RECEIVERSHIP

Can an association be placed into receivership by a Court under state law?

Yes. State law provides courts wide latitude in appointing receivers including in cases “where necessary to preserve the property rights of any party.” Typically though, the request to place an entity into receivership is done during the pendency of an existing action (e.g. the dissolution of a corporation), rather than the request itself being the underlying cause of action. (Code of Civil Procedure §564)