The appointment of a receiver is always a mat ter within the discretion of the court and cannot be claimed as an absolute right. Often the pro priety of granting an application for a receiver is a matter of great delicacy and importance, re quiring the highest judicial capacity.
Courts of equity would not exercise their juris diction to appoint a receiver for an insolvent cor poration merely because it was insolvent. Statu tory jurisdiction is now generally given for that purpose and in many other eases where it was formerly not the practice to grant relief by the appointment of a receiver. Thus, for example, statutes now authorize the appointment of re ceivers to take charge of assets in the winding up of corporations; to preserve the estate of a bank rupt pending bankruptcy proceedings; to receive sums due on judgment debts and apply them to the payment of the judgment ; and in many other cases.
The expenses of the receivership, including the receiver's own fees, are a first lien on the property held by him as receiver. In some cases the court will authorize a receiver to raise money for the purpose of preserving the property and continu ing it in business by issuing receiver's certificates, which are made a first lien on the property. This
will ordinarily be done only when some public in terest will be subserved by the continuance of the property in business, a, in the case of railroads or other public-service companies. Such certifi cates, when issued, are non-negotiable securities, payable out of the fund in the receiver's hands. They create no personal liability and their valid ity depends upon their compliance with the order authorizing their issue. If issued below par the holder can recover only the amount actually re ceived fur them by the receiver unless he was authorized to issue them at a discount. One who indorses a receiver's certificate does not become liable as an indorser of negotiable papers, hut as a mere assignor only. The holders in general will not be allowed to sue upon them, but may in a proper case obtain an order of the court directing their payment. See CHANCERY ; EQUITY. Con sult: High. Treatise on the Lair of Reeeirers (3d ed., Chicago, 1894) : Short. Railroad Bonds and Mortgages (Boston. 1S97) ; Cabab6, Receivers by Way of Equitable Execution (3d ed.. Lon don. 1900) : Kerr, Triatixv on the Low Prac tice as to Reeeirers (4th ed.. ib., 1900).