198.115. Executory contracts, receiver not required to honor--when--hearing. - Missouri Statutes

Executory contracts, receiver not required to honor--when--hearing.

198.115. 1. A receiver may not be required to honor anylease, mortgage, secured transaction or other wholly or partiallyexecutory contract entered into by the facility's operator oradministrator while acting in that capacity, if the agreement isunconscionable. Factors which shall be considered in determiningthe unconscionability include, but are not limited to, thefollowing:

(1) The person seeking payment under the agreement was anaffiliate of the operator or owner at the time the agreement wasmade;

(2) The rental, price, or rate of interest required to bepaid under the agreement was substantially in excess of areasonable rental, price or rate of interest at the time theagreement was entered into.

2. If the receiver is in possession of real estate or goodssubject to a lease, mortgage or security interest which thereceiver is permitted to avoid under subsection 1 of thissection, and if the real estate or goods are necessary for thecontinued operation of the facility, the receiver may apply tothe court to set a reasonable rental, price or rate of interestto be paid by the receiver during the duration of thereceivership. The court shall hold a hearing on the applicationwithin fifteen days. The receiver shall send notice of theapplication to any known owners of the property involved at leastten working days prior to the hearing. Payment by the receiverof the amount determined by the court to be reasonable is adefense to any action against the receiver for payment or forpossession of the goods or real estate subject to the lease ormortgage involved by any person who received such notice, but thepayment does not relieve the owner or operator of the facility ofany liability for the difference between the amount paid by thereceiver and the amount due under the original lease or mortgageinvolved.

(L. 1979 S.B. 328, et al. § 38)

Effective 7-1-79