A. RECEIVERS IN NON-FORECLOSURE CASES:
1. Procedure: The following procedures shall apply upon the filing of a motion for the
appointment of a receiver in a non-foreclosure case:
a. The assigned Judge shall set a date for a hearing on the appointment of a receiver.
b. The moving party shall serve notice of the hearing on interested parties unless the
Court finds that the time taken to give notice will result in irreparable harm to the
plaintiff.
c. The moving party shall attach a schedule of secured and unsecured creditors to the
motion unless otherwise ordered by the Court. If the moving party does not know
the identities of the secured or unsecured creditors, the moving party shall so state
in the motion for appointment of a receiver.
d. The moving party shall provide the Court with a list of persons to be considered for
the receivership, unless otherwise ordered by the Court. The Court shall carefully
consider all persons who are recommended for the receivership in relation to any
unsecured creditors whose interest is threatened.
2. Restrictions on Motions:
a. A motion for the appointment of a receiver based upon an open account or other
claims not in judgment shall be denied where there is no showing of a right to
equitable relief.
b. No motion for the appointment of a receiver that has been denied by one Judge
shall be renewed before another Judge.
3. Consent by Defendant: Whenever a defendant consents to the appointment of a
receiver, the defendant shall file the following with the Court:
a. A verified statement of all current assets and liabilities and
b. A written statement of consent to the appointment.
4. Qualifications of Receivers:
a. Oath: Before a receiver appointed by the Court performs duties pursuant to
Subsection (A)(5) of this Rule, the receiver must be sworn to perform the duties
faithfully. The moving party shall file with the Court a certified copy of the receiver’s
oath.
b. Bond: The moving party shall execute a surety bond to the receiver, which must be
approved by the assigned Judge, so that the receiver will faithfully discharge the
duties of the receiver in the action and obey the orders of the Court. The payment
of the bond shall be made to the Clerk to be placed in an interest bearing account,
unless otherwise ordered by the Court.
c. Interested Persons: No party, attorney, or person who has an interest in the action
shall be appointed receiver in the action without the consent of the parties.
d. Residency Requirements:
i. All receivers shall reside in Montgomery County, Ohio except, upon a showing of
good cause, the Court orders otherwise.
ii. All receivers appointed to act as a receiver of a railroad or other corporation
shall be a resident of Ohio.
5. Duties of Receivers:
a. Within 30 days after the date of their appointment, all receivers shall:
i. file an inventory;
ii. give notice by mail or by publication, as directed by the Court, to all known
creditors that the creditors are required to file any claims within a certain time
and that, unless a creditor files its claims by the specified time, the creditor will
not be permitted to file any claim without an order of the Court;
iii. provide written notification to all public authorities that may have claims against
the receivership; and
iv. file a list of all claims with the Court after the specified time for filing has expired.
b. All receivers who, upon application, are permitted to operate a business as a going
concern shall file with the Court, 30 days after the application is granted and
monthly thereafter, the following:
i. A statement of the receiver’s operation which shows a balance sheet for the
period;
ii. An operating statement of income and expenditures that includes:
a) Necessary accruals that make a comprehensive statement of profit and
loss for the period;
b) A list of estimated inventory;
c) Peculiar conditions existing in the business; and
d) A list of expenses of operation; current interest accrued on loans during
the period; and depreciation on buildings, machinery, and equipment.
c. Within 60 days after appointment, all receivers shall apply to the Court for authority
to cancel or reject all unprofitable contracts.
d. Within 30 days after a receiver’s duties are completed, the receiver shall file a final
account and appropriate records, receipts, or vouchers. All accounts must be
approved by the Judge who appointed the receiver.
e. All money coming into the hands of a receiver must be deposited into a federally
insured local or national bank and the deposit shall be in the receiver’s name.
6. Appraisers:
a. All appraisers shall be suggested to and appointed by the Court.
b. Documentation: All appraisers shall be named in the entry of appointment.
c. Qualifications:
i. All appraisers shall take an oath to faithfully and accurately appraise all assets
submitted to them by the receivers, including accounts receivable.
ii. All appraisers shall have the same qualifications as appraisers appointed in the
Probate Division of the Common Pleas Court of Montgomery County, Ohio
(“Probate Court”) and may be one or more of the appraisers used in the Probate
Court.
7. Claims:
a. All claims arising out of judgments shall be accompanied by a certified copy of the
final judgment.
b. All claims based upon an instrument for the unconditional payment of money or
upon a written contract must be accompanied by a copy of the instrument or
contract.
c. Whenever priority is claimed, attention should be specifically directed to the
grounds of priority.
8. Objections:
a. All objections to claims must be made in writing and filed by the interested party
before distribution is ordered by the Court.
b. All objections to the accounts of receivers or to any allowance made to them by the
Court must be filed within 14 days after the accounts are filed or allowances made.
9. Vacancies in Receiverships: Any vacancy in a receivership shall be called to the
attention of the Court by the receiver or plaintiff’s counsel as soon as it occurs.
10. Settling Accounts: Unless otherwise provided, the procedure prescribed by the Ohio
Revised Code for settling accounts in decedents’ estates shall govern.
B. RECEIVERS IN REAL ESTATE FORECLOSURES:
1. Procedure: The following procedure shall be applied upon the filing of a motion for the
appointment of a receiver in a foreclosure case:
a. The date for a hearing on the appointment of a receiver shall be stipulated on the
motion;
b. The moving party shall serve notice of the hearing on interested parties either by
attachment to the complaint and original summons or by certified mail in
accordance with the Ohio Rules of Civil Procedure;
c. The moving party shall serve notice of the hearing on the owner of the property no
later than three days before the hearing; and
d. The assigned Judge may continue hearings from time to time upon a showing of
good cause.
2. Prerequisites: Before any receiver is appointed in a foreclosure case, the following must
be demonstrated by affidavit, evidence or representation of counsel:
a. That legal or equitable grounds exist necessitating the appointment of a receiver and
b. That one or more of the following facts exists:
i. The property is insufficient to discharge the mortgage;
ii. The property is in danger of being vandalized, destroyed, or its value materially
impaired;
iii. The premises has been abandoned by the mortgagor;
iv. The mortgage embraces the rents and profits in the security;
v. The property is income-producing; or
vi. The mortgage provides for appointment of a receiver without notice.
3. Oath: Before a receiver appointed by the Court performs duties pursuant to Subsection
(B)(5) of this Rule, the receiver must be sworn to perform the duties faithfully. The
moving party shall file with the Court a certified copy of the receiver’s oath.
4. Bond: Upon appointment, a receiver shall qualify and give a bond in an amount
required by the Court. If the receiver fails to qualify and give bond, the appointment is
voidable.
a. When the property is vacant and it is anticipated in the motion that the receiver’s
duty will be that of a caretaker, unless otherwise ordered by the Court, bond shall
generally be in the nominal sum of $100.00.
b. Where there are rents and profits to be collected and disbursements made in the
management of the property during the litigation, bond shall be in a sum sufficiently
adequate to cover the costs of all funds reasonably anticipated to be handled by the
receiver during the pendency of the litigation.
5. Duties of Receivers:
a. All receivers shall:
i. take charge of the property pending litigation;
ii. preserve the property from waste or destruction;
iii. receive rents and profits;
iv. hold income subject to order of the Court; and
v. have authority to sue in forcible entry in the receiver’s name and capacity.
b. Within 90 days of the date of the appointment and every 90 days thereafter,
receivers shall file a report of receipts and disbursements.
c. Without first procuring an order from the Court, no receiver shall lessen the funds
coming into the receiver’s hands by expenditures for: repairs; exempt real estate
taxes and assessments; gas, light and water bills; trash pick-up; or insurance.
Necessary outlays under $200.00 may be made without Court order subject to the
final approval of the receiver’s account by the Court.
C. SALES BY RECEIVERS:
1. No receiver shall offer for sale any property, real or personal, until the receiver has
established the receiver’s right to sell the property.
2. When it becomes necessary to sell property, notice of the time, place, and terms of the
sale shall be given to all creditors who have filed claims and to all interested parties.
3. Sales of all property by a receiver shall be for the best price obtainable, and the receiver
shall file an affidavit to that effect within 10 days after the sale.
4. No sale shall be made to a former owner or to any person interested in the business or
operation of the receivership until notice is served on all creditors fixing a date for
confirmation of the sale.
D. COMPENSATION OF RECEIVER:
1. No compensation shall be allowed to a receiver or the receiver’s counsel except upon
written application describing the services rendered, the time required, the amount
requested for each and the amounts, if any, previously received. The Court shall set the
time for a hearing and determine the nature of the notice of the application to
creditors.
2. Except in operating receiverships where an account has been filed monthly, no
compensation shall be paid to or accepted by the receiver or receiver’s counsel unless
this Rule has been followed and the final verified account has been filed.
3. Liquidating Receiverships:
a. In liquidating receiverships requiring more than one year to liquidate, one third of
the probable total fees may be allowed and paid. A violation of this Rule shall
subject the offender to discipline, removal and forfeiture of compensation as
determined by the Court.
b. Total allowances to both receiver and the receiver’s counsel shall not exceed 15% of
the receipts in liquidating receiverships, except where extraordinary services have
been authorized by the Court.
c. When fees in excess of 15% are requested for extraordinary services, the receiver
shall mail to all known creditors or shareholders, if any, a notice of the hearing on
the application, the nature of the request, and the date and place of the hearing.
Phone: 937-225-6000
