31A-27a-503 - Unauthorized postpetition transfers.
31A-27a-503. Unauthorized postpetition transfers.
(1) Except as otherwise provided in this section, the receiver may avoid a transfer of aninterest of the insurer in property, or an obligation incurred by the insurer, that is:
(a) made or incurred after the day on which a petition for receivership is filed; and
(b) not authorized by the receiver and approved by the receivership court.
(2) Except to the extent that a transfer or obligation voidable under this section isotherwise voidable under this chapter, a transferee or obligee of a transfer or obligation describedin Subsection (1) has a lien on or may retain, at the option of the receivership court, an interesttransferred or may enforce an obligation incurred, as the case may be:
(a) if the transferee or obligee takes it for value and in good faith; and
(b) to the extent that the transferee or obligee gave value to the insurer in exchange forthe transfer or obligation.
Enacted by Chapter 309, 2007 General Session