78B-21-107. Disqualification from appointment as receiver -- Disclosure of interest.
(1) 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) Except as otherwise provided in Subsection, a person is disqualified from appointment as receiver if the person: (3) is an affiliate of a party; has an interest materially adverse to an interest of a party; has a material financial interest in the outcome of the action, other than the compensation the court may allow the receiver; has a debtor-creditor relationship with a party; or 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 solely because the person: 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; 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 maintains with a party a deposit account as defined in Section. 70A-9a-102
(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.