Section 6-6-786 - Disqualification from Appointment as Receiver; Disclosure of Interest

(a) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified. (b) Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person satisfies any of the following:(1) Is an affiliate of a party.(2) Has an interest materially adverse to an interest of a party.(3) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver.(4) Has a debtor-creditor relationship with a party.(5) Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.(c) A person is not disqualified from appointment as receiver solely because the person satisfies any of the following:(1) Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership.(2) Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household

s engaged by a party in a matter unrelated to the receivership.(2) Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes.(3) Maintains with a party a deposit account as defined in Section 7-9A-102(a).(d) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.(Act 2024-380, §7.)