§ 8015 — Limitations of actions; security

New York § 8015

• Jurisdiction: New York
• Law ISC: Insurance
• Art. 80: Mutual Holding Company

Text

§ 8015. Limitations of actions; security. (a) Notwithstanding any\nother provision of law to the contrary and except as otherwise provided\nin subsection (c) or (d) of this section, actions concerning or arising\nout of any plan of reorganization, proposed plan of reorganization, plan\namendment or proposed plan amendment under this article or any acts\ntaken or proposed to be taken under this article must be commenced\nwithin eighteen months after the plan of reorganization or plan\namendment is filed pursuant to subsection (a) of section eight thousand\nnine of this article or the charter is filed pursuant to subsection (c)\nof section eight thousand seventeen of this article, as the case may be,\nin the office of the superintendent or one year from the effective date\nof the plan of reorganization, whichever is later, or if the plan of\nreorganization or plan amendment is withdrawn, within one year from the\ndate the board of directors approves a resolution to withdraw the plan.\nWhere an action concerns or arises out of a plan amendment or proposed\nplan amendment made under section eight thousand five of this article,\nthe applicable time period is measured from the filing, effective date\nor approval of withdrawal of the plan amendment, as the case may be.\nWhere the action arises out of either a transfer of subsidiaries\npursuant to section eight thousand twenty of this article or a sale of\nsecurities of the reorganized insurer or any stock holding company\npursuant to section eight thousand eighteen of this article, which\ntransfer or sale is not contemplated by the plan, then the applicable\ntime period shall be measured from the effective date of such transfer\nor sale, as the case may be. Where the action arises out of the terms or\nproposed terms for the establishment of the closed block or such\nalternative provision pursuant to subsection (b) of section eight\nthousand three of this article, then the applicable time period shall be\nmeasured from the implementation date as defined in subsection (e) of\nsection eight thousand three of this article. Where the action concerns\nor arises out of a plan of reorganization adopted pursuant to section\neight thousand nineteen of this article, then the applicable time period\nshall be measured from the effective date of the plan of reorganization.\n (b) In any action referred to in subsection (a) of this section, the\nplaintiff or plaintiffs shall be required, upon a motion of the mutual\nholding company, reorganizing insurer or reorganized insurer or any\nstock holding company which establishes to the satisfaction of the\ncourt, that a substantial likelihood exists that such action is brought\nwithout merit and with an intention to delay or harass, to give adequate\nsecurity for the damages and reasonable expenses, including attorneys'\nfees, which may be incurred as a result of, or in connection with, such\naction by such company and by any other defendants in such action or for\nwhich such company may become liable, to which security the mutual\nholding company, reorganizing insurer or reorganized insurer or any\nstock holding company shall have recourse in such amount as the court\ndetermines upon the termination of such action. The amount of security\nmay from time to time be increased or decreased in the discretion of the\ncourt upon a showing that the security provided has or may become\ninadequate or excessive.\n (c) Notwithstanding any other provision of law to the contrary, any\naction seeking a stay, restraining order, injunction or similar remedy\nto prevent or delay the closing of any transaction pursuant to this\narticle or of any transaction described in the plan of reorganization\nmust be commenced within one hundred twenty days after, as applicable:\n(1) the approval of a plan of reorganization by the superintendent\npursuant to section eight thousand seven or eight thousand nineteen of\nthis article, as the case may be; or (2) the approval of the\nsuperintendent pursuant to section eight thousand twenty of this\narticle.\n (d) Any action or proceeding against the superintendent or any other\ngovernmental body or officer in connection with any act taken or order,\nregulation or rule issued pursuant to this article must be commenced\nwithin one hundred twenty days from the date of such act or signing of\nsuch order, regulation or rule.\n (e) Any person aggrieved by any act taken or order, regulation or rule\nissued pursuant to this article may petition for judicial review in the\nmanner provided by article seventy-eight of the civil practice law and\nrules, pursuant to the limitations period prescribed in subsection (d)\nof this section. The petition shall be brought in the judicial\ndepartment embracing the county wherein the act was taken or the order,\nregulation or rule was issued. All such proceedings shall be heard and\ndetermined as expeditiously as possible and with lawful precedence over\nother matters. Acts taken or orders, regulations or rules issued\npursuant to this article shall not be stayed or enjoined except upon\napplication after notice to the superintendent and to the attorney\ngeneral and upon a showing that the petitioner has a substantial\nlikelihood of success and will suffer irreparable harm if the stay or\ninjunction is not granted.\n