Receivership Law and Legal Definition

Receivership is the process of appointment by a court, a contract, or a government official of a receiver to take custody of the property, business, rents and profits of an insolvent person or entity, or a party whose property is in dispute. A receiver may be authorized to make a sale or disposition of the property in receivership. On appointment of a receiver in most jurisdictions, a bond conditioned on the receiver's faithful performance of the duties and obligations of the receivership must be furnished before the receiver is authorized to act.