SECTIONS 564-570 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 564-570

564. (a) A receiver may be appointed, in the manner provided in
this chapter, by the court in which an action or proceeding is
pending in any case in which the court is empowered by law to appoint
a receiver.
(b) A receiver may be appointed by the court in which an action or
proceeding is pending, or by a judge thereof, in the following
cases:
(1) In an action by a vendor to vacate a fraudulent purchase of
property, or by a creditor to subject any property or fund to the
creditor's claim, or between partners or others jointly owning or
interested in any property or fund, on the application of the
plaintiff, or of any party whose right to or interest in the property
or fund, or the proceeds thereof, is probable, and where it is shown
that the property or fund is in danger of being lost, removed, or
materially injured.
(2) In an action by a secured lender for the foreclosure of a deed
of trust or mortgage and sale of property upon which there is a lien
under a deed of trust or mortgage, where it appears that the
property is in danger of being lost, removed, or materially injured,
or that the condition of the deed of trust or mortgage has not been
performed, and that the property is probably insufficient to
discharge the deed of trust or mortgage debt.
(3) After judgment, to carry the judgment into effect.
(4) After judgment, to dispose of the property according to the
judgment, or to preserve it during the pendency of an appeal, or
pursuant to the Enforcement of Judgments Law (Title 9 (commencing
with Section 680.010)), or after sale of real property pursuant to a
decree of foreclosure, during the redemption period, to collect,
expend, and disburse rents as directed by the court or otherwise
provided by law.
(5) Where a corporation has been dissolved, as provided in Section
565.
(6) Where a corporation is insolvent, or in imminent danger of
insolvency, or has forfeited its corporate rights.
(7) In an action of unlawful detainer.
(8) At the request of the Public Utilities Commission pursuant to
Section 855 or 5259.5 of the Public Utilities Code.
(9) In all other cases where necessary to preserve the property or
rights of any party.
(10) At the request of the Office of Statewide Health Planning and
Development, or the Attorney General, pursuant to Section 129173 of
the Health and Safety Code.
(11) In an action by a secured lender for specific performance of
an assignment of rents provision in a deed of trust, mortgage, or
separate assignment document. The appointment may be continued after
entry of a judgment for specific performance if appropriate to
protect, operate, or maintain real property encumbered by a deed of
trust or mortgage or to collect rents therefrom while a pending
nonjudicial foreclosure under power of sale in a deed of trust or
mortgage is being completed.
(12) In a case brought by an assignee under an assignment of
leases, rents, issues, or profits pursuant to subdivision (g) of
Section 2938 of the Civil Code.
(c) A receiver may be appointed, in the manner provided in this
chapter, including, but not limited to, Section 566, by the superior
court in an action brought by a secured lender to enforce the rights
provided in Section 2929.5 of the Civil Code, to enable the secured
lender to enter and inspect the real property security for the
purpose of determining the existence, location, nature, and magnitude
of any past or present release or threatened release of any
hazardous substance into, onto, beneath, or from the real property
security. The secured lender shall not abuse the right of entry and
inspection or use it to harass the borrower or tenant of the
property. Except in case of an emergency, when the borrower or tenant
of the property has abandoned the premises, or if it is
impracticable to do so, the secured lender shall give the borrower or
tenant of the property reasonable notice of the secured lender's
intent to enter and shall enter only during the borrower's or tenant'
s normal business hours. Twenty-four hours' notice shall be presumed
to be reasonable notice in the absence of evidence to the contrary.
(d) Any action by a secured lender to appoint a receiver pursuant
to this section shall not constitute an action within the meaning of
subdivision (a) of Section 726.
(e) For purposes of this section:
(1) "Borrower" means the trustor under a deed of trust, or a
mortgagor under a mortgage, where the deed of trust or mortgage
encumbers real property security and secures the performance of the
trustor or mortgagor under a loan, extension of credit, guaranty, or
other obligation. The term includes any successor in interest of the
trustor or mortgagor to the real property security before the deed of
trust or mortgage has been discharged, reconveyed, or foreclosed
upon.
(2) "Hazardous substance" means any of the following:
(A) Any "hazardous substance" as defined in subdivision (h) of
Section 25281 of the Health and Safety Code.
(B) Any "waste" as defined in subdivision (d) of Section 13050 of
the Water Code.
(C) Petroleum including crude oil or any fraction thereof, natural
gas, natural gas liquids, liquefied natural gas, or synthetic gas
usable for fuel, or any mixture thereof.
(3) "Real property security" means any real property and
improvements, other than a separate interest and any related interest
in the common area of a residential common interest development, as
the terms "separate interest," "common area," and "common interest
development" are defined in Section 1351 of the Civil Code, or real
property consisting of one acre or less that contains 1 to 15
dwelling units.
(4) "Release" means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching,
dumping, or disposing into the environment, including continuing
migration, of hazardous substances into, onto, or through soil,
surface water, or groundwater.
(5) "Secured lender" means the beneficiary under a deed of trust
against the real property security, or the mortgagee under a mortgage
against the real property security, and any successor in interest of
the beneficiary or mortgagee to the deed of trust or mortgage.

565. Upon the dissolution of any corporation, the Superior Court of
the county in which the corporation carries on its business or has
its principal place of business, on application of any creditor of
the corporation, or of any stockholder or member thereof, may appoint
one or more persons to be receivers or trustees of the corporation,
to take charge of the estate and effects thereof, and to collect the
debts and property due and belonging to the corporation, and to pay
the outstanding debts thereof, and to divide the moneys and other
property that shall remain over among the stockholders or members.

566. (a) No party, or attorney of a party, or person interested in
an action, or related to any judge of the court by consanguinity or
affinity within the third degree, can be appointed receiver therein
without the written consent of the parties, filed with the clerk.
(b) If a receiver is appointed upon an ex parte application, the
court, before making the order, must require from the applicant an
undertaking in an amount to be fixed by the court, to the effect that
the applicant will pay to the defendant all damages the defendant
may sustain by reason of the appointment of the receiver and the
entry by the receiver upon the duties, in case the applicant shall
have procured the appointment wrongfully, maliciously, or without
sufficient cause.

567. Before entering upon the duties of a receiver:
(a) The receiver must be sworn to perform the duties faithfully.
(b) The receiver shall give an undertaking to the State of
California, in such sum as the court or judge may direct, to the
effect that the receiver will faithfully discharge the duties of
receiver in the action and obey the orders of the court therein. The
receiver shall be allowed the cost of the undertaking.

568. The receiver has, under the control of the Court, power to
bring and defend actions in his own name, as receiver; to take and
keep possession of the property, to receive rents, collect debts, to
compound for and compromise the same, to make transfers, and
generally to do such acts respecting the property as the Court may
authorize.

568.1. Any securities in the hands of a receiver may, under the
control of the court, be deposited by the receiver in a securities
depository, as defined in Section 30004 of the Financial Code, which
is licensed under Section 30200 of the Financial Code or exempted
from licensing thereunder by Section 30005 or 30006 of the Financial
Code, and such securities may be held by such securities depository
in the manner authorized by Section 775 of the Financial Code.

568.2. (a) A receiver of real property containing rental housing
shall notify the court of the existence of any order or notice to
correct any substandard or unsafe condition, as defined in Section
17920.3 or 17920.10 of the Health and Safety Code, with which the
receiver cannot comply within the time provided by the order or
notice.
(b) The notice shall be filed within 30 days after the receiver's
appointment or, if the substandard condition occurs subsequently,
within 15 days of its occurrence.
(c) The notice shall inform the court of all of the following:
(1) The substandard conditions that exist.
(2) The threat or danger that the substandard conditions pose to
any occupant of the property or the public.
(3) The approximate cost and time involved in abating the
conditions. If more time is needed to approximate the cost, then the
notice shall provide the date on which the approximate cost will be
filed with the court and that date shall be within 10 days of the
filing.
(4) Whether the receivership estate is likely to contain
sufficient funds to abate the conditions.
(d) If the receivership estate does not contain sufficient funds
to abate the conditions, the receiver shall request further
instructions or orders from the court.
(e) The court, upon receipt of a notice pursuant to subdivision
(d), shall consider appropriate orders or instructions to enable the
receiver to correct the substandard conditions or to terminate or
limit the period of receivership.

568.3. Any tenant of real property that is subject to receivership,
a tenant association or organization, or any federal, state, or
local enforcement agency, may file a motion in a receivership action
for the purpose of seeking further instructions or orders from the
court, if either of the following is true:
(a) Substandard conditions exist, as defined by Section 17920.3 or
17920.10 of the Health and Safety Code.
(b) A dispute or controversy exists concerning the powers or
duties of the receiver affecting a tenant or the public.

568.5. A receiver may, pursuant to an order of the court, sell real
or personal property in the receiver's possession upon the notice
and in the manner prescribed by Article 6 (commencing with Section
701.510) of Chapter 3 of Division 2 of Title 9. The sale is not final
until confirmed by the court.

569. Funds in the hands of a receiver may be deposited in one or
more interest bearing accounts in the name and for the benefit of the
receivership estate with one or more financial institutions,
provided that all of the following conditions are satisfied:
(a) The deposits are fully guaranteed or insured under federal
law.
(b) The financial institution in which the funds are deposited is
not a party to the action in which the receiver was appointed.
(c) The receiver does not own 1 percent or more in value of the
outstanding stock of the financial institution, is not an officer,
director, or employee of the financial institution, and is not a
sibling, whether by the whole or half-blood, spouse, aunt, uncle,
nephew, niece, ancestor, or lineal descendant of an owner, officer,
employee, or director.

570. A receiver having any funds in his hands belonging to a person
whose whereabouts are unknown to him, shall, before receiving his
discharge as such receiver, publish a notice, in one or more
newspapers published in the county, at least once a week for four
consecutive weeks, setting forth the name of the owner of any
unclaimed funds, the last known place of residence or post office
address of such owner and the amount of such unclaimed funds. Any
funds remaining in his hands unclaimed for 30 days after the date of
the last publication of such notice, shall be reported to the court,
and upon order of the court, all such funds must be paid into the
State Treasury accompanied with a copy of the order, which must set
forth the facts required in the notice herein provided. Such funds
shall be deemed to have been received by the State under Chapter 7
(commencing with Section 1500) of Title 10 of Part 3 of this code and
may be recovered in the manner prescribed therein.
All costs and expenses connected with such advertising shall be
paid out of the funds the whereabouts of whose owners are unknown.