A temporary receiver shall give an undertaking in an amount to be fixed by the court making the appointment, that he or she will faithfully discharge his or her duties.
§ 1340.Undertaking
Article 13-A. Proceeds of Crime—forfeiture · Last amended 1984 · Last verified July 21, 2026
In one sentenceRequires a temporary receiver appointed under Article 13-A to post an undertaking, in an amount the appointing court fixes, guaranteeing that the receiver will faithfully discharge the duties of the receivership before taking any action over the property.
Full Text of CPLR 1340
Plain-English Summary
Section 1340 backs up the oath in section 1339 with money. A temporary receiver must give an undertaking -- a bond -- in an amount the appointing court sets, promising faithful performance of the receiver's duties. If the receiver mismanages the property, skims funds, or otherwise breaks the trust the court placed in them, the undertaking gives the parties a source of recovery beyond a lawsuit against the receiver personally.
The court controls the amount, so it can scale the bond to the size and risk of the property under the receiver's control -- a receivership over a modest bank account calls for less protection than one over a building or a fleet of vehicles.
Frequently Asked Questions
Does a temporary receiver have to post a bond?
Yes, section 1340 requires the receiver to give an undertaking in an amount the appointing court fixes.
What does the receiver's undertaking guarantee?
That the receiver will faithfully discharge the duties of the receivership.
Who sets the amount of the receiver's undertaking?
The court that makes the appointment.
What happens if a receiver mismanages the property?
The undertaking gives the parties, including sureties named in section 1341's accounting provisions, a source of recovery beyond a claim against the receiver alone.
Is the undertaking required before or after the receiver starts acting?
The undertaking, like the oath in section 1339, is part of qualifying for the appointment, so it comes before the receiver exercises the powers granted under section 1338.
Amendment History
Add, L 1984, ch 669, § 1, eff Aug 1, 1984 and applicable to crimes committed on and after Aug 1, 1984.
Source & verification. Provision text, History, and Advisory
Committee Notes are reproduced verbatim from the Consolidated Laws of New York.
Last verified July 21, 2026.
· Official source
Also known as: CPLR 1340 receiver undertakingtemporary receiver bond New Yorkforfeiture receiver bond amountreceiver undertaking CPLR article 13-A