Md. R. Rec. & Assign. 13-104

As amended through November 13, 2024

Rule 13-104 - COMMENCEMENT OF ACTION

(a) Assignment

(1) How Commenced

An assignment for the benefit of creditors proceeding is commenced by the filing of a petition to assume jurisdiction over the assignment.

(2) Who May File

The petition shall be filed by the assignee.

(3) Where Filed

The petition shall be filed in the circuit court for any county in which (A) the debtor resides, is employed, or maintains a place of business, or (B) where some part of the estate is located.

(4) Contents

(A) The petition shall:

(i) contain the name, address, and e-mail address of the assignor and the assignee;

(ii) be accompanied by the executed assignment;

(iii) if the assignor is a corporation, be accompanied by all required corporate resolutions or contain a statement that all such resolutions have been executed;

(iv) state the nature, approximate value, and location of the property comprising the estate, to the best of the petitioner's knowledge, information, and belief; and

(v) contain or be accompanied by the name, address, and e-mail address, to the extent known, of all interested persons known to the petitioner and a statement of the efforts made by the petitioner to identify and locate other possible interested persons.

(B) If any information in the assignment is subject to shielding pursuant to the Rules in Title 16, Chapter 900, the petition shall be accompanied by a copy of the assignment with the shielded information redacted.

(b) Receivership

(1) How Commenced

A receivership proceeding is commenced by the filing of a petition, except that if a receivership is sought in a pending action, the receivership proceeding may be commenced by the filing of a motion in that action. The motion shall comply with the requirements of a petition set forth in subsection (b) (4) of this Rule.

(2) Who May File

The petition may be filed by any person with statutory or common law standing. If the receivership is sought in a pending action, the motion may be filed by any party to that action.

Cross reference: See, in general, Spivey-Jones v. Trans Healthcare, 438 Md. 330 (2014), noting the existence of both equitable or chancery receiverships and statutory receiverships. For standing in equitable receiverships, see Frigidraft, Inc. v. Michel, 198 Md. 511 (1951).

(3) Where Filed

The petition shall be filed in the circuit court for any county in which (A) the debtor resides, is employed, or maintains a place of business, or (B) where some part of the estate is located.

(4) Contents

A petition to commence a receivership shall:

(A) state the name, address, and e-mail address of the petitioner and the alleged debtor, averments showing that the petitioner is authorized by law to file the petition and the basis for the petition, the name, address, and e-mail address of the person the petitioner seeks to have appointed as the receiver, and averments showing that such person is legally qualified to be appointed as a receiver; and

(B) contain or be accompanied by a list of the names, addresses, and e-mail addresses, to the extent known, of all interested persons known to the petitioner and a statement of the efforts made by the petitioner to identify and locate other possible interested persons.

Cross reference: See Code, Commercial Law Article, § 24-201 for the circumstances in which a receiver may be appointed pursuant to Title 24. See § 24-203 for disqualifications for appointment as a receiver.

(c) Show Cause Order

Upon the filing of a petition or motion under this Rule, the court shall issue a show cause order directing a person to show cause in writing on or before a specified date why the court should not take the action described in the order. The petition or motion, together with the show cause order, shall be served on the debtor in the manner directed by the Court.

(d) Hearing

Unless no interested party timely requests a hearing, after service of the show cause order and the petition or motion, the court promptly shall hold a hearing. Source: This Rule is new.

Md. R. Rec. & Assign. 13-104

This Rule is new.

Adopted June 5, 1996, eff. 1/1/1997; amended June 29, 2020, eff. 8/1/2020.