(a) Except as otherwise provided in subsection (f), a receiver shall give notice of appointment of the receiver to creditors of the owner by:

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Terms Used In Tennessee Code 29-40-120

  • Court: means a chancery court in this state. See Tennessee Code 29-40-102
  • 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
  • Owner: means the person for whose property a receiver is appointed. 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
  • Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in a perceivable form. See Tennessee Code 1-3-105
  • signed: includes a mark, the name being written near the mark and witnessed, or any other symbol or methodology executed or adopted by a party with intention to authenticate a writing or record, regardless of being witnessed. See Tennessee Code 1-3-105
  • 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) Deposit for delivery through first-class mail or other commercially reasonable delivery method to the last known address of each creditor; and
(2) Publication as directed by the court.
(b)

(1) Except as otherwise provided in subsection (f), the notice required by subsection (a) must specify the date by which each creditor holding a claim against the owner that arose before appointment of the receiver must submit the claim to the receiver.
(2) The date specified must be at least ninety (90) days after the later of notice under subdivision (a)(1) or last publication under subdivision (a)(2).
(3) The court may extend the period for submitting the claim.
(4) Unless the court orders otherwise, a claim that is not submitted timely is not entitled to a distribution from the receivership.
(c) A claim submitted by a creditor under this section must:

(1) State the name and address of the creditor;
(2) State the amount and basis of the claim;
(3) Identify any property securing the claim;
(4) Be signed by the creditor under penalty of perjury; and
(5) Include a copy of any record on which the claim is based.
(d) An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record.
(e)

(1) At any time before entry of an order approving a receiver’s final report, the receiver may file with the court an objection to a claim of a creditor, stating the basis for the objection.
(2) The court shall allow or disallow the claim according to the law of this state, other than this chapter.
(f) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that:

(1) The receiver need not give notice under subsection (a) of the appointment to all creditors of the owner, but only such creditors as the court directs; and
(2) Unsecured creditors need not submit claims under this section.
(g) Subject to § 29-40-121:

(1) A distribution of receivership property to a creditor holding a perfected lien on the property must be made in accordance with the creditor’s priority under the law of this state, other than this chapter; and
(2) A distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs according to the law of this state, other than this chapter.
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