According to an article published in the Daily Business Review by Miami partner and creditors' rights attorney Michelle Hendler, receivers, lenders and investors should pay attention to recent developments by the Uniform Law Commission, a group of 350 commissioners appointed to "bring clarity and consistency" to various laws.
The ULC is recommending that the Uniform Commercial Real Estate Receivership Act be adopted in Florida. The Receivership Act would apply to receiverships for commercial real property and gives the receiver powers similar to a bankruptcy trustee. Receivers control and maintain property in order to preserve the value of the property and minimize liability and costs.
Although passage of the Act in Florida is unclear at best, says Michelle, it does provided a detailed guide and general standard in the industry where it previously did not exist, and could provide needed consistency and clarity in receiverships.
Read the full article, which details the differences between the Act and present Florida law, here.
About Michelle G. Hendler
Michelle G. Hendler is a partner in the Miami office of Shutts & Bowen and a member of its creditors' rights group. She regularly represents corporations, noteholders, lenders and special servicers in commercial foreclosures, loan enforcement actions, real property disputes, loan workouts and note sales. Read more about Michelle here.