SB78 Alabama 2024 Session

Summary

Primary Sponsor

Rodger SmithermanSenator

Democrat

Session

Regular Session 2024

Title

Alabama Uniform Commercial Real Estate Receivership Act, created, process for appointment of receiver for disputes relating to commercial real estate provided

Summary

SB78 creates a uniform Alabama law to handle court-appointed receivers in commercial real estate disputes.

What This Bill Does

It establishes a statewide process for courts to appoint a receiver in disputes over commercial real estate. It defines who can be a receiver, what powers the receiver has to take possession, manage, preserve, or dispose of property, and how the receiver is bonded and supervised. It also sets rules for notice and hearings, stays of other actions, and engagement of professionals. It includes creditor notice, a claims process with deadlines, and distributions, plus final reporting and discharge.

Who It Affects

• Commercial real estate owners and mortgagors in Alabama who may have a receiver appointed to protect or manage property, require turnover of receivership property, and cooperate by providing records and access.
• Creditors and mortgagees with claims against the owner’s property, who must file notices and claims, receive distributions according to priority, and may be affected by stays and fees associated with the receivership.

Key Provisions

• Appointment and powers of the receiver: The court can appoint a receiver before or after judgment in commercial real estate disputes, authorize the receiver to take possession, manage, operate, and dispose of property, and require bond or security (with some state protections).
• Creditor notices, claims, distributions, and discharge: The act requires notice to creditors, a claims process with deadlines, priority-based distributions, and a final report and discharge of the receiver, along with rules for fees and possible removal or replacement.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Property & Estates