31A-27a-503. Unauthorized postpetition transfers.

168 words·~1 min read·/ut/title-31a/chapter-27a/31a-27a-503

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is:

(a)made or incurred after the day on which a petition for receivership is filed; and

(b)not authorized by the receiver and approved by the receivership court.

(2)Except to the extent that a transfer or obligation voidable under this section is otherwise voidable under this chapter, a transferee or obligee of a transfer or obligation described in Subsection

(1)has a lien on or may retain, at the option of the receivership court, an interest transferred or may enforce an obligation incurred, as the case may be:

(a)if the transferee or obligee takes it for value and in good faith; and

(b)to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.

Enacted by Chapter 309 , 2007 General Session