House Bill 350 (HB350) Enrolled introduces the Alabama Uniform Commercial Real Estate Receivership Act, which sets forth a comprehensive framework for the appointment and operation of receivers in commercial real estate cases. The bill defines the circumstances under which a receiver can be appointed by a court, such as to protect a party's interest in real property, to carry out a judgment, or on equitable grounds. It also details the qualifications necessary for an individual to serve as a receiver, including the requirement to provide a statement under penalty of perjury that they are not disqualified due to adverse interests or debtor-creditor relationships with involved parties. The bill grants receivers the authority to manage and operate receivership property, incur debt, and engage professionals, among other powers, all subject to court approval.

Furthermore, HB350 outlines the responsibilities of property owners and mortgagors to cooperate with the receiver, including the turnover of property and records. It describes the legal protections for receivership property, including stays and injunctions, and the process for transferring receivership property outside the ordinary course of business. The bill also addresses the treatment of executory contracts, allowing the receiver to adopt or reject them with court approval, and sets forth the process for submitting claims for damages resulting from contract rejection. The bill includes provisions for the termination of the receivership, the discharge of the receiver, and the appointment of ancillary receivers for out-of-state property. It clarifies that a mortgagee's involvement with the receivership does not affect their rights or status. The bill is set to become effective on January 1, 2025, and does not apply to receiverships appointed before this date. An insertion notes that the Senate passed the bill on May 8, 2024.

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