Disqualification from appointment as receiver; disclosure of interest

(a) Any person, whether or not a resident of this State, may serve as a receiver unless the person is disqualified under this Act. (b) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified. (c) Except as otherwise provided in subsection (d), a person is disqualified from appointment as receiver if the person: (1) is an affiliate of a party or the judge presiding over the receivership; (2) has an interest materially adverse to an interest of a party; (3) has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver; (4) has a debtor-creditor relationship with a party; (5) holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company; (6) is a sheriff of any county; or (7) is otherwise prohibited from acting as an agent of the court under the laws of this State. (d) A person is not disqualified from appointment as receiver solely because the person: (1) was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership; (2) is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes; or (3) maintains with a party a deposit account as defined in Section 9-102(a)(29) of the Uniform Commercial Code. (e) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination. (Source: P.A. 104-34, eff. 1-1-26 .)