Raised Bill No. 5258 Summary

• Adopts the Uniform Commercial Real Estate Receivership Act effective October 1, 2020, establishing comprehensive statutory framework for appointing and managing receivers for commercial real property in Connecticut Superior Court.

• Applies to receiverships for real property interests and related personal property, with specific exemptions for residential properties (1-4 dwelling units) unless used for commercial/agricultural purposes, being developed for sale, or generating rental income from non-affiliates.

• Establishes receiver qualifications and disqualifications, requiring court-approved bond or alternative security, lien creditor status, and powers to collect, manage, operate, sell, lease, or otherwise dispose of receivership property with court approval.

• Imposes duties on owners to assist receivers, preserve property, disclose records and access credentials, and submit to examination; creates automatic stay on enforcement actions against receivership property with limited exceptions for mortgagee foreclosures and government enforcement actions.

• Requires receivers to provide interim and final reports, establish claim procedures with 90-day deadline for creditors, and distribute receivership proceeds according to lien priority; allows court to award receiver compensation and shift costs to parties requesting receivership or whose conduct justified it.