receiver

The term receiver has two distinct legal meanings depending on context:

Civil and Equitable Receiver

In civil law, a receiver is a neutral person, often a professional fiduciary or trustee, appointed by a court to take custody of, manage, or preserve property that is the subject of litigation. The receiver acts as an officer of the court, not as an agent of any party, and exercises authority under the court’s supervision to prevent waste, fraud, or loss of the property in dispute.

As stated by the U.S. District Court for the Middle District of North Carolina in SEC v. Elfindepan, S.A., 169 F. Supp. 2d 420, 426 (M.D.N.C. 2001), quoting American Jurisprudence 2d on Receivers, a receiver is “an officer of the court occupying the position of a custodian of the property in receivership.” The court emphasized that a receiver must act in good faith and with impartiality, owing duties to all persons with an interest in the property.

Receivers may be appointed for general management or for specific purposes, such as to oversee mortgaged property (See: First Interstate Bank v. Heritage Square, Ltd., 833 F. Supp. 1349 (D. Mont. 1993)).

Under California Code of Civil Procedure § 564, courts may appoint receivers in a range of situations, including:

  • In foreclosure actions where property is in danger of being lost, removed, or materially injured (§ 564(b)(2));
  • When a corporation is dissolved, insolvent, or in danger of insolvency (§ 564(b)(5)–(6));
  • In any other case where necessary to preserve property or protect the rights of parties (§ 564(b)(10)).

At the federal level, Federal Rule of Civil Procedure 66 and 28 U.S.C. §§ 754 and 959 authorize federal courts to appoint receivers in accordance with equitable principles. The Eighth Circuit in Aviation Supply Corp. v. R.S.B.I. Aerospace, Inc., 999 F.2d 314, 316–17 (8th Cir. 1993), outlined key factors for appointment, including:

Once appointed, the receiver owes a fiduciary duty to manage and preserve the property for the benefit of all parties. As the Supreme Court of Hawai‘i observed in Hawaii Ventures, LLC v. Otaka, Inc., 114 Haw. 438, 164 P.3d 696, 737 (2007), the purpose of a receivership is to allow the court to “accomplish complete justice between the parties,” preserving property pending final disposition to ensure that all interests are protected.

Receiver in a Criminal Law Context

In criminal law, a receiver is a person who commits the offense of receiving stolen property, knowing it was obtained unlawfully. For example, under California Penal Code § 496(a), “[e]very person who buys or receives any property that has been stolen or obtained in any manner constituting theft or extortion, knowing the property to be so stolen or obtained,” is guilty of a crime punishable by imprisonment for up to one year. See: People v. Bussey, 24 Cal. App. 5th 1056, 235 Cal. Rptr. 3d 348 (2018).

[Last reviewed in November of 2025 by the Wex Definitions Team]

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