§ 7427 — Offsets

New York § 7427

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 74: Rehabilitation, Liquidation, Conservation and Dissolution of Insurers

Text

§ 7427. Offsets. (a) In all cases of mutual debts or mutual credits\nbetween the insurer and another person in connection with any action or\nproceeding under this article, such credits and debts shall be set off\nand the balance only shall be allowed or paid, except as provided in\nsubsection (b) hereof.\n (b) No offset shall be allowed in favor of any such person, however,\nwhere:\n (1) the obligation of the insurer to such person would not at the date\nof the entry of any liquidation order, or otherwise, as provided in\nsection seven thousand four hundred five of this article, entitle him to\nshare as a claimant in the assets of such insurer, or\n (2) the obligation of the insurer to such person was purchased by or\ntransferred to such person with a view of its being used as an offset,\nor\n (3) the obligation of such person is to pay an assessment levied\nagainst the members of a mutual insurer or to pay a balance upon a\nsubscription to the shares of a stock insurance corporation.\n