(a) After a petitionfor rehabilitation or liquidation has been filed, a transfer of any of the realproperty of the insurer made to a person acting in good faith shall be validagainst the receiver if made for a present fair equivalent value; or, if notmade for a present fair equivalent value, then to the extent of the presentconsideration actually paid therefor, for which amount the transferee shallhave a lien on the property so transferred. The commencement of a proceedingin rehabilitation or liquidation shall be constructive notice upon therecording of a copy of the petition for or order of rehabilitation orliquidation with the register of deeds in the county in which any real propertyin question is located. The exercise by a court of the United States or anystate to authorize or effect a judicial sale of real property of the insurerwithin any county in any state is not impaired by the pendency of such aproceeding unless the copy is recorded in the county prior to the consummationof the judicial sale.
(b) After a petitionfor rehabilitation or liquidation has been filed and before either the receivertakes possession of the property of the insurer or an order of rehabilitationor liquidation is granted:
(1) A transfer of any ofthe property of the insurer, other than real property, made to a person actingin good faith is valid against the receiver if made for a present fairequivalent value; or, if not made for a present fair equivalent value, then tothe extent of the present consideration actually paid therefor, for whichamount the transferee shall have a lien on the property so transferred.
(2) A person indebted tothe insurer or holding property of the insurer may, if acting in good faith, paythe indebtedness or deliver the property, or any part thereof, to the insureror upon his order, with the same effect as if the petition were not pending.
(3) A person havingactual knowledge of the pending rehabilitation or liquidation shall be deemednot to act in good faith.
(4) A person assertingthe validity of a transfer under this section has the burden of proof. Exceptas elsewhere provided in this section, no transfer by or on behalf of theinsurer after the date of the petition for liquidation by any person other thanthe liquidator is valid as against the liquidator.
(c) Nothing in thisArticle impairs the validity of currency or the negotiability of anyinstrument. (1989, c. 452, s. 1.)
(a) After a petitionfor rehabilitation or liquidation has been filed, a transfer of any of the realproperty of the insurer made to a person acting in good faith shall be validagainst the receiver if made for a present fair equivalent value; or, if notmade for a present fair equivalent value, then to the extent of the presentconsideration actually paid therefor, for which amount the transferee shallhave a lien on the property so transferred. The commencement of a proceedingin rehabilitation or liquidation shall be constructive notice upon therecording of a copy of the petition for or order of rehabilitation orliquidation with the register of deeds in the county in which any real propertyin question is located. The exercise by a court of the United States or anystate to authorize or effect a judicial sale of real property of the insurerwithin any county in any state is not impaired by the pendency of such aproceeding unless the copy is recorded in the county prior to the consummationof the judicial sale.
(b) After a petitionfor rehabilitation or liquidation has been filed and before either the receivertakes possession of the property of the insurer or an order of rehabilitationor liquidation is granted:
(1) A transfer of any ofthe property of the insurer, other than real property, made to a person actingin good faith is valid against the receiver if made for a present fairequivalent value; or, if not made for a present fair equivalent value, then tothe extent of the present consideration actually paid therefor, for whichamount the transferee shall have a lien on the property so transferred.
(2) A person indebted tothe insurer or holding property of the insurer may, if acting in good faith, paythe indebtedness or deliver the property, or any part thereof, to the insureror upon his order, with the same effect as if the petition were not pending.
(3) A person havingactual knowledge of the pending rehabilitation or liquidation shall be deemednot to act in good faith.
(4) A person assertingthe validity of a transfer under this section has the burden of proof. Exceptas elsewhere provided in this section, no transfer by or on behalf of theinsurer after the date of the petition for liquidation by any person other thanthe liquidator is valid as against the liquidator.
(c) Nothing in thisArticle impairs the validity of currency or the negotiability of anyinstrument. (1989, c. 452, s. 1.)
(a) After a petitionfor rehabilitation or liquidation has been filed, a transfer of any of the realproperty of the insurer made to a person acting in good faith shall be validagainst the receiver if made for a present fair equivalent value; or, if notmade for a present fair equivalent value, then to the extent of the presentconsideration actually paid therefor, for which amount the transferee shallhave a lien on the property so transferred. The commencement of a proceedingin rehabilitation or liquidation shall be constructive notice upon therecording of a copy of the petition for or order of rehabilitation orliquidation with the register of deeds in the county in which any real propertyin question is located. The exercise by a court of the United States or anystate to authorize or effect a judicial sale of real property of the insurerwithin any county in any state is not impaired by the pendency of such aproceeding unless the copy is recorded in the county prior to the consummationof the judicial sale.
(b) After a petitionfor rehabilitation or liquidation has been filed and before either the receivertakes possession of the property of the insurer or an order of rehabilitationor liquidation is granted:
(1) A transfer of any ofthe property of the insurer, other than real property, made to a person actingin good faith is valid against the receiver if made for a present fairequivalent value; or, if not made for a present fair equivalent value, then tothe extent of the present consideration actually paid therefor, for whichamount the transferee shall have a lien on the property so transferred.
(2) A person indebted tothe insurer or holding property of the insurer may, if acting in good faith, paythe indebtedness or deliver the property, or any part thereof, to the insureror upon his order, with the same effect as if the petition were not pending.
(3) A person havingactual knowledge of the pending rehabilitation or liquidation shall be deemednot to act in good faith.
(4) A person assertingthe validity of a transfer under this section has the burden of proof. Exceptas elsewhere provided in this section, no transfer by or on behalf of theinsurer after the date of the petition for liquidation by any person other thanthe liquidator is valid as against the liquidator.
(c) Nothing in thisArticle impairs the validity of currency or the negotiability of anyinstrument. (1989, c. 452, s. 1.)
