Rules of Practice - 5th Judicial Circuit of Illinois


Rule VII.

Receivers

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A. Disqualifications
Except as provided in (b) of this rule or any applicable statute, an appointment as receiver shall not be granted to an individual, or to a corporation having a principal 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 in the action
(3) is an officer, director, stockholder or employee of a corporation the asset 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 the receiver's duties as an officer of the court.

B. Exception
If the court is satisfied that the best interests of the estate would be served, an individual or a corporation otherwise disqualified under section (A) of this rule may be appointed as a 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.

C. Attorneys for Receivers
An attorney for the receiver shall be employed only upon the order of the court upon written motion of the receiver stating the reasons for the requested employment and naming the attorney to be employed.

D. Inventories of Receivers
No later than 30 days after his appointment the receiver shall file with the court a detailed report and inventory of all property, real or personal, of the estate and designating the property within his possession or control.

E. Appraisal for Receivers
(1) Appraisers
Appraisers for the receivers may be appointed only upon order of the court or agreement of the parties with the approval of the court. If the appraisers are appointed, they shall be selected by the court.
(2) 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.

F. Reports of Receivers
(1) Time of Filing
The receiver shall file an initial report at the time of filing an inventory and additional reports annually thereafter. special reports may be ordered by the Court and a final report shall be filed at the termination of receivership.
(2) Forms
The court may prescribe forms to be used for reports of a receiver.

G. Receiver's Bonds
(1) 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.
(2) 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.

RULE VII. - Receivers (page 1 of 1)