Washington State Receivership Act (Ch RCW) 2011 Amendments. (Engrossed House Bill 5058)

Similar documents
Remedial Action in Southeastern States Foreclosure in Florida

UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF OHIO EASTERN DIVISION - YOUNGSTOWN

To all Interval Owners:

INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 7. STATEMENT OF FINANCIAL AFFAIRS (Revised 2/01) I. INTRODUCTION

A Guide To Understanding The Community Association Collection And Foreclosure Process

SPONSOR: Regulated Industries Committee, Senators Silver BILL: CS/SB 626 and Dyer Page 1 SENATE STAFF ANALYSIS AND ECONOMIC IMPACT STATEMENT

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF LOUISIANA CHAPTER 13 PLAN [MOTION FOR FRBP RULE 3012 VALUATION HEARING]

Foreclosure. for Landlords and Tenants. Alberta. in Alberta. This booklet is meant to explain the foreclosure process in Alberta for

UNITED STATES BANKRUPTCY COURT FOR THE EASTERN DISTRICT OF WISCONSIN. In re Chapter 13

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF. Case No.

Summary Outline of Mississippi Revised LLC Act (House Bill 683)

National Matrix of Association "Super-priority Lien Legislation by Hugh Lewis [ hughlewislaw.com ], Effective June 8, 2015

CODING: Words stricken are deletions; words underlined are additions. hb

51ST LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 2013

Advanced Bankruptcy for Bankers. Candace C. Carlyon, Esq.

CHAPTER FORECLOSURE OF REAL ESTATE MORTGAGES BY ACTION

BANKRUPTCY FILING (CHAPTERS 7 AND 13) AND ITS EFFECT UPON THE FORECLOSURE PROCESS

CHAPTER 702 FORECLOSURE OF MORTGAGES, AGREEMENTS FOR DEEDS, AND STATUTORY LIENS Deficiency decree; common-law suit to recover deficiency.

PREPARING THE PETITION, SCHEDULES, STATEMENT OF FINANCIAL AFFAIRS, MEANS TEST (FORM 22C) AND CHAPTER 13 PLAN

Overview of U.S. Bankruptcy Law and Procedure: Dealing with Customers in These Troubled Economic Times

Case bjh11 Doc 31 Filed 12/07/10 Entered 12/07/10 18:18:45 Desc Main Document Page 1 of 10

FEATURED ARTICLE. Introduction. If You Represent Employees, You May Want to Read This

United States Bankruptcy Court District of

The Lien Handbook: An A to Z Guide on All Things Property Liens

A voluntary bankruptcy under the BIA commences when a debtor files an assignment in bankruptcy with the Office of the Superintendent of Bankruptcy.

New York City Tax Sales

UNITED STATES BANKRUPTCY COURT WESTERN DISTRICT OF TEXAS AUSTIN DIVISION STANDING ORDER FOR CHAPTER 13 CASE ADMINISTRATION FOR AUSTIN DIVISION

FARM LEGAL SERIES June 2015 Foreclosure of Security Interests in Personal Property

UNITED STATES BANKRUPTCY COURT DISTRICT OF NEW JERSEY

CREDITOR REPOSSESSION ON DEFAULT AND INSOLVENCY CURRENT POSITION IN SINGAPORE AND HOW IT MAY CHANGE UNDER THE

Real Property Levy Guide

How a District should respond to Bank and Mechanics Lien Foreclosures and Bankruptcy Filings

Foreclosure of tax lien by action in nature of action to foreclose a mortgage.

Bankruptcy. Assignment 18 Introduction to Bankruptcy (Claims; Automatic Stay; Relief from Stay; After-Acquired Property; Proceeds in Bankruptcy)

BANKRUPTCY AND ENVIRONMENTAL COMPLIANCE AND LIABILITY. New Hampshire Waste Management Seminar Nov. 2, Peter C.L.

UNITED STATES BANKRUPTCY COURT DISTRICT OF VIRGINIA Division CHAPTER 13 PLAN AND RELATED MOTIONS

Remedial Action in Texas: Foreclosure and Recent Litigation

CHICAGO TITLE INSURANCE COMPANY

AMENDMENTS TO THE FEDERAL RULES OF BANKRUPTCY PROCEDURE. Rule Dismissal and Change of Venue. (a) DISMISSAL AND TRANSFER OF CASES.

Michigan Association of County Treasurers 2013 Summer Conference Crystal Mountain August 11-14, 2013 BANKRUPTCY

Frequently Asked Questions. for. Chapter 7 Debtors

INSTRUCTIONS FOR COMPLETING OFFICIAL FORM 10, PROOF OF CLAIM I. INTRODUCTION

Legislative Response to the Residential Mortgage Crisis

How To File A Trust Deed In The United States

Bankruptcy Basics June 9, 2009

RULE 7 PROBATE CASES. RULE 7.10 Probate Courts/Session

18 U.S.C General rules for civil forfeiture proceedings

IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF OHIO

HOUSE OF REPRESENTATIVES 1875 TWENTY-SIXTH LEGISLATURE, 2012 H.D. 2 STATEOFHAWAII W s S.D.2 C.D. I A BILL FOR AN ACT

smb Doc 13 Filed 07/21/15 Entered 07/21/15 15:12:40 Main Document Pg 1 of 5 ORDER GRANTING PROVISIONAL RELIEF

CHAPTER Committee Substitute for Committee Substitute for House Bill No. 87

Foreclosures: Everything You Wanted to Know but Was Afraid to Ask. 1. Lawsuit with Judge or Jury 2. Remedy for Defaults on Mortgages

PUBLIC CHAPTER NO. 353

Glossary of terms. Bond Quasi fidelity insurance needed by a person who acts as an insolvency practitioner.

RIGHTS AND RESPONSIBILITIES OF CHAPTER 13 DEBTORS AND ATTORNEYS

UNITED STATES BANKRUPTCY COURT NORTHERN DISTRICT OF ALABAMA EASTERN DIVISION

The Basics of Bankruptcy and Insolvency Law. Jeffrey C. Carhart

LIENS. Lien: An encumbrance on property to secure a debt or to protect a claim for payment of a debt.

Thomas M. Gore McCorkle & Johnson, LLP Savannah, Georgia Table of Contents. I. Overview of Creditor s Rights...1

ORDINANCE NO Adopted 11/13/2008 AMENDED BY ORDINANCE NO Adopted 01/26/2011 AMENDED BY ORDINANCE NO Adopted 08/28/2012

HOMEOWNERS ASSOCIATIONS AND BANKRUPTCY - STRATEGIES

Case Document 49 Filed in TXSB on 07/07/15 Page 1 of 5 UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF TEXAS MCALLEN DIVISION

AN ACT RELATING TO LABOR AND EMPLOYMENT; AMENDING THE MINIMUM WAGE ACT TO CREATE A PREFERENCE FOR CIVIL ACTIONS AND APPEALS

Defaulted Real Estate Loan Remedies in Tennessee

Consensus of Judges on Multnomah County Court Foreclosure Panel

Insolvency Proceedings in Argentina

DELINQUENT ASSESSMENT COLLECTION

TARBOX LAW, P.C Broadway Lubbock, Texas Phone - (806) Fax - (806)

UNITED STATES BANKRUPTCY COURT EASTERN DISTRICT OF MICHIGAN

RECEIVERSHIP 101: What you need to know now! Richard A. Rogan, Esq July 2009

REAL ESTATE TAX CERTIFICATE LIENS (House Bill 371)

Foreclosure Report Survey of State Foreclosure Laws

Chapter 7 Liquidation Under the Bankruptcy Code

Insight from Carlton Fields

Page 2. Rev. 10/17/05

EXHIBIT 5 1 Flow Chart for Chapter 7

YOUNG, MORPHIS, BACH & TAYLOR, L.L.P.

CONSUMER RIGHTS AND A BANKRUPT BUSINESS

TAKING TITLE OUT OF BANKRUPTCY Gary Casaly, Special Counsel

BANKRUPTCY LAW MANUAL

Nonjudicial Foreclosures of Commercial Loans Magnus Andersson

An Overview of Foreclosure

Local Rules through govern chapter 13 practice in cases filed after October 16, 2005.

BANKRUPTCY BASICS AND TIPS FOR COLLECTION OF PROPERTY TAXES FROM TAXPAYERS IN BANKRUPTCY

NOTICE NO. 1 Notice Mandated by Section 342(b)(1) and 527(a)(1) Of The Bankruptcy Code:

NC General Statutes - Chapter 53C Article 9 1

Bankruptcy And Its Effect On Collecting Association Assesments

UNITED STATES BANKRUPTCY COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION CHAPTER 13 PLAN. [ #_ Amended (if applicable)] Chapter 13 Plan

FARM LEGAL SERIES June 2015 Bankruptcy: Chapter 12 Reorganization

GLOSSARY OF COLLECTION LAW TERMINOLOGY

United States Bankruptcy Court District of

COMPREHENSIVE LOAN MODIFICATION PROGRAM

TOWN OF SCITUATE HOPE MILL CASE HISTORY & SUMMARY

NC General Statutes - Chapter 93A Article 2 1

Chapter 13 Bankruptcy

Chapter 13 - Bankruptcy Basics. Background. Advantages of Chapter 13

AMENDMENTS TO THE BANKRUPTCY AND INSOLVENCY ACT AND THE COMPANIES CREDITORS ARRANGEMENTS ACT TRANSFER, PREFERENCES AND OTHER ISSUES

BANKRUPTCY TERMINOLOGY

Washington Limited Liability Companies

In the Matter of SUSAN MALEWICZ, Chapter 13 MEMORANDUM DECISION

Transcription:

Washington State Receivership Act (Ch. 7.60 RCW) 2011 Amendments (Engrossed House Bill 5058)

The 2011 amendments to the Washington State Receivership Act ( Act ) represent the first major amendments to the Act since its last major overhaul in 2004. The 2004 amendments greatly improved the Act, and were largely aimed at making it function more like the Bankruptcy Code. For example, among the 2004 amendments were the addition of an automatic stay following the filing of receivership petition, a statute authorizing sales of receivership assets free and clear of liens and streamlined claims administration procedures. In the years since the 2004 amendments, the Superior Court bar and bench have come a long ways in gaining a better understanding the purpose and operation of receiverships. However, the Act remains a work-in-progress, and the 2011 amendments were largely aimed at clarifying a few ambiguities and streamlining some of the procedures established by the 2004 amendments, and did not include many (if any) substantive changes. This article summarizes most of the 2011 amendments to the Act. Provisional Appointment of a Receiver RCW 7.60.025(1)(b) The grounds for provisional appointment are set out in RCW 7.60.025(1)(b) and are in addition to the grounds set forth in RCW 7.60.025(1)(a), which generally grants a creditor the right apply for the appointment of a receiver when the petitioning creditor has an interest in the subject property or when the property s revenue producing potential is in danger of being impaired. The subject property under paragraph (a) might be any type of property, while the property contemplated by paragraph (b) is typically real property, though (b) applies to both real and personal property. The Act has always provided for provisional appointment of a receiver during the pendency of a foreclosure, but the former statute was ambiguous as to what constituted a pending foreclosure (be it judicial or non-judicial). Regardless of whether the property is real or personal, or the foreclosure judicial or non-judicial, the 2011 amendments to RCW 7.60.025(1)(b) do away with the concept of pendency and instead focus on whether the foreclosure action has commenced. The Amendments

clarify that: (i) judicial foreclosure is commenced in the same manner a lawsuit is commenced under CR 3(a), (ii) non-judicial foreclosure of a security interest in real property is commenced upon service of a notice of default under RCW 61.24.030(8), and (iii) a proceeding for forfeiture under a real estate contract is commenced upon the recording of the notice of intent to forfeit described in RCW 61.30.060. The mostly likely practical effect of this amendment is to accelerate by thirty days the point at which a petitioning creditor may have a receiver appointed while simultaneously performing a nonjudicial foreclosure of real property. Under the former statute, a fair argument could have been made that a recorded Notice of Trustee s Sale was required before a receiver could have been appointed. Under the amendment, however, issuance of a Notice of Default (which must occur at least thirty days before recording of the Notice of Trustee s Sale) is sufficient to commence non-judicial foreclosure of a real property security interest. Provisional Appointment of a Receiver RCW 7.60.025(1)(ee) and (ff) Revised RCW 7.60.025(1)(ee) and (ff) address the commencement of foreclosure proceedings for liens securing unpaid homeowner dues and assessments under the Horizontal Property Regimes Act (Ch. 64.32 RCW) and Washington Condominium Act (Ch. 64.34 RCW). Under both Acts (and most condominium declarations) a lien for unpaid dues or assessments may be foreclosed judicially or nonjudicially. The revisions track those of paragraph (b) by confirming that judicial foreclosure of a homeowners association s lien is commenced as provided under CR 3(a) and a non-judicial foreclosure is commenced upon service of the Notice of Default under RCW 61.24.030(8). Court s Discretion to Modify Timeframes RCW 7.60.055(2)

Amended RCW 7.60.055(2) grants the Court, for good cause shown, the power to shorten or expand the timeframes set forth in the Act. Receiver s Creditor Matrix RCW 7.60.090(2) Amended RCW 7.60.090(2) expands the timeframe for a general receiver to file an initial schedule of known creditors from twenty days to thirty-five days. Receiver s Publication RCW 7.60.200 Amended RCW 7.60.200 expands the timeframe for a general receiver to publish notice of the receivership from twenty days to thirty days. Automatic Stay RCW 7.60.110 While bankruptcies are almost always filed by a debtor hoping to slow down its creditors, receiverships are more commonly filed by a creditor seeking speed up its remedies. In that sense, receiverships can be more akin to involuntary bankruptcies, though often receiverships are mostly consensual. As noted above, the Act includes an automatic stay provision (RCW 7.60.110), which can be somewhat awkward when a creditor initiates the receivership. Most creditors certainly do not want to stay their own enforcement proceedings, and amended RCW 7.60.110 clarifies that a petitioning creditor does not inadvertently stay its own foreclosure when obtaining provisional appointment of a receiver under 7.60.025(1)(b). Estate Administration RCW 7.60.190 Amended RCW 7.60.190(6) addresses the notice requirements applicable to a receiver s abandonment, disposition or distribution of estate property. Generally, parties in interest are entitled to thirty days notice of the hearing on any motion for abandonment, disposition or distribution of

receivership property. The former exception for emergency disposition of perishable property has been revised to apply to property subject to eroding value. Presumably, the amendment is intended to broaden the types of property to which the exception might apply (for example, intellectual property might be subject to eroding value though not perishable), and avoid limiting the exception to agricultural products and other perishable foods. Claims Administration RCW 7.60.230(d) and (e) Amended RCW 7.60.230(d) increases from $2,000 to $10,950 the amount of priority enjoyed by the holder of a claim for unpaid wages, salaries, commissions, severance, vacation or sick leave pay or contributions to an employee benefit plan, earned by the claimant prior to the appointment of the receiver. The amendment also expands the relevant pre-appointment period from ninety to one hundred eighty days. Amended RCW 7.60.230(e) increases from $900 to $2,425 the amount of priority enjoyed by the holder of an allowed unsecured claim if the claim arises from a deposit for property or services purchased or leased for the claimant s personal, family or household use where the debtor/defendant failed to deliver the property or services. Sales Free and Clear RCW 7.60.260 Amended RCW 7.60.260(2) clarifies the circumstances under which a general receiver may sell receivership property free and clear of liens and rights of redemption, regardless of the whether the sale will generate sufficient funds to satisfy secured claims. The amendments clarify that a receiver may sell real property free and clear if the real property is the type of property the debtor would have sold in its ordinary course of business. The purpose of this amendment is to confirm that sales of condominium units and unsold residential lots can be made free and clear of liens and rights of redemption, and such

sales are not limited to those made other than in the ordinary course of business under subsection (1) of the statute.