SB78 Summary

• Creates the Alabama Uniform Commercial Real Estate Receivership Act establishing a standardized process for state courts to appoint receivers in commercial real estate disputes, typically involving defaults.

• Allows courts to appoint receivers before judgment to protect parties with apparent rights to real property from waste or loss, and after judgment to enforce them or preserve property pending appeal.

• Establishes receiver qualifications, disqualifications, powers (including collecting property, operating businesses, hiring professionals), and duties including bonding, maintaining records, and filing reports with courts.

• Requires notice to creditors within 30 days of appointment and establishes procedures for creditors to submit claims by at least 90 days after notice, with distributions made according to lien priority.

• Effective January 1, 2025; does not apply to receiverships where receivers were appointed before that date.