Maryland Code, COMMERCIAL LAW 24-201
Terms Used In Maryland Code, COMMERCIAL LAW 24-201
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- including: means includes or including by way of illustration and not by way of limitation. See
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- 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.
- Person: includes an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, corporation, partnership, business trust, statutory trust, limited liability company, firm, association, or other nongovernmental entity. See
(1) Before judgment, to protect a party that demonstrates an apparent right to property that is the subject of the action, if the property or the revenue-producing potential of the property:
(i) Is being subjected to or is in danger of waste, loss, dissipation, or impairment; or
(ii) Has been or is about to be the subject of a fraudulent conveyance voidable under Title 15, Subtitle 2 of this article;
(2) After judgment, to:
(i) Carry the judgment into effect; or
(ii) Preserve nonexempt property:
1. Pending appeal; or
2. When an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment;
(3) In an action seeking dissolution of a corporation under § 3-411 or § 3-415 of the Corporations and Associations Article; or
(4) To a receivership under § 24-103(a)(3) of this title.
(b) (1) In connection with or anticipation of a foreclosure or any other enforcement of a mortgage, a mortgagee is entitled to the appointment of a receiver.
(2) On request, a court shall appoint a receiver for the mortgaged property if:
(i) There is a default under the mortgage; and
(ii) 1. Appointment of a receiver is necessary to protect the property from waste, loss, transfer, dissipation, or impairment;
2. The mortgagor agreed in a signed record, including the mortgage or an assignment of leases and rents, to the appointment of a receiver on default;
3. The owner agreed, after default and in a signed record, to the appointment of a receiver;
4. The property and any other collateral held by the mortgagee are not sufficient to satisfy the secured obligation;
5. The owner fails to turn over to the mortgagee proceeds or rent the mortgagee was entitled to collect; or
6. The holder of a subordinate lien obtains the appointment of a receiver for the property.
(c) (1) A court may condition appointment of a receiver without prior notice under § 24-501(b)(1) of this title, or without a prior hearing under § 24-501(b)(2) of this title, on the giving of security by the person seeking the appointment for:
(i) The payment of damages;
(ii) Reasonable attorney’s fees; or
(iii) If the court concludes that the appointment was not justified, costs incurred by any person.
(2) If the court later concludes that the appointment was justified, the court shall release the security.