{"data":{"id":"us-md/md.-code-commercial-law-24-203","jurisdiction":"us-md","citation":"Md. Code, Commercial Law § 24–203","heading":"","body":"(a) A court may not appoint a person as a receiver unless the person provides a statement under penalty of perjury that the person is not disqualified under subsection (b) of this section.\n(b) Except as otherwise provided in subsection (c) of this section, a person is disqualified from appointment as a receiver if the person:\n(1) Is an affiliate of a party;\n(2) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;\n(3) Has a debtor–creditor relationship with a party;\n(4) Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company;\n(5) Is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver;\n(6) (i) Has been convicted of a felony or any other crime involving moral turpitude; or\n(ii) Is supervised by or an employee of a person who has been convicted of a felony or any other crime of moral turpitude;\n(7) (i) Has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or\n(ii) Is controlled by a person who has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or\n(8) Otherwise has an interest materially adverse to an interest of a party or the receivership estate, or of any creditor or equity security holder, by reason of any direct or indirect relationship to, connection with, or interest in the owner.\n(c) (1) A person is not disqualified from appointment as a receiver solely because the person:\n(i) Was appointed as a receiver of another receivership;\n(ii) Is owed compensation in an unrelated matter involving a party;\n(iii) Was engaged by a party in a matter unrelated to the receivership;\n(iv) Is an individual obligated to a party on a debt that:\n1. Is not in default; and\n2. Was incurred primarily for personal, family, or household purposes; or\n(v) Maintains with a party a deposit account as defined in § 9–102(a)(29) of this article.\n(2) Notwithstanding subsection (b)(5) of this section, a person who is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver is not disqualified from appointment as a receiver if the court:\n(i) Appoints the person as a receiver; and\n(ii) Determines that:\n1. The appointment would be in the best interest of the receivership estate; and\n2. The person is not disqualified for a reason listed in subsection (b)(1) through (4) or (b)(6) through (8) of this section.\n(d) (1) A person seeking appointment of a receiver may nominate a person to serve as receiver.\n(2) A court is not bound by a nomination received under paragraph (1) of this subsection.","path":["Article - Commercial Law"],"source_url":"https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gcl\u0026section=24-203","current_through":"2026-01-01","vintage":"","retrieved_at":"2026-09-14T19:56:33Z","sha256":"22190cd4516cc62b1bb8fdb95bbdb0da90fe2155f38cdb6609e29447aafefbeb","source_id":"us-md","stale":false,"prev":"us-md/md.-code-commercial-law-24-202","next":"us-md/md.-code-commercial-law-24-204"},"notice":"GroundRules: Original legal text. Not legal advice."}