Bill > SB1791

This bill aims to protect the rights of individuals or entities holding a "superior interest" in property that is subject to a receivership proceeding, which is a legal process where a court appoints someone to manage an asset or business. Essentially, a superior interest means a claim to the property that has priority over other claims under state law, such as a prior recorded mortgage or a first-filed Uniform Commercial Code (UCC) financing statement, which are common ways to secure loans. The bill clarifies that a receivership proceeding cannot interfere with these superior interests unless the holder of that interest explicitly agrees to it. It also specifies that a judge cannot limit, impede, or stop a superior interest holder from enforcing their rights, and that taking action to enforce these rights does not automatically mean they consent to the receivership. Furthermore, if a superior interest holder intervenes in a receivership to have their priority confirmed by the court, this action will not be considered consent to the receivership, and if their interest is indeed found to be superior, they will be awarded reasonable attorney's fees and costs.

Justice

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1791&ga=114