Senate Bill 1791 amends Tennessee law regarding the rights of superior interest holders in receivership proceedings. The bill establishes that a receivership initiated in Tennessee cannot interfere with the rights of a holder of a superior interest in the property, unless there is express consent from that holder. It defines "superior" interests and clarifies that actions taken by superior interest holders to establish or enforce their priority do not imply consent to the receivership. Additionally, the bill ensures that exclusive jurisdiction does not override any enforceable agreements related to venue, jurisdiction, or choice of law for superior interest holders.

The bill also includes provisions that prevent judges or chancellors from issuing orders that limit or impede the rights of superior interest holders in receivership cases. If a party intervenes in a receivership to assert their superior interest, this action does not constitute consent to the receivership. Should the court determine that the intervening party holds a superior interest, it is mandated to protect their rights and award reasonable attorney's fees and costs incurred during the process. The act is designed to take effect immediately upon becoming law and applies to all proceedings initiated thereafter.

Statutes affected:
Introduced: 29-1-103, 29-40-102, 29-40-105, 29-40-114(d), 29-40-114