Receiver — Appointment — Oath — Duties — Authority

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  1. (a) Within five (5) business days of receipt of the order revoking the charter of a municipal corporation under § 14-62-102, the Governor shall appoint a qualified officer, to be known as the receiver, for an extinct municipal corporation whose charter has been revoked under this chapter.

  2. (b) A receiver shall:

    1. (1) Take the oath required of other collectors of public revenue and give bond with good sureties to be approved by the circuit court of the Sixth Judicial District;

    2. (2) Enter upon the duties of the office as soon as appointed and qualified;

    3. (3) Take possession of:

      1. (A) All books, papers, and documents pertaining to the assessment and collection of taxes of the extinct municipal corporation; and

      2. (B) Any property belonging to the extinct municipal corporation; and

    4. (4) Resolve the outstanding indebtedness of the extinct municipal corporation pursuant to this chapter.

  3. (c)

    1. (1) The receiver may be removed at any time by the circuit court of the Sixth Judicial District for good cause, including failure to discharge one (1) or more duties imposed by this chapter.

    2. (2) Removal may be upon:

      1. (A) The circuit court's own motion; or

      2. (B) The motion of:

        1. (i) A person interested as an inhabitant of the extinct municipal corporation;

        2. (ii) A creditor of the extinct municipal corporation;

        3. (iii) The county judge of the county in which the extinct municipal corporation was located; or

        4. (iv) The Attorney General on behalf of the state.

    3. (3) A substitute receiver shall be appointed in the same manner as the initial receiver appointed under this chapter.

    4. (4) The office of the receiver shall cease and terminate at the time a final order of dissolution is entered under § 14-62-114.

  4. (d) The receiver may:

    1. (1) Employ attorneys, accountants, or other persons to assist in performing the duties of the receiver, to be paid out of the funds collected by the receiver;

    2. (2) Sue or be sued;

    3. (3) Take possession and control of all property, whether real, personal, mixed, tangible, or intangible, of the extinct municipal corporation;

    4. (4) Enforce all contracts of the extinct municipal corporation, subject to the rights of creditors;

    5. (5) Receive fees, taxes, and other charges, collect debts, and otherwise enforce all claims of the extinct municipal corporation for money owed;

    6. (6) Exercise any other powers conferred in this chapter expressly or by necessary implication; and

    7. (7) Take any other action necessary and beneficial to the extinct municipal corporation's former inhabitants, creditors, or other interested persons, upon approval of the circuit court.

  5. (e) If the receiver takes possession and control of any property of the extinct municipal corporation, the receiver may manage or operate the property as necessary to collect debts, preserve the property, and generate income, all for the benefit of the inhabitants, creditors, bondholders, or any other interested persons or entities of the extinct municipal corporation.


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