Effective March 23, 2015, lenders foreclosing commercial mortgages in Ohio are playing by new rules. The revisions to Ohio’s receivership law, O.R.C. § 2735.01 et seq., clarify a receiver’s authority and, most importantly, codify a receiver’s authority to sell the property free and clear of all liens. However, while a receiver can sell property free and clear of a lender’s interest, the new legislation also provides that “the court may require that the receiver solicit and consider additional offers.” This addition benefits lenders by providing the court a mechanism to ensure the property is sold at the highest price. For additional details see O.R.C. § 2735.04.
- New Ohio Receivership Laws: A Mixed Bag for Lenders - May 5, 2015