Almost every commercial mortgage in Florida contains a clause authorizing the lender to seek the appointment of a receiver in the event of a borrower’s default. However, despite that contractual authority, there has never been statutory guidance for courts when presented with lenders’ requests for the appointment of a receiver—until now. Instead, there was an uneven patchwork of decisions by Florida courts as to the necessity and scope of a receiver’s appointment. Florida’s Uniform Commercial Real Estate Receivership Act (UCRERA; codified at Fla. Stat. Ch. 714), which became effective on July 1, provides needed clarity and consistency for both lenders and courts.

UCRERA only applies to commercial loans in Florida, and it is only directed toward loans that are secured with commercial real estate, although it also extends to loans that also include personal property, so long as that property is used in the operation of the commercial real estate. It specifically exempts homestead property and personal property that is used primarily for personal, family or household purposes.

The Appointment of a Receiver

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