630.778. Receiver may disregard certain contracts--factors to be considered--court may order temporary noncompliance. - Missouri Statutes

Receiver may disregard certain contracts--factors to beconsidered--court may order temporary noncompliance.

630.778. 1. A receiver may not be required to honor anylease, mortgage, secured transaction or other wholly or partiallyexecutory contract entered into on behalf of the facility if theagreement is unconscionable. Factors which shall be consideredin determining the unconscionability include, but are not limitedto, the following:

(1) The person seeking payment under the agreement was anaffiliate of the individual contracting on behalf of the facilityat the time the agreement was made;

(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 person who received such notice, but the paymentdoes not relieve the licensee or head of the facility of anyliability for the difference between the amount paid by thereceiver and the amount due under the original lease or mortgageinvolved.

(L. 1980 H.B. 1724)