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How to Lose a Receiver in One Appeal

February 6, 2019

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How to Lose a Receiver in One Appeal

February 6, 2019

Authored by: Keith Aurzada

The appointment of a receivership is an incredibly useful tool for lawyers. Since it is such a useful tool and due to a recent ruling in Texas, we thought now was as good as any to brush up on our familiarity with receiverships.  (And by the way, check out a prior post by my colleague Brad Purcell on “Fourteen Ways to Appoint a Receiver in the Lone Star State.”)  Although this post focuses on Texas law, the statutes governing most states and federal receiverships have similar requirements.

The general receivership statute in Texas allows for the appointment of a receiver under a number of conditions including[1] an action by a creditor to subject any property or fund to his claim if the creditor has a probable interest in or right to the property or fund and the property is in danger of

Circuit Split – Allowing Receiverships by Contract

“I think now that I’m older, I do think I’m the greatest receiver to ever do it.” -Randy Moss, Receiver, probably not talking about Fed. R. Civ. P. 66.

Editors’ Note: Will Easley of our Kansas City restructuring & insolvency practice knows about NFL receivers.  He also knows about the far more exciting receivers appointed under Federal Rule 66.  If you want to talk about either, or both, give him a call!

Even if you know the best receivers in the game, they cannot preserve your collateral if a court will not appoint them. In federal court, a receiver is usually only appointed when the plaintiff shows fraud or other threat to the collateral.  For creditors who have the Randy Moss (or the objectively better Jerry Rice) of receivers, and a provision allowing appointment in the loan documents, this may come as a shock. Currently, there is

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