2005 Idaho Code - 41-3327 — FRAUDULENT TRANSFER AFTER PETITION

                                  TITLE  41
                                  INSURANCE
                                  CHAPTER 33
                            INSURERS SUPERVISION,
                        REHABILITATION AND LIQUIDATION
    41-3327.  FRAUDULENT TRANSFER AFTER PETITION. (1) After a petition for
rehabilitation or liquidation has been filed, a transfer of any of the real
property of the insurer made to a person acting in good faith shall be valid
against the receiver if made for a present fair equivalent value, or, if not
made for a present fair equivalent value, then to the extent of the present
consideration actually paid therefor, for which amount the transferee shall
have a lien on the property so transferred. The commencement of a proceeding
in rehabilitation or liquidation shall be 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 States or any
state or jurisdiction to authorize or effect a judicial sale of real property
of the insurer within any county in any state shall not be impaired by the
pendency of such 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 receiver takes possession of the property of the insurer or
an order of rehabilitation or liquidation is granted:
    (a)  A transfer of any of the property of the insurer, other than real
    property, made to a person acting in good faith shall be valid against the
    receiver if made for a present fair equivalent value, or, if not made for
    a present fair equivalent value, then to the extent of the present
    consideration actually paid therefor, for which amount the transferee
    shall have a lien on the property so transferred;
    (b)  A person indebted to the insurer or holding property of the insurer
    may, if acting in good faith, pay the indebtedness or deliver the
    property, or any part thereof, to the insurer or upon his order, with the
    same effect as if the petition were not pending;
    (c)  A person having actual knowledge of the pending rehabilitation or
    liquidation shall be deemed not to act in good faith; and
    (d)  A person asserting the validity of a transfer under this section
    shall have the burden of proof. Except as elsewhere provided in this
    section, no transfer by or on behalf of the insurer after the date of the
    petition for liquidation by any person other than the liquidator shall be
    valid against the liquidator.
    (3)  Nothing in this act shall impair the negotiability of currency or
negotiable instruments.