40-3636. Claims; proof of claims, form and filing; late filings.
40-3636
40-3636. Claims; proof of claims, form and filing; late filings.(a) Proof of all claims shall be filed with the liquidator intheform required by K.S.A. 40-3637 on or before the last day for filingspecified bythe court, except that proof of claims for cash surrender values or otherinvestment values in life insurance and annuities need not be filed unless theliquidator expressly so requires.
(b) The liquidator may permit a claimant making a late filing to share indistributions, whether past or future, as if the claimant were not late, to theextent that any such payment will not prejudice the orderly administration ofthe liquidation, under the following circumstances:
(1) The existence of the claim was not known to the claimant and that theclaim was filed as promptly as reasonably possible after learning of suchclaim;
(2) a transfer to a creditor was avoided under K.S.A. 40-3629through 40-3631, or wasvoluntarily surrendered under K.S.A. 40-3632, and that the filingsatisfies theconditions of K.S.A. 40-3632; or
(3) the valuation under K.S.A. 40-3640, of security held by asecured creditorshows a deficiency, which is filed, within 30 days after the valuation.
(c) The liquidator shall permit late filing claims to share indistributions, whether past or future, as if they were not late, if such claimsare claims of a guaranty association or foreign guaranty association forreimbursement of covered claims paid or expenses incurred, or both, subsequentto the last day for filing where such payments were made and expenses incurredas provided by law.
(d) The liquidator may consider any claim filed late which is not covered bysubsection (b), and permit it to receive distributions which are subsequentlydeclared on any claims of the same or lower priority if the payment does notprejudice the orderly administration of the liquidation. The late-filingclaimant shall receive, at each distribution, the same percentage of the amountallowed on such claim as is then being paid to claimants of any lower priority.This shall continue until the claim has been paid in full.
History: L. 1991, ch. 125, § 32; July 1.