HB350 Summary

• Creates the Alabama Uniform Commercial Real Estate Receivership Act establishing uniform requirements and procedures for court-appointed receivers to manage commercial real estate during pending litigation.

• Applies to receiverships for real property interests and related personal property, excluding one- to four-unit residential properties unless used for commercial/agricultural purposes or generating rental income from non-affiliates.

• Authorizes courts to appoint receivers before judgment to protect property from waste or voidable transactions, after judgment to carry out court orders, and in foreclosure proceedings when mortgagor agreed to receivership in a signed record.

• Establishes receiver qualifications, disqualifications based on conflicts of interest, bonding requirements, powers to collect property and operate businesses, duties regarding property accounting and record-keeping, and procedures for creditor claims and distributions.

• Takes effect January 1, 2025 and does not apply to receiverships where a receiver was appointed before that date.