The Alabama Uniform Commercial Real Estate Receivership Act, designated as HB350, establishes a comprehensive framework for the appointment and management of receivers in commercial real estate cases. The bill introduces new legal definitions for terms such as "receiver," "receivership property," and "interested party," while detailing the powers and duties of receivers, the responsibilities of property owners and mortgagors, and the procedures for notice and hearings. It allows courts to issue preliminary orders without prior notice in urgent situations and specifies that 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 include the requirement for receivers to post a bond, the criteria for their appointment, and the exclusive jurisdiction of courts over receivership matters.

Additionally, HB350 outlines the powers and responsibilities of receivers, including the ability to incur debt and manage property with court approval, while mandating accurate record-keeping and disclosure of disqualifying facts. The bill introduces a stay on actions against receivership property upon the appointment of a receiver and allows for the engagement of professionals with court approval. It also clarifies the authority of receivers regarding executory contracts, including the ability to adopt or reject them, and establishes procedures for notifying creditors and submitting claims against the receivership. The act emphasizes uniformity in application across states and clarifies its relationship with existing laws, with an effective date of January 1, 2025, and a provision that it does not apply to receiverships established prior to that date.

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