The Alabama Uniform Commercial Real Estate Receivership Act, known as HB350, aims to create a standardized framework for the appointment and management of receivers in commercial real estate cases. The bill introduces new legal language that defines key terms such as "receiver," "receivership property," and "interested party," while detailing the powers and duties of the receiver, the responsibilities of property owners and mortgagors, and the procedures for notice and hearings. It specifies conditions under which a court may issue orders related to receivership, including the ability to issue preliminary orders without prior notice in urgent situations. The act applies to receiverships involving real property and related personal property, excluding certain residential properties unless used for specific non-residential purposes.

Key provisions of the bill include the criteria for appointing a receiver, the powers granted to the receiver, and the requirements for their bond or alternative security. The bill emphasizes transparency by requiring potential receivers to submit statements regarding their qualifications and allows receivers to manage and protect receivership property, incur debt, and make improvements with court approval. It also outlines the procedures for notifying creditors of the receiver's appointment, the handling of executory contracts, and the removal and replacement of receivers. Notably, the bill deletes previous legal language that may have limited the receiver's authority and inserts new provisions to enhance the receiver's ability to manage property effectively. The act is set to take effect on January 1, 2025, and does not apply to receiverships established before that date.

Statutes affected:
Introduced: 12-11-30
Engrossed: 12-11-30
Enrolled: 12-11-30