Receivers can also be used to enforce or effectuate a judgement. There are a number of ways this can arise. For example, in the City of Elk Grove there was a property that was the site of substantial criminal activity, but the code violations were not sufficient for a Health and Safety Receivership. The Property was the site of substantial criminal activity that included numerous drug deals, shootings, and other nefarious activity. Therefore, the Sacramento
Federal Bankruptcy is Not an Option for State Legal Cannabis Business so What Should They Do When They are Failing Financially? Appoint a Receiver
At this time, thirty-three states have legalized marijuana. ( Esquire Link ) However, marijuana remains illegal federally. 21 U.S.C. §§ 801-890 (1970.) As a result of marijuana’s status as a controlled substance federally, numerous bankruptcy courts have flatly banned state legal marijuana growers from seeking federal bankruptcy protection. In re Rent-Rite Super Kegs W. Ltd. (Bankr.D.Colo. 2012) 484 B.R. 799, 809. There was some hope that In re Rent-Rite Super Kegs W. Ltd would lose momentum, but it was
Rents and Profits Receiverships
Another way the receivership remedy is utilized is through rents and profit receiverships. A rents and profits receivership is typically used when a bank seeks to foreclose, but the property is worth less than the debt it secures. When the property is underwater a rents and profits receiver can be appointed to preserve the property and collect rents if necessary. A rents and profits receiver like other receivers will perform tasks such as insure the
Corporate Receiverships
Just as the banks collapsed in the 2000’s as a result of the subprime mortgage crisis, companies and corporations can collapse for a variety of reasons. As an example, a lumber mill in Colorado was struggling economically and about to go under, but before it went under a receiver was appointed to preserve the company. In this case, the Receiver was able to negotiate new contracts and keep most of the sawmill employees employed. Eventually
USING RECEIVERSHIPS TO REVITALIZE ABANDONED CONSTRUCTION PROJECTS
What happens when a construction project runs out of money and the half finished skyscraper, mall, or hotel sits vacant for years? There are two things that can happen everyone can wait until the developer finds funds, which is unlikely. Or a more practical solution is that a developer or other party with a recorded interest can seek the appointment of a receiver over the Property pursuant to California Code of Civil Procedure “CCP” §
Health and Safety Receiverships
ol.d {list-style-type: upper-alpha;} As it relates to specific receivership examples, cities and counties in California often use health and safety receiverships to abate nuisance conditions. A few reasons cities and counties might use the health and safety receivership remedy are when a property is abandoned, occupied by a hoarder, the site of criminal activity, or the owner passed away without any heirs. If typical code enforcement efforts by a City or County are unsuccessful then
RECEIVERSHIP AS A REMEDY ADDRESS ECONOMICALLY DISTRESSED PROPERTIES
If a property is underwater and/or in a blighted condition with numerous lienholders that are hesitant to foreclose? The answer is often receivership. If a property is underwater, but some equity exists a receiver can be appointed to take control of the Property and eventually sell the Property pursuant to California Code of Civil Procedure “CCP” § 568.5. The receivership sale must be confirmed by the Court. (CCP 568.5; (People v. Riverside University (1973) 35
What is a Court Appointed Receiver?
When people hear the term receiver they may think of NFL Hall of Famer Jerry Rice, but a Court-Appointed Receiver is a whole other ball game. The use of Court-Appointed Receivers began in the Old English Chancery Courts and were often used to take control of an estate that did not have an heir. For example, in the 1500s when a King died without a son or heir to take over the kingdom, what happened
Ryan Griffith’s Zombie Foreclosure Article Published by the California Daily Journal
Ryan Griffith Attorney & Associate Receiver at Bay Area Receivership Group had his article on Zombie Foreclosure and how to address it published by the California Daily Journal on April 29, 2020. The article explains how banks can take control of dangerous properties and prevent them from getting to a point that the appointment of a Health and Safety Receiver by a City or County is necessary. The article can be read here.
Bay Area Receivership Group Appointed on Emergency Order over Fire Damaged Property in Fresno
On April 21, 2020, the City of Fresno moved ex-parte to appoint Bay Area Receivership Group over 1630 S. Third Street in Fresno, California in Fresno County Case #20CECG00407 . The Property has been the site of several recent fires and an ex-parte was necessary due to COVID. Now that Bay Area Receivership Group has been appointed it will take immediate action to abate the nuisance conditions at the Property.