Analysis of Ohio's Amended Receivership Law | Page 6

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First – The property must be in danger of any of the following: being
lost; being removed; being materially injured; being diminished in
value; or being squandered.
Second – Either of the following must be present:
• The property is probably insufficient to satisfy the mortgage
debt; or
• The mortgagor has consented in writing to the appointment
of a Receiver. (Note that the source or timing of consent is not
specified. Consent is commonly contained in the mortgage
itself. Consent could also be set forth in a forbearance
agreement, mortgage modification or other “workout”related document. Presumably, consent could also be set
forth in a pleading filed by the mortgagor in the foreclosure
action itself, where the action is a “friendly” foreclosure.)
Finally, a new ground for appointment of a Receiver has been added:
“To enforce a contractual assignment of rents and leases.” R.C. §
2735.01(A)(3))

Scope of Receiver’s Authority – “Property Receivers”
vs. “Entity Receivers”
Section 2735.01 has also been amended to set forth the general
scope of the Receiver’s authority, depending on which of the abovementioned “cases” serves as the basis for appointment. While the
statute does not employ these terms, we suggest that a useful shorthand reference to distinguish between the two types of Receivers,
insofar as their scope of authority is concerned, is “Property
Receivers” and “Entity Receivers.”

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