Disqualification From Appointment as Receiver — Disclosure of Interest

1. Law
2. Tennessee Code
3. Remedies and Special Proceedings
4. Uniform Commercial Real Estate Receivership Act
5. Disqualification From Appointment as Receiver — Disclosure of Interest

1. 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.
2. Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person:
   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; or
   5. Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company.
3. A person is not disqualified from appointment as receiver solely because the person:
   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 purposes; or
   3. Maintains with a party a deposit account as defined in § 47-9-102(a).
4. A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

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