receiver

1. Independent, impartial party appointed by a court to receive, manage, and preserve (1) a disputed property which is the subject matter of a court case, pending final disposition of the lawsuit, or (2) an endangered property for the benefit of those who are entitled to it.

2. Independent party (usually a practicing accountant) appointed by a court, or by an entity's creditors under the terms of a debenture, when a debtor (1) fails to comply with the terms of the loan agreement, (2) is deemed to be in serious financial difficulties by the secured creditors, (3) certain events or circumstances threaten the viability of the business and, hence, the money owed by it. The receiver is mandated to take control (but not the title to) the pledged assets or the property to which debt is charged (and nothing else) to collect sufficient amount to repay the debt (plus his or her fees or expenses). Receivers are usually granted very wide powers and, in addition, they assume the powers of the directors. Although a receiver must try to save the firm, in practice nearly every firm in receivership is either sold or liquidated. Notice of the appointment of a receiver must be given to the appropriate authorities, and all stationery and official documents (invoices, letters, orders, receipts, etc.) of the firm must bear the notice of receivership. Called also administrative receiver.