1. (a) The court may not appoint a person as receiver unless the person submits to the court a statement under penalty of perjury that the person is not disqualified.

2. (b) Except as otherwise provided in subsection (c), a person is disqualified from appointment as receiver if the person satisfies any of the following:

   1. (1) Is an affiliate of a party.
   2. (2) Has an interest materially adverse to an interest of a party.
   3. (3) Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver.
   4. (4) Has a debtor-creditor relationship with a party.
   5. (5) Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.

3. (c) A person is not disqualified from appointment as receiver solely because the person satisfies any of the following:

   1. (1) Was appointed receiver or is owed compensation in an unrelated matter involving a party or was engaged by a party in a matter unrelated to the receivership.
   2. (2) Is an individual obligated to a party on a debt that is not in default and was incurred primarily for personal, family, or household purposes.
   3. (3) Maintains with a party a deposit account as defined in Section 7-9A-102(a).
4. (d) A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.

(Act 2024-380, §7.)