58-29B-64. Validity of transfers after petitions filed and before receiver takes possession or order granted.
226 words·~1 min read·
/sd/title-58/chapter-58-29/58-29b-64·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
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:
(1)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;
(2)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;
(3)A person having actual knowledge of the pending rehabilitation or liquidation is deemed not to act in good faith;
(4)A person asserting the validity of a transfer under this section has 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 may be valid against the liquidator.