(a) A request by a mortgagee for appointment of a receiver, the appointment of a receiver, or application by a mortgagee of receivership property or proceeds to the secured obligation does not:

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Terms Used In Tennessee Code 29-40-125

  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Lien: means an interest in property that secures payment or performance of an obligation. See Tennessee Code 29-40-102
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Mortgagee: means a person entitled to enforce an obligation secured by a mortgage. See Tennessee Code 29-40-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Owner: means the person for whose property a receiver is appointed. See Tennessee Code 29-40-102
  • Proceeds: means the following property:
    (A) Whatever is acquired on the sale, lease, license, exchange, or other disposition of receivership property. See Tennessee Code 29-40-102
  • Property: includes proceeds, products, offspring, rents, or profits of or from the property. See Tennessee Code 29-40-102
  • Receiver: means a person appointed by the court as the court's agent, and subject to the court's direction, to take possession of, manage, and, if authorized by this chapter or court order, transfer, sell, lease, license, exchange, collect, or otherwise dispose of receivership property. See Tennessee Code 29-40-102
  • Receivership: means a proceeding in which a receiver is appointed. See Tennessee Code 29-40-102
  • Receivership property: includes any proceeds, products, offspring, rents, or profits of or from the property. See Tennessee Code 29-40-102
  • Secured obligation: means an obligation the payment or performance of which is secured by a security agreement. See Tennessee Code 29-40-102
  • State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Tennessee Code 29-40-102
(1) Make the mortgagee a mortgagee in possession of the real property;
(2) Make the mortgagee an agent of the owner;
(3) Constitute an election of remedies that precludes a later action to enforce the secured obligation;
(4) Make the secured obligation unenforceable;
(5) Limit any right available to the mortgagee with respect to the secured obligation; or
(6) Except as otherwise provided in subsection (b), bar a deficiency judgment pursuant to the law of this state, other than this chapter, governing or relating to a deficiency judgment.
(b) If a receiver sells receivership property that pursuant to § 29-40-116(c) is free and clear of a lien, the ability of a creditor to enforce an obligation that had been secured by the lien is subject to the law of this state, other than this chapter, relating to a deficiency judgment.
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