HB 07271 Summary

• Enacts the Uniform Commercial Real Estate Receivership Act effective October 1, 2019, establishing comprehensive procedures for court-appointed receivers managing commercial real property and related personal property.

• Applies to receiverships for real property interests and personal property used in operations, with exceptions for residential properties (1-4 dwelling units) unless used for commercial, agricultural, industrial purposes or income-generating activities.

• Defines receiver powers including property collection, business operation, debt incurrence, asset disposition, and contract adoption/rejection, all subject to court approval and oversight.

• Requires receivers to post bonds, maintain detailed records, file interim and final reports, notify creditors (minimum 90 days to submit claims), and establishes procedures for creditor claim allowance and property distribution.

• Protects mortgagees' rights to request receiver appointment when property faces waste or when owner defaults, and clarifies that receivership appointment does not constitute election of remedies or make mortgagee an agent of the owner.