(765 ILCS 1090/12)

(This Section may contain text from a Public Act with a delayed effective date)

Sec. 12. Powers and duties of receiver.

(a) Except as limited by court order or law of this State other than this Act, a receiver may:

(1) collect, control, manage, conserve, and protect receivership property;

(2) operate a business constituting receivership property, including preservation, use, sale, lease, license, exchange, collection, or disposition of the property in the ordinary course of business;

(3) in the ordinary course of business, incur unsecured debt and pay expenses incidental to the receiver's preservation, use, sale, lease, license, exchange, collection, or disposition of receivership property and otherwise in the performance of the receiver's duties, including the power to pay obligations incurred prior to the receiver's appointment if, in the receiver's business judgment, payment is necessary to preserve the value of receivership property using funds that are not subject to any lien or right of setoff in favor of a creditor who has not consented to the payment;

(4) incur debt under a secured obligation in effect as of the receiver's appointment subject to the same terms, conditions, and lien priorities that existed as of the receiver's appointment;

(5) assert a right, claim, cause of action, or defense of the owner which relates to receivership property and maintain in the receiver's name or owner's name any action to enforce any such right, claim, cause of action, or defense and intervene in actions in which owner is a party for the purpose of exercising any rights pursuant to this subsection (a)(5) or requesting transfer of venue of the action to the court;

(6) seek and obtain instruction from the court concerning receivership property, exercise of the receiver's powers, and performance of the receiver's duties;

(7) on subpoena, compel a person to submit to examination under oath, or to produce and permit inspection and copying of designated records or tangible things, with respect to receivership property or any other matter that may affect administration of the receivership;

(8) engage a professional as provided in Section 15;

(9) apply to a court of another state for appointment as ancillary receiver with respect to receivership property located in that state; and

(10) exercise any power conferred by court order, this Act, or law of this State other than this Act.

(b) With court approval, a receiver may:

(1) Except as otherwise provided in subsection (a)(4), incur debt for the use or benefit of receivership property other than in the ordinary course of business provided that any lien securing such indebtedness is junior to any existing liens on the receivership property, unless otherwise authorized by the law of this State other than this Act;

(2) make improvements to receivership property;

(3) use, sell, lease, or transfer receivership property other than in the ordinary course of business as provided in Section 16 and execute in the owner's name any documents, conveyances, and consents as may be required for such use, sale, lease, or transfer;

(4) assume or reject an executory contract of the owner as provided in Section 17;

(5) pay compensation to the receiver as provided in Section 21, and to each professional engaged by the receiver as provided in Section 15;

(6) recommend allowance or disallowance of a claim of a creditor as provided in Section 20;

(7) make a distribution of receivership property as provided in Section 20;

(8) settle or release any rights, claims, causes of action, or defenses or the owner asserted in subsection (a)(5); and

(9) abandon to the owner any receivership property that is burdensome or is not of material value to the receivership.

(c) A receiver shall:

(1) prepare and retain appropriate business records from the receiver's appointment until the receiver's discharge, including a record of each receipt, disbursement, and disposition of receivership property;

(2) account for receivership property, including the proceeds of a sale, lease, license, exchange, collection, or other disposition of the property;

(3) promptly file or record, as applicable, with the county recorder's office in the county where the real property is located, a notice of the receivership setting forth the name of the receiver, the owner of the real property, the title of the action, a legal description of the real property, if any, and a copy of the order appointing the receiver;

(4) disclose to the court any fact arising during the receivership which would disqualify the receiver under Section 7; and

(5) perform any duty imposed by court order, this Act, or law of this State other than this Act.

(d) The recording of the notice of the receivership set forth in subsection (c) shall constitute constructive notice of the receivership to every person subsequently acquiring an interest in or a lien on the real property affected thereby.

(e) A subordination agreement is enforceable to the same extent that it is enforceable under the law of this State other than this Act.

(f) The powers and duties of a receiver may be expanded, modified, or limited by court order.

(Source: P.A. 104-34, eff. 1-1-26.)