33-1903. Appointment of temporary receiver;
term; duties, accounting


A. This state or a city, town or county of this state may apply to the superior
court for the appointment of a temporary receiver to manage a property that is designated
as a slum property by a city, town or county or the state.


B. If the court determines that the appointment of a temporary receiver is
necessary, the court may order the appointment of a temporary receiver to manage or
operate the premises for as long as the court deems necessary. The court shall not
appoint a temporary receiver for a term of more than one year.


C. A temporary receiver who is appointed pursuant to subsection B of this section
either shall be a real estate licensee specializing in property management or an attorney
specializing in real estate law and shall swear or affirm to faithfully and fairly
discharge the receiver's duties. The court may require the temporary receiver to post a
bond in an amount fixed by the court.


D. The court shall determine the following:


1. The management duties of the receiver.


2. The amount of compensation to be paid to the receiver.


3. The method of payment.


4. The payment periods.


E. The temporary receiver shall continue to manage the property during the pendency
of any appeal or until relieved by the court. The court may remove a temporary receiver
on its own motion or on the motion of any party or the temporary receiver.


F. The temporary receiver may do any of the following:


1. Take control of the property.


2. Pay the mortgage on the property if there are sufficient monies derived from the
income of the property to do so.


3. Collect rents due on the property.


4. Make or have made any repairs that are necessary to bring the property into
compliance with any statute or ordinance.


5. Make payments that are necessary for the maintenance or restoration of utilities
to the property.


6. Purchase materials that are necessary to make repairs.


7. Renew, terminate or modify existing rental contracts and leases as provided by
law.


8. Enter into new rental contracts and leases.


9. Affirm, renew or terminate an existing insurance contract that covers the
property as provided by law.


10. Enter into a new contract that provides for insurance coverage on the property.


11. Hire security or other personnel that are necessary for the safe and proper
operation and maintenance of the property.


12. Prosecute or defend suits that flow from the management of the property and
retain counsel.


13. Exercise all other authority that an owner of the property would have except the
authority to sell the property.


G. Before the receiver spends monies in excess of ten thousand dollars the court
and the party who is responsible for the payment of the temporary receiver's expenditures
shall approve the expenditure of those monies.


H. The costs of compensation to and expenditures by the temporary receiver shall be
paid in the following order of priority:


1. From the income that is derived from the property and that is available after
all taxes and mortgages are satisfied.


2. By the party who requested the appointment of the temporary receiver.


I. On filing with the county recorder of the county in which the property is
located, a lien is created in favor of the party who pays the temporary receiver's costs
of compensation and expenditures other than the defendant. The lien is prior to all other
liens, obligations or encumbrances except for prior recorded mortgages, restitution
liens, child support liens and general tax liens.


J. On the completion of the receivership, the temporary receiver shall file with
the court a full accounting of all costs and expenses incurred and all income received
during course of the receivership.


K. On finding that the appointment of a temporary receiver is no longer warranted,
the court on its own motion or the motion of any party may terminate the temporary
receivership.


L. After all violations have been cured, the temporary receivership shall be
terminated.