Iowa § 507C.27 Fraudulent transfer after petition

Iowa Statutes

§ 507C.27 — Fraudulent transfer after petition

Iowa § 507C.27

Title XIIICOMMERCE

Ch. 507CINSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION

This text of Iowa § 507C.27 (Fraudulent transfer after petition) is published on Counsel Stack Legal Research, covering Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Iowa Code § 507C.27 (2026).

Text

1.After a petition for rehabilitation or liquidation has been filed a transfer of real property of the insurer made to a person acting in good faith is valid against the receiver if made for a present fair equivalent value. If the transfer was not made for a present fair equivalent value, then the transfer is valid to the extent of the present consideration actually paid for which amount the transferee shall have a lien on the property transferred. The commencement of a proceeding in rehabilitation or liquidation is 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 county where any real property in question is located. The exercise by a court of the United Statesorastateorjurisdictiontoauthorize

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1. After a petition for rehabilitation or liquidation has been filed a transfer of real property
of the insurer made to a person acting in good faith is valid against the receiver if made for a
present fair equivalent value. If the transfer was not made for a present fair equivalent value,
then the transfer is valid to the extent of the present consideration actually paid for which
amount the transferee shall have a lien on the property transferred. The commencement of a
proceeding in rehabilitation or liquidation is 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
county where any real property in question is located. The exercise by a court of the United
Statesorastateorjurisdictiontoauthorizeajudicialsaleofrealpropertyoftheinsurerwithin
a county in a state shall not be impaired by the pendency of a proceeding unless the copy is
recorded in the county prior to the consummation of the judicial sale.
2. After a petition for rehabilitation or liquidation has been filed and before either the
21 INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION, §507C.28
receiver takes possession of the property of the insurer or an order of rehabilitation or
liquidation is granted:
a. A transfer of the property, other than real property, of the insurer made to a person
acting in good faith is valid against the receiver if made for a present fair equivalent value. If
the transfer was not made for a present fair equivalent value, then the transfer is valid to the
extent of the present consideration actually paid for which amount the transferee shall have
a lien on the property transferred.
b. If acting in good faith, a person indebted to the insurer or holding property of the
insurer may pay the debt or deliver the property, or any part thereof, to the insurer or upon
the insurer’s order as if the petition were not pending.
c. A person having actual knowledge of the pending rehabilitation or liquidation is not
acting in good faith.
d. A person asserting the validity of a transfer under this section shall have the burden of
proof. Except as provided in this section, a transfer by or on behalf of the insurer after the
date of the petition for liquidation by any person other than the liquidator shall not be valid
against the liquidator.
3. A person receiving any property from the insurer or any benefit of the insurer which is
a fraudulent transfer under subsection 1 is personally liable for the property or benefit and
shall account to the liquidator.
4. This chapter shall not impair the negotiability of currency or negotiable instruments.