Maryland § 24-401

Full text of Maryland Maryland Code § 24-401, with citation guidance and answers to common questions.

§ 24-401.

    (a)    Except as provided in subsection (c) of this section or ordered by the court, the entry of an order appointing a receiver under § 24–103(a)(2) or (3) of this title shall operate as a stay of an act to:

        (1)    Commence or continue a judicial, administrative, or other action or proceeding against the owner that was or could have been commenced before entry of the order;

        (2)    Collect, assess, or recover a claim against the owner that arose before entry of the order;

        (3)    Obtain possession of, exercise control over, or enforce a judgment against the receivership property obtained before entry of the order; or

        (4)    Create, perfect, or enforce a lien or other claim against the receivership property that arose before entry of the order.

    (b)    (1)    Except as provided in paragraph (2) of this subsection, a court may order a stay of an act against or relating to an owner if the stay is necessary to:

            (i)    Protect the receivership property or business; or

            (ii)    Facilitate administration of the receivership.

        (2)    A court may not order a stay under paragraph (1) of this subsection, with respect to a governmental unit commencing or continuing an action or proceeding to enforce its police or regulatory power, that includes enforcing a nonmonetary judgment.

    (c)    Unless an order is entered under subsection (b) of this section, the following matters are not stayed:

        (1)    An act to foreclose or otherwise enforce a mortgage by the person seeking appointment of the receiver;

        (2)    An act to perfect, maintain, or continue the perfection of an interest in receivership property;

        (3)    Commencement or continuation of a criminal proceeding;

        (4)    Commencement or continuation of an action or a proceeding by a governmental unit to enforce its police or regulatory power;

        (5)    Enforcement of a judgment other than a money judgment in an action or a proceeding by a governmental unit to enforce its police or regulatory power;

        (6)    Establishment by a governmental unit of a tax liability against the owner or receivership property or an appeal of the liability;

        (7)    The exercise of the right of setoff or recoupment;

        (8)    The commencement of a bankruptcy case under Title 11 of the United States Code; or

        (9)    Any other matter provided under 11 U.S.C. § 362(b) to the extent not inconsistent with any provision of this section.

    (d)    A person whose act is stayed under this section may apply to the court for relief from the stay for cause shown.

    (e)    Except as provided in subsections (c) and (d) of this section, the stay shall terminate as to receivership property when:

        (1)    The property is no longer receivership property; or

        (2)    The court enters:

            (i)    An order approving the final report; or

            (ii)    An order dismissing the case.

    (f)    The court may void an act that violates a stay under this section.

    (g)    If a person willfully violates a stay under this section, the court may:

        (1)    Award the receiver actual damages caused by the violation, including reasonable fees and costs; and

        (2)    Sanction the violation as civil contempt.

Frequently Asked Questions About Maryland § 24-401

What does Maryland Code § 24-401 cover?

Section 24-401 is part of the Maryland Code, the codified statutory law of Maryland. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Maryland § 24-401?

A common citation format is "Maryland Code § 24-401" (Maryland). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.

Is this the official text of Maryland law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Maryland official source linked on this page or consult a licensed Maryland attorney.

How does Maryland § 24-401 apply to my situation?

Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Maryland can advise on how this section applies to you. Contact your state or local bar association for a referral.

Sources & Verification

Not legal advice. Verify against the official source and consult a licensed attorney in Maryland.