SB 1216 Summary

• Adds Chapter 24 to Title 33 of Arizona Revised Statutes establishing the Uniform Commercial Real Estate Receivership Act to govern appointment and conduct of receivers for commercial real property.

• Applies to receiverships involving commercial real property and related personal property, but excludes residential property with 1-4 dwelling units unless used for commercial, agricultural, industrial or mineral-extraction purposes.

• Establishes receiver qualifications, disqualifications, bond requirements, and powers including ability to collect property, operate businesses, incur debt, adopt or reject executory contracts, and transfer property with court approval.

• Grants courts exclusive jurisdiction to appoint receivers, direct receiver actions, and approve receiver compensation and professional engagement; imposes duties on owners to cooperate and preserve receivership property.

• Creates automatic stay on enforcement actions against receivership property while allowing continued foreclosure proceedings by mortgagees and permits appointment of ancillary receivers in other states.