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<section article="gcl" article_name="Commercial Law" number="24-302" title_number="24" title_name="Maryland Commercial Receivership Act" subtitle_number="3" subtitle_name="Rights, Powers, and Duties of a Receiver">
  <level label="a">
    <text>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:</text>
    <level label="1">
      <text>The receivership is a receivership under § 24–103(a)(2) or (3) of this title; or</text>
    </level>
    <level label="2">
      <text>Ordered by a court.</text>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>The receiver shall provide the notice required under subsection (a) of this section:</text>
      <level label="i">
        <text>To each creditor holding a claim against the owner that arose before the appointment of the receiver; and</text>
      </level>
      <level label="ii">
        <text>By:</text>
        <level label="1">
          <text>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</text>
        </level>
        <level label="2">
          <text>Publication as directed by the court.</text>
        </level>
      </level>
    </level>
    <level label="2">
      <level label="i">
        <text>The notice shall specify the date by which the creditor must submit the claim to the receiver.</text>
      </level>
      <level label="ii">
        <text>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:</text>
        <level label="1">
          <text>The notice; or</text>
        </level>
        <level label="2">
          <text>The most recent publication as directed by the court under paragraph (1)(ii)2 of this subsection.</text>
        </level>
      </level>
      <level label="iii">
        <text>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.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>A claim submitted by a creditor under this section shall:</text>
    <level label="1">
      <text>State the name and address of the creditor;</text>
    </level>
    <level label="2">
      <text>State the amount and basis of the creditor’s claim;</text>
    </level>
    <level label="3">
      <text>Identify any property securing the creditor’s claim;</text>
    </level>
    <level label="4">
      <text>Be signed by the creditor under penalty of perjury; and</text>
    </level>
    <level label="5">
      <text>Include a copy of any record on which the creditor’s claim is based.</text>
    </level>
  </level>
  <level label="d">
    <text>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.</text>
  </level>
  <level label="e">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>The court shall allow or disallow the claim.</text>
    </level>
  </level>
  <level label="f">
    <text>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:</text>
    <level label="1">
      <text>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</text>
    </level>
    <level label="2">
      <text>An unsecured creditor does not need to submit a claim under this section.</text>
    </level>
  </level>
  <level label="g">
    <level label="1">
      <text>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.</text>
    </level>
    <level label="2">
      <text>A distribution of receivership property to a creditor with an allowed unsecured claim shall be made as the court directs.</text>
    </level>
  </level>
</section>
