purchaser may:
(1) Treat the rejection as a termination of the contract, and in that case the purchaser has a lien on the property for the recovery of any part of the purchase price the purchaser paid; or
(2) Retain the purchaser's right to possession under the contract, and in that case the purchaser shall continue to perform all obligations arising under the contract and may offset any damages caused by nonperformance of an obligation of the owner after the date of the rejection, but the purchaser has no right or claim against other receivership property or the receiver on account of the damages.
(h) A receiver may not reject an unexpired lease of real property under which the owner is the landlord if:
(1) The tenant occupies the leased premises as the tenant's primary residence;
(2) The receiver was appointed at the request of a person other than a mortgagee; or
(3) The receiver was appointed at the request of a mortgagee and:
(A) The lease is superior to the lien of the mortgage;
(B) The tenant has an enforceable agreement with the mortgagee or the holder of a senior lien under which the tenant's occupancy will not be disturbed as long as the tenant performs its obligations under the lease;
(c) The mortgagee has consented to the lease, either in a signed record or by its failure timely to object that the lease violated the mortgage; or
(D) The terms of the lease were commercially reasonable at the time the lease was agreed to and the tenant did not know or have reason to know that the lease violated the mortgage.
(P.A. 21-80, S. 17; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 17, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-636. (Note: This section is effective July 1, 2023.) Defenses and immunities of receiver. (a) A receiver is entitled to all defenses and immunities provided by the law of this state other than sections 52-619 to 52-646, inclusive, for an act or omission within the scope of the receiver's appointment.
(b) A receiver may be sued personally for an act or omission in administering receivership property only with approval of the court that appointed the receiver.
(P.A. 21-80, S. 18; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 18, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-637. (Note: This section is effective July 1, 2023.) Interim report of receiver. A receiver may file or, if ordered by the court, shall file an interim report that includes:
(1) The activities of the receiver since appointment or a previous report;
(2) Receipts and disbursements, including a payment made or proposed to be made to a professional engaged by the receiver;
(3) Receipts and dispositions of receivership property;
(4) Fees and expenses of the receiver and, if not filed separately, a request for approval of payment of the fees and expenses; and
(5) Any other information required by the court.
(P.A. 21-80, S. 19; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 19, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-638. (Note: This section is effective July 1, 2023.) Notice of appointment; claim against receivership; distribution to creditors. (a) Except as provided in subsection (f) of this section, a receiver shall give notice of appointment of the receiver to creditors of the owner by:
(1) Deposit for delivery through first class mail or other commercially reasonable delivery method to the last-known address of each creditor; and
(2) Publication as directed by the court.
(b) Except as provided in subsection (f) of this section, the notice required by subsection (a) of this section must specify the date by which each creditor holding a claim against the owner which arose before appointment of the receiver must submit the claim to the receiver. The date specified must be at least ninety days after the later of notice under subdivision (1) of subsection (a) of this section or last publication under subdivision (2) of subsection (a) of this section. The court may extend the period for submitting the claim. Unless the court orders otherwise, a claim that is not submitted timely is not entitled to a distribution from the receivership.
(c) A claim submitted by a creditor under this section must:
(1) State the name and address of the creditor;
(2) State the amount and basis of the claim;
(3) Identify any property securing the claim;
(4) Be signed by the creditor under penalty of perjury; and
(5) Include a copy of any record on which the claim is based.
(d) An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record.
(e) At any time before entry of an order approving a receiver's final report, the receiver may file with the court an objection to a claim of a creditor, stating the basis for the objection. The court shall allow or disallow the claim according to the law of this state other than sections 52-619 to 52-646, inclusive.
(f) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that:
(1) The receiver need not give notice under subsection (a) of this section of the appointment to all creditors of the owner, but only such creditors as the court directs; and
(2) Unsecured creditors need not submit claims under this section.
(g) Subject to the provisions of section 52-639:
(1) A distribution of receivership property to a creditor holding a perfected lien on the property must be made in accordance with the creditor's priority under the law of this state other than sections 52-619 to 52-646, inclusive; and
(2) A distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs according to the law of this state other than sections 52-619 to 52-646, inclusive.
(P.A. 21-80, S. 20; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 20, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-639. (Note: This section is effective July 1, 2023.) Fees and expenses. (a) The court may award a receiver from receivership property the reasonable and necessary fees and expenses of performing the duties of the receiver and exercising the powers of the receiver.
(b) The court may order one or more of the following to pay the reasonable and necessary fees and expenses of the receivership, including reasonable attorneys' fees and costs:
(1) A person that requested the appointment of the receiver, if the receivership does not produce sufficient funds to pay the fees and expenses; or
(2) A person whose conduct justified or would have justified the appointment of the receiver under subdivision (1) of subsection (a) of section 52-624.
(P.A. 21-80, S. 21; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 21, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-640. (Note: This section is effective July 1, 2023.) Removal of receiver; replacement; termination of receivership. (a) The court may remove a receiver for cause.
(b) The court shall replace a receiver that dies, resigns or is removed.
(c) If the court finds that a receiver that resigns or is removed, or the representative of a receiver that is deceased, has accounted fully for and turned over to the successor receiver all receivership property and has filed a report of all receipts and disbursements during the service of the replaced receiver, the replaced receiver is discharged.
(d) The court may discharge a receiver and terminate the court's administration of the receivership property if the court finds that appointment of the receiver was improvident or that the circumstances no longer warrant continuation of the receivership. If the court finds that the appointment was sought wrongfully or in bad faith, the court may assess against the person that sought the appointment:
(1) The fees and expenses of the receivership, including reasonable attorneys' fees and costs; and
(2) Actual damages caused by the appointment, including reasonable attorneys' fees and costs.
(P.A. 21-80, S. 22; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 22, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-641. (Note: This section is effective July 1, 2023.) Final report of receiver; discharge. (a) On completion of a receiver's duties, the receiver shall file a final report including:
(1) A description of the activities of the receiver in the conduct of the receivership;
(2) A list of receivership property at the commencement of the receivership and any receivership property received during the receivership;
(3) A list of disbursements, including payments to professionals engaged by the receiver;
(4) A list of dispositions of receivership property;
(5) A list of distributions made or proposed to be made from the receivership for creditor claims;
(6) If not filed separately, a request for approval of the payment of fees and expenses of the receiver; and
(7) Any other information required by the court.
(b) If the court approves a final report filed under subsection (a) of this section and the receiver distributes all receivership property, the receiver is discharged.
(P.A. 21-80, S. 23; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 23, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-642. (Note: This section is effective July 1, 2023.) Receivership in another state; ancillary proceeding. (a) The court may appoint a receiver appointed in another state, or that person's nominee, as an ancillary receiver with respect to property located in this state or subject to the jurisdiction of the court for which a receiver could be appointed under sections 52-619 to 52-646, inclusive, if:
(1) The person or nominee would be eligible to serve as receiver under section 52-625; and
(2) The appointment furthers the person's possession, custody, control or disposition of property subject to the receivership in the other state.
(b) The court may issue an order that gives effect to an order entered in another state appointing or directing a receiver.
(c) Unless the court orders otherwise, an ancillary receiver appointed under subsection (a) of this section has the rights, powers and duties of a receiver appointed under sections 52-619 to 52-646, inclusive.
(P.A. 21-80, S. 24; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 24, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-643. (Note: This section is effective July 1, 2023.) Effect of enforcement by mortgagee. A request by a mortgagee for appointment of a receiver, the appointment of a receiver or application by a mortgagee of receivership property or proceeds to the secured obligation does not:
(1) Make the mortgagee a mortgagee in possession of the real property;
(2) Make the mortgagee an agent of the owner;
(3) Constitute an election of remedies that precludes a later action to enforce the secured obligation;
(4) Make the secured obligation unenforceable; or
(5) Limit any right available to the mortgagee with respect to the secured obligation.
(P.A. 21-80, S. 25; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 25, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-644. (Note: This section is effective July 1, 2023.) Uniformity of application and construction. In applying and construing sections 52-619 to 52-646, inclusive, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it.
(P.A. 21-80, S. 26; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 26, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-645. (Note: This section is effective July 1, 2023.) Relation to Electronic Signatures in Global and National Commerce Act. Sections 52-619 to 52-646, inclusive, modify, limit and supersede the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq., but do not modify, limit or supersede Section 101(c) of said act, 15 USC 7001(c) or authorize electronic delivery of any of the notices described in Section 103(b) of said act, 15 USC 7003(b).
(P.A. 21-80, S. 27; P.A. 22-26, S. 64.)
History: P.A. 21-80 effective July 1, 2022; P.A. 22-26 changed effective date of P.A. 21-80, S. 27, from July 1, 2022, to July 1, 2023, effective May 10, 2022.
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Sec. 52-646. (Note: This section is effective July 1, 2023.) Transition. Sections 52-619 to 52-645, inclusive, do not apply to a receivership for which the receiver was appointed before July 1, 2023.
(P.A. 22-26, S. 65.)
History: P.A. 22-26 effective July 1, 2023.
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Secs. 52-647 to 52-654. Reserved for future use.
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