Temporary Receiver Appointed to Operate Landlord's Buildings

Landlord of several mortgaged buildings sought appointment during a court action of a temporary receiver to act on landlord's behalf while the case was pending. The court ruled for landlord, named a temporary receiver, and directed the receiver to post an undertaking of $250,000 as a condition to ensure his faithful discharge of duties. Among the receiver's duties listed in the court order were collection of rents and commencement of legal proceedings needed to protect the properties or seek evictions. The court also ordered anyone holding any security deposits or advance rents on landlord's behalf, as well as any lease records or registration statements, to turn them over to the temporary receiver. The receiver in turn had to deposit security deposits into an FDIC-insured bank account and to provide landlord with monthly statements concerning receipts and expenditures. The receiver also could lease any units for terms not exceeding one year, must keep the buildings insured, and pay taxes and expenses to operate the buildings.

339 Lenox Acquisition LLC v. Lenox Ave. Devs. LLC: Index No. 850026/2020, 2020 NY Slip Op 30720(U)(Sup. Ct. NY; 3/6/20; Bluth, J)