Sec. 38a-929. (Formerly Sec. 38-447). Fraudulent transfer after petition.
Sec. 38a-929. (Formerly Sec. 38-447). Fraudulent transfer after petition. (a)
After a petition for rehabilitation or liquidation has been filed a transfer of any of the
real property of the insurer made to a person acting in good faith shall be valid against
the receiver if made for a present fair equivalent value, or, if not made for a present fair
equivalent value, then to the extent of the present consideration actually paid therefor,
for which amount the transferee shall have a lien on the property so transferred. The
commencement of a proceeding in rehabilitation or liquidation shall be constructive
notice upon the recording of a copy of the petition for or order of rehabilitation or
liquidation with the recorder of deeds in the town where any real property in question
is located. The exercise by a court of the United States or any state or jurisdiction to
authorize or effect a judicial sale of real property of the insurer within any town in any
state shall not be impaired by the pendency of such a proceeding unless the copy is
recorded in the town prior to the consummation of the judicial sale.
(b) After a petition for rehabilitation or liquidation has been filed and before either
the receiver takes possession of the property of the insurer or an order of rehabilitation
or liquidation is granted: (1) A transfer of any of the property of the insurer, other than
real property, made to a person acting in good faith shall be valid against the receiver
if made for a present fair equivalent value, or, if not made for a present fair equivalent
value, then to the extent of the present consideration actually paid therefor, for which
amount the transferee shall have a lien on the property so transferred; (2) a person
indebted to the insurer or holding property of the insurer may, if acting in good faith,
pay the indebtedness or deliver the property, or any part thereof, to the insurer or upon
his order, with the same effect as if the petition were not pending; (3) a person having
actual knowledge of the pending rehabilitation or liquidation shall be deemed not to act
in good faith; (4) a person asserting the validity of a transfer under this section shall
have the burden of proof. Except as elsewhere provided in this section, no transfer by
or on behalf of the insurer after the date of the petition for liquidation by any person
other than the liquidator shall be valid against the liquidator.
(c) Any person receiving property from the insurer or any benefit thereof which is
a fraudulent transfer under subsection (a) of this section shall be personally liable therefor and shall be bound to account to the liquidator.
(d) Nothing in sections 38a-903 to 38a-961, inclusive, shall impair the negotiability
of currency or negotiable instruments.
(P.A. 79-382, S. 27 P.A. 92-93, S. 21.)
History: Sec. 38-447 transferred to Sec. 38a-929 in 1991; P.A. 92-93 inserted new Subsec. (c) re personal liability
to liquidator for receipt of property, relettering former Subsec. (c) as (d), and made technical corrections for statutory
consistency.