(a)  Except as otherwise provided in subsection (d) of this section or ordered by the court, an order appointing a receiver operates as a stay, applicable to all persons, of an act, action, or proceeding:

(1)  To obtain possession of, exercise control over, or enforce a judgment against receivership property; and

(2)  To enforce a lien against receivership property to the extent the lien secures a claim against the owner which arose before entry of the order.

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Terms Used In Rhode Island General Laws 10-21-14

  • 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.
  • Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
  • Contract: A legal written agreement that becomes binding when signed.
  • Court: means the superior court. See Rhode Island General Laws 10-21-2
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • debtor: includes a mortgagor. See Rhode Island General Laws 10-21-2
  • Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
  • Governmental unit: means an office, department, division, bureau, board, commission, or other agency of this state or a subdivision of this state. See Rhode Island General Laws 10-21-2
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Lien: means an interest in property which secures payment or performance of an obligation. See Rhode Island General Laws 10-21-2
  • Owner: means the person for whose property a receiver is appointed. See Rhode Island General Laws 10-21-2
  • Person: means an individual, estate, partnership, association, trust, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. See Rhode Island General Laws 10-21-2
  • Property: means all of a person's right, title, and interest, both legal and equitable, in real and personal property, tangible and intangible, wherever located and however acquired. See Rhode Island General Laws 10-21-2
  • 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 Rhode Island General Laws 10-21-2
  • Receivership: means a proceeding in which a receiver is appointed. See Rhode Island General Laws 10-21-2
  • Receivership property: means the property of an owner which is described in the order appointing a receiver or a subsequent order. See Rhode Island General Laws 10-21-2

(b)  Except as otherwise provided in subsection (d) of this section, the court may enjoin an act, action, or proceeding against or relating to receivership property if the injunction is necessary to protect the property or facilitate administration of the receivership.

(c)  A person whose act, action, or proceeding is stayed or enjoined under this section may apply to the court for relief from the stay or injunction for cause.

(d)  An order under subsection (a) or (b) of this section does not operate as a stay or injunction of:

(1)  An act, action, or proceeding to perfect, or maintain or continue the perfection of, an interest in receivership property;

(2)  Commencement or continuation of a criminal proceeding;

(3)  Commencement or continuation of an action or proceeding, or enforcement of a judgment other than a money judgment in an action or proceeding, by a governmental unit to enforce its police or regulatory power;

(4)  Establishment by a governmental unit of a tax liability against the owner or receivership property or an appeal of the liability; or

(5)  Exercise of rights of a party to a swap agreement, securities contract, repurchase agreement, commodity contract, forward contract, or master netting agreement, as those terms are defined in the federal Bankruptcy Code, to the extent that a court would not have the power to stay the exercise if the defendant were a debtor under the Bankruptcy Code.

(e)  The court may void an act that violates a stay or injunction under this section.

(f)  If a person knowingly violates a stay or injunction under this section, the court may:

(1)  Award actual damages caused by the violation, reasonable attorneys’ fees, and costs; and

(2)  Sanction the violation as civil contempt.

History of Section.
P.L. 2022, ch. 107, § 1, effective June 20, 2022; P.L. 2022, ch. 108, § 1, effective June 20, 2022.