2009 Iowa Code
Title 13 - Commerce
Subtitle 1 - Insurance and Related Regulation
CHAPTER 507C - INSURERS SUPERVISION, REHABILITATION, AND LIQUIDATION
507C.27 - FRAUDULENT TRANSFER AFTER PETITION.

        507C.27  FRAUDULENT TRANSFER AFTER PETITION.
         1.  After a petition for rehabilitation or liquidation has been
      filed a transfer of real property of the insurer made to a person
      acting in good faith is valid against the receiver if made for a
      present fair equivalent value.  If the transfer was not made for a
      present fair equivalent value, then the transfer is valid to the
      extent of the present consideration actually paid for which amount
      the transferee shall have a lien on the property transferred.  The
      commencement of a proceeding in rehabilitation or liquidation is
      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 a state or jurisdiction
      to authorize a judicial sale of real property of the insurer within a
      county in a state shall not be impaired by the pendency of 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 the property, other than real property, of
      the insurer made to a person acting in good faith is valid against
      the receiver if made for a present fair equivalent value.  If the
      transfer was not made for a present fair equivalent value, then the
      transfer is valid to the extent of the present consideration actually
      paid for which amount the transferee shall have a lien on the
      property transferred.
         b.  If acting in good faith, a person indebted to the insurer
      or holding property of the insurer may pay the debt or deliver the
      property, or any part thereof, to the insurer or upon the insurer's
      order as if the petition were not pending.
         c.  A person having actual knowledge of the pending
      rehabilitation or liquidation is not acting in good faith.
         d.  A person asserting the validity of a transfer under this
      section shall have the burden of proof.  Except as provided in this
      section, a transfer by or on behalf of the insurer after the date of
      the petition for liquidation by any person other than the liquidator
      shall not be valid against the liquidator.
         3.  A person receiving any property from the insurer or any
      benefit of the insurer which is a fraudulent transfer under
      subsection 1 is personally liable for the property or benefit and
      shall account to the liquidator.
         4.  This chapter shall not impair the negotiability of currency or
      negotiable instruments.  

         84 Acts, ch 1175, § 27; 92 Acts, ch 1117, § 25
         Referred to in § 507C.14, 507C.21, 507C.35