Texas Business Organizations Code - Section 11.403. Appointment Of Receiver For Specific Property
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§ 11.403. APPOINTMENT OF RECEIVER FOR SPECIFIC
PROPERTY. (a) Subject to Subsection (b), and on the application of
a person whose right to or interest in any property or fund or the
proceeds from the property or fund is probable, a court that has
jurisdiction over specific property of a domestic or foreign entity
may appoint a receiver in an action:
(1) by a vendor to vacate a fraudulent purchase of the
property;
(2) by a creditor to subject the property or fund to
the creditor's claim;
(3) between partners or others jointly owning or
interested in the property or fund;
(4) by a mortgagee of the property for the foreclosure
of the mortgage and sale of the property, when:
(A) it appears that the mortgaged property is in
danger of being lost, removed, or materially injured; or
(B) it appears that the mortgage is in default
and that the property is probably insufficient to discharge the
mortgage debt; or
(5) in which receivers for specific property have been
previously appointed by courts of equity.
(b) A court may appoint a receiver for the property or fund
under Subsection (a) only if:
(1) with respect to an action brought under Subsection
(a)(1), (2), or (3), it is shown that the property or fund is in
danger of being lost, removed, or materially injured;
(2) circumstances exist that are considered by the
court to necessitate the appointment of a receiver to conserve the
property or fund and avoid damage to interested parties;
(3) all other requirements of law are complied with;
and
(4) the court determines that other available legal
and equitable remedies are inadequate.
(c) The court appointing a receiver under this section has
and shall retain exclusive jurisdiction over the specific property
placed in receivership. The court shall determine the rights of the
parties in the property or its proceeds.
(d) If the condition necessitating the appointment of a
receiver under this section is remedied, the receivership shall be
terminated immediately, and the receiver shall redeliver to the
domestic entity all of the property remaining in receivership.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 11.355 11.356 11.357 11.358 11.359 11.401 11.402 11.403 11.404 11.405 11.406 11.407 11.408 11.409 11.410
Last modified: August 11, 2007
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