CHAPTER 5. RECEIVERSHIPS
IC 32-30-5
Chapter 5. Receiverships
IC 32-30-5-1
Appointment of receivers; cases
Sec. 1. A receiver may be appointed by the court in the followingcases:
(1) In an action by a vendor to vacate a fraudulent purchase ofproperty or by a creditor to subject any property or fund to thecreditor's claim.
(2) In actions between partners or persons jointly interested inany property or fund.
(3) In all actions when it is shown that the property, fund orrent, and profits in controversy are in danger of being lost,removed, or materially injured.
(4) In actions in which a mortgagee seeks to foreclose amortgage. However, upon motion by the mortgagee, the courtshall appoint a receiver if, at the time the motion is filed, theproperty is not occupied by the owner as the owner's principalresidence and:
(A) it appears that the property is in danger of being lost,removed, or materially injured;
(B) it appears that the property may not be sufficient todischarge the mortgaged debt;
(C) either the mortgagor or the owner of the property hasagreed in the mortgage or in some other writing to theappointment of a receiver;
(D) a person not personally liable for the debt secured by themortgage has, or is entitled to, possession of all or a portionof the property;
(E) the owner of the property is not personally liable for thedebt secured by the mortgage; or
(F) all or any portion of the property is being, or is intendedto be, leased for any purpose.
(5) When a corporation:
(A) has been dissolved;
(B) is insolvent;
(C) is in imminent danger of insolvency; or
(D) has forfeited its corporate rights.
(6) To protect or preserve, during the time allowed forredemption, any real estate or interest in real estate sold onexecution or order of sale, and to secure rents and profits to theperson entitled to the rents and profits.
(7) In other cases as may be provided by law or where, in thediscretion of the court, it may be necessary to secure amplejustice to the parties.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-2
Persons prohibited from being appointed in particular action Sec. 2. A court may not appoint:
(1) a party;
(2) an attorney representing a party; or
(3) another person interested in an action;
as a receiver in that action.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-3
Receivers; oath; surety
Sec. 3. Before beginning duties as a receiver, the receiver must:
(1) swear to perform the duties of a receiver faithfully; and
(2) with one (1) or more sureties approved by the court orjudge, execute a written undertaking, payable to such person asthe court or the judge directs, to the effect that the receiver will:
(A) faithfully discharge the duties of receiver in the action;and
(B) obey the orders of the court or judge.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-4
Money or things controlled by party; delivery
Sec. 4. If it is admitted by the pleading or examination of a partythat the party has in the party's possession or under the party's controlany money or other thing capable of delivery, which:
(1) is the subject of the litigation;
(2) is held by the party as trustee for another party; or
(3) belongs or is due to another party;
the court or the judge may order the money or thing to be depositedin court or with the clerk, or delivered to the other party, with orwithout security, subject to the further order of the court or the judge.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-5
Disobeyed order; delivery of money or thing; deposit
Sec. 5. If:
(1) in the exercise of its authority, a court or judge has orderedthe deposit or delivery of money or another thing; and
(2) the order is disobeyed;
the court or the judge, besides punishing the disobedience ascontempt, may make an order requiring the sheriff to take the moneyor thing and deposit it or deliver it in conformity with the directionof the court or judge.
As added by P.L.2-2002, SEC.15. Amended by P.L.1-2003, SEC.85.
IC 32-30-5-6
Loan of deposited money prohibited; permitted with consent ofparties
Sec. 6. Money deposited or paid into court or with the clerk in anaction may not be loaned out unless consent is obtained from allparties having an interest in or making claim to the money.As added by P.L.2-2002, SEC.15.
IC 32-30-5-7
Receiver's powers
Sec. 7. The receiver may, under control of the court or the judge:
(1) bring and defend actions;
(2) take and keep possession of the property;
(3) receive rents;
(4) collect debts; and
(5) sell property;
in the receiver's own name, and generally do other acts respectingthe property as the court or judge may authorize.
As added by P.L.2-2002, SEC.15. Amended by P.L.177-2003, SEC.1.
IC 32-30-5-8
Defendant's admission; partial satisfaction of claim
Sec. 8. If the answer of the defendant admits part of the plaintiff'sclaim to be just, the court, on motion, may order the defendant tosatisfy that part of the claim and may enforce the order by execution.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-9
Time of receiver's appointment
Sec. 9. Receivers may not be appointed in any case until theadverse party has appeared or has had reasonable notice of theapplication for the appointment, except upon sufficient cause shownby affidavit.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-10
Appeal; suspension of receiver's authority; surety
Sec. 10. (a) In all cases commenced or pending in any Indianacourt in which a receiver may be appointed or refused, the partyaggrieved may, within ten (10) days after the court's decision, appealthe court's decision to the supreme court without awaiting the finaldetermination of the case.
(b) In cases where a receiver will be or has been appointed, uponthe appellant filing of an appeal bond:
(1) with sufficient surety;
(2) in the same amount as was required of the receiver; and
(3) conditioned for the due prosecution of the appeal and thepayment of all costs or damages that may accrue to any officeror person because of the appeal;
the authority of the receiver shall be suspended until the finaldetermination of the appeal.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-11
Actions by a receiver; pleadings
Sec. 11. In any suit or action by a receiver appointed by any court
of record in Indiana, it is only necessary for the receiver, in thereceiver's complaint or pleading, to state:
(1) the court;
(2) the cause of action in which the receiver was appointed; and
(3) the date on which the receiver was appointed.
Proof of the appointment is not required on the trial of the causeunless the appointment is specially denied, in addition to the generaldenial filed in the cause.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-12
Clerk's record book
Sec. 12. The clerk of the court of each county shall keep a recordbook suitable to enter and record statements of assets and liabilities.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-13
Claims filed with receiver
Sec. 13. All claims against the assets in the hands of the receiverthat are filed with the receiver shall be filed by the receiver with theclerk of the court in which the receivership is pending. The clerkshall record the claims with the statements under this chapter,resulting in a complete record of the assets and liabilities of thereceivership.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-14
Receiver's report
Sec. 14. In all receiverships pending or begun in any court, thereceiver, within the time as may be fixed by an order of the court inwhich the receivership is pending, shall file with the court an accountor report in partial or final settlement of the liquidation orreceivership proceedings.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-15
Receiver's report; requirements
Sec. 15. The account or report required by section 14 of thischapter must set forth all:
(1) receipts and disbursements to the date of the accounting;and
(2) other appropriate information relative to the:
(A) administration of the receivership;
(B) liquidation of the receivership; and
(C) declaration and payment of dividends.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-16
Receiver's report; filing deadline; petition for court order
Sec. 16. If an account is not filed within one (1) year after the date
when the receiver took possession of the assets and effects of thereceivership, any party interested may petition the court for an orderrequiring the filing of an account.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-17
Receiver's report; hearing; notice
Sec. 17. (a) Except as provided in subsection (d), upon the filingof an account or report, the clerk of the court in which thereceivership is pending shall give notice of the date on which theaccount or report is to be heard and determined by the court.
(b) The clerk shall give the notice required by subsection (a) bypublication, once each week for three (3) successive weeks in two (2)newspapers of general circulation published or circulated within thecounty.
(c) The date in the notice on which the account or report is to beheard and determined by the court shall be fixed not less than thirty(30) days after the date of the filing of the account or report.
(d) Publication is not required under this section if thereceivership is ancillary to a mortgage foreclosure.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-18
Objections to receiver's report
Sec. 18. (a) During the thirty (30) day period referred to in section17 of this chapter, any creditor, shareholder, or other interested partymay file objections or exceptions in writing to the account or report.
(b) Any objections or exceptions to the matters and thingscontained in an account or report and to the receiver's acts reportedin the report or account that are not filed within the thirty (30) dayperiod referred to in section 17 of this chapter are forever barred forall purposes.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-19
Objections to receiver's report; hearing
Sec. 19. At the expiration of the thirty (30) day period referred toin section 17 of this chapter, the court shall, without delay:
(1) proceed with the hearing and determination of theobjections or exceptions;
(2) pass upon the account or report;
(3) order the payment of a partial or final dividend; and
(4) make other appropriate orders.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-20
Court approval of partial report; release of surety
Sec. 20. The court's approval of a receiver's partial account orreport, as provided in section 14 of this chapter, releases anddischarges the receiver and the surety on the receiver's bond for all
matters and things related to or contained in the partial account orreport.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-21
Court approval of final report; discharge of surety; settlement ofreceivership
Sec. 21. Upon the:
(1) court's approval of the receiver's final account or report, asprovided in section 14 of this chapter; and
(2) receiver's performance and compliance with the court's ordermade on the final report;
the receiver and the surety on the receiver's bond shall be fully andfinally discharged and the court shall declare the receivership estatefinally settled and closed subject to the right of appeal of the receiveror any creditor, shareholder, or other interested party who has filedobjections or exceptions as provided in section 18 of this chapter.
As added by P.L.2-2002, SEC.15.
IC 32-30-5-22
Receivership estate; change of judge or venue
Sec. 22. (a) This section applies to any action, proceeding, ormatter relating to or involving a receivership estate.
(b) Except as provided in subsections (c) and (d), a party to aproceeding described in subsection (a) is entitled to a change ofjudge or a change of venue from the county for the same reasons andupon the same terms and conditions under which a change of judgeor a change of venue from the county is allowed in any civil action.
(c) This section does not authorize a change of venue from thecounty:
(1) concerning expenses allowed by the court incidental to theoperation, management, or administration of the receivershipestate;
(2) upon any petition or proceeding to remove a receiver; or
(3) upon the objections or exceptions to any partial or finalaccount or report of any receiver.
(d) A change of venue is not allowed from the county of theadministration of any receivership estate, or upon any petition orproceeding to remove a receiver, or upon objections or exceptions toa partial or final account or report of a receiver.
As added by P.L.2-2002, SEC.15.