Ill. R. Cir. Ct. Lake Cnty. 6-1.01

As amended through September 23, 2024

Rule 6-1.01 - Appointment of Receivers

A. A receiver shall in all cases be a resident of this State or a corporation authorized to act as receiver, which corporation may be a domestic corporation or a foreign corporation authorized to transact business in this state, and shall give such bond as the Court may direct with such sureties as the Court may require.

B. Except as provided in Section C of this Rule or any applicable statute, an appointment as receiver shall not be granted to an individual, or to a corporation having a principal officer who:

1. is related by blood or marriage to a party or attorney in the action or to a Judge presiding in the matter;

2. is an attorney for, or of counsel for any party in the action;

3. is an officer, director, stockholder, or employee of a corporation the assets of which are in question; or

4. stands in any relation to the subject of the controversy that would tend to interfere with the impartial discharge of his duties as an officer of the Court.

C. If the Court is satisfied that the best interests of the parties would be served, an individual or corporation otherwise disqualified under Section B of this Rule may be appointed as receiver by an Order specifically setting forth the reason for departing from the general rule. A receiver so appointed shall serve wholly without compensation, unless otherwise ordered by the Court upon good cause shown.

D. An attorney for the receiver shall be employed only upon Order of the Court based upon written Motion of the receiver stating the reasons for the requested employment and naming the attorney to be employed. No attorney shall be employed for the receiver who is directly or indirectly interested in the action or in the receivership estate. The Court may require upon the request of any party, that any attorney so employed establish, by affidavit or otherwise, that no such interest exists.

E. A Petition for the appointment of a receiver shall set forth sufficient facts to warrant the appointment; mere conclusions will not suffice.

F. The Petition for the appointment of a receiver shall provide for bond to the adverse party in such amount as the Court may order and with security to be approved by the Court conditioned to pay all damages including reasonable attorney's fees sustained by reason of the appointment and acts of such receiver.

G. Bond need not be required, when for good cause shown, and upon Notice and full hearing, the Court is of the opinion that a receiver ought to be appointed without such bond. The Order appointing the receiver must specifically excuse the bond requirement and set forth facts or the specific reason why bond is not required.

Ill. R. Cir. Ct. Lake Cnty. 6-1.01

Amended effective 10/24/2016.