Receivership

Receivership

This note gives an overview of the types of receiverships available and some of the effects of appointing a receiver.

The appointment of a receiver is a remedy for creditors and other third parties to protect their interest in assets. They can be appointed by a court, or by a vesting document, and their powers are usually limited to the appointment document, compared to other office-holders such as liquidators and administrators.

Types of receivership

There are several different types of receivers:

•
fixed charge receiver or Law of Property Act receiver (LPA receiver)
•
administrative receiver
•
court-appointed receiver
•
Proceeds of Crime Act receiver
•
Agricultural Credits Act receiver

For more detailed information, see Practice Note: Receivership—an introductory guide.

Fixed charge receiver or Law of Property Act receiver (LPA receiver)

A mortgagee can appoint an LPA receiver pursuant to section 101(1)(iii) of the Law of Property Act 1925 (LPA 1925) whereas a fixed charge receiver is appointed pursuant to the terms of the fixed charge contained in the security document. The terms LPA receiver and fixed charge receiver are often, confusing, used interchangeably. In practice,

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