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304.33-590 Interstate priorities.
(1)
(2)
(3)
Priorities. In a liquidation proceeding in this state involving one or more reciprocal
states the order of distribution of the domiciliary state shall control as to all claims
of residents of this and reciprocal states. All claims of residents of reciprocal states
shall be given equal priority of payment from general assets regardless of where
such assets are located.
Priority of special deposit claims. The owners of special deposit claims against an
insurer for which a liquidator is appointed in this or any other state shall be given
priority against the special deposits in accordance with the statutes governing the
creation and maintenance of the deposits. If there is a deficiency in any deposit so
that the claims secured by it are not fully discharged from it the claimants may share
in the general assets, but the sharing shall be deferred until general creditors, and
also claimants against other special deposits who have received smaller percentages
from their respective special deposits, have been paid percentages of their claims
equal to the percentage paid from the special deposit.
Priority of secured claims. The owners of a secured claim against an insurer for
which a liquidator has been appointed in this or any other state may surrender his
security and file his claim as a general creditor, or the claim may be discharged by
resort to the security in accordance with KRS 304.33-420, in which case the
deficiency, if any, shall be treated as a claim against the general assets of the insurer
on the same basis as claims of unsecured creditors.
Effective: June 18, 1970
History: Created 1970 Ky. Acts ch. 301, subtit. 33, sec. 59, effective June 18, 1970.
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