17:30C-27. Offsets
181 words·~1 min read·
/nj/title-17/chapter-30c/17-30c-27·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
a. In all cases of mutual debts or mutual credits between the insurer and another person in connection with any action or proceeding under this act, such credits and debts shall be set off and the balance only shall be allowed or paid, except as provided in subsection b. below.
b. No offset shall be allowed in favor of any such person where
(1)The obligation of the insurer to such person would not at the date of the entry of any liquidation order, or at such other date determined by the court for fixing the rights and liabilities with respect to the estate of the insurer, have entitled him to share as a claimant in the assets of the insurer; or
(2)The obligation of the insurer to such person was purchased by or transferred to such person with a view of its being used as an offset; or
(3)The obligation of such person is to pay a balance upon a subscription to the capital stock of a stock insurer.
L.1975, c. 113, s. 27, eff. June 3, 1975.