Act of Congress Allowing Governmental Entities to be Receivers in Receivership Act

[eatean]

CONGRESS OF THE
COMMONWEALTH OF REDMONT
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A BILL TO

ALLOW GOVERNMENTAL ENTITIES TO BE RECEIVERS




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The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:


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PART I — PRELIMINARIES

1. Short Title and Enactment

(1) This Act may be cited as the ‘Allowing Governmental Entities to be Receivers in Receivership Act’

(2) This Act shall be enacted immediately upon its signage.

(3) This Act has been authored by Representative eatean.

(4) This Act has been co-sponsored by Representative Strataguy1.

(5) This Act amends the following acts:

(a) Redmont Corporate Entities Act

2. Reasons and Intent

(1) The Department of Commerce currently has to place legal entities into the receivership of individuals rather than the department itself.

(2) Thus, this opens up one additional option for the Department of Commerce to use for receivership.

PART II — Amendments

4. Amendments to Section 75

(1) A legal entity in receivership is led by a receiver, who may be a governmental entity.

 

[EmeraldGuuy]

- sure why not

 

[unalign]

- i mean, i guess, DoC doesn't mind it, might be useful somehow, i dont know how, but this doesnt add any complexity or paperwork so sure

 

[antonfr]

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Presidential Assent

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The Allowing Governmental Entities to be Receivers in Receivership Act lets the Department of Commerce place a failing legal entity into receivership under a governmental entity, instead of only under an individual. Section 75 of the Redmont Corporate Entities Act currently says a legal entity in receivership is led by a receiver, and in practice that has meant finding a private person willing to take the job. The bill adds one option, which is that the receiver may be a governmental entity, so the Department can step in itself when no suitable individual is available.

It is a small and sensible change. It solves a real problem, because it removes an obstacle the Department runs into, and it does so without taking away the existing option of appointing an individual.

However: the bill does not define “governmental entity”, so it is unclear which bodies qualify. It also does not say who acts for that entity as receiver, or who is accountable if the receivership goes badly. Part II is numbered “4” although there is no section 3, and “signage” should say “assent”. The Office of Congressional Affairs can tidy the numbering, but the missing definition and accountability are worth a future amendment.

Overall, this is a practical, narrowly drafted fix that gives the Department of Commerce a useful tool.

I thank Representative eatean for authoring this bill, Representative Strataguy1 for cosponsoring it, and Congress for passing it.

This bill has been granted assent and is hereby signed into law.

antonfr
President of the Commonwealth of Redmont​