District Of Columbia 2023-2024 Regular Session

District Of Columbia Council Bill B25-0485 Compare Versions

Version 1 (Old)

Version 2 (New)

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	1	+	ENGROSSED ORIGINAL
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8		-	~~AN ACT~~
	8	+	A BILL
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	10	+	25-485
11	11
12	12		IN THE COUNCIL OF THE DISTRICT OF COLUMBIA
13	13
14	14		__________________________
15	15
16	16
17		-	To enact the Uniform Commercial Real Estate Receivership Act to establish uniform standards
18		-	under which the Superior Court may appoint a receiver, to give any interested parties the
19		-	right to notice and an opportunity for a hearing before the Superior Court issues an order
20		-	under this act, to require a receiver to be independent, to give a receiver the status of a
21		-	lien creditor with respect to receivership property, subject to pre-existing perfected
22		-	security interests, to set forth the receiver’s presumptive powers and those the receiver
23		-	may exercise only with the Superior Court’s approval, to set forth the duties of both the
24		-	receiver and the owner of receivership property, to authorize receivers to use or sell
25		-	receivership property in the ordinary course of business, but require that they obtain get
26		-	the Superior Court’s approval for uses or transfers of property outside the ordinary course
27		-	of business, and for other purposes.
28		-
29		-	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this
30		-	act may be cited as the “Uniform Commercial Real Estate Receivership Act of 2024”.
31		-
32		-	Sec. 2. Short title.
33		-	This act may be cited as the “Uniform Commercial Real Estate Receivership Act”.
34		-
35		-	Sec. 3. Definitions.
36		-	For the purposes of this act, the term:
37		-	(1) “Affiliate” means:
38		-	(A) With respect to an individual:
39		-	(i) A companion of the individual;
40		-	(ii) A lineal ancestor or descendant, whether by blood or adoption,
41		-	of:
42		-	(I) The individual; or
43		-	(II) A companion of the individual;
44		-	(iii) A companion of an ancestor or descendant described in sub-
45		-	subparagraph (ii) of this subparagraph; ENROLLED ORIGINAL
	17	+	To enact the Uniform Commercial Real Estate Receivership Act to establish uniform standards 1
	18	+	under which the Superior Court may appoint a receiver; to give any interested parties the 2
	19	+	right to notice and an opportunity for a hearing before the Superior Court issues an order 3
	20	+	under this act; to require a receiver to be independent; to give a receiver the status of a lien 4
	21	+	creditor with respect to receivership property, subject to pre-existing perfected security 5
	22	+	interests; to set forth the receiver’s presumptive powers and those the receiver may exercise 6
	23	+	only with the Superior Court’s approval; to set forth the duties of both the receiver and the 7
	24	+	owner of receivership property; to authorize receivers to use or sell receivership property 8
	25	+	in the ordinary course of business, but require that they obtain get the Superior Court’s 9
	26	+	approval for uses or transfers of property outside the ordinary course of business; and for 10
	27	+	other purposes. 11
	28	+	12
	29	+	BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this 13
	30	+	act may be cited as the “Uniform Commercial Real Estate Receivership Act of 2024”. 14
	31	+	Sec. 2. Short title. 15
	32	+	This act may be cited as the “Uniform Commercial Real Estate Receivership Act”. 16
	33	+	Sec. 3. Definitions. 17
	34	+	For the purposes of this act, the term: 18
	35	+	(1) “Affiliate” means: 19
	36	+	(A) With respect to an individual: 20
	37	+	(i) A companion of the individual; 21 ENGROSSED ORIGINAL
46	38
47	39
48	40
49	41
50	42		2
51	43
52		-	(iv) A sibling, aunt, uncle, great aunt, great uncle, first cousin,
53		-	niece, nephew, grandniece, or grandnephew of the individual, whether related by the whole or
54		-	the half blood or adoption, or a companion of any of them; or
55		-	(v) Any other individual occupying the residence of the individual;
56		-	and
57		-	(B) With respect to a person other than an individual:
58		-	(i) Another person that directly or indirectly controls, is controlled
59		-	by, or is under common control with the person;
60		-	(ii) An officer, director, manager, member, partner, employee, or
61		-	trustee or other fiduciary of the person; or
62		-	(iii) A companion of, or an individual occupying the residence of,
63		-	an individual described in sub- subparagraph (i) or (ii) of this subparagraph.
64		-	(2) “Companion” means:
65		-	(A) The spouse of an individual;
66		-	(B) The domestic partner of an individual; or
67		-	(C) Another individual in a civil union with an individual.
68		-
69		-	(3) “Executory contract” means a contract, including a lease, under which each
70		-	party has an unperformed obligation and the failure of a party to complete performance would
71		-	constitute a material breach.
72		-	(4) “Governmental unit” means an office, department, division, bureau, board,
73		-	commission, or other agency of the District or a subdivision of the District.
74		-	(5) “Lien” means an interest in property which secures payment or performance
75		-	of an obligation.
76		-	(6) “Mortgage” means a record, however denominated, that creates or provides
77		-	for a consensual lien on real property or rents, even if it also creates or provides for a lien on
78		-	personal property.
79		-	(7) “Mortgagee” means a person entitled to enforce an obligation secured by a
80		-	mortgage.
81		-	(8) “Mortgagor” means a person that grants a mortgage or a successor in
82		-	ownership of the real property described in the mortgage.
83		-	(9) “Owner” means the person for whose property a receiver is appointed.
84		-	(10) “Person” means an individual, estate, business or nonprofit entity, public
85		-	corporation, government or governmental subdivision, agency, or instrumentality, or other legal
86		-	entity.
87		-	(11) “Proceeds” means the following property:
88		-	(A) Whatever is acquired on the sale, lease, license, exchange, or other
89		-	disposition of receivership property;
90		-	(B) Whatever is collected on, or distributed on account of, receivership
91		-	property; ENROLLED ORIGINAL
	44	+	(ii) A lineal ancestor or descendant, whether by blood or adoption, 22
	45	+	of: 23
	46	+	(I) The individual; or 24
	47	+	(II) A companion of the individual; 25
	48	+	(iii) A companion of an ancestor or descendant described in sub-26
	49	+	subparagraph (ii) of this subparagraph; 27
	50	+	(iv) A sibling, aunt, uncle, great aunt, great uncle, first cousin, niece, 28
	51	+	nephew, grandniece, or grandnephew of the individual, whether related by the whole or the half 29
	52	+	blood or adoption, or a companion of any of them; or 30
	53	+	(v) Any other individual occupying the residence of the individual; 31
	54	+	and 32
	55	+	(B) With respect to a person other than an individual: 33
	56	+	(i) Another person that directly or indirectly controls, is controlled 34
	57	+	by, or is under common control with the person; 35
	58	+	(ii) An officer, director, manager, member, partner, employee, or 36
	59	+	trustee or other fiduciary of the person; or 37
	60	+	(iii) A companion of, or an individual occupying the residence of, 38
	61	+	an individual described in sub- subparagraph (i) or (ii) of this subparagraph. 39
	62	+	(2) “Companion” means: 40
	63	+	(A) The spouse of an individual; 41 ENGROSSED ORIGINAL
92	64
93	65
94	66
95	67
96	68		3
97	69
98		-	(C) Rights arising out of receivership property;
99		-	(D) To the extent of the value of receivership property, claims arising out
100		-	of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or
101		-	damage to the property; or
102		-	(E) To the extent of the value of receivership property and to the extent
103		-	payable to the owner or mortgagee, insurance payable by reason of the loss or nonconformity of,
104		-	defects or infringement of rights in, or damage to the property.
105		-	(12) “Property” means all of a person’s right, title, and interest, both legal and
106		-	equitable, in real and personal property, tangible and intangible, wherever located and however
107		-	acquired. The term “property” includes proceeds, products, offspring, rents, or profits of or from
108		-	the property.
109		-	(13) “Receiver” means a person appointed by the Superior Court as the Superior
110		-	Court’s agent, and subject to the Superior Court’s direction, to take possession of, manage, and,
111		-	if authorized by this act or Superior Court order, transfer, sell, lease, license, exchange, collect,
112		-	or otherwise dispose of receivership property.
113		-	(14) “Receivership” means a proceeding in which a receiver is appointed.
114		-	(15) “Receivership property” means the property of an owner which is described
115		-	in the order appointing a receiver or a subsequent order. The term “receivership property”
116		-	includes any proceeds, products, offspring, rents, or profits of or from the property.
117		-	(16) “Record,” used as a noun, means information that is inscribed on a tangible
118		-	medium or that is stored on an electronic or other medium and is retrievable in perceivable form.
119		-	(17) “Rents” means:
120		-	(A) Sums payable for the right to possess or occupy, or for the actual
121		-	possession or occupation of, real property of another person;
122		-	(B) Sums payable to a mortgagor under a policy of rental-interruption
123		-	insurance covering real property;
124		-	(C) Claims arising out of a default in the payment of sums payable for the
125		-	right to possess or occupy real property of another person;
126		-	(D) Sums payable to terminate an agreement to possess or occupy real
127		-	property of another person;
128		-	(E) Sums payable to a mortgagor for payment or reimbursement of
129		-	expenses incurred in owning, operating, and maintaining real property or constructing or
130		-	installing improvements on real property; or
131		-	(F) Other sums payable under an agreement relating to the real property of
132		-	another person which constitute rents under law of the District other than this act.
133		-	(18) “Secured obligation” means an obligation the payment or performance of
134		-	which is secured by a security agreement.
135		-	(19) “Security agreement” means an agreement that creates or provides for a lien.
136		-	(20) “Sign” means, with present intent to authenticate or adopt a record:
137		-	(A) To execute or adopt a tangible symbol; or ENROLLED ORIGINAL
	70	+	(B) The domestic partner of an individual; or 42
	71	+	(C) Another individual in a civil union with an individual. 43
	72	+	(3) “District” means the District of Columbia. 44
	73	+	(4) “Executory contract” means a contract, including a lease, under which each 45
	74	+	party has an unperformed obligation and the failure of a party to complete performance would 46
	75	+	constitute a material breach. 47
	76	+	(5) “Governmental unit” means an office, department, division, bureau, board, 48
	77	+	commission, or other agency of the District or a subdivision of the District. 49
	78	+	(6) “Lien” means an interest in property which secures payment or performance of 50
	79	+	an obligation. 51
	80	+	(7) “Mortgage” means a record, however denominated, that creates or provides for 52
	81	+	a consensual lien on real property or rents, even if it also creates or provides for a lien on personal 53
	82	+	property. 54
	83	+	(8) “Mortgagee” means a person entitled to enforce an obligation secured by a 55
	84	+	mortgage. 56
	85	+	(9) “Mortgagor” means a person that grants a mortgage or a successor in ownership 57
	86	+	of the real property described in the mortgage. 58
	87	+	(10) “Owner” means the person for whose property a receiver is appointed. 59 ENGROSSED ORIGINAL
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141	91
142	92		4
143	93
144		-	(B) To attach to or logically associate with the record an electronic sound,
145		-	symbol, or process.
146		-	(21) “State” means a state of the United States, the District of Columbia, Puerto
147		-	Rico, the United States Virgin Islands, or any territory or insular possession subject to the
148		-	jurisdiction of the United States.
149		-	(22) “Superior Court” means the Superior Court of the District of Columbia.
150		-
151		-	Sec. 4. Notice and opportunity for hearing.
152		-	(a) Except as otherwise provided in subsection (b) of this section, the Superior Court may
153		-	issue an order under this act only after notice and opportunity for a hearing appropriate in the
154		-	circumstances.
155		-	(b) The Superior Court may issue an order under this act:
156		-	(1) Without prior notice if the circumstances require issuance of an order before
157		-	notice is given;
158		-	(2) After notice and without a prior hearing if the circumstances require issuance
159		-	of an order before a hearing is held; or
160		-	(3) After notice and without a hearing if no interested party timely requests a
161		-	hearing.
162		-
163		-	Sec. 5. Scope; exclusions.
164		-	(a) Except as otherwise provided in subsection (b) or (c) of this section, this act applies to
165		-	a receivership for an interest in real property and any personal property related to or used in
166		-	operating the real property.
167		-	(b) This act does not apply to a receivership for an interest in real property improved by
168		-	one to 4 dwelling units unless:
169		-	(1) The interest is used for agricultural, commercial, industrial, or mineral-
170		-	extraction purposes, other than incidental uses by an owner occupying the property as the
171		-	owner’s primary residence;
172		-	(2) The interest secures an obligation incurred at a time when the property was
173		-	used or planned for use for agricultural, commercial, industrial, or mineral-extraction purposes;
174		-	(3) The owner planned or is planning to develop the property into one or more
175		-	dwelling units to be sold or leased in the ordinary course of the owner’s business; or
176		-	(4) The owner is collecting or has the right to collect rents or other income from
177		-	the property from a person other than an affiliate of the owner.
178		-	(c) This act does not apply to a receivership authorized by law of the District other than
179		-	this act in which the receiver is a governmental unit or an individual acting in an official capacity
180		-	on behalf of the governmental unit except to the extent provided by the other law.
181		-	(d) This act does not limit the authority of the Superior Court to appoint a receiver under
182		-	law of the District other than this act. ENROLLED ORIGINAL
	94	+	(11) “Person” means an individual, estate, business or nonprofit entity, public 60
	95	+	corporation, government or governmental subdivision, agency, or instrumentality, or other legal 61
	96	+	entity. 62
	97	+	(12) “Proceeds” means the following property: 63
	98	+	(A) Whatever is acquired on the sale, lease, license, exchange, or other 64
	99	+	disposition of receivership property; 65
	100	+	(B) Whatever is collected on, or distributed on account of, receivership 66
	101	+	property; 67
	102	+	(C) Rights arising out of receivership property; 68
	103	+	(D) To the extent of the value of receivership property, claims arising out 69
	104	+	of the loss, nonconformity, or interference with the use of, defects or infringement of rights in, or 70
	105	+	damage to the property; or 71
	106	+	(E) To the extent of the value of receivership property and to the extent 72
	107	+	payable to the owner or mortgagee, insurance payable by reason of the loss or nonconformity of, 73
	108	+	defects or infringement of rights in, or damage to the property. 74
	109	+	(13) “Property” means all of a person’s right, title, and interest, both legal and 75
	110	+	equitable, in real and personal property, tangible and intangible, wherever located and however 76
	111	+	acquired. The term “property” includes proceeds, products, offspring, rents, or profits of or from 77
	112	+	the property. 78 ENGROSSED ORIGINAL
183	113
184	114
185	115
186	116
187	117		5
188	118
189		-	(e) Unless displaced by a particular provision of this act, the principles of law and equity
190		-	supplement this act.
191		-
192		-	Sec. 6. Power of Superior Court.
193		-	The Superior Court has exclusive jurisdiction to direct the receiver and determine any
194		-	controversy related to the receivership or receivership property.
195		-
196		-	Sec. 7. Appointment of receiver.
197		-	(a) The Superior Court may appoint a receiver:
198		-	(1) Before judgment, to protect a party that demonstrates an apparent right, title,
199		-	or interest in real property that is the subject of the action, if the property or its revenue-
200		-	producing potential:
201		-	(A) Is being subjected to or is in danger of waste, loss, dissipation, or
202		-	impairment; or
203		-	(B) Has been or is about to be the subject of a voidable transaction;
204		-	(2) After judgment:
205		-	(A) To carry the judgment into effect; or
206		-	(B) To preserve nonexempt real property pending appeal or when an
207		-	execution has been returned unsatisfied and the owner refuses to apply the property in
208		-	satisfaction of the judgment;
209		-	(3) In an action in which a receiver for real property may be appointed on
210		-	equitable grounds; or
211		-	(4) During the time allowed for redemption, to preserve real property sold in an
212		-	execution or foreclosure sale and secure its rents to the person entitled to the rents.
213		-	(b) In connection with the foreclosure or other enforcement of a mortgage, the Superior
214		-	Court may appoint a receiver for the mortgaged property if:
215		-	(1) Appointment is necessary to protect the property from waste, loss, transfer,
216		-	dissipation, or impairment;
217		-	(2) The mortgagor agreed in a signed record to appointment of a receiver on
218		-	default;
219		-	(3) The owner agreed, after default and in a signed record, to appointment of a
220		-	receiver;
221		-	(4) The property and any other collateral held by the mortgagee are not sufficient
222		-	to satisfy the secured obligation;
223		-	(5) The owner fails to turn over to the mortgagee proceeds or rents the mortgagee
224		-	was entitled to collect; or
225		-	(6) The holder of a subordinate lien obtains appointment of a receiver for the
226		-	property.
227		-	(c) The Superior Court may condition appointment of a receiver without prior notice
228		-	under section 4(b)(1) or without a prior hearing under section 4(b)(2) on the giving of security by ENROLLED ORIGINAL
	119	+	(14) “Receiver” means a person appointed by the Superior Court as the Superior 79
	120	+	Court’s agent, and subject to the Superior Court’s direction, to take possession of, manage, and, if 80
	121	+	authorized by this act or Superior Court order, transfer, sell, lease, license, exchange, collect, or 81
	122	+	otherwise dispose of receivership property. 82
	123	+	(15) “Receivership” means a proceeding in which a receiver is appointed. 83
	124	+	(16) “Receivership property” means the property of an owner which is described in 84
	125	+	the order appointing a receiver or a subsequent order. The term “receivership property” includes 85
	126	+	any proceeds, products, offspring, rents, or profits of or from the property. 86
	127	+	(17) “Record”, used as a noun, means information that is inscribed on a tangible 87
	128	+	medium or that is stored on an electronic or other medium and is retrievable in perceivable form. 88
	129	+	(18) “Rents” means: 89
	130	+	(A) Sums payable for the right to possess or occupy, or for the actual 90
	131	+	possession or occupation of, real property of another person; 91
	132	+	(B) Sums payable to a mortgagor under a policy of rental-interruption 92
	133	+	insurance covering real property; 93
	134	+	(C) Claims arising out of a default in the payment of sums payable for the 94
	135	+	right to possess or occupy real property of another person; 95
	136	+	(D) Sums payable to terminate an agreement to possess or occupy real 96
	137	+	property of another person; 97 ENGROSSED ORIGINAL
229	138
230	139
231	140
232	141
233	142		6
234	143
235		-	the person seeking the appointment for the payment of damages, reasonable attorney’s fees, and
236		-	costs incurred or suffered by any person if the Superior Court later concludes that the
237		-	appointment was not justified. If the Superior Court later concludes that the appointment was
238		-	justified, the Superior Court shall release the security.
239		-
240		-	Sec. 8. Disqualification from appointment as receiver; disclosure of interest.
241		-	(a) The Superior Court may not appoint a person as receiver unless the person submits to
242		-	the Superior Court a statement under penalty of perjury that the person is not disqualified.
243		-	(b) Except as otherwise provided in subsection (c) of this section, a person is disqualified
244		-	from appointment as receiver if the person:
245		-	(1) Is an affiliate of a party;
246		-	(2) Has an interest materially adverse to an interest of a party;
247		-	(3) Has a material financial interest in the outcome of the action, other than
248		-	compensation the Superior Court may allow the receiver;
249		-	(4) Has a debtor-creditor relationship with a party; or
250		-	(5) Holds an equity interest in a party, other than a noncontrolling interest in a
251		-	publicly- traded company.
252		-	(c) A person is not disqualified from appointment as receiver solely because the person:
253		-	(1) Was appointed receiver or is owed compensation in an unrelated matter
254		-	involving a party or was engaged by a party in a matter unrelated to the receivership;
255		-	(2) Is an individual obligated to a party on a debt that is not in default and was
256		-	incurred primarily for personal, family, or household purposes; or
257		-	(3) Maintains with a party a deposit account, as that term is defined in D.C.
258		-	Official Code § 28:9- 102(a)(29).
259		-	(d) A person seeking appointment of a receiver may nominate a person to serve as
260		-	receiver, but the Superior Court is not bound by the nomination.
261		-
262		-	Sec. 9. Receiver’s bond; alternative security.
263		-	(a) Except as otherwise provided in subsection (b) of this section, a receiver shall post
264		-	with the Superior Court a bond that:
265		-	(1) Is conditioned on the faithful discharge of the receiver’s duties;
266		-	(2) Has one or more sureties approved by the Superior Court ;
267		-	(3) Is in an amount the Superior Court specifies; and
268		-	(4) Is effective as of the date of the receiver’s appointment.
269		-	(b) The Superior Court may approve the posting by a receiver with the Superior Court of
270		-	alternative security, such as a letter of credit or deposit of funds. The receiver may not use
271		-	receivership property as alternative security. Interest that accrues on deposited funds must be
272		-	paid to the receiver on the receiver’s discharge.
273		-	(c) The Superior Court may authorize a receiver to act before the receiver posts the bond
274		-	or alternative security required by this section. ENROLLED ORIGINAL
	144	+	(E) Sums payable to a mortgagor for payment or reimbursement of expenses 98
	145	+	incurred in owning, operating, and maintaining real property or constructing or installing 99
	146	+	improvements on real property; or 100
	147	+	(F) Other sums payable under an agreement relating to the real property of 101
	148	+	another person which constitute rents under law of the District other than this act. 102
	149	+	(19) “Secured obligation” means an obligation the payment or performance of 103
	150	+	which is secured by a security agreement. 104
	151	+	(20) “Security agreement” means an agreement that creates or provides for a lien. 105
	152	+	(21) “Sign” means, with present intent to authenticate or adopt a record: 106
	153	+	(A) To execute or adopt a tangible symbol; or 107
	154	+	(B) To attach to or logically associate with the record an electronic sound, 108
	155	+	symbol, or process. 109
	156	+	(22) “State” means a state of the United States, the District of Columbia, Puerto 110
	157	+	Rico, the United States Virgin Islands, or any territory or insular possession subject to the 111
	158	+	jurisdiction of the United States. 112
	159	+	(23) “Superior Court” means the Superior Court of the District of Columbia. 113
	160	+	Sec. 4. Notice and opportunity for hearing. 114
	161	+	(a) Except as otherwise provided in subsection (b) of this section, the Superior Court may 115
	162	+	issue an order under this act only after notice and opportunity for a hearing appropriate in the 116
	163	+	circumstances. 117 ENGROSSED ORIGINAL
275	164
276	165
277	166
278	167
279	168		7
280	169
281		-	(d) A claim against a receiver’s bond or alternative security must be made not later than
282		-	one year after the date the receiver is discharged.
283		-
284		-	Sec. 10. Status of receiver as lien creditor.
285		-	On appointment of a receiver, the receiver has the status of a lien creditor under:
286		-	(1) Article 9 of Title 28 of the District of Columbia Official Code as to
287		-	receivership property that is personal property or fixtures; and
288		-	(2) Section 499 of An Act To establish a code of law for the District of
289		-	Columbia, approved March 3, 1901 (31 Stat. 1268; D.C. Official Code § 42 –401), as to
290		-	receivership property that is real property.
291		-
292		-	Sec. 11. Security agreement covering after-acquired property.
293		-	Except as otherwise provided by law of the District other than this act, property that a
294		-	receiver or owner acquires after appointment of the receiver is subject to a security agreement
295		-	entered into before the appointment to the same extent as if the Superior Court had not appointed
296		-	the receiver.
297		-
298		-	Sec. 12. Collection and turnover of receivership property.
299		-	(a) Unless the Superior Court orders otherwise, on demand by a receiver:
300		-	(1) A person that owes a debt that is receivership property and is matured or
301		-	payable on demand or on order shall pay the debt to or on the order of the receiver, except to the
302		-	extent the debt is subject to setoff or recoupment; and
303		-	(2) Subject to subsection (c) of this section, a person that has possession, custody,
304		-	or control of receivership property shall turn the property over to the receiver.
305		-	(b) A person that has notice of the appointment of a receiver and owes a debt that is
306		-	receivership property may not satisfy the debt by payment to the owner.
307		-	(c) If a creditor has possession, custody, or control of receivership property and the
308		-	validity, perfection, or priority of the creditor’s lien on the property depends on the creditor’s
309		-	possession, custody, or control, the creditor may retain possession, custody, or control until the
310		-	Superior Court orders adequate protection of the creditor’s lien.
311		-	(d) Unless a bona fide dispute exists about a receiver’s right to possession, custody, or
312		-	control of receivership property, the Superior Court may sanction as civil contempt a person’s
313		-	failure to turn the property over when required by this section.
314		-
315		-	Sec. 13. Powers and duties of receiver.
316		-	(a) Except as limited by Superior Court order or law of the District other than this act, a
317		-	receiver may:
318		-	(1) Collect, control, manage, conserve, and protect receivership property; ENROLLED ORIGINAL
	170	+	(b) The Superior Court may issue an order under this act: 118
	171	+	(1) Without prior notice if the circumstances require issuance of an order before 119
	172	+	notice is given; 120
	173	+	(2) After notice and without a prior hearing if the circumstances require issuance 121
	174	+	of an order before a hearing is held; or 122
	175	+	(3) After notice and without a hearing if no interested party timely requests a 123
	176	+	hearing. 124
	177	+	Sec. 5. Scope; exclusions. 125
	178	+	(a) Except as otherwise provided in subsection (b) or (c) of this section, this act applies to 126
	179	+	a receivership for an interest in real property and any personal property related to or used in 127
	180	+	operating the real property. 128
	181	+	(b) This act does not apply to a receivership for an interest in real property improved by 129
	182	+	one to 4 dwelling units unless: 130
	183	+	(1) The interest is used for agricultural, commercial, industrial, or mineral-131
	184	+	extraction purposes, other than incidental uses by an owner occupying the property as the owner’s 132
	185	+	primary residence; 133
	186	+	(2) The interest secures an obligation incurred at a time when the property was used 134
	187	+	or planned for use for agricultural, commercial, industrial, or mineral-extraction purposes; 135
	188	+	(3) The owner planned or is planning to develop the property into one or more 136
	189	+	dwelling units to be sold or leased in the ordinary course of the owner’s business; or 137 ENGROSSED ORIGINAL
319	190
320	191
321	192
322	193
323	194		8
324	195
325		-	(2) Operate a business constituting receivership property, including preservation,
326		-	use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary
327		-	course of business;
328		-	(3) In the ordinary course of business, incur unsecured debt and pay expenses
329		-	incidental to the receiver’s preservation, use, sale, lease, license, exchange, collection, or
330		-	disposition of receivership property;
331		-	(4) Assert a right, claim, cause of action, or defense of the owner which relates to
332		-	receivership property;
333		-	(5) Seek and obtain instruction from the Superior Court concerning receivership
334		-	property, exercise of the receiver’s powers, and performance of the receiver’s duties;
335		-	(6) On subpoena, compel a person to submit to examination under oath, or to
336		-	produce and permit inspection and copying of designated records or tangible things, with respect
337		-	to receivership property or any other matter that may affect administration of the receivership;
338		-	(7) Engage a professional as provided in section 16 ;
339		-	(8) Apply to a court of another state for appointment as ancillary receiver with
340		-	respect to receivership property located in that state; and
341		-	(9) Exercise any power conferred by Superior C ourt order, this act, or law of the
342		-	District other than this act.
343		-	(b) With the Superior Court’s approval, a receiver may:
344		-	(1) Incur debt for the use or benefit of receivership property other than in the
345		-	ordinary course of business;
346		-	(2) Make improvements to receivership property;
347		-	(3) Use or transfer receivership property other than in the ordinary course of
348		-	business as provided in section 17;
349		-	(4) Adopt or reject an executory contract of the owner as provided in section 18;
350		-	(5) Pay compensation to the receiver as provided in section 22, and to each
351		-	professional engaged by the receiver as provided in section 16;
352		-	(6) Recommend allowance or disallowance of a claim of a creditor as provided in
353		-	section 21; and
354		-	(7) Make a distribution of receivership property as provided in section 21.
355		-	(c) A receiver shall:
356		-	(1) Prepare and retain appropriate business records, including a record of each
357		-	receipt, disbursement, and disposition of receivership property;
358		-	(2) Account for receivership property, including the proceeds of a sale, lease,
359		-	license, exchange, collection, or other disposition of the property;
360		-	(3) File with the Office of the Recorder of Deeds a copy of the order appointing
361		-	the receiver and, if a legal description of the real property is not included in the order, the legal
362		-	description;
363		-	(4) Disclose to the Superior Court any fact arising during the receivership which
364		-	would disqualify the receiver under section 8; and ENROLLED ORIGINAL
	196	+	(4) The owner is collecting or has the right to collect rents or other income from the 138
	197	+	property from a person other than an affiliate of the owner. 139
	198	+	(c) This act does not apply to a receivership authorized by law of the District other than 140
	199	+	this act in which the receiver is a governmental unit or an individual acting in an official capacity 141
	200	+	on behalf of the governmental unit except to the extent provided by the other law. 142
	201	+	(d) This act does not limit the authority of the Superior Court to appoint a receiver under 143
	202	+	law of the District other than this act. 144
	203	+	(e) Unless displaced by a particular provision of this act, the principles of law and equity 145
	204	+	supplement this act. 146
	205	+	Sec. 6. Power of Superior Court. 147
	206	+	The Superior Court has exclusive jurisdiction to direct the receiver and determine any 148
	207	+	controversy related to the receivership or receivership property. 149
	208	+	Sec. 7. Appointment of receiver. 150
	209	+	(a) The Superior Court may appoint a receiver: 151
	210	+	(1) Before judgment, to protect a party that demonstrates an apparent right, title, or 152
	211	+	interest in real property that is the subject of the action, if the property or its revenue-producing 153
	212	+	potential: 154
	213	+	(A) Is being subjected to or is in danger of waste, loss, dissipation, or 155
	214	+	impairment; or 156
	215	+	(B) Has been or is about to be the subject of a voidable transaction; 157 ENGROSSED ORIGINAL
365	216
366	217
367	218
368	219
369	220		9
370	221
371		-	(5) Perform any duty imposed by Superior Court order, this act, or law of the
372		-	District other than this act.
373		-	(d) The powers and duties of a receiver may be expanded, modified, or limited by the
374		-	Superior Court’s order.
375		-
376		-	Sec. 14. Duties of owner.
377		-	(a) An owner shall:
378		-	(1) Assist and cooperate with the receiver in the administration of the receivership
379		-	and the discharge of the receiver’s duties;
380		-	(2) Preserve and turn over to the receiver all receivership property in the owner’s
381		-	possession, custody, or control;
382		-	(3) Identify all records and other information relating to the receivership property,
383		-	including a password, authorization, or other information needed to obtain or maintain access to
384		-	or control of the receivership property, and make available to the receiver the records and
385		-	information in the owner’s possession, custody, or control;
386		-	(4) On subpoena, submit to examination under oath by the receiver concerning the
387		-	acts, conduct, property, liabilities, and financial condition of the owner or any matter relating to
388		-	the receivership property or the receivership; and
389		-	(5) Perform any duty imposed by Superior Court order, this act, or law of the
390		-	District other than this act.
391		-	(b) If an owner is a person other than an individual, this section applies to each officer,
392		-	director, manager, member, partner, trustee, or other person exercising or having the power to
393		-	exercise control over the affairs of the owner.
394		-	(c) If a person knowingly fails to perform a duty imposed by this section, the Superior
395		-	Court may:
396		-	(1) Award the receiver actual damages caused by the person’s failure, reasonable
397		-	attorney’s fees, and costs; and
398		-	(2) Sanction the failure as civil contempt.
399		-
400		-	Sec. 15. Stay; injunction.
401		-	(a) Except as otherwise provided in subsection (d) of this section or ordered by the
402		-	Superior Court, an order appointing a receiver operates as a stay, applicable to all persons, of an
403		-	act, action, or proceeding:
404		-	(1) To obtain possession of, exercise control over, or enforce a judgment against
405		-	receivership property; and
406		-	(2) To enforce a lien against receivership property to the extent the lien secures a
407		-	claim against the owner which arose before entry of the order.
408		-	(b) Except as otherwise provided in subsection (d) of this section, the Superior Court may
409		-	enjoin an act, action, or proceeding against or relating to receivership property if the injunction is
410		-	necessary to protect the property or facilitate administration of the receivership. ENROLLED ORIGINAL
	222	+	(2) After judgment: 158
	223	+	(A) To carry the judgment into effect; or 159
	224	+	(B) To preserve nonexempt real property pending appeal or when an 160
	225	+	execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction 161
	226	+	of the judgment; 162
	227	+	(3) In an action in which a receiver for real property may be appointed on equitable 163
	228	+	grounds; or 164
	229	+	(4) During the time allowed for redemption, to preserve real property sold in an 165
	230	+	execution or foreclosure sale and secure its rents to the person entitled to the rents. 166
	231	+	(b) In connection with the foreclosure or other enforcement of a mortgage, the Superior 167
	232	+	Court may appoint a receiver for the mortgaged property if: 168
	233	+	(1) Appointment is necessary to protect the property from waste, loss, transfer, 169
	234	+	dissipation, or impairment; 170
	235	+	(2) The mortgagor agreed in a signed record to appointment of a receiver on default; 171
	236	+	(3) The owner agreed, after default and in a signed record, to appointment of a 172
	237	+	receiver; 173
	238	+	(4) The property and any other collateral held by the mortgagee are not sufficient 174
	239	+	to satisfy the secured obligation; 175
	240	+	(5) The owner fails to turn over to the mortgagee proceeds or rents the mortgagee 176
	241	+	was entitled to collect; or 177 ENGROSSED ORIGINAL
411	242
412	243
413	244
414	245
415	246		10
416	247
417		-	(c) A person whose act, action, or proceeding is stayed or enjoined under this section may
418		-	apply to the Superior Court for relief from the stay or injunction for cause.
419		-	(d) An order under subsection (a) or (b) of this section does not operate as a stay or
420		-	injunction of:
421		-	(1) An act, action, or proceeding to foreclose or otherwise enforce a mortgage by
422		-	the person seeking appointment of the receiver;
423		-	(2) An act, action, or proceeding to perfect, or maintain or continue the perfection
424		-	of, an interest in receivership property;
425		-	(3) Commencement or continuation of a criminal proceeding;
426		-	(4) Commencement or continuation of an action or proceeding, or enforcement of
427		-	a judgment other than a money judgment in an action or proceeding, by a governmental unit to
428		-	enforce its police or regulatory power; or
429		-	(5) Establishment by a governmental unit of a tax liability against the owner or
430		-	receivership property or an appeal of the liability.
431		-	(e) The Superior Court may void an act that violates a stay or injunction under this
432		-	section.
433		-	(f) If a person knowingly violates a stay or injunction under this section, the Superior
434		-	Court may:
435		-	(1) Award actual damages caused by the violation, reasonable attorney’s fees, and
436		-	costs; and
437		-	(2) Sanction the violation as civil contempt.
438		-
439		-	Sec. 16. Engagement and compensation of professional.
440		-	(a) With the Superior Court’s approval, a receiver may engage an attorney, accountant,
441		-	appraiser, auctioneer, broker, or other professional to assist the receiver in performing a duty or
442		-	exercising a power of the receiver. The receiver shall disclose to the Superior Court:
443		-	(1) The identity and qualifications of the professional;
444		-	(2) The scope and nature of the proposed engagement;
445		-	(3) Any potential conflict of interest; and
446		-	(4) The proposed compensation.
447		-	(b) A person is not disqualified from engagement under this section solely because of the
448		-	person’s engagement by, representation of, or other relationship with the receiver, a creditor, or a
449		-	party. This act does not prevent the receiver from serving in the receivership as an attorney,
450		-	accountant, auctioneer, or broker when authorized by law.
451		-	(c) A receiver or professional engaged under subsection (a) of this section shall file with
452		-	the Superior Court an itemized statement of the time spent, work performed, and billing rate of
453		-	each person that performed the work and an itemized list of expenses. The receiver shall pay the
454		-	amount approved by the Superior Court.
455		-
456		-	ENROLLED ORIGINAL
	248	+	(6) The holder of a subordinate lien obtains appointment of a receiver for the 178
	249	+	property. 179
	250	+	(c) The Superior Court may condition appointment of a receiver without prior notice under 180
	251	+	section 3(b)(1) or without a prior hearing under section 3(b)(2) on the giving of security by the 181
	252	+	person seeking the appointment for the payment of damages, reasonable attorney’s fees, and costs 182
	253	+	incurred or suffered by any person if the Superior Court later concludes that the appointment was 183
	254	+	not justified. If the Superior Court later concludes that the appointment was justified, the Superior 184
	255	+	Court shall release the security. 185
	256	+	Sec. 8. Disqualification from appointment as receiver; disclosure of interest. 186
	257	+	(a) The Superior Court may not appoint a person as receiver unless the person submits to 187
	258	+	the Superior Court a statement under penalty of perjury that the person is not disqualified. 188
	259	+	(b) Except as otherwise provided in subsection (c) of this section, a person is disqualified 189
	260	+	from appointment as receiver if the person: 190
	261	+	(1) Is an affiliate of a party; 191
	262	+	(2) Has an interest materially adverse to an interest of a party; 192
	263	+	(3) Has a material financial interest in the outcome of the action, other than 193
	264	+	compensation the Superior Court may allow the receiver; 194
	265	+	(4) Has a debtor-creditor relationship with a party; or 195
	266	+	(5) Holds an equity interest in a party, other than a noncontrolling interest in a 196
	267	+	publicly- traded company. 197 ENGROSSED ORIGINAL
457	268
458	269
459	270
460	271
461	272		11
462	273
463		-	Sec. 17. Use or transfer of receivership property not in ordinary course of business.
464		-	(a) For the purposes of this section, the term “good faith” means honesty in fact and the
465		-	observance of reasonable commercial standards of fair dealing.
466		-	(b) With the Superior Court’s approval, a receiver may use receivership property other
467		-	than in the ordinary course of business.
468		-	(c) With the Superior Court’s approval, a receiver may transfer receivership property
469		-	other than in the ordinary course of business by sale, lease, license, exchange, or other
470		-	disposition. Unless the agreement of sale provides otherwise, a sale under this section is free and
471		-	clear of a lien of the person that obtained appointment of the receiver, any subordinate lien, and
472		-	any right of redemption but is subject to a senior lien.
473		-	(d) A lien on receivership property which is extinguished by a transfer under subsection
474		-	(c) of this section attaches to the proceeds of the transfer with the same validity, perfection, and
475		-	priority the lien had on the property immediately before the transfer, even if the proceeds are not
476		-	sufficient to satisfy all obligations secured by the lien.
477		-	(e) A transfer under subsection (c) of this section may occur by means other than a public
478		-	auction sale. A creditor holding a valid lien on the property to be transferred may purchase the
479		-	property and offset against the purchase price part or all of the allowed amount secured by the
480		-	lien, if the creditor tenders funds sufficient to satisfy in full the reasonable expenses of transfer
481		-	and the obligation secured by any senior lien extinguished by the transfer.
482		-	(f) A reversal or modification of an order approving a transfer under subsection (c) of
483		-	this section does not affect the validity of the transfer to a person that acquired the property in
484		-	good faith or revive against the person any lien extinguished by the transfer, whether the person
485		-	knew before the transfer of the request for reversal or modification, unless the Superior Court
486		-	stayed the order before the transfer.
487		-
488		-	Sec. 18. Executory contract.
489		-	(a) For the purposes of this section, the term “timeshare interest” means an interest
490		-	having a duration of more than 3 years which grants its holder the right to use and occupy an
491		-	accommodation, facility, or recreational site, whether improved or not, for a specific period less
492		-	than a full year during any given year.
493		-	(b) Except as otherwise provided in subsection (h) of this section, with the Superior
494		-	Court’s approval, a receiver may adopt or reject an executory contract of the owner relating to
495		-	receivership property. The Superior Court may condition the receiver’s adoption and continued
496		-	performance of the contract on terms appropriate under the circumstances. If the receiver does
497		-	not request Superior Court approval to adopt or reject the contract within a reasonable time after
498		-	the receiver’s appointment, the receiver is deemed to have rejected the contract.
499		-	(c) A receiver’s performance of an executory contract before the Superior Court’s
500		-	approval under subsection (b) of this section of its adoption or rejection is not an adoption of the
501		-	contract and does not preclude the receiver from seeking approval to reject the contract. ENROLLED ORIGINAL
	274	+	(c) A person is not disqualified from appointment as receiver solely because the person: 198
	275	+	(1) Was appointed receiver or is owed compensation in an unrelated matter 199
	276	+	involving a party or was engaged by a party in a matter unrelated to the receivership; 200
	277	+	(2) Is an individual obligated to a party on a debt that is not in default and was 201
	278	+	incurred primarily for personal, family, or household purposes; or 202
	279	+	(3) Maintains with a party a deposit account, as that term is defined in D.C. Official 203
	280	+	Code § 28:9- 102(a)(29). 204
	281	+	(d) A person seeking appointment of a receiver may nominate a person to serve as receiver, 205
	282	+	but the Superior Court is not bound by the nomination. 206
	283	+	Sec. 9. Receiver’s bond; alternative security. 207
	284	+	(a) Except as otherwise provided in subsection (b) of this section, a receiver shall post with 208
	285	+	the Superior Court a bond that: 209
	286	+	(1) Is conditioned on the faithful discharge of the receiver’s duties; 210
	287	+	(2) Has one or more sureties approved by the Superior Court ; 211
	288	+	(3) Is in an amount the Superior Court specifies; and 212
	289	+	(4) Is effective as of the date of the receiver’s appointment. 213
	290	+	(b) The Superior Court may approve the posting by a receiver with the Superior Court of 214
	291	+	alternative security, such as a letter of credit or deposit of funds. The receiver may not use 215
	292	+	receivership property as alternative security. Interest that accrues on deposited funds must be paid 216
	293	+	to the receiver on the receiver’s discharge. 217 ENGROSSED ORIGINAL
502	294
503	295
504	296
505	297
506	298		12
507	299
508		-	(d) A provision in an executory contract which requires or permits a forfeiture,
509		-	modification, or termination of the contract because of the appointment of a receiver or the
510		-	financial condition of the owner does not affect a receiver’s power under subsection (b) of this
511		-	section to adopt the contract.
512		-	(e) A receiver’s right to possess or use receivership property pursuant to an executory
513		-	contract terminates on rejection of the contract under subsection (b) of this section. Rejection is a
514		-	breach of the contract effective immediately before appointment of the receiver. A claim for
515		-	damages for rejection of the contract must be submitted by the later of:
516		-	(1) The time set for submitting a claim in the receivership; or
517		-	(2) 30 days after the Superior Court approves the rejection.
518		-	(f) If at the time a receiver is appointed, the owner has the right to assign an executory
519		-	contract relating to receivership property under law of the District other than this act, the receiver
520		-	may assign the contract with the Superior Court’s approval.
521		-	(g) If a receiver rejects under subsection (b) of this section an executory contract for the
522		-	sale of receivership property that is real property in possession of the purchaser or a real-property
523		-	timeshare interest, the purchaser may:
524		-	(1) Treat the rejection as a termination of the contract, and in that case the
525		-	purchaser has a lien on the property for the recovery of any part of the purchase price the
526		-	purchaser paid; or
527		-	(2) Retain the purchaser’s right to possession under the contract, and in that case
528		-	the purchaser shall continue to perform all obligations arising under the contract and may offset
529		-	any damages caused by nonperformance of an obligation of the owner after the date of the
530		-	rejection, but the purchaser has no right or claim against other receivership property or the
531		-	receiver on account of the damages.
532		-	(h) A receiver may not reject an unexpired lease of real property under which the owner
533		-	is the landlord if:
534		-	(1) The tenant occupies the leased premises as the tenant’s primary residence;
535		-	(2) The receiver was appointed at the request of a person other than a mortgagee;
536		-	or
537		-	(3) The receiver was appointed at the request of a mortgagee and:
538		-	(A) The lease is superior to the lien of the mortgage;
539		-	(B) The tenant has an enforceable agreement with the mortgagee or the
540		-	holder of a senior lien under which the tenant’s occupancy will not be disturbed as long as the
541		-	tenant performs its obligations under the lease;
542		-	(C) The mortgagee has consented to the lease, either in a signed record or
543		-	by its failure timely to object that the lease violated the mortgage; or
544		-	(D) The terms of the lease were commercially reasonable at the time the
545		-	lease was agreed to and the tenant did not know or have reason to know that the lease violated
546		-	the mortgage.
547		-	ENROLLED ORIGINAL
	300	+	(c) The Superior Court may authorize a receiver to act before the receiver posts the bond 218
	301	+	or alternative security required by this section. 219
	302	+	(d) A claim against a receiver’s bond or alternative security must be made not later than 220
	303	+	one year after the date the receiver is discharged. 221
	304	+	Sec. 10. Status of receiver as lien creditor. 222
	305	+	On appointment of a receiver, the receiver has the status of a lien creditor under: 223
	306	+	(1) Article 9 of Title 28 of the District of Columbia Official Code as to 224
	307	+	receivership property that is personal property or fixtures; and 225
	308	+	(2) Section 499 of An Act To establish a code of law for the District of 226
	309	+	Columbia, approved March 3, 1901 (31 Stat. 1189; D.C. Official Code § 42–401), as to 227
	310	+	receivership property that is real property. 228
	311	+	Sec. 11. Security agreement covering after-acquired property. 229
	312	+	Except as otherwise provided by law of the District other than this act, property that a 230
	313	+	receiver or owner acquires after appointment of the receiver is subject to a security agreement 231
	314	+	entered into before the appointment to the same extent as if the Superior Court had not appointed 232
	315	+	the receiver. 233 ENGROSSED ORIGINAL
548	316
549	317
550	318
551	319
552	320		13
553	321
554		-	Sec. 19. Defenses and immunities of receiver.
555		-	(a) A receiver is entitled to all defenses and immunities provided by law of the District
556		-	other than this act for an act or omission within the scope of the receiver’s appointment.
557		-	(b) A receiver may be sued personally for an act or omission in administering
558		-	receivership property only with approval of the Superior Court that appointed the receiver.
559		-
560		-	Sec. 20. Interim report of receiver.
561		-	A receiver may file or, if ordered by the Superior Court , shall file an interim report that
562		-	includes:
563		-	(1) The activities of the receiver since appointment or a previous report;
564		-	(2) Receipts and disbursements, including a payment made or proposed to be
565		-	made to a professional engaged by the receiver;
566		-	(3) Receipts and dispositions of receivership property;
567		-	(4) Fees and expenses of the receiver and, if not filed separately, a request for
568		-	approval of payment of the fees and expenses; and
569		-	(5) Any other information required by the Superior Court .
570		-
571		-	Sec. 21. Notice of appointment; claim against receivership; distribution to creditors.
572		-	(a) Except as otherwise provided in subsection (f) of this section, a receiver shall give
573		-	notice of appointment of the receiver to creditors of the owner by:
574		-	(1) Deposit for delivery through first-class mail or other commercially reasonable
575		-	delivery method to the last-known address of each creditor; and
576		-	(2) Publication as directed by the Superior Court.
577		-	(b) Except as otherwise provided in subsection (f) of this section, the notice required by
578		-	subsection (a) of this section must specify the date by which each creditor holding a claim
579		-	against the owner which arose before appointment of the receiver must submit the claim to the
580		-	receiver. The date specified must be at least 90 days after the later of notice under subsection
581		-	(a)(1) of this section or last publication under subsection (a)(2) of this section. The Superior
582		-	Court may extend the period for submitting the claim. Unless the Superior Court orders
583		-	otherwise, a claim that is not submitted timely is not entitled to a distribution from the
584		-	receivership.
585		-	(c) A claim submitted by a creditor under this section must:
586		-	(1) State the name and address of the creditor;
587		-	(2) State the amount and basis of the claim;
588		-	(3) Identify any property securing the claim;
589		-	(4) Be signed by the creditor under penalty of perjury; and
590		-	(5) Include a copy of any record on which the claim is based.
591		-	(d) An assignment by a creditor of a claim against the owner is effective against the
592		-	receiver only if the assignee gives timely notice of the assignment to the receiver in a signed
593		-	record. ENROLLED ORIGINAL
	322	+	Sec. 12. Collection and turnover of receivership property. 234
	323	+	(a) Unless the Superior Court orders otherwise, on demand by a receiver: 235
	324	+	(1) A person that owes a debt that is receivership property and is matured or 236
	325	+	payable on demand or on order shall pay the debt to or on the order of the receiver, except to the 237
	326	+	extent the debt is subject to setoff or recoupment; and 238
	327	+	(2) Subject to subsection (c) of this section, a person that has possession, custody, 239
	328	+	or control of receivership property shall turn the property over to the receiver. 240
	329	+	(b) A person that has notice of the appointment of a receiver and owes a debt that is 241
	330	+	receivership property may not satisfy the debt by payment to the owner. 242
	331	+	(c) If a creditor has possession, custody, or control of receivership property and the 243
	332	+	validity, perfection, or priority of the creditor’s lien on the property depends on the creditor’s 244
	333	+	possession, custody, or control, the creditor may retain possession, custody, or control until the 245
	334	+	Superior Court orders adequate protection of the creditor’s lien. 246
	335	+	(d) Unless a bona fide dispute exists about a receiver’s right to possession, custody, or 247
	336	+	control of receivership property, the Superior Court may sanction as civil contempt a person’s 248
	337	+	failure to turn the property over when required by this section. 249
	338	+	Sec. 13. Powers and duties of receiver. 250
	339	+	(a) Except as limited by Superior Court order or law of the District other than this act, a 251
	340	+	receiver may: 252
	341	+	(1) Collect, control, manage, conserve, and protect receivership property; 253 ENGROSSED ORIGINAL
594	342
595	343
596	344
597	345
598	346		14
599	347
600		-	(e) At any time before entry of an order approving a receiver’s final report, the receiver
601		-	may file with the Superior Court an objection to a claim of a creditor, stating the basis for the
602		-	objection. The Superior Court shall allow or disallow the claim according to law of the District
603		-	other than this act.
604		-	(f) If the Superior Court concludes that receivership property is likely to be insufficient to
605		-	satisfy claims of each creditor holding a perfected lien on the property, the Superior Court may
606		-	order that:
607		-	(1) The receiver need not give notice under subsection (a) of this section of the
608		-	appointment to all creditors of the owner, but only such creditors as the Superior Court directs;
609		-	and
610		-	(2) Unsecured creditors need not submit claims under this section.
611		-	(g) Subject to section 22:
612		-	(1) A distribution of receivership property to a creditor holding a perfected lien on
613		-	the property must be made in accordance with the creditor’s priority under law of the District
614		-	other than this act; and
615		-	(2) A distribution of receivership property to a creditor with an allowed unsecured
616		-	claim must be made as the Superior Court directs according to law of the District other than this
617		-	act.
618		-
619		-	Sec. 22. Fees and expenses.
620		-	(a) The Superior Court may award a receiver from receivership property the reasonable
621		-	and necessary fees and expenses of performing the duties of the receiver and exercising the
622		-	powers of the receiver.
623		-	(b) The Superior Court may order one or more of the following to pay the reasonable and
624		-	necessary fees and expenses of the receivership, including reasonable attorney’s fees and costs:
625		-	(1) A person that requested the appointment of the receiver, if the receivership
626		-	does not produce sufficient funds to pay the fees and expenses; or
627		-	(2) A person whose conduct justified or would have justified the appointment of
628		-	the receiver under section 7(a)(1).
629		-
630		-	Sec. 23. Removal of receiver; replacement; termination of receivership.
631		-	(a) The Superior Court may remove a receiver for cause.
632		-	(b) The Superior Court shall replace a receiver that dies, resigns, or is removed.
633		-	(c) If the Superior Court finds that a receiver that resigns or is removed, or the
634		-	representative of a receiver that is deceased, has accounted fully for and turned over to the
635		-	successor receiver all receivership property and has filed a report of all receipts and
636		-	disbursements during the service of the replaced receiver, the replaced receiver is discharged.
637		-	(d) The Superior Court may discharge a receiver and terminate the Superior Court’s
638		-	administration of the receivership property if the Superior Court finds that appointment of the
639		-	receiver was improvident or that the circumstances no longer warrant continuation of the ENROLLED ORIGINAL
	348	+	(2) Operate a business constituting receivership property, including preservation, 254
	349	+	use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary 255
	350	+	course of business; 256
	351	+	(3) In the ordinary course of business, incur unsecured debt and pay expenses 257
	352	+	incidental to the receiver’s preservation, use, sale, lease, license, exchange, collection, or 258
	353	+	disposition of receivership property; 259
	354	+	(4) Assert a right, claim, cause of action, or defense of the owner which relates to 260
	355	+	receivership property; 261
	356	+	(5) Seek and obtain instruction from the Superior Court concerning receivership 262
	357	+	property, exercise of the receiver’s powers, and performance of the receiver’s duties; 263
	358	+	(6) On subpoena, compel a person to submit to examination under oath, or to 264
	359	+	produce and permit inspection and copying of designated records or tangible things, with respect 265
	360	+	to receivership property or any other matter that may affect administration of the receivership; 266
	361	+	(7) Engage a professional as provided in section 15; 267
	362	+	(8) Apply to a court of another state for appointment as ancillary receiver with 268
	363	+	respect to receivership property located in that state; and 269
	364	+	(9) Exercise any power conferred by Superior C ourt order, this act, or law of the 270
	365	+	District other than this act. 271
	366	+	(b) With the Superior Court’s approval, a receiver may: 272 ENGROSSED ORIGINAL
640	367
641	368
642	369
643	370
644	371		15
645	372
646		-	receivership. If the Superior Court finds that the appointment was sought wrongfully or in bad
647		-	faith, the Superior Court may assess against the person that sought the appointment:
648		-	(1) The fees and expenses of the receivership, including reasonable attorney’s fees
649		-	and costs; and
650		-	(2) Actual damages caused by the appointment, including reasonable attorney’s
651		-	fees and costs.
652		-
653		-	Sec. 24. Final report of receiver; discharge.
654		-	(a) On completion of a receiver’s duties, the receiver shall file a final report including:
655		-	(1) A description of the activities of the receiver in the conduct of the
656		-	receivership;
657		-	(2) A list of receivership property at the commencement of the receivership and
658		-	any receivership property received during the receivership;
659		-	(3) A list of disbursements, including payments to professionals engaged by the
660		-	receiver;
661		-	(4) A list of dispositions of receivership property;
662		-	(5) A list of distributions made or proposed to be made from the receivership for
663		-	creditor claims;
664		-	(6) If not filed separately, a request for approval of the payment of fees and
665		-	expenses of the receiver; and
666		-	(7) Any other information required by the Superior Court .
667		-	(b) If the Superior Court approves a final report filed under subsection (a) of this section
668		-	and the receiver distributes all receivership property, the receiver is discharged.
669		-
670		-	Sec. 25. Receivership in another state; ancillary proceeding.
671		-	(a) The Superior Court may appoint a receiver appointed in another state, or that person’s
672		-	nominee, as an ancillary receiver with respect to property located in the District or subject to the
673		-	jurisdiction of the Superior Court for which a receiver could be appointed under this act, if:
674		-	(1) The person or nominee would be eligible to serve as receiver under section 8;
675		-	and
676		-	(2) The appointment furthers the person’s possession, custody, control, or
677		-	disposition of property subject to the receivership in the other state.
678		-	(b) The Superior Court may issue an order that gives effect to an order entered in another
679		-	state appointing or directing a receiver.
680		-	(c) Unless the Superior Court orders otherwise, an ancillary receiver appointed under
681		-	subsection (a) of this section has the rights, powers, and duties of a receiver appointed under this
682		-	act.
683		-
684		-
685		-	ENROLLED ORIGINAL
	373	+	(1) Incur debt for the use or benefit of receivership property other than in the 273
	374	+	ordinary course of business; 274
	375	+	(2) Make improvements to receivership property; 275
	376	+	(3) Use or transfer receivership property other than in the ordinary course of 276
	377	+	business as provided in section 16; 277
	378	+	(4) Adopt or reject an executory contract of the owner as provided in section 17; 278
	379	+	(5) Pay compensation to the receiver as provided in section 21, and to each 279
	380	+	professional engaged by the receiver as provided in section 15; 280
	381	+	(6) Recommend allowance or disallowance of a claim of a creditor as provided in 281
	382	+	section 20; and 282
	383	+	(7) Make a distribution of receivership property as provided in section 20. 283
	384	+	(c) A receiver shall: 284
	385	+	(1) Prepare and retain appropriate business records, including a record of each 285
	386	+	receipt, disbursement, and disposition of receivership property; 286
	387	+	(2) Account for receivership property, including the proceeds of a sale, lease, 287
	388	+	license, exchange, collection, or other disposition of the property; 288
	389	+	(3) File with the Office of the Recorder of Deeds a copy of the order appointing 289
	390	+	the receiver and, if a legal description of the real property is not included in the order, the legal 290
	391	+	description; 291 ENGROSSED ORIGINAL
686	392
687	393
688	394
689	395
690	396		16
691	397
692		-	Sec. 26. Effect of enforcement by mortgagee.
693		-	(a) A request by a mortgagee for appointment of a receiver, the appointment of a
694		-	receiver, or application by a mortgagee of receivership property or proceeds to the secured
695		-	obligation does not:
696		-	(1) Make the mortgagee a mortgagee in possession of the real property;
697		-	(2) Make the mortgagee an agent of the owner;
698		-	(3) Constitute an election of remedies that precludes a later action to enforce the
699		-	secured obligation;
700		-	(4) Make the secured obligation unenforceable;
701		-	(5) Limit any right available to the mortgagee with respect to the secured
702		-	obligation; or
703		-	(6) Except as otherwise provided in subsection (b) of this section, bar a deficiency
704		-	judgment pursuant to law of the District other than this act governing or relating to a deficiency
705		-	judgment.
706		-	(b) If a receiver sells receivership property that pursuant to section 17(c) is free and clear
707		-	of a lien, the ability of a creditor to enforce an obligation that had been secured by the lien is
708		-	subject to law of the District other than this act relating to a deficiency judgment.
709		-
710		-	Sec. 27. Uniformity of application and construction.
711		-	In applying and construing this act, consideration must be given to the need to promote
712		-	uniformity of the law with respect to its subject matter among states that enact it.
713		-
714		-	Sec. 28. Relation to Electronic Signatures in Global and National Commerce Act.
715		-	This act modifies, limits, or supersedes the Electronic Signatures in Global and National
716		-	Commerce Act, approved June 30, 2000 (114 Stat. 464; 15 U.S.C. § 7001 et seq. ), but does not
717		-	modify, limit, or supersede section 101(c) of that act (15 U.S.C. § 7001(c)), or authorize
718		-	electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. §
719		-	7003(b)).
720		-
721		-	Sec. 29. Transition.
722		-	This act does not apply to a receivership for which the receiver was appointed before the
723		-	effective date of this act.
724		-
725		-	Sec. 30. Fiscal impact statement.
726		-	The Council adopts the fiscal impact statement in the committee report as the fiscal
727		-	impact statement required by section 4a of the General Legislative Procedures Act of 1975, approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). ENROLLED ORIGINAL
	398	+	(4) Disclose to the Superior Court any fact arising during the receivership which 292
	399	+	would disqualify the receiver under section 7; and 293
	400	+	(5) Perform any duty imposed by Superior Court order, this act, or law of the 294
	401	+	District other than this act. 295
	402	+	(d) The powers and duties of a receiver may be expanded, modified, or limited by the 296
	403	+	Superior Court’s order. 297
	404	+	Sec. 14. Duties of owner. 298
	405	+	(a) An owner shall: 299
	406	+	(1) Assist and cooperate with the receiver in the administration of the receivership 300
	407	+	and the discharge of the receiver’s duties; 301
	408	+	(2) Preserve and turn over to the receiver all receivership property in the owner’s 302
	409	+	possession, custody, or control; 303
	410	+	(3) Identify all records and other information relating to the receivership property, 304
	411	+	including a password, authorization, or other information needed to obtain or maintain access to 305
	412	+	or control of the receivership property, and make available to the receiver the records and 306
	413	+	information in the owner’s possession, custody, or control; 307
	414	+	(4) On subpoena, submit to examination under oath by the receiver concerning the 308
	415	+	acts, conduct, property, liabilities, and financial condition of the owner or any matter relating to 309
	416	+	the receivership property or the receivership; and 310 ENGROSSED ORIGINAL
728	417
729	418
730	419
731	420
732	421		17
733	422
734		-	Sec. 31. Effective date.
735		-	This act shall take effect following approval by the Mayor (or in the event of veto by the
736		-	Mayor, action by the Council to override the veto), and a 30 -day period of congressional review
737		-	as provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December
738		-	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)).
	423	+	(5) Perform any duty imposed by Superior Court order, this act, or law of the 311
	424	+	District other than this act. 312
	425	+	(b) If an owner is a person other than an individual, this section applies to each officer, 313
	426	+	director, manager, member, partner, trustee, or other person exercising or having the power to 314
	427	+	exercise control over the affairs of the owner. 315
	428	+	(c) If a person knowingly fails to perform a duty imposed by this section, the Superior 316
	429	+	Court may: 317
	430	+	(1) Award the receiver actual damages caused by the person’s failure, reasonable 318
	431	+	attorney’s fees, and costs; and 319
	432	+	(2) Sanction the failure as civil contempt. 320
	433	+	Sec. 15. Stay; injunction. 321
	434	+	(a) Except as otherwise provided in subsection (d) of this section or ordered by the 322
	435	+	Superior Court, an order appointing a receiver operates as a stay, applicable to all persons, of an 323
	436	+	act, action, or proceeding: 324
	437	+	(1) To obtain possession of, exercise control over, or enforce a judgment against 325
	438	+	receivership property; and 326
	439	+	(2) To enforce a lien against receivership property to the extent the lien secures a 327
	440	+	claim against the owner which arose before entry of the order. 328 ENGROSSED ORIGINAL
739	441
740	442
741	443
742	444
743		-	______________________________
744		-	Chairman
745		-	Council of the District of Columbia
	445	+	18
	446	+
	447	+	(b) Except as otherwise provided in subsection (d) of this section, the Superior Court may 329
	448	+	enjoin an act, action, or proceeding against or relating to receivership property if the injunction is 330
	449	+	necessary to protect the property or facilitate administration of the receivership. 331
	450	+	(c) A person whose act, action, or proceeding is stayed or enjoined under this section may 332
	451	+	apply to the Superior Court for relief from the stay or injunction for cause. 333
	452	+	(d) An order under subsection (a) or (b) of this section does not operate as a stay or 334
	453	+	injunction of: 335
	454	+	(1) An act, action, or proceeding to foreclose or otherwise enforce a mortgage by 336
	455	+	the person seeking appointment of the receiver; 337
	456	+	(2) An act, action, or proceeding to perfect, or maintain or continue the perfection 338
	457	+	of, an interest in receivership property; 339
	458	+	(3) Commencement or continuation of a criminal proceeding; 340
	459	+	(4) Commencement or continuation of an action or proceeding, or enforcement of 341
	460	+	a judgment other than a money judgment in an action or proceeding, by a governmental unit to 342
	461	+	enforce its police or regulatory power; or 343
	462	+	(5) Establishment by a governmental unit of a tax liability against the owner or 344
	463	+	receivership property or an appeal of the liability. 345
	464	+	(e) The Superior Court may void an act that violates a stay or injunction under this 346
	465	+	section. 347 ENGROSSED ORIGINAL
746	466
747	467
748	468
749	469
	470	+	19
750	471
751		-	_________________________________
752		-	Mayor
753		-	District of Columbia
	472	+	(f) If a person knowingly violates a stay or injunction under this section, the Superior 348
	473	+	Court may: 349
	474	+	(1) Award actual damages caused by the violation, reasonable attorney’s fees, and 350
	475	+	costs; and 351
	476	+	(2) Sanction the violation as civil contempt. 352
	477	+	Sec. 16. Engagement and compensation of professional. 353
	478	+	(a) With the Superior Court’s approval, a receiver may engage an attorney, accountant, 354
	479	+	appraiser, auctioneer, broker, or other professional to assist the receiver in performing a duty or 355
	480	+	exercising a power of the receiver. The receiver shall disclose to the Superior Court: 356
	481	+	(1) The identity and qualifications of the professional; 357
	482	+	(2) The scope and nature of the proposed engagement; 358
	483	+	(3) Any potential conflict of interest; and 359
	484	+	(4) The proposed compensation. 360
	485	+	(b) A person is not disqualified from engagement under this section solely because of the 361
	486	+	person’s engagement by, representation of, or other relationship with the receiver, a creditor, or a 362
	487	+	party. This act does not prevent the receiver from serving in the receivership as an attorney, 363
	488	+	accountant, auctioneer, or broker when authorized by law. 364
	489	+	(c) A receiver or professional engaged under subsection (a) of this section shall file with 365
	490	+	the Superior Court an itemized statement of the time spent, work performed, and billing rate of 366 ENGROSSED ORIGINAL
754	491
	492	+
	493	+
	494	+
	495	+	20
	496	+
	497	+	each person that performed the work and an itemized list of expenses. The receiver shall pay the 367
	498	+	amount approved by the Superior Court. 368
	499	+	Sec. 17. Use or transfer of receivership property not in ordinary course of business. 369
	500	+	(a) For the purposes of this section, the term “good faith” means honesty in fact and the 370
	501	+	observance of reasonable commercial standards of fair dealing. 371
	502	+	(b) With the Superior Court’s approval, a receiver may use receivership property other 372
	503	+	than in the ordinary course of business. 373
	504	+	(c) With the Superior Court’s approval, a receiver may transfer receivership property 374
	505	+	other than in the ordinary course of business by sale, lease, license, exchange, or other 375
	506	+	disposition. Unless the agreement of sale provides otherwise, a sale under this section is free and 376
	507	+	clear of a lien of the person that obtained appointment of the receiver, any subordinate lien, and 377
	508	+	any right of redemption but is subject to a senior lien. 378
	509	+	(d) A lien on receivership property which is extinguished by a transfer under subsection 379
	510	+	(c) of this section attaches to the proceeds of the transfer with the same validity, perfection, and 380
	511	+	priority the lien had on the property immediately before the transfer, even if the proceeds are not 381
	512	+	sufficient to satisfy all obligations secured by the lien. 382
	513	+	(e) A transfer under subsection (c) of this section may occur by means other than a public 383
	514	+	auction sale. A creditor holding a valid lien on the property to be transferred may purchase the 384
	515	+	property and offset against the purchase price part or all of the allowed amount secured by the 385 ENGROSSED ORIGINAL
	516	+
	517	+
	518	+
	519	+
	520	+	21
	521	+
	522	+	lien, if the creditor tenders funds sufficient to satisfy in full the reasonable expenses of transfer 386
	523	+	and the obligation secured by any senior lien extinguished by the transfer. 387
	524	+	(f) A reversal or modification of an order approving a transfer under subsection (c) of 388
	525	+	this section does not affect the validity of the transfer to a person that acquired the property in 389
	526	+	good faith or revive against the person any lien extinguished by the transfer, whether the person 390
	527	+	knew before the transfer of the request for reversal or modification, unless the Superior Court 391
	528	+	stayed the order before the transfer. 392
	529	+	Sec. 18. Executory contract. 393
	530	+	(a) For the purposes of this section, the term “timeshare interest” means an interest 394
	531	+	having a duration of more than 3 years which grants its holder the right to use and occupy an 395
	532	+	accommodation, facility, or recreational site, whether improved or not, for a specific period less 396
	533	+	than a full year during any given year. 397
	534	+	(b) Except as otherwise provided in subsection (h) of this section, with the Superior 398
	535	+	Court’s approval, a receiver may adopt or reject an executory contract of the owner relating to 399
	536	+	receivership property. The Superior Court may condition the receiver’s adoption and continued 400
	537	+	performance of the contract on terms appropriate under the circumstances. If the receiver does 401
	538	+	not request Superior Court approval to adopt or reject the contract within a reasonable time after 402
	539	+	the receiver’s appointment, the receiver is deemed to have rejected the contract. 403 ENGROSSED ORIGINAL
	540	+
	541	+
	542	+
	543	+
	544	+	22
	545	+
	546	+	(c) A receiver’s performance of an executory contract before the Superior Court’s 404
	547	+	approval under subsection (b) of this section of its adoption or rejection is not an adoption of the 405
	548	+	contract and does not preclude the receiver from seeking approval to reject the contract. 406
	549	+	(d) A provision in an executory contract which requires or permits a forfeiture, 407
	550	+	modification, or termination of the contract because of the appointment of a receiver or the 408
	551	+	financial condition of the owner does not affect a receiver’s power under subsection (b) of this 409
	552	+	section to adopt the contract. 410
	553	+	(e) A receiver’s right to possess or use receivership property pursuant to an executory 411
	554	+	contract terminates on rejection of the contract under subsection (b) of this section. Rejection is a 412
	555	+	breach of the contract effective immediately before appointment of the receiver. A claim for 413
	556	+	damages for rejection of the contract must be submitted by the later of: 414
	557	+	(1) The time set for submitting a claim in the receivership; or 415
	558	+	(2) Thirty days after the Superior Court approves the rejection. 416
	559	+	(f) If at the time a receiver is appointed, the owner has the right to assign an executory 417
	560	+	contract relating to receivership property under law of the District other than this act, the receiver 418
	561	+	may assign the contract with the Superior Court’s approval. 419
	562	+	(g) If a receiver rejects under subsection (b) of this section an executory contract for the 420
	563	+	sale of receivership property that is real property in possession of the purchaser or a real-property 421
	564	+	timeshare interest, the purchaser may: 422 ENGROSSED ORIGINAL
	565	+
	566	+
	567	+
	568	+
	569	+	23
	570	+
	571	+	(1) Treat the rejection as a termination of the contract, and in that case the 423
	572	+	purchaser has a lien on the property for the recovery of any part of the purchase price the 424
	573	+	purchaser paid; or 425
	574	+	(2) Retain the purchaser’s right to possession under the contract, and in that case 426
	575	+	the purchaser shall continue to perform all obligations arising under the contract and may offset 427
	576	+	any damages caused by nonperformance of an obligation of the owner after the date of the 428
	577	+	rejection, but the purchaser has no right or claim against other receivership property or the 429
	578	+	receiver on account of the damages. 430
	579	+	(h) A receiver may not reject an unexpired lease of real property under which the owner 431
	580	+	is the landlord if: 432
	581	+	(1) The tenant occupies the leased premises as the tenant’s primary residence; 433
	582	+	(2) The receiver was appointed at the request of a person other than a mortgagee; 434
	583	+	or 435
	584	+	(3) The receiver was appointed at the request of a mortgagee and: 436
	585	+	(A) The lease is superior to the lien of the mortgage; 437
	586	+	(B) The tenant has an enforceable agreement with the mortgagee or the 438
	587	+	holder of a senior lien under which the tenant’s occupancy will not be disturbed as long as the 439
	588	+	tenant performs its obligations under the lease; 440
	589	+	(C) The mortgagee has consented to the lease, either in a signed record or 441
	590	+	by its failure timely to object that the lease violated the mortgage; or 442 ENGROSSED ORIGINAL
	591	+
	592	+
	593	+
	594	+
	595	+	24
	596	+
	597	+	(D) The terms of the lease were commercially reasonable at the time the 443
	598	+	lease was agreed to and the tenant did not know or have reason to know that the lease violated 444
	599	+	the mortgage. 445
	600	+	Sec. 19. Defenses and immunities of receiver. 446
	601	+	(a) A receiver is entitled to all defenses and immunities provided by law of the District 447
	602	+	other than this act for an act or omission within the scope of the receiver’s appointment. 448
	603	+	(b) A receiver may be sued personally for an act or omission in administering 449
	604	+	receivership property only with approval of the Superior Court that appointed the receiver. 450
	605	+	Sec. 20. Interim report of receiver. 451
	606	+	A receiver may file or, if ordered by the Superior Court , shall file an interim report that 452
	607	+	includes: 453
	608	+	(1) The activities of the receiver since appointment or a previous report; 454
	609	+	(2)Receipts and disbursements, including a payment made or proposed to be made 455
	610	+	to a professional engaged by the receiver; 456
	611	+	(3) Receipts and dispositions of receivership property; 457
	612	+	(4) Fees and expenses of the receiver and, if not filed separately, a request for 458
	613	+	approval of payment of the fees and expenses; and 459
	614	+	(5) Any other information required by the Superior Court . 460
	615	+	Sec. 21. Notice of appointment; claim against receivership; distribution to creditors. 461 ENGROSSED ORIGINAL
	616	+
	617	+
	618	+
	619	+
	620	+	25
	621	+
	622	+	(a) Except as otherwise provided in subsection (f) of this section, a receiver shall give 462
	623	+	notice of appointment of the receiver to creditors of the owner by: 463
	624	+	(1) Deposit for delivery through first-class mail or other commercially reasonable 464
	625	+	delivery method to the last-known address of each creditor; and 465
	626	+	(2) Publication as directed by the Superior Court. 466
	627	+	(b) Except as otherwise provided in subsection (f) of this section, the notice required by 467
	628	+	subsection (a) of this section must specify the date by which each creditor holding a claim 468
	629	+	against the owner which arose before appointment of the receiver must submit the claim to the 469
	630	+	receiver. The date specified must be at least 90 days after the later of notice under subsection 470
	631	+	(a)(1) of this section or last publication under subsection (a)(2) of this section. The Superior 471
	632	+	Court may extend the period for submitting the claim. Unless the Superior Court orders 472
	633	+	otherwise, a claim that is not submitted timely is not entitled to a distribution from the 473
	634	+	receivership. 474
	635	+	(c) A claim submitted by a creditor under this section must: 475
	636	+	(1) State the name and address of the creditor; 476
	637	+	(2) State the amount and basis of the claim; 477
	638	+	(3) Identify any property securing the claim; 478
	639	+	(4) Be signed by the creditor under penalty of perjury; and 479
	640	+	(5) Include a copy of any record on which the claim is based. 480 ENGROSSED ORIGINAL
	641	+
	642	+
	643	+
	644	+
	645	+	26
	646	+
	647	+	(d) An assignment by a creditor of a claim against the owner is effective against the 481
	648	+	receiver only if the assignee gives timely notice of the assignment to the receiver in a signed 482
	649	+	record. 483
	650	+	(e) At any time before entry of an order approving a receiver’s final report, the receiver 484
	651	+	may file with the Superior Court an objection to a claim of a creditor, stating the basis for the 485
	652	+	objection. The Superior Court shall allow or disallow the claim according to law of the District 486
	653	+	other than this act. 487
	654	+	(f) If the Superior Court concludes that receivership property is likely to be insufficient to 488
	655	+	satisfy claims of each creditor holding a perfected lien on the property, the Superior Court may 489
	656	+	order that: 490
	657	+	(1) The receiver need not give notice under subsection (a) of this section of the 491
	658	+	appointment to all creditors of the owner, but only such creditors as the Superior Court directs; 492
	659	+	and 493
	660	+	(2) Unsecured creditors need not submit claims under this section. 494
	661	+	(g) Subject to section 21: 495
	662	+	(1) A distribution of receivership property to a creditor holding a perfected lien on 496
	663	+	the property must be made in accordance with the creditor’s priority under law of the District 497
	664	+	other than this act; and 498 ENGROSSED ORIGINAL
	665	+
	666	+
	667	+
	668	+
	669	+	27
	670	+
	671	+	(2) A distribution of receivership property to a creditor with an allowed unsecured 499
	672	+	claim must be made as the Superior Court directs according to law of the District other than this 500
	673	+	act. 501
	674	+	Sec. 22. Fees and expenses. 502
	675	+	(a) The Superior Court may award a receiver from receivership property the reasonable 503
	676	+	and necessary fees and expenses of performing the duties of the receiver and exercising the 504
	677	+	powers of the receiver. 505
	678	+	(b) The Superior Court may order one or more of the following to pay the reasonable and 506
	679	+	necessary fees and expenses of the receivership, including reasonable attorney’s fees and costs: 507
	680	+	(1) A person that requested the appointment of the receiver, if the receivership 508
	681	+	does not produce sufficient funds to pay the fees and expenses; or 509
	682	+	(2) A person whose conduct justified or would have justified the appointment of 510
	683	+	the receiver under section 6(a)(1). 511
	684	+	Sec. 23. Removal of receiver; replacement; termination of receivership. 512
	685	+	(a) The Superior Court may remove a receiver for cause. 513
	686	+	(b) The Superior Court shall replace a receiver that dies, resigns, or is removed. 514
	687	+	(c) If the Superior Court finds that a receiver that resigns or is removed, or the 515
	688	+	representative of a receiver that is deceased, has accounted fully for and turned over to the 516
	689	+	successor receiver all receivership property and has filed a report of all receipts and 517
	690	+	disbursements during the service of the replaced receiver, the replaced receiver is discharged. 518 ENGROSSED ORIGINAL
	691	+
	692	+
	693	+
	694	+
	695	+	28
	696	+
	697	+	(d) The Superior Court may discharge a receiver and terminate the Superior Court’s 519
	698	+	administration of the receivership property if the Superior Court finds that appointment of the 520
	699	+	receiver was improvident or that the circumstances no longer warrant continuation of the 521
	700	+	receivership. If the Superior Court finds that the appointment was sought wrongfully or in bad 522
	701	+	faith, the Superior Court may assess against the person that sought the appointment: 523
	702	+	(1) The fees and expenses of the receivership, including reasonable attorney’s fees 524
	703	+	and costs; and 525
	704	+	(2) Actual damages caused by the appointment, including reasonable attorney’s 526
	705	+	fees and costs. 527
	706	+	Sec. 24. Final report of receiver; discharge. 528
	707	+	(a) On completion of a receiver’s duties, the receiver shall file a final report including: 529
	708	+	(1) A description of the activities of the receiver in the conduct of the 530
	709	+	receivership; 531
	710	+	(2) A list of receivership property at the commencement of the receivership and 532
	711	+	any receivership property received during the receivership; 533
	712	+	(3) A list of disbursements, including payments to professionals engaged by the 534
	713	+	receiver; 535
	714	+	(4) A list of dispositions of receivership property; 536
	715	+	(5) A list of distributions made or proposed to be made from the receivership for 537
	716	+	creditor claims; 538 ENGROSSED ORIGINAL
	717	+
	718	+
	719	+
	720	+
	721	+	29
	722	+
	723	+	(6) If not filed separately, a request for approval of the payment of fees and 539
	724	+	expenses of the receiver; and 540
	725	+	(7) Any other information required by the Superior Court . 541
	726	+	(b) If the Superior Court approves a final report filed under subsection (a) of this section 542
	727	+	and the receiver distributes all receivership property, the receiver is discharged. 543
	728	+	Sec. 25. Receivership in another state; ancillary proceeding. 544
	729	+	(a) The Superior Court may appoint a receiver appointed in another state, or that person’s 545
	730	+	nominee, as an ancillary receiver with respect to property located in the District or subject to the 546
	731	+	jurisdiction of the Superior Court for which a receiver could be appointed under this act, if: 547
	732	+	(1) The person or nominee would be eligible to serve as receiver under section 7; 548
	733	+	and 549
	734	+	(2) The appointment furthers the person’s possession, custody, control, or 550
	735	+	disposition of property subject to the receivership in the other state. 551
	736	+	(b) The Superior Court may issue an order that gives effect to an order entered in another 552
	737	+	state appointing or directing a receiver. 553
	738	+	(c) Unless the Superior Court orders otherwise, an ancillary receiver appointed under 554
	739	+	subsection (a) of this section has the rights, powers, and duties of a receiver appointed under this 555
	740	+	act. 556
	741	+	Sec. 26. Effect of enforcement by mortgagee. 557 ENGROSSED ORIGINAL
	742	+
	743	+
	744	+
	745	+
	746	+	30
	747	+
	748	+	(a) A request by a mortgagee for appointment of a receiver, the appointment of a 558
	749	+	receiver, or application by a mortgagee of receivership property or proceeds to the secured 559
	750	+	obligation does not: 560
	751	+	(1) Make the mortgagee a mortgagee in possession of the real property; 561
	752	+	(2) Make the mortgagee an agent of the owner; 562
	753	+	(3) Constitute an election of remedies that precludes a later action to enforce the 563
	754	+	secured obligation; 564
	755	+	(4) Make the secured obligation unenforceable; 565
	756	+	(5) Limit any right available to the mortgagee with respect to the secured 566
	757	+	obligation; or 567
	758	+	(6) Except as otherwise provided in subsection (b) of this section, bar a deficiency 568
	759	+	judgment pursuant to law of the District other than this act governing or relating to a deficiency 569
	760	+	judgment. 570
	761	+	(b) If a receiver sells receivership property that pursuant to section 16(c) is free and clear 571
	762	+	of a lien, the ability of a creditor to enforce an obligation that had been secured by the lien is 572
	763	+	subject to law of the District other than this act relating to a deficiency judgment. 573
	764	+	Sec. 27. Uniformity of application and construction. 574
	765	+	In applying and construing this act, consideration must be given to the need to promote 575
	766	+	uniformity of the law with respect to its subject matter among states that enact it. 576
	767	+	Sec. 28. Relation to Electronic Signatures in Global and National Commerce Act. 577 ENGROSSED ORIGINAL
	768	+
	769	+
	770	+
	771	+
	772	+	31
	773	+
	774	+	This act modifies, limits, or supersedes the Electronic Signatures in Global and National 578
	775	+	Commerce Act, approved June 30, 2000 (114 Stat. 464; 15 U.S.C. § 7001 et seq. ), but does not 579
	776	+	modify, limit, or supersede section 101(c) of that act (15 U.S.C. § 7001(c)), or authorize 580
	777	+	electronic delivery of any of the notices described in section 103(b) of that act (15 U.S.C. § 581
	778	+	7003(b)). 582
	779	+	Sec. 29. Transition. 583
	780	+	This act does not apply to a receivership for which the receiver was appointed before the 584
	781	+	effective date of this act. 585
	782	+	Sec. 30. Fiscal impact statement. 586
	783	+	The Council adopts the fiscal impact statement in the committee report as the fiscal 587
	784	+	impact statement required by section 4a of the General Legislative Procedures Act of 1975, 588
	785	+	approved October 16, 2006 (120 Stat. 2038; D.C. Official Code § 1-301.47a). 589
	786	+	Sec. 31. Effective date. 590
	787	+	This act shall take effect following approval by the Mayor (or in the event of veto by the 591
	788	+	Mayor, action by the Council to override the veto), a 30-day period of congressional review as 592
	789	+	provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December 593
	790	+	24, 1973 (87 Stat. 813; D.C. Official Code § 1-206.02(c)(1)). 594