R.I. Gen. Laws ch. 6-13.1 § 6-13.1-5.1
Power of receiver
Operative Text
When a receiver is appointed by the court pursuant to this chapter, he or she shall have the power to sue for, collect, receive, and take into his or her possession all the goods and chattels, rights and credits, moneys and effects, lands and tenements, books, records, documents, papers, choses in action, bills, notes, and property of every description derived by means of any practice declared to be illegal and prohibited by this chapter, including property with which the property has been mingled if it cannot be identified in kind because of the commingling, and to sell, convey, and assign the property and hold and dispose of the proceeds under the direction of the court. Any person who has suffered damages as a result of the use of or employment of any unlawful practices and submits proof to the satisfaction of the court that he or she has in fact been damaged, may participate with general creditors in the distribution of the assets to the extent he or she has sustained out-of-pocket losses. In the case of a partnership or business entity, the receiver shall settle the estate and distribute the assets under the direction of the court. The court shall have jurisdiction of all questions arising in the proceedings and may make any orders and judgments therein as may be required.
Under R.I. Gen. Laws § 6-13.1-5.1, when a Rhode Island court appoints a receiver in connection with an illegal trade practice, that receiver gains broad authority to gather all assets—property, funds, records, and other holdings—that were obtained through the prohibited conduct, even when those assets have been mixed with other property. The receiver may then sell or transfer those assets and distribute the proceeds under court supervision. Individuals who suffered actual, out-of-pocket losses from the unlawful practices may present proof of their damages to the court and share in the asset distribution alongside general creditors.
Plain English — not legal advice.
Property owners or managers whose operations become subject to a receivership action under R.I. Gen. Laws § 6-13.1-5.1 should understand that a court-appointed receiver holds sweeping authority to take possession of business assets, including records and funds, that are connected to any practice found illegal under Chapter 6-13.1. Operators who maintain clear, separate accounting records and transparent business practices are generally better positioned to demonstrate which assets are unrelated to any alleged violation. Cooperation with the receiver and the court process, including timely production of books and documents, is characteristic of compliant conduct during such proceedings.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Tenants or other consumers who have suffered out-of-pocket losses due to unlawful practices covered by R.I. Gen. Laws § 6-13.1-5.1 may have the right to participate in the distribution of recovered assets if a receiver is appointed by the court. Section 6-13.1-5.1 specifically allows damaged individuals to submit proof of their losses to the court and seek a share of the proceeds alongside other creditors. Those who believe they qualify may wish to consult a tenant-rights organization or legal aid provider to understand how to present a claim in a receivership proceeding.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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