Rule 32 Receiverships

In all cases where receivers are appointed by this Court the following shall apply:

32.01 Initial duties

Unless the Court specifically authorizes the Receiver to control a business, he shall expeditiously take control of the assets of the Defendant debtor, give notice to all known creditors of his appointment and cause the assets to be inventoried and appraised, determine the validity and priority of creditor's claims, take such steps as may be necessary to reduce the assets to cash, and make distribution of said cash between the various class of creditors.

32.02 Initial Report

Within two months after his appointment the Receiver shall report to the Court, submitting his inventory and appraisal, and including his account of receipts and expenditures to date. Such documents shall be filed with the Clerk. The several matters referred to herein shall be considered by the Judge and his approval thereof shall be by entry, approved first by the receiver and his counsel.

32.03 Periodic Reports

Semi-annually after filing the first report with inventory, appraisement and account, the receiver shall file with the Clerk, consecutively numbered reports with accounts and expenditures made by the receiver during the period of the report and a summary of plans for future conduct of the receivership.

32.04 Permissible Expenditures

In cases involving Receivers appointed to take charge of property and to collect rents and other income, the Receiver may expend funds, without first obtaining Court approval, to pay for insurance premiums, water and utility bills, and to make emergency repairs as are necessary for the proper maintenance of the property. For authority other than that conferred upon the Receiver by virtue of this rule, the Receiver shall make application to the Court for authority.

32.05 Sale of Assets

In all receivership with property appraised in excess of $1,000 which is to be put up for public or private sale, the receiver shall file in advance of such sale a report with the Court a report showing the amount of expenditure incurred or to be incurred prior to the time the sale is to be conducted.

32.06 Receivers fees and Counsel fees

An application for payment of Receiver's and Counsel for Receiver's fees whether partial or final, shall be filed with the Clerk for Court approval. Written notice of the hearing on application for fees totaling in excess of $1,500 shall be submitted personally or by mail to all creditors, or their counsel of record, unless otherwise provided by Court order. Such applications shall show time spent on enumerated items, amounts of money collected disbursed and on hand, the status of secured and unsecured creditors claims, including amounts claimed, payments made thereon and balances due, and the estimate of the amount of time necessary to complete work in the receivership and make final distribution.

32.07 Effect of failure to file as required

Failure to file an inventory and appraisal, accounts or other reports as required by this rule, will constitute grounds for the removal of the receiver and/or counsel for the receiver and for withholding of fees for the receiver and/or counsel for the receiver.

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