Momentum Growing in the Effort to Adopt a Uniform Receivership Law

In a November 2017 alert, we discussed the recent effort in support of the adoption of the Uniform Commercial Real Estate Receivership Act (“Act”), which would allow receivership property sales free and clear of liens, impose a stay and a claims process on creditors, and generally provide consistent treatment of receiverships across state lines. Since November, the adoption effort has gained significant momentum. Five states have now adopted the Act, with Michigan recently joining Utah, Oregon, Nevada and Tennessee as early adopters. Three other states, Kentucky, West Virginia, and Oklahoma, have introduced legislation to adopt the Act. While California has not yet taken action, the accelerating adoption of the Act around the country may provide the impetus for legislative action here. Stay tuned!