§ 63-1-1930.3. Powers and duties of receiver – Liability - Limited duration license.

A.  The court may appoint any qualified person as a receiver, except it shall not appoint any owner or affiliate of the facility which is in receivership as its receiver.  The State Department of Health shall maintain a list of such persons to operate facilities which the court may consider.

B.  The receiver shall make provisions for the continued health, safety and welfare of all residents of the facility.

C.  A receiver appointed under this section shall exercise those powers and shall perform those duties set out by the court.  These powers and duties may include those generally ascribed to receivers and receiverships and may also include the powers and duties of trustees under the 1978 Bankruptcy Code.  The court shall provide for the receiver to have sufficient power and duties to ensure that the residents receive adequate care.

D.  All funds due to the facility from any source during the pendency of the receivership shall be made available to the receiver who shall use the funds to assure the health and safety of the facility’s residents.

E.  A receiver may be held liable in a personal capacity only for the receiver’s own gross negligence, intentional acts or breaches of fiduciary duty.

F.  Other provisions of this section notwithstanding, the Department may issue a license to a facility placed in receivership.  The duration of a license issued under this section is limited to the duration of the receivership.

Added by Laws 2002, c. 230, § 12, eff. Nov. 1, 2002.