(a)  The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.

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Terms Used In Rhode Island General Laws 10-21-7

  • Affiliate: means :

    (i)  With respect to an individual:

    (A)  A companion of the individual;

    (B)  A lineal ancestor or descendant, whether by blood or adoption of:

    (I)  The individual; or

    (II)  A companion of the individual;

    (C)  A companion of an ancestor or descendant described in § 10-21-2(1)(i)(B);

    (D)  A sibling, aunt, uncle, great aunt, great uncle, first cousin, niece, nephew, grandniece, or grandnephew of the individual, whether related by the whole or the half blood or adoption, or a companion of any of them; or

    (E)  Any other individual occupying the residence of the individual; and

    (ii)  With respect to a person other than an individual:

    (A)  Another person that directly or indirectly controls, is controlled by, or is under common control with the person;

    (B)  An officer, director, manager, member, partner, employee, or trustee or other fiduciary of the person; or

    (C)  A companion of, or an individual occupying the residence of, an individual described in §§ 10-21-2(1)(ii)(A) or (B). See Rhode Island General Laws 10-21-2

  • Court: means the superior court. 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
  • 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

(b)  Except as otherwise provided in subsection (c) of this section, a person is disqualified from appointment as receiver if the person:

(1)  Is an affiliate of a party;

(2)  Has an interest materially adverse to an interest of a party;

(3)  Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;

(4)  Has a debtor-creditor relationship with a party; or

(5)  Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company.

(c)  A person is not disqualified from appointment as receiver solely because the person:

(1)  Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership;

(2)  Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or

(3)  Maintains with a party a deposit account as defined in § 6A-9-102(a)(29).

(d)  A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

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