Arizona § 12-996 - Appointment of temporary receiver; term; duties; accounting

§ 12-996. Appointment of temporary receiver; term; duties; accounting

A. In any judicial proceeding brought under sections 12-991 and 12-992, if the court determines that a nuisance exists and that the appointment of a temporary receiver is necessary to abate the nuisance or to otherwise enforce any order issued by the court, the court, on its own motion or on the motion of any party, may order the appointment of a temporary receiver to manage or operate the premises for as long as the court deems necessary to abate the nuisance.  The court shall not appoint a temporary receiver for a term of more than one year.

B. A temporary receiver who is appointed pursuant to subsection A of this section either shall be a real estate licensee specializing in property management or an attorney specializing in real estate law and shall swear or affirm to faithfully and fairly discharge the receiver's duties.  The court may require the temporary receiver to post a bond in an amount fixed by the court.

C. The court shall determine the following:

1. The management duties of the receiver.

2. The amount of compensation to be paid to the receiver.

3. The method of payment.

4. The payment periods.

D. The temporary receiver shall continue to manage the property during the pendency of any appeal or until relieved by the court.  The court may remove a temporary receiver on its own motion or on the motion of any party or the temporary receiver.

E. The temporary receiver may do any of the following:

1. Take control of the property.

2. Pay the mortgage on the property if there are sufficient monies derived from the income of the property to do so.

3. Collect rents due on the property.

4. Make or have made any repairs that are necessary to bring the property into compliance with any statute or ordinance.

5. Make payments that are necessary for the maintenance or restoration of utilities to the property.

6. Purchase materials that are necessary to make repairs.

7. Renew, terminate or modify existing rental contracts and leases as provided by law.

8. Enter into new rental contracts and leases.

9. Affirm, renew or terminate an existing insurance contract that covers the property as provided by law.

10. Enter into a new contract that provides insurance coverage on the property.

11. Hire security or other personnel that are necessary for the safe and proper operation and maintenance of the property.

12. Prosecute or defend suits that flow from the management of the property and retain counsel.

13. Exercise all other authority that an owner of the property would have except the authority to sell the property.

F. Before the receiver spends monies in excess of ten thousand dollars the court and the party who is responsible for the payment of the temporary receiver's expenditures shall approve the expenditure of those monies.

G. The costs of compensation to and expenditures by the temporary receiver shall be paid in the following order of priority:

1. From the income that is derived from the property and that is available after all taxes and mortgages are satisfied.

2. From monies that are collected pursuant to a court order issued pursuant to section 12-992 for the compensation and expenditure costs of a temporary receiver.

3. By the party who requested the appointment of the temporary receiver.

H. On filing with the county recorder of the county in which the property is located, a lien is created in favor of the party other than the defendant who pays the temporary receiver's costs of compensation and expenditures.  The lien is prior to all other liens, obligations or encumbrances except for prior recorded mortgages, restitution liens, child support liens and general tax liens.

I. On the completion of the receivership, the temporary receiver shall file with the court a full accounting of all costs and expenses incurred and all income received during the course of the receivership.

J. On finding that the appointment of a temporary receiver is no longer warranted, the court on its own motion or the motion of any party may terminate the temporary receivership.