Use or transfer of receivership property not in ordinary course of business.

(1) For the purposes of this section, the term “good faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing.

(2) Before judgment is entered with respect to the receivership property in the action in which the receiver is appointed, with court approval after notice to all parties with an interest in the property, including all lienholders, and a hearing, a receiver may use or transfer by sale, lease, license, exchange, or other disposition receivership property other than in the ordinary course of business only if the owner of the property:

(a) After the commencement of the action in which the receiver is appointed, expressly consents in writing to the receiver’s proposed use or transfer of the receivership property, and the receiver notes the property owner’s express consent in the motion to approve the proposed use or transfer; or

(b) Before or at the hearing on the receiver’s motion to approve the use or transfer of the receivership property, fails to object thereto after the receiver in good faith has provided reasonable advance written notice to the property owner of the proposed use or transfer, and the receiver demonstrates in the motion that the proposed use or transfer is necessary to prevent waste, loss, substantial diminution in value, dissipation, or impairment of the property or its revenue-producing potential or to prevent a voidable transaction involving the property.

Service of notice to lienholders who are not parties to the action must be made as provided in chapter 48 for service of original process or, in the case of a financial institution lienholder, as provided in s. 655.0201. If service cannot be effectuated in such manner, upon authorization by court order, the receiver may effect service of notice on the nonparty lienholder pursuant to chapter 49 or as otherwise ordered by the court.

(3) After judgment is entered against the property owner and with court approval in the action in which the receiver is appointed, a receiver may use or transfer receivership property other than in the ordinary course of business to carry the judgment into effect or to preserve nonexempt real property pending appeal or when an execution has been returned unsatisfied and the owner refuses to apply the property in satisfaction of the judgment.

(4) The court may order that a transfer of receivership property under this section is free and clear of any liens on the property at the time of the transfer. In such case, any liens on the property, which were valid at the time of the transfer but extinguished by the transfer, attach to the proceeds of the transfer with the same validity, perfection, and priority the liens had on the property immediately before the transfer, even if the proceeds are not sufficient to satisfy all obligations secured by the liens.

(5) A transfer under subsection (3) may occur by means other than a public auction sale. A creditor holding a valid lien on the property to be transferred may purchase the property and offset against the purchase price part or all of the allowed amount secured by the lien if the creditor tenders funds sufficient to satisfy in full the reasonable expenses of transfer and the obligation secured by any senior lien extinguished by the transfer.

(6) A reversal or modification of an order approving a transfer under subsection (3) does not affect the validity of the transfer to a person that acquired the property in good faith or revive against the person any lien extinguished by the transfer, whether the person knew before the transfer of the request for reversal or modification, unless the court stayed the order before the transfer.