An ancillary receiver is a person appointed to assist and support a foreign receiver in managing the assets of an insolvent corporation. This role is specifically designated for jurisdictions where the ancillary receiver is appointed, allowing them to collect and oversee the assets under their control while remaining subordinate to the foreign receiver's authority.
The term "ancillary receiver" is primarily used in bankruptcy and insolvency law. It applies when a corporation is facing insolvency in multiple jurisdictions, necessitating the appointment of receivers to manage assets in different locations. This role is crucial in ensuring that the assets are handled properly and in accordance with the laws of the respective jurisdictions.
Users may encounter this term when dealing with bankruptcy filings, asset management, or when navigating complex insolvency proceedings. Legal templates from US Legal Forms can assist individuals in understanding and managing related documentation.
Here are a couple of examples of abatement:
Example 1: A corporation based in New York declares bankruptcy but has assets in California. The court appoints an ancillary receiver in California to manage those assets while the primary receiver in New York oversees the overall bankruptcy process.
Example 2: (hypothetical example) A multinational company faces insolvency in several countries. An ancillary receiver is appointed in each country to handle local assets, ensuring that the process aligns with both local and international laws.
| State | Key Differences |
|---|---|
| California | May have specific requirements for the appointment process of ancillary receivers. |
| New York | Typically follows a more streamlined process due to established bankruptcy laws. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Key Difference |
|---|---|---|
| Receiver | A person appointed to manage the assets of a corporation in distress. | Ancillary receivers operate under the authority of a foreign receiver. |
| Trustee | An individual or organization that holds and manages assets for the benefit of others. | Trustees may have broader responsibilities than ancillary receivers, who focus on specific jurisdictions. |
If you find yourself needing to understand or engage with the role of an ancillary receiver, consider the following steps:
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| Attribute | Details |
|---|---|
| Typical Fees | Varies based on jurisdiction and complexity of the case. |
| Jurisdiction | Depends on where the ancillary receiver is appointed. |
| Possible Penalties | Non-compliance with local laws can result in legal penalties. |
The main role is to manage and oversee the assets of an insolvent corporation in a specific jurisdiction while supporting a foreign receiver.