§ 10-21-6. Appointment of receiver.
(a) The court may appoint a receiver:
(1) Before judgment, to protect a party that demonstrates an apparent right, title, or interest in property that is the subject of the action, if the property or its revenue-producing potential:
(i) Is being subjected to or is in danger of waste, loss, dissipation, misapplication, or impairment; or
(ii) Has been or is about to be the subject of a voidable transaction;
(2) After judgment:
(i) To carry the judgment into effect; or
(ii) To preserve nonexempt real property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;
(3) In an action against a person that is not an individual if:
(i) The object of the action is the dissolution of the person;
(ii) The person is not an individual, and the person has been dissolved or revoked;
(iii) The persons responsible for management of the person are deadlocked in the management of the person’s affairs;
(iv) The acts of the persons in control of the person are illegal, oppressive, or fraudulent; or
(v) The person is insolvent or generally is not paying the person’s debts as those debts become due; or
(4) In an action in which a receiver may be appointed on equitable grounds.
(b) In connection with the foreclosure or other enforcement of a security agreement, the court may appoint a receiver for the collateral if:
(1) Appointment is necessary to protect the collateral from waste, loss, transfer, dissipation, misapplication, or impairment;
(2) The debtor agreed in a signed record to appointment of a receiver on default;
(3) The owner agreed, after default and in a signed record, to appointment of a receiver;
(4) The collateral and any other security held by the secured party are not reasonably expected to be sufficient to satisfy the secured obligation; or
(5) The owner fails to turn over to the secured party proceeds or rents the secured party was entitled to collect.
(c) The court may condition appointment of a receiver without prior notice under § 10-21-3(b)(1) or without a prior hearing under § 10-21-3(b)(2) on the giving of security by the person seeking the appointment for the payment of damages, reasonable attorneys’ fees, and costs incurred or suffered by any person if the court later concludes that the appointment was not justified. If the court later concludes that the appointment was justified, the court shall release the security.
History of Section.P.L. 2022, ch. 107, § 1, effective June 20, 2022; P.L. 2022, ch. 108, § 1, effective June 20, 2022.
Structure Rhode Island General Laws
Title 10 - Courts and Civil Procedure – Procedure in Particular Actions
Chapter 10-21 - Rhode Island Commercial Receivership Act
Section 10-21-1. - Short title.
Section 10-21-2. - Definitions.
Section 10-21-3. - Notice and opportunity for hearing.
Section 10-21-3.1. - Administrative and procedural orders in temporary non-liquidating receivership.
Section 10-21-4. - Scope — Exclusions.
Section 10-21-5. - Power of court.
Section 10-21-6. - Appointment of receiver.
Section 10-21-6.1. - Appointment of temporary non-liquidating receiver.
Section 10-21-7. - Disqualification from appointment as receiver — Disclosure of interest.
Section 10-21-8. - Receiver’s bond — Alternative security.
Section 10-21-9. - Status of receiver as lien creditor.
Section 10-21-10. - Security interest covering after-acquired property.
Section 10-21-11. - Collection and turnover of receivership property.
Section 10-21-12. - Powers and duties of receiver.
Section 10-21-12.1. - Powers and duties of temporary non-liquidating receiver — Operating plan.
Section 10-21-13. - Duties of owner.
Section 10-21-13.1. - Owner’s duties in temporary non-liquidating receivership.
Section 10-21-14. - Stay — Injunction.
Section 10-21-14.1. - Stay in a temporary non-liquidating receivership.
Section 10-21-15. - Engagement and compensation of professional.
Section 10-21-16. - Use or transfer of receivership property not in the ordinary course of business.
Section 10-21-17. - Executory contract.
Section 10-21-18. - Defenses and immunities of receiver.
Section 10-21-19. - Interim report of receiver.
Section 10-21-19.1. - Interim report of temporary non-liquidating receiver.
Section 10-21-20. - Notice of appointment — Claim against receivership — Distribution to creditors.
Section 10-21-21. - Fees and expenses.
Section 10-21-21.1. - Emergency declaration receivership program coordinator.
Section 10-21-22. - Removal of receiver — Replacement — Termination of receivership.
Section 10-21-23. - Final report of receiver — Discharge.
Section 10-21-24. - Receivership in another state — Ancillary proceeding.
Section 10-21-25. - Effect of enforcement by secured party.
Section 10-21-26. - Uniformity of application and construction.
Section 10-21-27. - Relation to Electronic Signatures in Global and National Commerce Act.