Effect of enforcement by mortgagee

(a) A request by a mortgagee for appointment of a receiver, the appointment of a receiver, or application by a mortgagee of receivership property or proceeds to the secured obligation does not: (1) Make the mortgagee a mortgagee in possession of the real property; (2) Make the mortgagee an agent of the owner; (3) Constitute an election of remedies that precludes a later action to enforce the secured obligation; (4) Make the secured obligation unenforceable; (5) Limit any right available to the mortgagee with respect to the secured obligation; or (6) Except as otherwise provided in subsection (b), bar a deficiency judgment pursuant to the law of this state, other than this chapter, governing or relating to a deficiency judgment. (b) If a receiver sells receivership property that pursuant to § 29-40-116(c) is free and clear of a lien, the ability of a creditor to enforce an obligation that had been secured by the lien is subject to the law of this state, other than this chapter, relating to a deficiency judgment. Added by 2018 Tenn. Acts, ch. 731, s 1, eff. 7/1/2018. (a) A request by a mortgagee for appointment of a receiver, the appointment of a receiver, or application by a mortgagee of receivership property or proceeds to the secured obligation does not: (1) Make the mortgagee a mortgagee in possession of the real property; (2) Make the mortgagee an agent of the owner; (3) Constitute an election of remedies that precludes a later action to enforce the secured obligation; (4) Make the secured obligation unenforceable; (5) Limit any right available to the mortgagee with respect to the secured obligation; or (6) Except as otherwise provided in subsection (b), bar a deficiency judgment pursuant to the law of this state, other than this chapter, governing or relating to a deficiency judgment. (1) Make the mortgagee a mortgagee in possession of the real property; (2) Make the mortgagee an agent of the owner; (3) Constitute an election of remedies that precludes a later action to enforce the secured obligation; (4) Make the secured obligation unenforceable; (5) Limit any right available to the mortgagee with respect to the secured obligation; or (6) Except as otherwise provided in subsection (b), bar a deficiency judgment pursuant to the law of this state, other than this chapter, governing or relating to a deficiency judgment. (b) If a receiver sells receivership property that pursuant to § 29-40-116(c) is free and clear of a lien, the ability of a creditor to enforce an obligation that had been secured by the lien is subject to the law of this state, other than this chapter, relating to a deficiency judgment. Added by 2018 Tenn. Acts, ch. 731, s 1, eff. 7/1/2018.