Analysis of Ohio's Amended Receivership Law | Page 4

2 Many of the substantive changes apply to sales of Receivership property, and bring much-needed clarity to the subject of a Receiver’s sale of property free and clear of liens. Prior case law in Ohio provides support for a court’s authority to order a Receiver’s sale free and clear of liens over the objection of a party in interest, at least where basic due process requirements have been met. However, the case law has not been uniform. By codifying a detailed procedure to govern a Receiver’s sale free and clear of liens, the amendments should remove the uncertainty that has surrounded the process from the perspective of the courts, litigants, buyers and title insurers. Affected Statutes Sub. H.B. No. 9 primarily amends certain sections within Revised Code Chapter 2735 – Receivership. However, the bill also amends two other sections concerning Receivers, and applies the clarified and expanded powers of a Receiver (set forth in amended Section 2735.04) to (1) Receivers appointed over the property of a judgment debtor in aid of execution (R.C. § 2333.22); and (2) Receivers appointed in a pre-judgment attachment proceeding to take possession of certain property of the defendant. (R.C. § 2715.21) Grounds for Appointment Section 2735.01 of the Revised Code sets forth the grounds for appointment of a Receiver. Appointment is always discretionary with the court. (“A receiver may be appointed … in the following cases … .” R.C. § 2735.01(A) (Emphasis added.)) The following grounds for appointment are not substantively affected. Rather, the amendments (if any) contain language © Copyright 2015, Vorys, Sater, Seymour and Pease LLP. All Rights Reserved. vorys.com