Who appoints a receiver and how is it done?
The appointment of a Receiver is made either privately, usually by a bank, or by the Court. Private appointments are by far the most common. They are made either under the powers contained in a Mortgage document, Debenture Deed or under powers in Real Property legislation.
The powers of a receiver are set out in the document that allowed the appointment of the receiver. However, the receiver also has additional powers under section 420 of the Corporations Act. The receiver's main role is to take possession of assets and to manage and realise the assets for the benefit of the secured creditor. The receiver must ensure that all care is taken to sell the property for its market value or the best price that is reasonably attainable.
If the Bank is threatening to appoint a receiver you should CALL US NOW for CONFIDENTIAL FREE ADVICE on your options.
If you like to learn more about receivership click here.
