If it appears that a person or corporation alleged to have property of the judgment debtor, or indebted to him, claims an interest in the property adverse to him, or denies the debt, such interest or debt is recoverable only in an action against such person or corporation by the receiver; but the court or judge may, by order, forbid a transfer or other disposition of such property or interest till a sufficient opportunity is given to the receiver to commence and prosecute the action to judgment and execution, but such order may at any time be modified or dissolved by the court or judge having jurisdiction on such security as he directs.
N.C. Gen. Stat. § 1-366
Receiver to sue debtors of judgment debtor
Applied in 2 court decisions — leading case Atlantic Purchasers, Inc. v. Aircraft Sales, Inc. (1984)
Most recently applied in 261 N.C. App. 358 - Haarhuis v. Cheek (September 2018)
C.C.P., s. 271; 1870-1, c. 245; Code, s. 497; Rev., s. 682; C.S., s. 725.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.