Section 10-481 - Appointed receivers.
§ 10-481. Appointed receivers.
(a) "Appointed receiver" defined.- In this section, "appointed receiver" means a person, other than the Secretary, that the court appoints as a conservator, rehabilitator, or receiver under this section.
(b) In general.-
(1) On motion of the court or the Secretary, the court may issue an order that appoints or substitutes a person other than the Secretary as conservator, rehabilitator, or receiver:
(i) on initial application by the Secretary for an order to appoint the Secretary as conservator, rehabilitator, or receiver under this subtitle; or
(ii) at any time during the course of a conservatorship, rehabilitation, or receivership under this subtitle.
(2) An appointed receiver has the same powers and duties that the Secretary has under this subtitle as conservator, rehabilitator, or receiver.
(c) Report required.-
(1) In addition to any other report required by the court, the court shall require an appointed receiver at least quarterly to file with the Secretary and court a report about:
(i) the status of the conservatorship, rehabilitation, or receivership; and
(ii) the activities of the appointed receiver since the last report filed under this paragraph.
(2) The report required under paragraph (1) of this subsection at a minimum shall include:
(i) information of the character required by Title 13 of the Maryland Rules that applies to receivers generally;
(ii) any other information necessary to provide a complete report on the financial affairs and condition of the conservatorship, rehabilitation, or receivership;
(iii) a complete account of all efforts by the appointed receiver since the last report:
1. to sell or dispose of the remaining business or assets of the provider; or
2. to otherwise bring to a prompt conclusion the conservatorship, rehabilitation, or receivership; and
(iv) copies of any actuarial or other evaluations of the business and assets under the control of the appointed receiver.
(3) The report shall be audited unless for good cause the court waives the audit.
(d) Information under seal.- Subject to any protective order that the court considers appropriate, information filed under seal shall be provided to the Secretary.
(e) Access to documents and records.- The appointed receiver shall give the Secretary full access to all documents and records related to the conservatorship, rehabilitation, or receivership that are in the possession of the appointed receiver.
(f) Secretary as party.- The Secretary may be a party to a conservatorship, rehabilitation, or receivership for which there is an appointed receiver.
(g) Negotiation for sale of assets.-
(1) Subject to approval of the court, the Secretary may negotiate for sale of all or part of the assets or business of the provider placed in conservatorship, rehabilitation, or receivership.
(2) The appointed receiver:
(i) shall cooperate fully in any sales negotiation under paragraph (1) of this subsection; and
(ii) may object to the terms of a sale of the assets or business of the provider that results from the negotiation.
(3) After notice and an opportunity to be heard, the court may limit the efforts of the Secretary to undertake or continue negotiations for the sale of the assets or business of the provider if the negotiations would impair the ability of the appointed receiver to engage in similar negotiations or discharge other responsibilities.
(h) Discharge of appointed receiver.-
(1) If the Secretary determines that an appointed receiver is not adequately discharging the duties and responsibilities of the position, the Secretary may file with the court an application that seeks to discharge the appointed receiver and to appoint the Secretary as conservator, rehabilitator, or receiver or to appoint another receiver.
(2) If the Secretary establishes by a preponderance of the evidence that grounds exist for discharge of an appointed receiver, the court shall grant the application of the Secretary to discharge the appointed receiver and to appoint the Secretary as conservator, rehabilitator, or receiver or to appoint another receiver.
[An. Code 1957, art. 70B, § 20-I; 2007, ch. 3, § 2.]