Except as limited by court order or a law of the State other than this title, a receiver may: Collect, control, manage, conserve, and protect receivership property; Operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary course of business; In the ordinary course of business: Incur unsecured debt for the receiver’s preservation, use, sale, lease, license, exchange, collection, or disposition of the business or receivership property; or Pay ordinary, reasonable, and necessary expenses for the receiver’s preservation, use, sale, lease, license, exchange, collection, or disposition of the business or receivership property; Employ and discharge agents, contractors, and employees that are necessary to manage, operate, preserve, improve, secure, and market the business or receivership property; Assert a right, claim, cause of action, privilege, or defense of the owner that relates to the business or receivership property, and, in the case of a receivership under § 24–103(a) of this title, the claim, cause of action, privilege, or defense shall not be barred by the doctrine of pari delicto; Seek and obtain instruction from the court regarding: Managing or disposing of the business or receivership property; Exercising the powers of the receiver; or Performing the duties of the receiver; After being issued a subpoena, with respect to the receivership property or any other matter that may affect administration of the receivership, compel a person to: Submit to examination under oath; or Produce and allow inspection and copying of records or other tangible property; Engage a professional as provided in § 24–303 of this subtitle; Apply to a court of another state for appointment as ancillary receiver with respect to receivership property located in that state; In a receivership under § 24–103(a)(2) or (3) of this title, exercise any rights or powers provided for in § 15–101 of this article; or Exercise any other power conferred by court order, this title, or a law of the State other than this title. With court approval, a receiver may: Incur debt on an unsecured or secured basis for the use or benefit of the business or receivership property, other than in the ordinary course of business, and any secured debt shall be subject to existing liens; Pay obligations incurred before the receiver’s appointment if and to the extent that: The payment is determined to be reasonable and necessary for the preservation of the business or receivership property; and The funds used under this item are not subject to any lien in favor of a creditor who has not consented to the payment, or whose interest is not adequately protected; Make improvements to receivership property; Use or transfer receivership property, other than in the ordinary course of business, under § 24–304 of this subtitle; Assume, reject, or assume and assign an executory contract of the owner under § 24–305 of this subtitle; Pay compensation to: The receiver under § 24–601 or § 24–602 of this title; or Each professional engaged by the receiver under § 24–303 of this subtitle; Recommend allowance or disallowance of a claim of a creditor under § 24–302 of this subtitle; Abandon any property that is burdensome or not of material value to the receivership; and Make a distribution of receivership property under § 24–302 of this subtitle. A receiver shall: Prepare and retain appropriate business records, including a record of each receipt, disbursement, and disposition of the business or receivership property; Account for the business or receivership property, including the proceeds of a sale, a lease, a license, an exchange, a collection, or any other disposition of the receivership property; If the receivership includes real property, file in the land records of the county where the real property is located a copy of the order appointing the receiver, and if a legal description is not included in the order, include a legal description of the real property; Disclose to the court any fact arising during the receivership that would disqualify the receiver under § 24–203 of this title; and Perform any duty imposed by court order, this title, or a law of the State other than this title. The powers and duties of a receiver may be expanded, modified, or limited by court order.

Except as provided in subsection (f) of this section, a receiver shall give notice of the appointment of the receiver to creditors of the owner if: The receivership is a receivership under § 24–103(a)(2) or (3) of this title; or Ordered by a court. The receiver shall provide the notice required under subsection (a) of this section: To each creditor holding a claim against the owner that arose before the appointment of the receiver; and By: First–class mail or other commercially reasonable delivery method to the last known address of the creditor and the creditor’s attorney, if known; and Publication as directed by the court. The notice shall specify the date by which the creditor must submit the claim to the receiver. Unless the court extends the period for submitting a claim, the date specified in the notice shall be at least 120 days after the later of the date of: The notice; or The most recent publication as directed by the court under paragraph (1)(ii)2 of this subsection. Unless the court orders otherwise, a claim that is not submitted within the appropriate time period under subparagraph (ii) of this paragraph is not entitled to a distribution from the receivership property. A claim submitted by a creditor under this section shall: State the name and address of the creditor; State the amount and basis of the creditor’s claim; Identify any property securing the creditor’s claim; Be signed by the creditor under penalty of perjury; and Include a copy of any record on which the creditor’s claim is based. An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record. At any time before entry of an order approving a receiver’s final report, the receiver may file with the court an objection to a claim of a creditor, stating the basis for the objection. The court shall allow or disallow the claim. If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order that: The receiver does not need to give notice of the appointment under subsection (a) of this section to all unsecured creditors of the owner, but only to the unsecured creditors as the court directs; and An unsecured creditor does not need to submit a claim under this section. Subject to § 24–701 of this title, a distribution of receivership property to a creditor holding a perfected lien on the property shall be made in accordance with the creditor’s priority under applicable law. A distribution of receivership property to a creditor with an allowed unsecured claim shall be made as the court directs.

A receiver shall obtain court approval before engaging any attorney, accountant, appraiser, auctioneer, broker, or other professional to assist the receiver in performing the receiver’s duties and administering receivership property. The receiver may request appointment of a professional to provide services to the receivership. A request under this section shall disclose to the court: The identity and qualifications of the professional; The scope and nature of the proposed engagement; Any potential conflict of interest; and The proposed compensation. Except as provided in subparagraph (ii) of this paragraph, if the agreement is disclosed to the court, a person is not disqualified from engagement under this section solely because of the person’s engagement by, representation of, or other relationship with the receiver, a creditor, or any other party. The court may disqualify a person under subparagraph (i) of this paragraph if the court determines that there is an actual conflict of interest. This title does not prevent a receiver from serving in the receivership as an attorney, an accountant, an auctioneer, or a broker when providing the services that will be in the best interest of the receivership estate. Unless otherwise ordered by the court, a receiver or a professional engaged under subsection (a) of this section shall file with the court an itemized statement of: The time spent; The work performed; The billing rate of each person who performed the work; and An itemized list of expenses. Unless objections are filed with the court within the time specified in the Maryland Rules, or unless otherwise ordered by the court, the receiver may pay the fees and expenses related to the services of the professional or the receiver. The court shall set a hearing for any timely filed objections as the court considers appropriate. To the extent funds are available, the receiver shall pay the amount authorized in accordance with this section. In a receivership established under § 24–103(a)(1) of this title in which the property is subject to a single mortgage, a receiver may pay fees and expenses agreed to and stipulated by the mortgagor.

A receiver may use receivership property other than in the ordinary course of business if: The receiver files a motion with the court to use receivership property other than in the course of ordinary business; and The court grants the motion. A receiver may transfer receivership property other than in the ordinary course of business by sale, lease, license, exchange, or other disposition of the receivership property if: The receiver files a motion with the court to transfer receivership property other than in the ordinary course of business; and The court grants the motion. Subject to subsections (c) and (d) of this section, unless the agreement of sale provides otherwise, the court may order a sale under this section to be free and clear of a lien or other interest, including: The lien of a person that obtained appointment of the receiver; Any subordinate lien; Any right of redemption; or Any other legal or equitable interest. A transfer under this subsection may occur by means other than a public auction sale. This subsection applies to a receivership under § 24–103(a)(1) of this title. A receiver may transfer receivership property under subsection (b) of this section free and clear of any lien of the person that obtained the appointment of the receiver and any senior lien only if in each case the receiver obtains the consent of the holder of the lien. A transfer under this subsection shall be subject to: If the receiver does not obtain the consent of the holder of the lien, any senior lien; Any residential lease; and Notwithstanding § 7–105.6(c) of the Real Property Article, any nonresidential lease that would not be terminated by a foreclosure sale of the lien of the person that obtained the appointment of the receiver. This subsection applies to a receivership under § 24–103(a)(2) or (3) of this title. A receiver may transfer receivership property under subsection (b) of this section free and clear of any lien only if: The receiver obtains the consent of: The holder of any lien of the person that obtained the appointment of the receiver; and The consent of any senior lienholder; or The price at which the receivership property is to be sold is greater than the amount secured by any lien held by the person that obtained the appointment of the receiver, plus the amount of any senior lien. A transfer of receivership property may be free and clear of a nonresidential lease if the tenant of the nonresidential lease has the rights provided to the tenant under § 24–305(g)(2) of this title. This subsection applies to the sale or exchange of receivership property under subsection (b) of this section. Before filing a motion to sell or exchange receivership property, the receiver shall perform or obtain a complete search of the public records to determine the holders of liens and other interests in the receivership property. If the requested sale or exchange is for real property, the search shall: Cover a time period of at least 40 years immediately before the motion is filed; and Be in accordance with generally accepted standards of title examination. The motion shall include an affidavit by the person making the search identifying the holders of liens and other interests. The receiver shall update the master service list based on the search to include any person not previously included. If the receiver receives actual notice at any time before the sale that there is a person holding a lien or other interest in the property who is not included on the master service list and whose identity and address are reasonably ascertainable, the receiver shall give notice of the time, place, and terms of sale to the person as promptly as reasonably practicable. The notice may be given in any manner reasonably calculated to inform the person of the sale, including by telephone or electronic transmission. A lien or other interest in receivership property that is extinguished by a transfer under subsection (b) of this section attaches to the proceeds of the transfer with the same validity, perfection, and priority as the lien or other interest in the property immediately before the transfer, even if the proceeds are not sufficient to satisfy all obligations secured by the lien or other interest. A creditor holding a valid lien on the receivership property to be transferred may purchase the receivership property and offset against the purchase price all or part of the allowed amount secured by the lien if: The creditor tenders funds sufficient to satisfy in full the reasonable expenses of the transfer; and The obligation is secured by a senior lien that is extinguished by the transfer. Subject to subparagraph (ii) of this paragraph, this subsection applies to a reversal or modification of an order approving a transfer under subsection (b) of this section. This subsection does not apply if the court stayed the order before the transfer. Regardless of whether a person knew before the transfer of the request for reversal or modification, a reversal or modification of an order approving a transfer does not: Affect the validity of the transfer to a person that acquired the receivership property in good faith; or Revive against the person any lien or other interest extinguished by the transfer.

At any time before a court’s approval of a final report under § 24–602 of this title, a receiver may assume or reject an executory contract of the owner if the receiver has provided notice of the contract and an opportunity for a hearing to the counterparty to the contract. If the requirement under subparagraph (i) of this paragraph is not satisfied, the executory contract shall be deemed rejected. The court may condition the assumption or rejection of an executory contract on the terms and conditions that the court determines are just and proper under the particular circumstances of the case, except that a condition to assumption shall be a prompt cure of all existing monetary defaults. A receiver’s performance of an executory contract before a court order authorizing the assumption or rejection of the contract does not constitute an assumption of the contract or an agreement to assume or otherwise prevent the receiver from seeking the court’s authority to reject the contract. Notwithstanding the time period for assumption or rejection of an executory contract under subsection (a) of this section, the court, for cause, may order the receiver to assume or reject an executory contract at any time after the receiver’s appointment. Any obligation or liability incurred by a receiver as a result of the receiver’s assumption of an executory contract shall be treated as an expense of the receivership. A receiver’s rejection of an executory contract shall be: Effective on entry of an order of rejection; and Treated as a breach of the contract occurring immediately before the entry of the order appointing the receiver. The receiver’s right to possess or use receivership property under an executory contract shall terminate on rejection of the contract. A claim for damages for rejection of an executory contract shall be submitted before the later of: The time for submitting a claim in the receivership case; or 30 days after entry of the order approving the rejection. A receiver may not assume an executory contract of the owner without the consent of the counterparty to the contract if: Notwithstanding the absence of any provision in the contract expressly restricting or prohibiting an assignment of the owner’s rights or the performance of the owner’s duties, applicable law would excuse a party, other than the owner, from accepting performance from or rendering performance to anyone other than the owner; The contract is a contract to: Make a loan to or for the benefit of the owner; Extend credit or financial accommodation to or for the benefit of the owner; or Issue a security; or The contract expires before the receiver’s assumption of the contract by the contract’s own terms or under applicable law. A receiver may not assign an executory contract without assuming the contract, absent the consent of the counterparty to the contract. This subsection applies to a rejection by the receiver of an executory contract for: The sale of real property under which the owner is the seller and the purchaser is in possession of the real property; The sale of a real property timeshare interest under which the owner is the seller; The license of intellectual property rights under which the owner is the licensor; or The lease of real property in which the owner is the landlord. If the receiver rejects an executory contract: A purchaser, licensee, or tenant: May treat the rejection as a termination of the contract, license agreement, or lease; or May remain in possession in accordance with the terms of the contract, license agreement, or lease, and for a lease, any renewal or extension of the lease in accordance with the terms of the lease; and Shall continue to perform all obligations arising under the contract, license agreement, or lease as and when they become due, but may offset against any payments for any damages occurring as a result of the rejection after the rejection occurs; A purchaser of real property: Is entitled to receive from the receiver any deed or other instrument of conveyance that the owner is obligated to deliver under the executory contract when the purchaser becomes entitled to receive the deed or other instrument of conveyance; and The deed or other instrument of conveyance has the same force and effect as if delivered by the owner; A purchaser, licensee, or tenant that elects to remain in possession under the terms of this subsection has no rights against the receiver on account of any damages arising from the receiver’s rejection except as expressly provided in this subsection; and A purchaser of real property that elects to treat rejection of any executory contract as a termination has a lien against the owner’s interest in the real property for the recovery of any portion of the purchase price that the purchaser has paid. If at the time a receiver is appointed the owner has the right to assign an executory contract relating to receivership property, the receiver may assign the contract with court approval if the receiver: Assumes the contract; and Promptly cures all monetary defaults under the contract. A receiver may not reject an unexpired lease of real property under which the owner is the landlord if: The tenant occupies the leased premises as the tenant’s primary residence; The receiver was appointed at the request of a person other than a mortgagee; or The receiver was appointed at the request of a mortgagee; and The lease is superior to the lien of the mortgage; The tenant has an enforceable agreement with the mortgagee or the holder of a senior lien under which the tenant’s occupancy will not be disturbed as long as the tenant performs the tenant’s obligations under the lease; The mortgagee has consented to the lease, either in a signed record or by the mortgagee’s failure to timely object that the lease violated a provision of the mortgage; or The terms of the lease were commercially reasonable at the time the lease was agreed to by the tenant and the landlord; and The tenant did not know or have reason to know that the lease violated a provision of the mortgage. Section 4A–606 of the Corporations and Associations Article may not be affected by a receiver’s rejection of an executory contract under this section.