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Simple English definitions for legal terms
primary receiver
Read a random definition: FRM
A quick definition of primary receiver:
A primary receiver is a person appointed by a court or a corporation to protect or collect property that is being disputed. This can happen when a company goes bankrupt or when there are legal issues surrounding the ownership of property. The primary receiver is responsible for managing the assets and making sure they are distributed fairly. They may have broad powers to act outside of their state of appointment and handle all distributions. Think of them like a caretaker for property that needs to be sorted out.
A more thorough explanation:
A primary 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 receivership estate and handling all distributions.
For example, if a company goes bankrupt, a primary receiver may be appointed to collect and distribute its assets to creditors. Another example is when a disinterested person is appointed by a court to protect property that is being litigated.
Primary receivers have broad powers, such as the ability to act outside the state of appointment, sue in a foreign court, and assign assets. They are also responsible for managing the entire receivership estate.
Overall, a primary receiver is an important legal figure who helps protect and distribute property that is being litigated or belongs to a bankrupt entity.