§ 55-21-7

W. Va. Code § 55-21-7

Disqualification from appointment as receiver; disclosure of interest.

  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) of this section, a person is disqualified from appointment as receiver if the person:

    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; or
    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:

    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; or
    3. (3) Maintains with a party a deposit account as defined in §46-9-102(a)(29) of this code.
  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.
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