§ 1-507.8. Property sold pending litigation.
§1‑507.8. Property sold pending litigation.
When the property of aninsolvent corporation is at the time of the appointment of a receiverencumbered with mortgages or other liens, the legality of which is brought inquestion, and the property is of a character materially to deteriorate in valuepending the litigation, the court may order the receiver to sell the same,clear of encumbrance, at public or private sale, for the best price that can beobtained, and pay the money into the court, there to remain subject to the sameliens and equities of all parties in interest as was the property before saleto be disposed of as the court directs. And the receiver or receivers makingsuch sale is hereby authorized and directed to report to the resident judge ofthe district or to the judge holding the courts of the district in which theproperty is sold, the said sale for confirmation, the said report to be made tothe said judge in any county in which he may be at the time; but before actingupon said report, the said receiver or receivers shall publish in somenewspaper published in the county or in some newspaper of general circulationin the county, where there is no newspaper published in the county, a noticedirected to all creditors and persons interested in said property, that thesaid receiver will make application to the judge (naming him) at a certainplace and time for the confirmation of his said report, which said notice shallbe published at least 10 days before the time fixed therein for the said hearing.And the said judge is authorized to act upon said report, either confirming itor rejecting the sale; and if he rejects the sale it shall be competent for himto order a new sale and the said order shall have the same force and effect asif made at a regular session of the superior court of the county in which theproperty is situated. (1901, c. 2, s. 86; Rev., s. 1232; C.S., s. 1214; Ex.Sess. 1924, c. 13; 1955, c. 1371, s. 2; 1971, c. 381, s. 12.)