Tennessee § 29-40-107 - Disqualification from appointment as receiver — Disclosure of interest.

§ 29-40-107. Disqualification from appointment as receiver — Disclosure of interest.

The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified. Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person: Is an affiliate of a party; Has an interest materially adverse to an interest of a party; Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver; Has a debtor-creditor relationship with a party; or Holds an equity interest in a party, other than a noncontrolling interest in a publicly-traded company. A person is not disqualified from appointment as receiver solely because the person: Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership; Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or Maintains with a party a deposit account as defined in § 47-9-102(a). A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination. Acts 2018, ch. 731, § 1. Effective Dates. Acts 2018, ch. 731, § 3. July 1, 2018.