441.590. Court orders, provisions.

MISSOURI STATUTES AND CODES

441.590. Court orders, provisions.

Court orders, provisions.

441.590. 1. The court may, in any order entered pursuant to section441.570:

(1) Authorize the receiver to draw upon the rents deposited in courtto pay for the cost of necessary repairs upon presentment to the court ofthe original copy of any invoice for work performed or materials purchased;

(2) Appoint the code enforcement agency, the mortgagee or otherlienor of record, a local housing corporation established to promotehousing development and conservation in the area in which such propertythat is the subject of receivership is located or, if no local housingcorporation exists for such area, then the local neighborhood association,a licensed attorney or real estate broker, or any other qualified person,as a receiver provided, however, that all lienholders of record shall begiven the right of first refusal to serve as receiver in the order in whichtheir lien appears of record. In the event of the refusal of alllienholders of record to serve as receiver or in the absence of anylienholders of record, the local housing corporation that is established topromote housing development and conservation in the area in which suchproperty that is the subject of receivership is located, if any, shall begiven the right of first refusal to serve as receiver for any residentialproperty consisting of four units or less; provided that, if no localhousing corporation exists for such area, then the local neighborhoodassociation shall be given such right of first refusal; or

(3) Where the building is vacant, appoint the code enforcementagency, the mortgagee or other lienor of record, a local housingcorporation established to promote development and conservation in the areain which such property that is the subject of receivership is located or,if no local housing corporation exists for such area, then the localneighborhood association, a licensed attorney or real estate broker, or anyother qualified person, as a receiver to remove all of the housing codeviolations which constitute a nuisance as found by the court, except thatall lienholders of record shall be given the right of first refusal toserve as receiver in the order in which their liens appear of record. Inthe event of the refusal of all lienholders of record to serve as receiveror in the absence of any lienholders of record, the local housingcorporation that is established to promote development and conservation inthe area in which such property that is the subject of receivership islocated, if any, shall be given the right of first refusal to serve asreceiver for any residential property consisting of four units or less;provided that, if no local housing corporation exists for such area, thenthe local neighborhood association shall be given such right of firstrefusal.

2. The court may allow a receiver reasonable and necessary expenses,payable from the rent moneys.

3. No receiver appointed shall serve without bond. The amount andform of such bond shall be approved by the court and the cost of such bondshall be paid from the moneys so deposited.

4. The receiver may, on order of the court, take possession of theproperty, collect all rents and profits accruing from the property, and payall costs of management, including all insurance premiums and all generaland special real estate taxes or assessments.

5. The receiver shall with all reasonable speed remove all of thehousing code violations which constitute a nuisance as found by the court,and may make other improvements to effect a rehabilitation of the propertyin such fashion as is consistent with maintaining safe and habitableconditions over the remaining useful life of the property. The receivershall have the power to let contracts therefor, in accordance with theprovisions of local laws, ordinances, rules and regulations applicable tocontracts.

6. The receiver may with the approval of the circuit court borrowmoney against, and encumber, the property as security therefor in suchamounts as may be necessary to carry out his or her responsibilitiespursuant to sections 441.500 to 441.643. The circuit court may authorizethe receiver to issue receiver's certificates as security against suchborrowings, which certificates shall be authorized investments for banksand savings and loan associations, and shall constitute a first lien uponthe property and its income and shall be superior to any claims of thereceiver and to all prior or subsequent liens and encumbrances except taxesand assessments, and shall be enforceable as provided in subsection 8 ofthis section.

7. In addition to issuance of receiver certificates, the receiver maypledge the rentals from the property and borrow or encumber the property onthe strength of the rental income.

8. Any receiver appointed pursuant to the provisions of sections441.500 to 441.643 shall have a lien, for the expenses necessarily incurredin the execution of an order, upon the rents receivable from the premiseson or in respect of which the work required by such order has been done orexpenses incurred, and this lien shall have priority over all other liensand encumbrances of record upon the rents receivable from the premises,except taxes, assessments, receiver's certificates, and mortgages recordedprior to October 13, 1969.

9. For the purposes of this section, "local housing corporation"shall mean only those local housing corporations established prior toAugust 28, 2001.