HB5311 Summary: Illinois Receivership Act

• Creates the Illinois Receivership Act establishing a court-supervised receivership process where a court-appointed receiver takes possession of, manages, and disposes of real and personal property on behalf of the court.

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

• Grants receivers extensive powers including collecting property, operating businesses, incurring debt, selling/leasing property with court approval, assuming or rejecting executory contracts, and engaging professionals.

• Establishes court procedures for appointing receivers (before/after judgment, in actions against non-individuals, or on equitable grounds), requires bonds or security, and prohibits persons with conflicts of interest from serving as receivers.

• Does not apply to receivers appointed under the Illinois Mortgage Foreclosure Law or receiverships authorized by other Illinois laws involving governmental units.