QUESTION: Can a receiver be appointed at the request of a secured creditor holding a lien on accounts receivable for the limited purpose of collecting the receivables?
ANSWER: C.C.P. §564(b)(9) may support an action for specific performance of the provisions of loan documents, by way of a receivership. In addition, a receiver may be appointed to enforce a judgment (C.C.P. §564(b)(3)) and to collect a debt. (C.C.P. §568). However, many judges will not appoint receivers for these purposes, because of the cost of a receivership, without other specific showings, such as there is no other available remedy or the assets are being converted, transferred out of state, or secreted. In other words, “know your judge”.