Senate panel backs Uniform Commercial Real Estate Receivership Act to consolidate receivership rules

The Senate Industry and Business Committee voted to recommend Senate Bill 2122, which would adopt the Uniform Commercial Real Estate Receivership Act as a new chapter of state law governing commercial real-estate receiverships.

Perrell Grossman, a member of the North Dakota Commission on Uniform Laws, told the committee the act “provides certainty for business owners and creditors. It's fair to all parties. It can preserve and maximize the value of commercial property.” He said the uniform law was adopted by the National Conference of Commissioners in 2015 and that roughly 14 other states have enacted the law or a substantially similar version.

The bill consolidates existing receivership authorities into a single statutory chapter and spells out court powers, standards for appointment, receiver duties, bonding, notice, creditor claims, and procedures for using or selling receivership property. Supporters said the consolidation aims to reduce uncertainty and speed court action when receivers are needed.

Supporters and testimony

Rick Kleberg, president and CEO of the North Dakota Bankers Association, said North Dakota’s receivership framework had changed little for decades and that the bill will create…