Grounds for liquidation--granting of relief, management of assets.
379.1418. 1. The director may apply by petition to the circuit courtfor an order authorizing the director to conserve, rehabilitate orliquidate a SPLRC domiciled in this state on one or more of the followinggrounds:
(1) There has been embezzlement, wrongful sequestration, dissipation,or diversion of the assets of the SPLRC;
(2) The SPLRC is insolvent and the holders of a majority inoutstanding principal amount of each class of SPLRC securities or surplusnotes request or consent to conservation, rehabilitation or liquidationunder the provisions of this section.
2. The court may not grant relief provided by subdivision (1) ofsubsection 1 of this section unless, after notice and a hearing, thedirector, who must have the burden of proof, establishes by clear andconvincing evidence that relief must be granted.
3. Notwithstanding another provision in sections 379.1353 to379.1421, rules promulgated under sections 379.1353 to 379.1421, or anotherapplicable provision of law or rule, upon any order of conservation,rehabilitation, or liquidation of a SPLRC, the receiver shall manage theassets and liabilities of the SPLRC under the provisions of sections379.1353 to 379.1421.
4. With respect to amounts recoverable under a SPLRC contract, theamount recoverable by the receiver must not be reduced or diminished as aresult of the entry of an order of conservation, rehabilitation, orliquidation with respect to the ceding company, notwithstanding anotherprovision in the SPLRC contract or other documentation governing theSPLRC's transactions.
5. Notwithstanding the provisions of sections 379.1353 to 379.1421,an application or petition, or a temporary restraining order or injunctionissued under the provisions of the insurance laws of a state, with respectto a ceding company, does not prohibit the transaction of a business by aSPLRC, including any payment by a SPLRC made under the SPLRC contract, theSPLRC's securities or surplus notes, or any action or proceeding against aSPLRC or its assets.
6. Notwithstanding the provisions of any Missouri insurance law tothe contrary, the commencement of a summary proceeding or other interimproceeding commenced before a formal delinquency proceeding with respect toa SPLRC, and any order issued by the court does not prohibit the payment bya SPLRC made under securities issued by an SPLRC or an SPLRC contract orthe SPLRC from taking any action required to make the payment.
7. Notwithstanding the provisions of the Missouri insurance laws:
(1) A receiver of a ceding company shall not void a nonfraudulenttransfer by a ceding company of money or other property paid or paidpursuant to a SPLRC contract; and
(2) A receiver of a SPLRC shall not void a nonfraudulent transfer bythe SPLRC of money or other property made to a ceding company pursuant to aSPLRC contract or made to or for the benefit of any holder of a SPLRCsecurity on account of the SPLRC security.
8. With the exception of the fulfillment of the obligations under aSPLRC contract, and notwithstanding another provision of sections 379.1353to 379.1421 or other laws of this state, the assets of a SPLRC, includingassets held in trust, letters of credit, financial guarantee policies orsurety bonds, shall not be consolidated with or included in the estate of aceding company in any delinquency proceeding against the ceding companyunder the provisions of sections 379.1353 to 379.1421 for any purposeincluding, without limitation, distribution to creditors of the cedingcompany.
9. Other than as set forth in this section, delinquency proceedingsof a SPLRC shall be conducted under sections 375.1150 to 375.1246, RSMo.
Grounds for liquidation--granting of relief, management of assets.
379.1418. 1. The director may apply by petition to the circuit courtfor an order authorizing the director to conserve, rehabilitate orliquidate a SPLRC domiciled in this state on one or more of the followinggrounds:
(1) There has been embezzlement, wrongful sequestration, dissipation,or diversion of the assets of the SPLRC;
(2) The SPLRC is insolvent and the holders of a majority inoutstanding principal amount of each class of SPLRC securities or surplusnotes request or consent to conservation, rehabilitation or liquidationunder the provisions of this section.
2. The court may not grant relief provided by subdivision (1) ofsubsection 1 of this section unless, after notice and a hearing, thedirector, who must have the burden of proof, establishes by clear andconvincing evidence that relief must be granted.
3. Notwithstanding another provision in sections 379.1353 to379.1421, rules promulgated under sections 379.1353 to 379.1421, or anotherapplicable provision of law or rule, upon any order of conservation,rehabilitation, or liquidation of a SPLRC, the receiver shall manage theassets and liabilities of the SPLRC under the provisions of sections379.1353 to 379.1421.
4. With respect to amounts recoverable under a SPLRC contract, theamount recoverable by the receiver must not be reduced or diminished as aresult of the entry of an order of conservation, rehabilitation, orliquidation with respect to the ceding company, notwithstanding anotherprovision in the SPLRC contract or other documentation governing theSPLRC's transactions.
5. Notwithstanding the provisions of sections 379.1353 to 379.1421,an application or petition, or a temporary restraining order or injunctionissued under the provisions of the insurance laws of a state, with respectto a ceding company, does not prohibit the transaction of a business by aSPLRC, including any payment by a SPLRC made under the SPLRC contract, theSPLRC's securities or surplus notes, or any action or proceeding against aSPLRC or its assets.
6. Notwithstanding the provisions of any Missouri insurance law tothe contrary, the commencement of a summary proceeding or other interimproceeding commenced before a formal delinquency proceeding with respect toa SPLRC, and any order issued by the court does not prohibit the payment bya SPLRC made under securities issued by an SPLRC or an SPLRC contract orthe SPLRC from taking any action required to make the payment.
7. Notwithstanding the provisions of the Missouri insurance laws:
(1) A receiver of a ceding company shall not void a nonfraudulenttransfer by a ceding company of money or other property paid or paidpursuant to a SPLRC contract; and
(2) A receiver of a SPLRC shall not void a nonfraudulent transfer bythe SPLRC of money or other property made to a ceding company pursuant to aSPLRC contract or made to or for the benefit of any holder of a SPLRCsecurity on account of the SPLRC security.
8. With the exception of the fulfillment of the obligations under aSPLRC contract, and notwithstanding another provision of sections 379.1353to 379.1421 or other laws of this state, the assets of a SPLRC, includingassets held in trust, letters of credit, financial guarantee policies orsurety bonds, shall not be consolidated with or included in the estate of aceding company in any delinquency proceeding against the ceding companyunder the provisions of sections 379.1353 to 379.1421 for any purposeincluding, without limitation, distribution to creditors of the cedingcompany.
9. Other than as set forth in this section, delinquency proceedingsof a SPLRC shall be conducted under sections 375.1150 to 375.1246, RSMo.
Grounds for liquidation--granting of relief, management of assets.
379.1418. 1. The director may apply by petition to the circuit courtfor an order authorizing the director to conserve, rehabilitate orliquidate a SPLRC domiciled in this state on one or more of the followinggrounds:
(1) There has been embezzlement, wrongful sequestration, dissipation,or diversion of the assets of the SPLRC;
(2) The SPLRC is insolvent and the holders of a majority inoutstanding principal amount of each class of SPLRC securities or surplusnotes request or consent to conservation, rehabilitation or liquidationunder the provisions of this section.
2. The court may not grant relief provided by subdivision (1) ofsubsection 1 of this section unless, after notice and a hearing, thedirector, who must have the burden of proof, establishes by clear andconvincing evidence that relief must be granted.
3. Notwithstanding another provision in sections 379.1353 to379.1421, rules promulgated under sections 379.1353 to 379.1421, or anotherapplicable provision of law or rule, upon any order of conservation,rehabilitation, or liquidation of a SPLRC, the receiver shall manage theassets and liabilities of the SPLRC under the provisions of sections379.1353 to 379.1421.
4. With respect to amounts recoverable under a SPLRC contract, theamount recoverable by the receiver must not be reduced or diminished as aresult of the entry of an order of conservation, rehabilitation, orliquidation with respect to the ceding company, notwithstanding anotherprovision in the SPLRC contract or other documentation governing theSPLRC's transactions.
5. Notwithstanding the provisions of sections 379.1353 to 379.1421,an application or petition, or a temporary restraining order or injunctionissued under the provisions of the insurance laws of a state, with respectto a ceding company, does not prohibit the transaction of a business by aSPLRC, including any payment by a SPLRC made under the SPLRC contract, theSPLRC's securities or surplus notes, or any action or proceeding against aSPLRC or its assets.
6. Notwithstanding the provisions of any Missouri insurance law tothe contrary, the commencement of a summary proceeding or other interimproceeding commenced before a formal delinquency proceeding with respect toa SPLRC, and any order issued by the court does not prohibit the payment bya SPLRC made under securities issued by an SPLRC or an SPLRC contract orthe SPLRC from taking any action required to make the payment.
7. Notwithstanding the provisions of the Missouri insurance laws:
(1) A receiver of a ceding company shall not void a nonfraudulenttransfer by a ceding company of money or other property paid or paidpursuant to a SPLRC contract; and
(2) A receiver of a SPLRC shall not void a nonfraudulent transfer bythe SPLRC of money or other property made to a ceding company pursuant to aSPLRC contract or made to or for the benefit of any holder of a SPLRCsecurity on account of the SPLRC security.
8. With the exception of the fulfillment of the obligations under aSPLRC contract, and notwithstanding another provision of sections 379.1353to 379.1421 or other laws of this state, the assets of a SPLRC, includingassets held in trust, letters of credit, financial guarantee policies orsurety bonds, shall not be consolidated with or included in the estate of aceding company in any delinquency proceeding against the ceding companyunder the provisions of sections 379.1353 to 379.1421 for any purposeincluding, without limitation, distribution to creditors of the cedingcompany.
9. Other than as set forth in this section, delinquency proceedingsof a SPLRC shall be conducted under sections 375.1150 to 375.1246, RSMo.
