A receiver assumes control of all the property subject to the receivership but does not take title to the property and cannot exercise control over property outside the territorial authority of the court. Any property that has already been transferred in a fraudulent sale designed to cheat creditors is beyond the reach of the receiver; however, the receiver has the power to initiate a lawsuit, requesting that the court set aside the transfer. Any rights, such as liens or mortgages, that others have in the property remain valid. Anyone in possession of property listed in the receivership order can be compelled to turn it over to the receiver. A refusal to comply, or interference with the receivership, is punishable as a CONTEMPT of court.
A receiver does not represent the individual whose property is being administered, since the receiver is an officer of the court and is responsible to the court for protecting the interests of all opposing parties fairly. Where it is not clear how the receiver must perform his or her duty, he or she may properly apply to the court for instructions. He or she can be removed and held financially liable for failure to obey orders of the court, for neglect of duties, or for abuse of authority. The receiver must exercise judgment in fulfilling the duties, and her decisions must be reasonable. The receiver might be required to post a bond to ensure faithful performance of the duties and is required to account to the court at regular intervals for all the property entrusted to her during, and at the termination of, the appointment.