Classes of Receivers

Classes of Receivers in the United States

Classes of Corporate Receivers

Corporate receivers may include receivers of the following classes:

  • receivers appointed pendente lite of property that is the subject matter of litigation, such as a receiver appointed in a suit to foreclose a corporate mortgage;
  • receivers appointed in connection with a prayer to wind up a business although no dissolution of the corporation is sought;
  • receivers appointed for the purpose of running a business temporarily;
  • receivers appointed due to insolvency of a corporation (Grocery Supply v. McKinley Park Services, 15 Alaska 469, 128 F. Supp. 694 (Terr. Alaska 1955)); and
  • receivers appointed upon the dissolution of a corporation or in proceedings to dissolve a
    corporation.

Receivers may also be classied as statutory or chancery, temporary or permanent, special or general, passive or active, friendly and ancillary (Kaufman v. 53 Duncan Investors, L.P., 368 N.J. Super. 501, 847 A.2d 35 (App. Div. 2004)).

As stated above, a statutory receiver is one appointed in accordance with statutory provisions who derives his or her power from the statute and from the general scope of the law of his or her appointment. The receiver may be appointed by an equity court or by a designated administrative ocial or agency.6 Statutory provisions govern the receivership of substantially all troubled or insolvent banks, either under the National Bank Act7 or the banking laws of the various states. A bank commissioner, in winding up the aairs of an insolvent bank under the New Hampshire statute, does not act merely in an executive or administrative capacity, but as an officer of the court in the nature of a receiver. (People’s Trust Co. v. U.S., 23 F.2d 381 (C.C.A. 1st Cir. 1928); Nature of a bank commissioner in Oklahoma. U.S. Fidelity & Guar. Co. v. Ottawa County Nat. Bank, 32 F.2d 368 (N.D. Okla. 1929)).

A chancery receiver, as distinguished from a statutory receiver, is one appointed by a court exercising its inherent equity power, independently of any statute, and whose authority is derived from, and whose duty is prescribed by, the order of appointment. Statutory receivers are to be distinguished from chancery receivers as to title to the property (Quincy, Missouri & Pacic R. Co. v. Humphreys, 145 U.S. 82, 95, 12 S. Ct. 787, 36 L. Ed. 632 (1892)).

Receivers may also be classified as temporary or permanent, the former being appointed merely to act until a permanent receiver is appointed and put in charge or until the petition for the appointment of a permanent receiver is dismissed as unjustied. Very often, the person appointed a temporary receiver will be continued in oce if the receivership is made permanent. “It is obvious horn book law that no permanent receiver of a corporation can be appointed on immediate presentation of a complaint which the debtor challenges.” (Brewster v. Kable News
Co., 148 F.2d 610 (C.C.A. 2d Cir. 1945)).

Corporate receivers may include receivers of the following classes:

  • receivers appointed pendente lite of property that is the subject matter of litigation, such as a receiver appointed in a suit to foreclose a corporate mortgage;1
  • receivers appointed in connection with a prayer to wind up a business although no dissolution of the corporation is sought;
  • receivers appointed for the purpose of running a business temporarily;
  • receivers appointed due to insolvency of a corporation;3 and
  • receivers appointed upon the dissolution of a corporation or in proceedings to dissolve a
    corporation.

Receivers may also be classied as statutory or chancery, temporary or permanent, special or general, passive or active, friendly and ancillary.

As stated above, a statutory receiver is one appointed in accordance with statutory provisions who derives his or her power from the statute and from the general scope of the law of his or her appointment. The receiver may be appointed by an equity court or by a designated administrative ocial or agency.6 Statutory provisions govern the receivership of substantially all troubled or insolvent banks, either under the National Bank Act7 or the banking laws of the various states.8 A chancery receiver, as distinguished from a statutory receiver, is one appointed by a court exercising its inherent equity power, independently of any statute, and whose authority is derived from, and whose duty is prescribed by, the order of appointment. Statutory receivers are to be distinguished from chancery receivers as to title to the property (Quincy, Missouri & Pacic R. Co. v. Humphreys, 145 U.S. 82, 95, 12 S. Ct. 787, 36 L. Ed. 632 (1892)).

Receivers may also be classified as temporary or permanent, the former being appointed merely to act until a permanent receiver is appointed and put in charge or until the petition for the appointment of a permanent receiver is dismissed as unjustied. Very often, the person appointed a temporary receiver will be continued in oce if the receivership is made permanent. “It is obvious horn book law that no permanent receiver of a corporation can be appointed on immediate presentation of a complaint which the debtor challenges.” (Brewster v. Kable News
Co., 148 F.2d 610 (C.C.A. 2d Cir. 1945)). (1)

Resources

Notes

1. Fletcher Cyclopedia of the Law of Corporations

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