Analysis of Ohio's Amended Receivership Law | Page 7

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Property Receivers – Where a Receiver is appointed under Section
2735.01(A)(1) (cases involving a vendor seeking to unwind a
fraudulent purchase, or a creditor, partner or joint owner’s action
against property or fund), (A)(2) (mortgage foreclosure), (A)(3)
(enforcement of assignment of rents and leases), or (A)(5) (postjudgment preservation or disposal of property), the Receiver must
be appointed only with respect to the particular property that is the
subject of the action. (R.C. § 2735.01(B))
Entity Receivers – Where a Receiver is appointed under Section
2735.01(A)(6) (a corporation or other Entity that has been dissolved,
is insolvent or imminently insolvent, or has forfeited corporate or
Entity rights), the Receiver “may” be appointed to manage all of the
affairs of the Entity. (R.C. § 2735.01(C)) Given the use of the term
“may,” it could be argued that the court may appoint the Receiver to
manage certain, but less than all, of the Entity’s affairs.
Property or Entity Receivers – Where a Receiver is appointed
under Section 2735.01(A)(4) (post-judgment, to effectuate the
judgment) or (A)(7) (equity-usage appointments), the Receiver may
be appointed either to manage all of the affairs of the Entity or only
with respect to the particular property. (R.C. § 2735.01(D))
What is the practical impact of the different scope of authority
of a Property Receiver and an Entity Receiver? There has been
uncertainty in mortgage foreclosure and other cases in which a
Receiver is appointed to take charge of the property to preserve it,
and perhaps collect rents, pending a sheriff’s foreclosure sale or
possibly a sale by the Receiver, whether the Receiver is responsible
for matters that do not pertain specifically to the property, such as
filing tax returns on behalf of the defendant. To avoid uncertainty,
such matters should be addressed in the order appointing the

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