Section 24-203 - Disqualification(a) A court may not appoint a person as a receiver unless the person provides a statement under penalty of perjury that the person is not disqualified under subsection (b) of this section.(b) Except as otherwise provided in subsection (c) of this section, a person is disqualified from appointment as a receiver if the person:(1) Is an affiliate of a party;(2) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver;(3) Has a debtor-creditor relationship with a party;(4) Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company;(5) Is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver;(6)(i) Has been convicted of a felony or any other crime involving moral turpitude; or(ii) Is supervised by or an employee of a person who has been convicted of a felony or any other crime of moral turpitude;(7)(i) Has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or(ii) Is controlled by a person who has been found liable in civil court for fraud, breach of fiduciary duty, theft, or similar misconduct; or(8) Otherwise has an interest materially adverse to an interest of a party or the receivership estate, or of any creditor or equity security holder, by reason of any direct or indirect relationship to, connection with, or interest in the owner.(c)(1) A person is not disqualified from appointment as a receiver solely because the person: (i) Was appointed as a receiver of another receivership;(ii) Is owed compensation in an unrelated matter involving a party;(iii) Was engaged by a party in a matter unrelated to the receivership;(iv) Is an individual obligated to a party on a debt that: 1. Is not in default; and2. Was incurred primarily for personal, family, or household purposes; or(v) Maintains with a party a deposit account as defined in § 9-102(a)(29) of this article.(2) Notwithstanding subsection (b)(5) of this section, a person who is or was a director, an officer, or an employee of the owner within 2 years immediately preceding the appointment of the receiver is not disqualified from appointment as a receiver if the court:(i) Appoints the person as a receiver; and(ii) Determines that:1. The appointment would be in the best interest of the receivership estate; and2. The person is not disqualified for a reason listed in subsection (b)(1) through (4) or (b)(6) through (8) of this section.(d)(1) A person seeking appointment of a receiver may nominate a person to serve as receiver.(2) A court is not bound by a nomination received under paragraph (1) of this subsection.Added by 2019 Md. Laws, Ch. 284,Sec. 1, eff. 10/1/2019.