Section 35-NEW - [Newly enacted section not yet numbered] [Effective 1/1/2025] Notice of appointment; claim against receivership; distribution to creditors(a) Except as otherwise provided in subsection (f), a receiver shall give notice of appointment of the receiver to creditors of the owner by both of the following: (1) First-class mail addressed to the last known address of the creditor, or by other mechanism reasonably calculated to provide actual notice, to all creditors with claims against the receivership property who are known or reasonably ascertainable by the receiver within 30 days after appointment.(2) Publishing a notice once a week for three successive weeks in a newspaper of general circulation published in the county in which the receiver was appointed, or if none is published in the county, in the one published nearest to the courthouse thereof or in an adjoining county.(b) Except as otherwise provided in subsection (f), the notice required by subsection (a) must specify the date by which each creditor holding a claim against the owner which arose before appointment of the receiver must submit the claim to the receiver. The date specified must be at least 90 days after the later of notice under subdivision (a)(1) or last publication under subdivision (a)(2). The court may extend the period for submitting the claim. Unless the court orders otherwise, a claim that is not submitted timely is not entitled to a distribution from the receivership.(c) A claim submitted by a creditor under this section must satisfy all of the following:(1) State the name and address of the creditor.(2) State the amount and basis of the claim.(3) Identify any property securing the claim.(4) Be signed by the creditor under penalty of perjury.(5) Include a copy of any record on which the claim is based.(d) An assignment by a creditor of a claim against the owner is effective against the receiver only if the assignee gives timely notice of the assignment to the receiver in a signed record.(e) At any time before entry of an order approving a receiver's final report, the receiver or any interested party may file with the court an objection to a claim of a creditor stating the basis for the objection. The court shall allow or disallow the claim according to the law of this state other than this act.(f) If the court concludes that receivership property is likely to be insufficient to satisfy claims of each creditor holding a perfected lien on the property, the court may order both of the following:(1) That the receiver need not give notice under subsection (a) of the appointment to all creditors of the owner, but only to such creditors as the court directs.(2) That unsecured creditors need not submit claims under this section.(g) Subject to Section 21:(1) A distribution of receivership property to a creditor holding a perfected lien on the property must be made in accordance with the creditor's priority under the law of this state other than this act; and(2) A distribution of receivership property to a creditor with an allowed unsecured claim must be made as the court directs according to the law of this state other than this act, pro rata as to the allowed amount.Ala. Code § 35-NEW (1975)
Added by Act 2024-380,§ 20, eff. 1/1/2025.