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<section article="gcl" article_name="Commercial Law" number="24-203" title_number="24" title_name="Maryland Commercial Receivership Act" subtitle_number="2" subtitle_name="Appointment of Receiver">
  <level label="a">
    <text>A court may not appoint a person as a receiver unless the person provides a statement under penalty of perjury that the person is not disqualified under subsection (b) of this section.</text>
  </level>
  <level label="b">
    <text>Except as otherwise provided in subsection (c) of this section, a person is disqualified from appointment as a receiver if the person:</text>
    <level label="1">
      <text>Is an affiliate of a party;</text>
    </level>
    <level label="2">
      <text>Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;</text>
    </level>
    <level label="3">
      <text>Has a debtor–creditor relationship with a party;</text>
    </level>
    <level label="4">
      <text>Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company;</text>
    </level>
    <level label="5">
      <text>Is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver;</text>
    </level>
    <level label="6">
      <level label="i">
        <text>Has been convicted of a felony or any other crime involving moral turpitude; or</text>
      </level>
      <level label="ii">
        <text>Is supervised by or an employee of a person who has been convicted of a felony or any other crime of moral turpitude;</text>
      </level>
    </level>
    <level label="7">
      <level label="i">
        <text>Has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or</text>
      </level>
      <level label="ii">
        <text>Is controlled by a person who has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or</text>
      </level>
    </level>
    <level label="8">
      <text>Otherwise has an interest materially adverse to an interest of a party or the receivership estate, or of any creditor or equity security holder, by reason of any direct or indirect relationship to, connection with, or interest in the owner.</text>
    </level>
  </level>
  <level label="c">
    <level label="1">
      <text>A person is not disqualified from appointment as a receiver solely because the person:</text>
      <level label="i">
        <text>Was appointed as a receiver of another receivership;</text>
      </level>
      <level label="ii">
        <text>Is owed compensation in an unrelated matter involving a party;</text>
      </level>
      <level label="iii">
        <text>Was engaged by a party in a matter unrelated to the receivership;</text>
      </level>
      <level label="iv">
        <text>Is an individual obligated to a party on a debt that:</text>
        <level label="1">
          <text>Is not in default; and</text>
        </level>
        <level label="2">
          <text>Was incurred primarily for personal, family, or household purposes; or</text>
        </level>
      </level>
      <level label="v">
        <text>Maintains with a party a deposit account as defined in § 9–102(a)(29) of this article.</text>
      </level>
    </level>
    <level label="2">
      <text>Notwithstanding subsection (b)(5) of this section, a person who is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver is not disqualified from appointment as a receiver if the court:</text>
      <level label="i">
        <text>Appoints the person as a receiver; and</text>
      </level>
      <level label="ii">
        <text>Determines that:</text>
        <level label="1">
          <text>The appointment would be in the best interest of the receivership estate; and</text>
        </level>
        <level label="2">
          <text>The person is not disqualified for a reason listed in subsection (b)(1) through (4) or (b)(6) through (8) of this section.</text>
        </level>
      </level>
    </level>
  </level>
  <level label="d">
    <level label="1">
      <text>A person seeking appointment of a receiver may nominate a person to serve as receiver.</text>
    </level>
    <level label="2">
      <text>A court is not bound by a nomination received under paragraph (1) of this subsection.</text>
    </level>
  </level>
</section>
