Analysis of Ohio's Amended Receivership Law | Page 16

14
Credit Bidding
Credit bidding has long been an accepted practice in foreclosure
sales. And, while Section 2735.04 does not expressly address a
lienholder’s ability to credit bid the amount owed to it in connection
with a free and clear sale of real and/or personal property, there is
nothing in Section 2735.04 that would cast doubt on the assumption
that credit bidding applies to a Receiver’s sale. Nevertheless, it is
important for a mortgage lender or other lienholder, in connection
with any sale, to consider whether, in order to protect its position, it
needs the ability to credit bid and, if so, to request out of an abundance
of caution that the court’s order authorizing the sale provide for
credit bidding. Indeed, the mortgagee or other lien holder may wish
to include such a provision in the order appointing the Receiver.
Redemption
Section 2735.04(D)(7) and (8) govern a right of redemption
afforded to the “owner and all other parties possessing an equity of
redemption in the real property.” The equity of redemption must
be exercised within a “reasonable time” but not less than three days
after the date of the Sale Order issued under Section 2735.04(D)
(2)(d). The fee owner may redeem the property by paying the
Receiver, by cashier’s check or other immediately available funds,
the greater of (x) the sale price (which may include interest on the
sale price at a rate fixed by the court from the date of sale to the
date of payment to the Receiver, R.C. § 2735.04(D)(8)(b)), or (y)
the amount of all liens that were to be canceled through the sale,
including all principal, interest, costs and other secured amounts
through the date of payment to the Receiver. (R.C. § 2735.04(D)(8)
(a)) Upon payment of the required redemption price, the Receiver
must notify the court and all Notice Parties of the amount received

© Copyright 2015, Vorys, Sater, Seymour and Pease LLP. All Rights Reserved.

vorys.com