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

2. Except as provided under subsection 3, a person is disqualified from appointment as receiver if the person: a. Is an affiliate of a party; b. Has an interest materially adverse to an interest of a party; c. Has a material financial interest in the outcome of the action, other than compensation the court may allow the receiver; d. Has a debtor-creditor relationship with a party; or e. Holds an equity interest in a party, other than a noncontrolling interest in a publicly traded company.

3. A person is not disqualified from appointment as receiver because the person: a. 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; b. 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; or c. Maintains with a party a deposit account as defined under section 41-09-02.

4. A person seeking appointment of a receiver may nominate a person to serve as receiver, but the court is not bound by the nomination.