Compromise; debtor or obligor
Sec. 5. When it appears for the best interest of the estate, the
personal representative may on order of the court effect a fair and
reasonable compromise with any debtor or other obligor, or extend,
renew or in any manner modify the terms of any obligation owing to
the estate. If the personal representative holds a mortgage, pledge or
other lien upon property of another person, he may, in lieu of
foreclosure, accept a conveyance or transfer of such encumbered
assets from the owner thereof in satisfaction of the indebtedness
secured by such lien, if it appears for the best interest of the estate
and if the court shall so order. In the absence of prior authorization
or subsequent approval of the court, no compromise shall bind the
estate.
(Formerly: Acts 1953, c.112, s.1305.)
Last modified: May 27, 2006