Date: 08/05/2015
Final
2.a.iii. Uniform Commercial Real Estate Receivership Act
COMMITTEE ON COLORADO COMMISSION ON UNIFORM STATE LAWS
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09:28 AM -- 2.a.iii. Uniform Commercial Real Estate Receivership Act
09:30 AM -- Charles Calvin, CBA Real Estate Section, briefly outlined custodial and equity receiverships. A custodial receivership protects or enhances the value of a specific asset, while an equity (or reorganization) receivership assigns the responsibility to operate a business and requires broader powers. Colorado has statutes in place for appointments at different times during the process but there are some shortcomings in the laws. The section is concerned that the uniform act blurs the line between the two types of receiverships and grants some powers to every receiver, which may not be appropriate in our state. In addition, third-party rights could be affected creating additional potential litigation. The commission agreed that Colorado statutes are deficient in areas, especially regarding appointments, and there have been abuses in ex parte actions. Abuses need to be addressed but because of the low number of appeals, there is little guidance through Colorado case law.