§ 27-14.3-30. Fraudulent transfers prior to petition.
(a) Every transfer made or suffered and every obligation incurred by an insurer within
one year prior to the filing of a successful petition for rehabilitation or liquidation
under this chapter is fraudulent as to then existing and future creditors if made
or incurred without fair consideration, or with actual intent to hinder, delay, or
defraud either existing or future creditors. A transfer made or an obligation incurred
by an insurer ordered to be rehabilitated or liquidated under this chapter, which
is fraudulent under this section, may be avoided by the receiver, except as to a person
who in good faith is a purchaser, lienor, or obligee for a present fair equivalent
value, and except that any purchaser, lienor, or obligee, who in good faith has given
a consideration less than fair for the transfer, lien, or obligation, may retain the
property, lien, or obligation as security for repayment. The court may, on due notice,
order any transfer or obligation to be preserved for the benefit of the estate, and
in that event, the receiver shall succeed to and may enforce the rights of the purchaser,
lienor, or obligee.
(b)(1) A transfer of property other than real property shall be deemed made or suffered when
it becomes so far perfected that no subsequent lien obtainable by legal or equitable
proceedings on a simple contract could become superior to the rights of the transferee
under § 27-14.3-32(c).
(2) A transfer of real property shall be deemed made or suffered when it becomes so far
perfected that no subsequent bona fide purchaser from the insurer could obtain rights
superior to the rights of the transferee.
(3) A transfer that creates an equitable lien shall not be deemed perfected if there are
available means by which a legal lien could be created.
(4) Any transfer not perfected prior to the filing of a petition for liquidation shall
be deemed made immediately before the filing of the successful petition.
(5) The provisions of this subsection (b) apply whether or not there are or were creditors
who might have obtained any liens or persons who might have become bona fide purchasers.
(c) Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may
be avoided by the receiver under subsection (a) of this section if:
(1) The transaction consists of the termination, adjustment, or settlement of a reinsurance
contract in which the reinsurer is released from any part of its duty to pay the originally
specified share of losses that had occurred prior to the time of the transactions,
unless the reinsurer gives a present fair equivalent value for the release; and
(2) Any part of the transaction took place within one year prior to the date of filing
of the petition through which the receivership was commenced.
(d) Every person receiving any property from the insurer or any benefit thereof which
is a fraudulent transfer under subsection (a) of this section shall be personally
liable for it and shall be bound to account to the liquidator.
(e) Notwithstanding subsection (a) of this section, § 27-14.3-31, or any other provision of this chapter, no receiver or any other person shall avoid
any transfer of, or any obligation to transfer, money or any other property arising
under or in connection with any pledge, security, credit, collateral, loan, advances,
reimbursement or guarantee agreement or arrangement or any similar agreement, arrangement,
or other credit enhancement to which a federal home loan bank, as defined in § 27-14.3-5, is a party, that is made, incurred, or assumed prior to or after the filing of a
successful petition for rehabilitation or liquidation under this chapter, or otherwise
would be subject to avoidance under this section or § 27-14.3-31; provided, however, that a transfer may be avoided under this section or § 27-14.3-31 if the transfer was made with actual intent to hinder, delay, or defraud the insurer,
a receiver appointed for the insurer, or existing or future creditors.