§ 56-609. Appointment of non-party in interest as a receiver.

(a)

If no qualified party in interest is appointed as receiver to rehabilitate, to demolish, or to sell the property to a qualified buyer, or if a party in interest acting as receiver is dismissed, the court may then appoint a new receiver of the property for the purpose of rehabilitating and managing the property, demolishing the property, or selling it to a qualified buyer. Any proposed receiver shall submit to the court a schedule and scope of work for the rehabilitation, demolition, or sale of the building or structure and present evidence that the receiver has adequate resources to execute his/her plan and thereafter manage the property.

(b)

On appointment of a receiver who is not a party in interest to rehabilitate, demolish, or sell the property, all parties in interest are divested of any authority to take any actions regarding the property without court approval.

(c)

If it appears to the city that the receiver appointed is not proceeding with due diligence or in compliance with the court-ordered schedule and scope of work, the city may apply to the court for immediate revocation of that receiver's appointment and for appointment of a new receiver.

(d)

A receiver appointed, who is not a party in interest, is not personally liable for acts done and losses sustained in administering this receivership, provided the receiver acts in good faith and in ordinary care and prudence.

(Ord. No. 140983 , § 1, 12-4-14)