§ 8020 — Transfers of subsidiaries

§ 8020. Transfers of subsidiaries. A reorganizing or reorganized\ninsurer may transfer any one or more of its subsidiaries to the mutual\nholding company or to one or more persons owned or controlled by the\nmutual holding company, provided the reorganizing or reorganized insurer\nobtains the prior approval of the superintendent. Any such transfer may\nbe made without consideration as a dividend or for consideration that\nmay include obligations of the mutual holding company or obligations or\npreferred shares of a person owned or controlled by the mutual holding\ncompany. The superintendent shall approve each such proposed transfer if\nthe superintendent finds it is fair and equitable. For a reorganizing\ninsurer, the plan may provide for such transfer, in which case approval\nof the plan shall constitute approval by the superintendent pursuant to\nthis section. The provisions of sections one thousand five hundred five\nand four thousand two hundred seven of this chapter shall not apply to\nany transfer of subsidiaries effected pursuant to this section but shall\notherwise apply to the reorganized insurer and its affiliates in\naccordance with their terms. The provision of subparagraph (ii) of\nparagraph two of subsection (a) of section one thousand four hundred\nfive of this chapter limiting the aggregate amount of investments in\npreferred shares of American institutions shall not apply to an\ninvestment by a reorganizing or reorganized insurer in such preferred\nshares received by it in consideration for a transfer pursuant to this\nsection. For a reorganized insurer, the other provisions of this\narticle, including, without limitation, the requirement of filing a plan\nof reorganization, shall not apply to the transfer of subsidiaries\npursuant to this section.\n