The Alabama Uniform Commercial Real Estate Receivership Act, designated as HB350, establishes a comprehensive framework for the appointment and authority of receivers managing commercial real estate during legal proceedings. 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. Key provisions include the requirement for receivers to provide interim and final reports, disclose conflicts of interest, and post a bond or alternative security. The Act also clarifies that it does not apply to receiverships involving properties with one to four dwelling units unless used for specific non-residential purposes, and it emphasizes the need for transparency and accountability throughout the receivership process.

Additionally, HB350 outlines the criteria for appointing receivers, the exclusive jurisdiction of courts over receivership matters, and the conditions under which courts may issue orders related to receivership. It allows for the appointment of ancillary receivers from other states and clarifies that a mortgagee's request for a receiver does not grant them possession of the property. The bill also addresses the management of executory contracts, the engagement of professionals to assist receivers, and the procedures for the appointment, removal, and discharge of receivers. Importantly, the Act is set to take effect on January 1, 2025, and will not apply to receiverships established prior to that date, ensuring uniformity in application across the state.

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