Legal Blog

Maryland Commercial Receivership Act Becomes Law

The Maryland Commercial Receivership Act (“MCRA”) (new Title 24 to the Commercial Law Article of the Annotated Code of Maryland) was signed into law by Governor Hogan on April 30, 2019.  The MCRA will go into effect on October 1, 2019.

Passed unanimously by both chambers of the Maryland General Assembly, MCRA promotes certainty and uniformity in an area of the law that historically has varied from county to county and courthouse to courthouse.

State court receiverships are involuntary judicial proceedings brought by either creditors or government regulators to preserve, maintain and dispose of property located within the state.  While receiverships date back to the early 1800’s, there was little case law and statutory guidance before MCRA regarding the appointment and powers of a receiver.  Under MCRA, the receiver is expressly given the power to sell property free and clear of liens (under enumerated conditions), to assume or reject executory contracts, to operate a business, to avoid preferences and fraudulent transfers, and to hire and compensate professionals.

MCRA will apply to most commercial real estate receiverships, and receiverships filed on dissolution of a corporation, and in which a receiver is appointed to wind up a business.  Receiverships initiated by a Maryland government regulator are excluded from MCRA unless the regulator or its receiver elects for MCRA to apply, or the court so orders, for cause.

Except in the case of a real estate receivership and with respect to certain enumerated exemptions, the appointment of a receiver will result in an automatic stay of all actions as to receivership property.  A creditor may obtain relief from the stay for cause.  As in bankruptcy cases, actions of a government regulator exercising its police or regulatory power are not stayed.

If you would like to discuss MCRA, please contact Joyce A. Kuhns.  Ms. Kuhns was a member of the special committee of lawyers and professionals who drafted the initial legislation.  She testified before both Houses of the Maryland General Assembly in support of enacting MCRA.

For a more detailed discussion of receiverships, go to Receiverships 2019: The Bankruptcy Option Revisited.


If you have any question on this topic, please contact Joyce at or 410.209.6463.



ABOUT JOYCE KUHNS | 410.209.6463

With extensive experience at the national and regional levels, Joyce Kuhns brings her in-depth knowledge in delivering creative solutions to help transform financial challenges to successful outcomes. Whether representing businesses as debtors or creditors, creditors’ committees or equity committees, or as an advisor to trustees or regulators, Joyce’s understanding of the complexities of financial and business structures and her experience with out-of-court resolutions as well as litigation at the trial through appellate levels enables her to provide critical strategic advice from the boardroom to the courtroom to a broad spectrum of clients at every stage of the business cycle including directors and officers of companies in crisis. A pragmatic problem-solver, Joyce uses her cross-disciplinary legal skills to meet the daily business needs of her clients and to help reshape their future.






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