40-3629.Transfers of property and obligations incurred within one yearprior to filing of petition for rehabilitation or liquidation; fraudulenttransfers and obligations incurred; fraudulent transactions of insurers withreinsurers; liability of person receiving property fraudulently transferred.(a) Every transfer made or suffered and every obligationincurredby an insurer within one year prior to the filing of a successful petition forrehabilitation or liquidation under this act is fraudulent as to then existingand future creditors if made or incurred without fair consideration, or withactual intent to hinder, delay or defraud either existing or future creditors. A transfer made or an obligation incurred by an insurer ordered to berehabilitated or liquidated under this act, which is fraudulent under thissection, may be avoided by the receiver, except as to a person who in goodfaith is a purchaser, lienor or obligee for a present fair equivalent value,and except that any purchaser, lienor or obligee, who in good faith has given aconsideration less than fair for such transfer, lien or obligation, may retainthe property, lien or obligation as security for repayment. The court, ondue notice, may order any such transfer or obligation to be preserved for thebenefit of the estate, and in that event, the receiver shall succeed to and mayenforce the rights of the purchaser, lienor, or obligee.
(b) (1) A transfer of property other than real property shall be deemed tobe made or suffered when it becomes so far perfected that no subsequent lienobtainable by legal or equitable proceedings on a simple contract could becomesuperior to the rights of the transferee.
(2) A transfer of real property shall be deemed to be made or suffered whenit becomes so far perfected that no subsequent bona fide purchaser from theinsurer could obtain rights superior to the rights of the transferee.
(3) A transfer which creates an equitable lien shall not be deemed to beperfected if there are available means by which a legal lien could be created.
(4) Any transfer not perfected prior to the filing of a petition forliquidation shall be deemed to be made immediately before the filing of thesuccessful petition.
(5) The provisions of this subsection apply whether or not there are or werecreditors who might have obtained any liens or persons who might have becomebona fide purchasers.
(c) Any transaction of the insurer with a reinsurer shall be deemedfraudulent and may be avoided by the receiver under subsection (a) if:
(1) The transaction consists of the termination, adjustment or settlement ofa reinsurance contract in which the reinsurer is released from any part of itsduty to pay the originally specified share of losses that had occurred prior tothe time of the transactions, unless the reinsurer gives a present fairequivalent value for the release; and
(2) any part of the transaction took place within one year prior to the dateof filing of the petition through which the receivership was commenced.
(d) Every person receiving any property from the insurer or any benefitthereof which is a fraudulent transfer under subsection (a) shall be personallyliable therefor and shall be bound to account to the liquidator.
40-3629.Transfers of property and obligations incurred within one yearprior to filing of petition for rehabilitation or liquidation; fraudulenttransfers and obligations incurred; fraudulent transactions of insurers withreinsurers; liability of person receiving property fraudulently transferred.(a) Every transfer made or suffered and every obligationincurredby an insurer within one year prior to the filing of a successful petition forrehabilitation or liquidation under this act is fraudulent as to then existingand future creditors if made or incurred without fair consideration, or withactual intent to hinder, delay or defraud either existing or future creditors. A transfer made or an obligation incurred by an insurer ordered to berehabilitated or liquidated under this act, which is fraudulent under thissection, may be avoided by the receiver, except as to a person who in goodfaith is a purchaser, lienor or obligee for a present fair equivalent value,and except that any purchaser, lienor or obligee, who in good faith has given aconsideration less than fair for such transfer, lien or obligation, may retainthe property, lien or obligation as security for repayment. The court, ondue notice, may order any such transfer or obligation to be preserved for thebenefit of the estate, and in that event, the receiver shall succeed to and mayenforce the rights of the purchaser, lienor, or obligee.
(b) (1) A transfer of property other than real property shall be deemed tobe made or suffered when it becomes so far perfected that no subsequent lienobtainable by legal or equitable proceedings on a simple contract could becomesuperior to the rights of the transferee.
(2) A transfer of real property shall be deemed to be made or suffered whenit becomes so far perfected that no subsequent bona fide purchaser from theinsurer could obtain rights superior to the rights of the transferee.
(3) A transfer which creates an equitable lien shall not be deemed to beperfected if there are available means by which a legal lien could be created.
(4) Any transfer not perfected prior to the filing of a petition forliquidation shall be deemed to be made immediately before the filing of thesuccessful petition.
(5) The provisions of this subsection apply whether or not there are or werecreditors who might have obtained any liens or persons who might have becomebona fide purchasers.
(c) Any transaction of the insurer with a reinsurer shall be deemedfraudulent and may be avoided by the receiver under subsection (a) if:
(1) The transaction consists of the termination, adjustment or settlement ofa reinsurance contract in which the reinsurer is released from any part of itsduty to pay the originally specified share of losses that had occurred prior tothe time of the transactions, unless the reinsurer gives a present fairequivalent value for the release; and
(2) any part of the transaction took place within one year prior to the dateof filing of the petition through which the receivership was commenced.
(d) Every person receiving any property from the insurer or any benefitthereof which is a fraudulent transfer under subsection (a) shall be personallyliable therefor and shall be bound to account to the liquidator.
40-3629.Transfers of property and obligations incurred within one yearprior to filing of petition for rehabilitation or liquidation; fraudulenttransfers and obligations incurred; fraudulent transactions of insurers withreinsurers; liability of person receiving property fraudulently transferred.(a) Every transfer made or suffered and every obligationincurredby an insurer within one year prior to the filing of a successful petition forrehabilitation or liquidation under this act is fraudulent as to then existingand future creditors if made or incurred without fair consideration, or withactual intent to hinder, delay or defraud either existing or future creditors. A transfer made or an obligation incurred by an insurer ordered to berehabilitated or liquidated under this act, which is fraudulent under thissection, may be avoided by the receiver, except as to a person who in goodfaith is a purchaser, lienor or obligee for a present fair equivalent value,and except that any purchaser, lienor or obligee, who in good faith has given aconsideration less than fair for such transfer, lien or obligation, may retainthe property, lien or obligation as security for repayment. The court, ondue notice, may order any such transfer or obligation to be preserved for thebenefit of the estate, and in that event, the receiver shall succeed to and mayenforce the rights of the purchaser, lienor, or obligee.
(b) (1) A transfer of property other than real property shall be deemed tobe made or suffered when it becomes so far perfected that no subsequent lienobtainable by legal or equitable proceedings on a simple contract could becomesuperior to the rights of the transferee.
(2) A transfer of real property shall be deemed to be made or suffered whenit becomes so far perfected that no subsequent bona fide purchaser from theinsurer could obtain rights superior to the rights of the transferee.
(3) A transfer which creates an equitable lien shall not be deemed to beperfected if there are available means by which a legal lien could be created.
(4) Any transfer not perfected prior to the filing of a petition forliquidation shall be deemed to be made immediately before the filing of thesuccessful petition.
(5) The provisions of this subsection apply whether or not there are or werecreditors who might have obtained any liens or persons who might have becomebona fide purchasers.
(c) Any transaction of the insurer with a reinsurer shall be deemedfraudulent and may be avoided by the receiver under subsection (a) if:
(1) The transaction consists of the termination, adjustment or settlement ofa reinsurance contract in which the reinsurer is released from any part of itsduty to pay the originally specified share of losses that had occurred prior tothe time of the transactions, unless the reinsurer gives a present fairequivalent value for the release; and
(2) any part of the transaction took place within one year prior to the dateof filing of the petition through which the receivership was commenced.
(d) Every person receiving any property from the insurer or any benefitthereof which is a fraudulent transfer under subsection (a) shall be personallyliable therefor and shall be bound to account to the liquidator.
