15A:14-7 - Powers of receiver; sale of property free of encumbrances - New Jersey Statutes

15A:14-7.  Powers of receiver;  sale of property free of encumbrances
    When property of a corporation for which a receiver has been appointed is, at the time of the appointment, subject to one or more encumbrances, the Superior Court, upon the application of the receiver, may authorize the receiver to sell the property at public or at private sale, clear of encumbrances, for a price and upon terms as the court may approve.  A sale shall not be authorized nor made except upon prior notice to the holders of the  encumbrances affecting the property, and unless the receiver demonstrates to  the satisfaction of the court that the sale of the property may be reasonably  expected to benefit general creditors of the corporation without adversely  affecting the interests of the holders of the encumbrances.  The proceeds of  the sale shall be paid into court, there to remain until the further order of  the court, subject to the same encumbrances which affected the property at the  time of the sale.

     L.1983, c. 127, s. 15A:14-7, eff. Oct. 1, 1983.