West Virginia Code 55-21-11 – Collection and turnover of receivership property
(a) Unless the court orders otherwise, on demand by a receiver:
Terms Used In West Virginia Code 55-21-11
- Court: means a circuit court. See West Virginia Code 55-21-2
- 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 West Virginia Code 55-21-2
- Owner: means the person for whose property a receiver is appointed. See West Virginia Code 55-21-2
- Person: means an individual, estate, business or nonprofit entity, public corporation, government or governmental subdivision, agency, or instrumentality, or other legal entity. See West Virginia Code 55-21-2
- 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 West Virginia Code 55-21-2
- 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 article or court order, transfer, sell, lease, license, exchange, collect, or otherwise dispose of receivership property. See West Virginia Code 55-21-2
- Receivership: means a proceeding in which a receiver is appointed. See West Virginia Code 55-21-2
- Receivership property: means the property of an owner which is described in the order appointing a receiver or a subsequent order. See West Virginia Code 55-21-2
(1) A person that owes a debt that is receivership property and is matured or payable on demand or on order shall pay the debt to or on the order of the receiver, except to the extent the debt is subject to setoff or recoupment; and
(2) Subject to subsection (c) of this section, a person that has possession, custody, or control of receivership property shall turn the property over to the receiver.
(b) A person that has notice of the appointment of a receiver and owes a debt that is receivership property may not satisfy the debt by payment to the owner.
(c) If a creditor has possession, custody, or control of receivership property and the validity, perfection, or priority of the creditor’s lien on the property depends on the creditor’s possession, custody, or control, the creditor may retain possession, custody, or control until the court orders adequate protection of the creditor’s lien.
(d) Unless a bona fide dispute exists about a receiver’s right to possession, custody, or control of receivership property, the court may sanction as civil contempt a person’s failure to turn the property over when required by this section.