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Simple English definitions for legal terms
local receiver
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A quick definition of local receiver:
A local receiver is a person appointed by a court or corporation to protect or collect property that is being litigated or belongs to a bankrupt entity. They are responsible for managing the assets of the estate being administered and may be appointed in a particular area to help a foreign receiver collect the assets of an insolvent corporation. A local receiver is appointed in the state where the property is located or where an act is done. They may also be referred to as a general receiver or principal receiver.
A more thorough explanation:
A local receiver is a person appointed by a court or corporation to protect or collect property that is the subject of diverse claims. They are appointed in the state where the property is located or where an act is done.
For example, a local receiver may be appointed to collect funds from a judgment debtor and divert them to the creditor. This is usually done when it is difficult to enforce a judgment in any other manner. Another example is an ancillary receiver who is appointed in a particular area to help a foreign receiver collect the assets of an insolvent corporation or other entity.
The purpose of a local receiver is to aid in the collection and taking charge of assets of the estate being administered. They have the authority to act outside the state of appointment, sue in a foreign court, exercise broad powers of assignment, and handle all distributions.