§ 1897. Disposition of litigated property-Order-Form "When it is admitted, by the pleading or oral examination of a party, that he has in his possession or under his control any money or other thing capable of delivery, which, being the subject of litigation, is held by him as trustee for another party, or which belongs or is due to another party, the court may order the same to be deposited in court or delivered to such party, with or without security, subject to the further direction of the court." 87

(Caption.)

ORDER DISPOSING OF LITIGATED PROPERTY

It appearing to the satisfaction of the court that E. F. has in his possession and under his control the following described personal property, to wit: (Describing same), which property is the subject of litigation in this action, that the same is held by him as trustee for one G. H., and that he, the said E. F., trustee, disclaims any interest therein:

It is ordered that said E. F. deliver the said property to J. K., who is hereby authorized to receive the same under the following conditions: (Setting forth conditions), the said receiver thereof, J. K., to hold the same subject to the further direction and orders. of this court.

The appointment of a receiver to take charge of the property belonging to a person does not have the effect in law of changing or annulling contracts made by such party before the receiver's appointment.88

§ 1899. Investment of funds-Application-Order-Forms

"Funds in the hands of a receiver may be invested upon interest, by order of the court; but no such order shall be made, except upon the consent of all the parties to the action." 89

87 Rev. Laws 1910, § 4984.

88 St. Louis & S. F. R. Co. v. Ravia Granite Ballast Co. (Okl.) 174 P. 252. A receiver appointed for a lessee can do no act in operating the lessee's business which will impair the obligations of contracts previously entered into between the lessor and lessee, and the lessor may maintain an action against the lessee for a violation of such contracts. Id.

89 Rev. Laws 1910, § 4983.

(Caption.)

ORDER FOR INVESTMENT OF FUNDS

It appearing to the court that the receiver herein, G. H., has in his hands the sum of $ over and above all amounts necessary for the conduct of said receivership, and that it would be for the best interests of the estate and of all parties concerned, and all parties to this action having filed herein their written consent and request that said funds should be invested in government bonds:

It is by the court ordered that said receiver be and he is hereby authorized and directed to invest the said sum of $ out of the funds now in his hands as such receiver in government Liberty Bonds.

Dated

19.

$1900. Receiver's sales

Judge.

The statute in relation to the notice to be given in case of sales under execution does not govern in case of receiver's sales. If the court in the decree authorizing the sale orders that notice be given, a compliance with such order is all that is required."0

There being no statute directing the manner of sale of property by a receiver, the court in the order of sale issued on a decree of foreclosure may direct the method.o1

Where a receiver at the time fixed for the sale is necessarily absent, the court may appoint an agent to conduct the sale; and such agent will not be required to take oath or give bond, unless so directed by the order appointing him.92

A court of equity in a foreclosure has jurisdiction to order its receiver to sell property before a decree determining the rights of parties, when a sale will benefit all parties whose rights are involved. 93

90 Threadgill v. Colcord, 85 P. 703, 16 Okl. 447.

91 First Nat. Bank v. Colonial Trust Co. (Okl.) 167 P. 985.

The court may direct how a receiver's sale of realty shall be conducted and what notice shall be given to interested parties, no provision being made therefor by statute. Farmers' Hardware & Implement Co. v. Thacker, 54 Okl. 425, 153 P. 1144.

92 Threadgill v. Colcord, 85 P. 703, 16 Okl. 447.

93 Lawton Mill & Elevator Co. v. Farmers' & Merchants' Bank of Cincinnati, Iowa (Okl.) 164 P. 670.

An order of the court overruling a motion to set aside a sale and ordering the bidder to pay into court the amount of his bid, and that the receiver execute to the bidder a deed conveying the property purchased, legally amounts to a confirmation of the sale; and, if no appeal is taken therefrom, the matter becomes res adjudicata as to movant."

95

94

Where certain irregularities in executing an order of sale are shown by the receiver's return, the court has power to approve them, and may do so by its order confirming the return."

96

Where a receiver sold mortgaged chattels pursuant to the court's order, it was error, on trial of the foreclosure suit, to peremptorily discharge the receiver and set aside his acts."7

Though a case in which a receiver was appointed was reversed on appeal, such reversal did not affect the sale if the court had jurisdiction to render the decree, and the fact that plaintiff in the suit in which the receiver was appointed was himself the purchaser at the receiver's sale would not alter the case. The general rule is that a purchase at a decretal sale made by a court of competent ju

94 Where a report of the sale is made and filed in the court from which the decree issued, and a motion is made to set aside the sale, and the court, after hearing argument of counsel and considering the motion to set aside the sale, overruled the motion, and thereupon entered an order that the bidder pay into the hands of the clerk of the court the amount of his bid, and that the receiver make, execute, and deliver to the bidder a deed conveying the real estate purchased, this amounts in law to a confirmation of said sale, although the court does not say in express language, "I hereby confirm the 1 sale." The order made by the court amounts legally to the same thing, and recognizes the validity of the sale. Threadgill v. Colcord, 85 P. 703, 16 Okl. 447.

The overruling of a motion to set aside a receiver's sale amounts to a confirmation of the sale. Farmers' Hardware & Implement Co. v. Thacker, 54 Okl. 425, 153 P. 1144.

95 Farmers' Hardware & Implement Co. v. Thacker, 54 Okl. 425, 153 P. 1144. 96 First National Bank v. Colonial Trust Co. (Okl.) 167 P. 985. It is not a valid objection to confirmation of a receiver's return of sale that part of the property sold was real estate, and that the order of sale should have been directed to the sheriff and not to the receiver. A motion to confirm notwithstanding irregularities of its receiver in executing order of foreclosure sale was addressed to trial court's discretion. Id.

Under Rev. Laws 1910, § 5201, held, that where a receiver's sale of realty had been confirmed and the receiver directed to make deed therefor, no further action by the court was necessary to the validity of the deed. Farmers' Hardware & Implement Co. v. Thacker, 54 Okl. 425, 153 P. 1144.

97 J. I. Case Threshing Mach. Co. v. Barney, 54 Okl. 686, 154 P. 674.

risdiction is valid, unless the decree be void, although it may be reversed.98

§ 1901. Distribution and disposition

Where a corporation was in the hands of a receiver, who had received funds in that capacity, which funds had been paid into the registry of the court by its order upon vacation of the receivership, and two parties demanded the fund as officers of the corporation, it is error to order payment to one of them without hearing any evidence, but the proper officer under the by-laws of the corporation to receive the fund should be determined before paying it over.9

99

A party upon whose application a receiver is appointed in a civil case has no greater interest in the proceeds of such receivership than he would have had if the receiver had been appointed upon the application of any one of the other litigants in the action.1

Where the plaintiff has recovered judgment in an action against her cotenant for her undivided interest in the land and for her share of the rents, and her interest has been discharged from the custody of the receiver, and she put in possession thereof, and execution has been levied on other property of the defendant sufficient to satisfy the judgment, it is error for the court to refuse to discharge the defendant's share of the property on his motion.2

§ 1902. Receivership expenses

Crediting a receiver with expenditures for repairs made during his possession of real property is not error.

Where a receiver has been appointed in an action to foreclose a chattel mortgage, and there exists any irregularity in such appointment, if, on the application of defendant to set aside the appointment, the court orders the receiver to be discharged if defendant will execute a bond to pay the judgment and costs of the case, and defendant voluntarily executes the bond, and has restored from the receiver all of the property in controversy, such defendant cannot

98 Threadgill v. Colcord, 85 P. 703, 16 Okl. 447.

99 Bellamy v. Washita Val. Tel. Co., 108 P. 389, 25 Okl. 792.

1 Jackson v. King, 58 P. 1013, 9 Kan. App. 160, judgment reversed 62 P. 655, 62 Kan. 850.

2 Branner v. Webb, 63 P. 274, 10 Kan. App. 217.

3 Pickering v. Howard, 173 P. 296, 103 Kan. 263.

contest the legal costs of the receiver for any irregularity in his appointment.*

A receiver is not chargeable with the use of an opera house on occasions when he had donated it for charitable and social purposes, where he received nothing for its use, and it is not shown that he would have received anything, or that the property would have been used on such occasions by other persons, had he required compensation therefor, and where it is customary for ordinarily prudent owners of like property to occasionally donate the use of the same for like purposes.5

§ 1903. Taxes

A receiver carrying on the business of a corporation as a going concern is liable for payment of the corporation tax imposed on it.

§ 1904. Compensation

It is largely within the discretion of the court appointing a receiver to determine the compensation to be paid for his services,' time of payment, and from what funds payment shall be made."

Receivers of insolvent institutions should only be allowed adequate compensation for the services performed by them for the trust estates placed in their charge, and useless and extravagant expenditures should be disallowed.10

In making an order for compensation of a receiver, the court is

4 State Journal Co. v. Commonwealth Co., 22 P. 982, 43 Kan. 93.

5 McKennon v. Pentecost, 56 P. 958, 8 Okl. 117.

6 State v. Sessions, 147 P. 789, 95 Kan. 272.

Under Act Cong. June 3, 1864, c. 106, 13 Stat. 99, authorizing the creation of national banks, and providing that nothing in the act is to exempt the real estate of such banks from either state, county, or municipal taxes, the interest and penalties accrued on delinquent taxes are as much a legal claim of the state as are the taxes, and orders for the distribution of assets in the hands of a receiver should be made in subordination to the paramount right of the state to such taxes, penalties, and interest. Gray v. Logan County, 54 P. 485, 7 Okl. 321, modifying judgment United States Nat. Bank v. Logan Co. (Okl.) 51 P. 97.

7 Northrup Nat. Bank v. Varner, 109 P. 394, 82 Kan. 691.

8 Northrup Nat. Bank v. Varner, 109 P. 394, 82 Kan. €91.

9 From what funds payment of compensation of a receiver shall be made is also largely within the discretion of the court appointing him. Northrup Nat. Bank v. Varner, 109 P. 394, 82 Kan, 691.

10 United States Nat. Bank v. National Bank of Guthrie, 51 P. 119, 6 Okl. 163; Cunningham v. Gray, Id.