A temporary receiver shall give an undertaking in an amount to be fixed by the court making the appointment, that he will faithfully discharge his duties.
§ 6403.Undertaking.
Article 64. Receivership · Last amended 1963 · Last verified July 21, 2026
In one sentenceCPLR 6403 requires a temporary receiver to post an undertaking, in an amount fixed by the court that made the appointment, as security that the receiver will faithfully discharge the duties of the office.
Full Text of CPLR 6403
Plain-English Summary
CPLR 6403 backs up the receiver's oath with money. Before taking on the job, a temporary receiver must give an undertaking -- a bond -- promising faithful performance of the receivership duties. If the receiver mismanages the property or breaches those duties, the undertaking gives the parties and anyone with an interest in the property a fund to draw on.
The court making the appointment sets the amount. That figure is not fixed by statute, so a court can scale the bond to the size and risk of the particular receivership -- a modest amount for a small parcel, a larger one for a business with substantial receipts flowing through the receiver's hands.
Frequently Asked Questions
Does a temporary receiver have to post a bond?
Yes, CPLR 6403 requires the receiver to give an undertaking guaranteeing faithful discharge of the receivership duties.
Who decides the amount of a receiver's undertaking?
The court that made the appointment fixes the amount, and can scale it to the size and risk of the property under the receiver's control.
What happens if a receiver breaches the undertaking?
The undertaking gives the parties and other interested persons a fund to recover from if the receiver fails to discharge the duties of the office faithfully.
Is the undertaking the same thing as the receiver's oath?
No. The oath under CPLR 6402 is a sworn promise to act faithfully; the undertaking under CPLR 6403 is the financial security backing that promise.
Can the court change the amount of the undertaking later?
The statute does not fix the amount by a set formula, leaving the court free to set it, and to revisit it as the receivership continues.
Advisory Committee Notes
This section is derived from CPA § 976. The provision of the second sentence of CPA § 976 for removal of the receiver is covered by § 6405; the provision of the same sentence for an additional security is covered by § 2508. The provision of the first sentence of CPA § 976 for filing the undertaking is covered by § 2505. The last two sentences of CPA § 976 dealt with notice upon presentation of a receiver’s accounts. They are covered in § 6404.
Amendment History
Add, L 1962, ch 308, eff Sept 1, 1963.
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 6403 receiver undertakingtemporary receiver bond New Yorkreceiver's undertaking amount NYNew York receivership security bond