Section 29-40-107 - Disqualification from appointment as receiver - Disclosure of interest(a) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.(b) Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person:(1) Is an affiliate of a party;(2) Has an interest materially adverse to an interest of a party;(3) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;(4) Has a debtor-creditor relationship with a party; or(5) Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company.(c) A person is not disqualified from appointment as receiver solely because the person: (1) Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership;(2) Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or(3) Maintains with a party a deposit account as defined in § 47-9-102(a).(d) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.Added by 2018 Tenn. Acts, ch. 731, s 1, eff. 7/1/2018.