The proposed bill seeks to establish the Uniform Commercial Real Estate Receivership Act in North Dakota by introducing a new chapter (32-10.1) to the North Dakota Century Code. This chapter provides definitions related to receivership, outlines the court's authority to appoint receivers, and details their powers and duties in managing receivership property. It emphasizes the necessity for notice and an opportunity for a hearing before the court issues orders regarding receivership, while allowing for exceptions in urgent situations. The bill also sets forth disqualification criteria for potential receivers, requiring disclosure of conflicts of interest, and mandates that receivers post a bond or alternative security to ensure their duties are faithfully executed.

Additionally, the bill amends existing receivership laws by enhancing notice requirements for creditors, establishing a timeline for claim submissions, and detailing the distribution of receivership property. It requires receivers to notify creditors through first-class mail or other reasonable methods and to publish notices as directed by the court. Claims must be submitted within at least ninety days of notice, and late claims will not be eligible for distribution. The bill also allows for the removal of a receiver for cause and mandates the replacement of a receiver who dies, resigns, or is removed. It clarifies that the act does not apply to commercial real estate receiverships under a different chapter and calls for a legislative study during the 2025-26 interim to consider consolidating receivership provisions into a single chapter, aiming to improve the efficiency and clarity of the receivership process in North Dakota.