11 Essential Parts of a Receivership Order What if you are asked to act as a Receiver for an Indiana commercial property in foreclosure? Frequently in Receiverships, the secured creditor does not want the Receiver to engage counsel because of the added expense. When you agree to the Receivership appointment, the secured creditor will send you a lengthy draft order to submit to the Court appointing you as Receiver. You may find yourself wondering what provisions are necessary in your position. Below is a list of important items a prospective Indiana Receiver should look for in most Receivership orders: Reporting requirements: The order should provide how frequently the Receiver must file updates with the Court regarding the status and finances of the Receivership, including the income and expenses. Extent of Receivership: The order should define whether the Receiver will control the borrower itself or just the property pledged as collateral in favor of the secured creditor. Commonly the Receiver will only be appointed to control the collateral, whether that collateral is real estate or personal property. Actually taking control of the borrower itself can add complications and expenses for the Receiver, such as filing tax returns. Also, if real estate constitutes the only collateral, it is helpful if the order provides that books and records related to the real estate must be turned over by the borrower and its officers to the Receiver. Selling Property: The order should provide whether the collateral that constitutes the Receivership estate can be sold by the Receiver. The order should also provide the procedure for selling the collateral (i.e. notice required to other...
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