Section 515.590

Title XXXV CIVIL PROCEDURE AND LIMITATIONS

Chapter 515

Effective - 28 Aug 2016   

  515.590.  Unsecured credit or debt, receiver may obtain, when. — 1.  If a receiver is authorized to operate the business of a debtor or manage a debtor's property, the receiver may obtain unsecured credit and incur unsecured debt in the ordinary course of business as an administrative expense of the receiver without order of the court.

  2.  The court after notice and a hearing may authorize a receiver to obtain credit or incur debt other than in the ordinary course of business.  The court may allow the receiver to mortgage, pledge, hypothecate, or otherwise encumber estate property as security for repayment of any debt that the receiver may incur, including that the court may provide that additional credit extended to a receiver by a secured creditor of the debtor be afforded the same priority as the secured creditor's existing lien.

  3.  When determining the propriety of allowing a receiver to obtain credit or incur debt pursuant to subsection 2 of this section, the court shall consider the likely impact on the interests of unsecured creditors of the debtor.

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(L. 2016 H.B. 1765 merged with S.B. 578)