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Commercial Receivership Bill Introduced to Missouri Senate

On January 12, 2015, the Missouri Commercial Receivership Act was introduced to the Missouri Senate as SB 216. Currently, Missouri law regarding receiverships is largely based on case law, in addition to very limited statutory authority. As a result, the status of the law can be somewhat confusing. Conversely, the proposed Act provides a complete statutory structure for the appointment of receivers and the administration of receiverships.

Specifically, the Act would clarify the manner in which receivers are appointed to take control of the assets and business operations of commercial entities. Further, the proposed Act seeks to clarify the powers and rights granted to receivers. If adopted, the Act would also provide procedures for parties in interest to receive notice of receivership proceedings and would provide for a claims administration process.

Although your bank may not regularly deal with receiverships, many banks do, unfortunately, end up in involved in receiverships periodically. Accordingly, the proposed Act may be significant to your bank. If adopted, the bill will become effective on August 28, 2015. More information, including a full text of the bill is available here.