§ 64.023.Bond

The bond, and its two conditions describe the whole of a receiver’s obligation.

Before a person assumes the duties of a receiver, he must execute a good and sufficient bond that is approved by the appointing court, in an amount fixed by the court, and conditioned on faithful discharge of his duties as receiver in the named action and obedience to the orders of the court.

The bond protects everyone with an interest in the property. A receiver takes possession of assets belonging to others, and the bond answers if they are mishandled.

Both approval and amount rest with the appointing court, which is right — that court knows what property is involved and what is at risk.

The two conditions are worth separating. Faithful discharge of duties covers the receiver’s conduct toward the property. Obedience to the orders of the court covers the relationship with the court itself.

A receiver can breach the second without harming the property at all — by failing to report, to file the inventory, or to account — and the bond reaches that too.

"In the named action" ties the bond to the case, so a person serving as receiver in several matters posts a bond in each.

Two receiverships in this chapter dispense with the bond entirely. In the mineral receiverships for nonresident and absentee owners, neither the applicant nor the receiver is required to post bond — a deliberate departure to keep those appointments cheap.

The missing person receivership goes the other way, requiring the bond to be set in an amount the court considers necessary to protect the estate.