NMSA 1978, § 44-8-1 Short title
44-8-1. Short title
This act [44-8-1 to 44-8-10 NMSA 1978] may be cited as the "Receivership Act".
Laws 1995, ch. 81, § 1.
Receivership Act
NMSA 1978 ch. 44, art. 8
in effectNMSA 1978, § 44-8-2 Purpose
44-8-2. Purpose
The purpose of the Receivership Act [44-8-1 NMSA 1978] is to provide a framework for the creation and administration of receiverships.
Laws 1995, ch. 81, § 2.
NMSA 1978, § 44-8-3 Definitions
44-8-3. Definitions
As used in the Receivership Act [44-8-1 NMSA 1978]:
A. "applicant" means an interested person who seeks the appointment of a receiver;
B. "business entity" means a sole proprietorship, a profit or nonprofit corporation, a general or limited partnership, business trust, joint venture or other enterprise composed of one or more persons or entities;
C. "interested person" means any secured or unsecured creditor, a shareholder of a corporation, a general or limited partner of a partnership or a person jointly owning or interested in a receivership estate; and
D. "receivership estate" means tangible and intangible property, its proceeds, profits, substitutions, additions, fixtures and accretions for which a receiver is sought.
Laws 1995, ch. 81, § 3.
NMSA 1978, § 44-8-4 Grounds for appointing a receiver
44-8-4. Grounds for appointing a receiver
A. Upon application to a district court, the district court shall appoint a receiver in an action by a mortgagee or secured party or in any other action based upon a contract or other written agreement, where such mortgage, security agreement, contract or other written agreement provides for the appointment of a receiver.
B. Upon application to a district court, the district court may appoint a receiver:
(1) when specific statutory provisions authorize the appointment of a receiver;
(2) in an action between or among persons owning or claiming an interest in the receivership estate;
(3) in actions where receivers have customarily been appointed by courts of law or equity;
(4) when a receiver has been appointed for a business entity or other person by a court of competent jurisdiction in another state, and that receiver seeks to collect, take possession or manage assets of the receivership estate located in New Mexico; or
(5) in any other case where, in the discretion of the district court, just cause exists and irreparable harm may result from failure to appoint a receiver.
Laws 1995, ch. 81, § 4.
NMSA 1978, § 44-8-5 Application for appointment of a receiver
44-8-5. Application for appointment of a receiver
A. An applicant may apply to the district court for the appointment of a receiver by motion in an action already pending or by a separate petition or complaint.
B. An application for the appointment of a receiver shall be verified and shall contain:
(1) a description of the receivership estate, including the estimated gross monthly income if known, for which the applicant seeks a receiver;
(2) the location of the receivership estate;
(3) a description of the applicant's interest in the receivership estate;
(4) a statement showing that venue in the district court is proper;
(5) a statement of the grounds for the appointment of a receiver; and
(6) a nomination of the proposed receiver.
C. An ex parte hearing to appoint a receiver may be held without written or oral notice to the adverse party or his attorney only if:
(1) it clearly appears from specific facts shown by affidavit or by the verified application that immediate and irreparable injury, loss or damage will result to the applicant or others before the adverse party's attorney can be heard in opposition; and
(2) the applicant's attorney certifies to the court in writing the efforts, if any, that have been made to give the notice and the reasons supporting the attorney's claim that notice should not be required.
D. Every application, proceeding and order for appointment of a receiver granted without notice shall comply with the Rules of Civil Procedure for the District Courts of New Mexico pertaining to temporary restraining orders and appointment of receivers ex parte.
Laws 1995, ch. 81, § 5; 1996, ch. 35, § 10.
NMSA 1978, § 44-8-6 Qualifications for receivers
44-8-6. Qualifications for receivers
A receiver shall meet the following qualifications:
A. the person must be at least eighteen years of age or a corporation or other business entity in good standing authorized to do business in New Mexico;
B. the person must not be otherwise disqualified under applicable state or federal law to administer the receivership estate;
C. before entering on his duties as receiver, the receiver shall sign and file a consent to act as receiver; and
D. upon request and a showing of good cause by an interested party, the district court may require the receiver to post a bond unless the mortgage, security agreement, contract or other written agreement dispenses with the posting of bond. The amount of the bond shall be as ordered by the court.
Laws 1995, ch. 81, § 6.
NMSA 1978, § 44-8-7 Powers and duties of receivers
44-8-7. Powers and duties of receivers
Unless otherwise ordered by the district court, a person who acts as a receiver shall:
A. prepare an inventory of the receivership estate within thirty days of appointment and file that inventory with the district court;
B. collect and manage the receivership estate in a reasonable and prudent manner;
C. file monthly operating reports with the district court and provide copies to all parties who have entered an appearance and allow such parties reasonable access to the books and records of the receivership;
D. enter into contracts reasonably necessary to operate, maintain and preserve the receivership estate;
E. take possession of all available books, records and other documents related to the receivership estate;
F. lease assets of the receivership estate in accordance with the powers and limitations contained in the original order of appointment;
G. bring and defend actions in his capacity as receiver to maintain and preserve the receivership estate;
H. subject to prior order of the district court, engage and retain attorneys, accountants, brokers or any other persons and pay their compensation or fees, sell or mortgage property of the receivership estate, borrow money for the receivership estate, make distributions of receivership proceeds to any party or pay compensation to the receiver; and
I. exercise any other powers expressly granted by statute or an order of the district court.
Laws 1995, ch. 81, § 7.
NMSA 1978, § 44-8-8 Compensation
44-8-8. Compensation
A receiver and an attorney, accountant, broker and other person duly engaged and retained by the receiver shall be entitled to receive reasonable compensation, to be paid from the receivership estate, in a sum to be fixed or approved by the district court, for services rendered to the receivership estate.
Laws 1995, ch. 81, § 8.
NMSA 1978, § 44-8-9 Removal, death, resignation, substitution and discharge of receiver; termination of receivership
44-8-9. Removal, death, resignation, substitution and discharge of receiver; termination of receivership
A. Upon notice and hearing, a receiver may be removed either upon application by an interested person or upon the district court's own motion.
B. The death, resignation or substitution of a receiver, the expiration of a receiver's term of appointment or the dismissal of the action in which a receiver was appointed shall not have the effect of terminating the receivership.
C. A receiver may not resign except by leave of the district court. Leave shall be sought by motion and hearing unless the agreement of all parties obviates the need for a hearing. Leave may provide for the discharge of a receiver, and leave and discharge may be conditioned upon:
(1) the substitution of another receiver;
(2) the preparation and filing of a receiver's report;
(3) the preparation and filing of an accounting;
(4) the delivery of receivership property, accounts and books to a successor or to a person appointed by the district court;
(5) the consent of all interested persons;
(6) the termination of the receivership;
(7) the conclusion of litigation to which a receiver is party; or
(8) such other terms as the district court may order.
D. In the event of the death, resignation or removal of a receiver, the district court shall appoint a successor receiver to oversee a receivership estate. A receiver so appointed succeeds to the powers of his predecessor.
E. Upon disposition of the action concerning the receivership estate, the district court shall enter an order that discharges the receiver from his duties and releases him from any claim or demand of any interested person. Upon the termination of the receiver's duties, the receiver shall prepare and file a final report and account of the receivership and serve it upon all parties who have entered an appearance. Any objections to the receiver's final account and report and claims to surcharge must be filed within ten days of service. Upon settlement of the receiver's final account and report, the district court shall enter an order discharging the receiver from all further duties, releasing him from any claim or demand of any interested person and exonerating any bond that the receiver has been required to post in connection with the receivership.
Laws 1995, ch. 81, § 9.
NMSA 1978, § 44-8-10 Appeal and stay of appointment of a receiver
44-8-10. Appeal and stay of appointment of a receiver
If an appeal is taken from a district court from a judgment or an order appointing a receiver, perfecting of an appeal from such judgment or order shall not stay enforcement of the judgment or order unless a bond, in a sum fixed by the district court, is given and posted on condition that if the judgment or order is affirmed on the appeal, or if the appeal is withdrawn or dismissed, the appellant will pay all costs and damages that the respondent may sustain by reason of the stay in the enforcement of the judgment or order.
Laws 1995, ch. 81, § 10.
Source: New Mexico Compilation Commission (nmonesource.com)URL: https://nmonesource.com/nmos/nmsa-unanno/en/item/18545/index.doFetched: 10/20/2026