Law of Property Act Receiver (LPA Receiver)
Parties that provide funding and have a fixed charge over a piece of property may be able to appoint an LPA Receiver in the event of default. An LPA Receiver does not need to be an Insolvency Practitioner and is more often an estate agent or similar.
The powers of an LPA Reciever are limited so it is more usual for a fixed charge receiver to be appointed that has the powers conferred by the charge over the property concerned.
Fixed Charge Receiver
A funder that holds a fixed charge over a piece of property may be able to appoint a fixed charge receiver. Their role is to dispose of the property an repay the funder the amount owed.
Whist a Fixed Charge Receiver is in office the business continues to be run by the directors (unless the company is in liquidation or administration). Therefore such an appointment does not necessarily affect the running of the business.
Once the Fixed Charge Reciever has competed their role they vacate office and the company continues.
