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304.33-300 Fraudulent transfers after petition.
(1)
(2)
(3)
(4)
Effect of petition: real property. After a petition for rehabilitation or liquidation, 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 recording of a
copy of the petition for or order of rehabilitation or liquidation with the county
clerk in the county where any real property in question is located shall be
constructive notice of the commencement of a proceeding in rehabilitation or
liquidation. The exercise by a court of the United States or any state of
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.
Effect of petition: personal property. After a petition for rehabilitation or
liquidation 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 or her 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 unless he or she has
reasonable cause to believe that the petition is not well founded; 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 in 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.
Every person receiving any property from the insurer or any benefit thereof
which is a fraudulent transfer under this section shall be personally liable
therefor and shall be bound to account to the liquidator.
Negotiability. Nothing in this subtitle shall impair the negotiability of currency or
negotiable instruments.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1449, effective July 15, 2010. -Amended 1990 Ky. Acts ch. 422, sec. 21, effective July 13, 1990. -- Amended
1978 Ky. Acts ch. 384, sec. 472, effective June 17, 1978. -- Created 1970 Ky.
Acts ch. 301, subtit. 33, sec. 30, effective June 18, 1970.
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