Court Rules - Particular Civil Proceedings - Receivers
III. PARTICULAR CIVIL PROCEEDINGS
ARTICLE 11: RECEIVERS
11.01 QUALIFICATIONS AND APPOINTMENT OF RECEIVERS
(a) Appointment of receivers shall be in accordance with 735 ILCS 5/2-415 (Code of Civil Procedure), Supreme Court Rule 61(c)(11), and any other applicable statute, Illinois Supreme Court Rule or Rule.
(b) Except as provided in (c) of Rule 11.01, an appointment as receiver shall not be granted to an individual or to a corporation having a principal officer who:
(1) Is related by blood or marriage to a party or attorney in the action;
(2) Is an attorney for, or of counsel for, any party of this action;
(3) Is an officer, director, stockholder or employee of a corporation, the assets of which are in question; or
(4) Stands in any relation to the subject of the controversy that would tend to interfere with the impartial discharge of a receiver's duties as an officer of the court.
(c) Exception: If the Court is satisfied that the best interests of the estate would be served, an individual or corporation otherwise disqualified under Section (a) of Rule 11.01 may be appointed as receiver by an order specifically setting forth the reasons for departing from the general rule. A receiver so appointed shall serve wholly without compensation, unless otherwise ordered by the Court upon good cause shown.
(d) A petition for the appointment of a receiver shall set forth sufficient facts to warrant the appointment; mere conclusions will not suffice. However, failure to set forth such facts may be cured if the Court holds an evidentiary hearing on the petition and sufficient facts are adduced at that hearing.
11.02 ATTORNEYS FOR RECEIVERS
An attorney for the receiver shall be employed only upon order of the Court upon written motion of the receiver stating the reasons for the requested employment and naming the attorney to be employed.
11.03 INVENTORIES OF RECEIVERS
(a) Unless the Court orders otherwise, a receiver shall, as soon as practicable after appointment, but in any event no later than thirty (30) days thereafter, file an inventory of all property - real, personal or mixed - of the estate, designating the property of which the receiver has taken possession or control.
(b) Unless the Court orders otherwise, the receiver shall file with the inventory required by Rule 11.03(a) a list of the then known liabilities of the estate.
11.04 APPRAISAL FOR RECEIVERS
(a) Appraisers: Appraisers for receivers may be appointed only upon order of court or agreement of the parties with the approval of the Court. If appraisers are appointed, they shall be selected by the Court.
(b) Appraisal by Receiver: If no appraisers are appointed, the receiver shall investigate the value of the property of the estate and show in the inventory the value of the several items listed as disclosed by the investigation.
11.05 REPORTS OF RECEIVERS
(a) Time of Filing: The receiver shall file a first report at the time of filing the inventory, and additional reports annually thereafter. Special reports may be ordered by the Court and a final report shall be filed upon the termination of the receivership.
(b) Forms: The Court may prescribe forms to be used for reports of a receiver.
11.06 BONDS OF RECEIVERS
(a) Personal Sureties: Bonds with personal sureties shall be approved by the Court. Unless excused by the Court, sureties shall execute and file schedules of property in a form approved by the Court.
(b) Surety Companies: Bond with a corporation or association licensed to transact surety business in this State as surety will be approved only if a current certified copy of the surety's authority to transact business in the State, as issued by the Director of Insurance, is on file with the Clerk of the Court, and verified power of attorney or certificates of authority for all persons authorized to execute bonds for the surety is attached to the bond.