Analysis of Ohio's Amended Receivership Law | Page 4
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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
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