Current through Register Vol. 49, No. 8, August 19, 2024
Subdivision 1.Control of property.All receivership property is under the control and supervision of the court appointing the receiver.
Subd. 2.Stay by court order.In addition to any stay provided in this section, the court may order a stay or stays to protect receivership property and to facilitate the administration of the receivership.
Subd. 3.Stay in all receiverships.Except as otherwise ordered by the court, the entry of an order appointing a receiver shall operate as a stay, applicable to all persons, of:
(1) any act to obtain possession of receivership property, or to interfere with or exercise control over receivership property, other than the commencement or continuation of a judicial, administrative, or other action or proceeding, including the issuance or use of process, to enforce any lien having priority over the rights of the receiver in receivership property; and(2) any act to create or perfect any lien against receivership property, except by exercise of a right of setoff, to the extent that the lien secures a claim that arose before the time of appointment.Subd. 4.Limited additional stay in general receiverships.(a) Except as otherwise ordered by the court, in addition to the stay provided in subdivision 3, the entry of an order appointing a general receiver shall operate as a stay, applicable to all persons, of:(1) the commencement or continuation of a judicial, administrative, or other action or proceeding, including the issuance or use of process, against the respondent or the receiver that was or could have been commenced before the time of appointment, or to recover a claim against the respondent that arose before the time of appointment;(2) the commencement or continuation of a judicial, administrative, or other action or proceeding, including the issuance or use of process, to enforce any lien having priority over the rights of the receiver in receivership property.(b) As to the acts specified in this subdivision, the stay shall expire 30 days after the time of appointment unless, before the expiration of the 30-day period, the receiver or other party in interest files a motion seeking an order of the court extending the stay and before the expiration of an additional 30 days following the 30-day period, the court orders the stay extended.Subd. 5.Modification of stay.The court may modify any stay provided in this section upon the motion of any party in interest affected by the stay.
Subd. 6.Inapplicability of stay.The entry of an order appointing a receiver does not operate as a stay of:
(1) the commencement or continuation of a criminal proceeding against the respondent;(2) the commencement or continuation of an action or proceeding by a governmental unit to enforce its police or regulatory power;(3) the enforcement of a judgment, other than a money judgment, obtained in an action or proceeding by a governmental unit to enforce its police or regulatory power, or with respect to any licensure of the respondent;(4) the establishment by a governmental unit of any tax liability and any appeal thereof;(5) the commencement or continuation of an action or proceeding to establish paternity; to establish or modify an order for alimony, maintenance, or support; or to collect alimony, maintenance, or support under any order of a court;(6) the exercise of a right of setoff;(7) any act to maintain or continue the perfection of a lien on, or otherwise preserve or protect rights in, receivership property, but only to the extent that the act was necessary to preserve or protect the lien or other rights as they existed as of the time of the appointment. If the act would require seizure of receivership property or commencement of an action prohibited by a stay, the continued perfection shall instead be accomplished by filing a notice in the court before which the receivership is pending and by serving the notice upon the receiver and receiver's attorney, if any, within the time fixed by law for seizure or commencement of the action;(8) the commencement of a bankruptcy case under federal bankruptcy laws; or(9) any other exception as provided in United States Code, title 11, section 362(b), as to the automatic stay in federal bankruptcy cases to the extent not inconsistent with any provision in this section.Amended by 2020 Minn. Laws, ch. 83,s 1-89, eff. 8/1/2020.