Illinois § 11

§ 11.

Collection and turnover of receivership property. (a) Unless the court orders otherwise, on demand by a receiver: (1) a person that owes a debt that is receivership property and is matured or payable on demand or on order shall pay the debt to or on the order of the receiver, except to the extent the debt is subject to setoff or recoupment; and (2) subject to subsection (c), a person that has possession, custody, or control of receivership property shall turn the property over to the receiver. (b) A person that has notice of the appointment of a receiver and owes a debt that is receivership property may not satisfy the debt by payment to the owner. (c) If a creditor has possession, custody, or control of receivership property and the validity, perfection, or priority of the creditor's lien on the property depends on the creditor's possession, custody, or control, the creditor may retain possession, custody, or control until the court orders adequate protection of the creditor's lien. (d) The receiver may seek to compel a person to comply with the obligations of this Section by motion. The court may order a person that has possession, custody, or control of receivership property to turn over such property to the receiver. (e) Unless a bona fide dispute exists about a receiver's right to possession, custody, or control of receivership property, the court may sanction as civil contempt a person's failure to turn the property over when required by this Section. (Source: P.A. 104-34, eff. 1-1-26.)