§ 7405. Order of liquidation; rights and liabilities. (a) An order to\nliquidate the business of a domestic insurer shall direct the\nsuperintendent and his successors in office, as liquidator, forthwith to\ntake possession of the property of such insurer and to liquidate the\nbusiness of the same and deal with such property and business of such\ninsurer in their own names as superintendents or in the insurer's name\nas the court may direct, and to give notice to all creditors to present\ntheir claims.\n (b) The superintendent and his successors shall be vested by operation\nof law with the title to all property, contracts and rights of action of\nsuch insurer as of the date of the entry of the order so directing them\nto liquidate. The filing or recording of such order in any record office\nof the state shall impart the same notice that a deed, bill of sale or\nother evidence of title duly filed or recorded by such insurer would\nhave imparted. The rights and liabilities of any such insurer and of its\ncreditors, policyholders, shareholders, members and all other persons\ninterested in its estate shall, unless otherwise directed by the court,\nbe fixed as of the date the order is entered in the office of the clerk\nof the county where such insurer had its principal office on the date\nthe proceeding commenced, subject, however, to the provisions of section\nseven thousand four hundred thirty-three of this article to the rights\nof claimants holding contingent claims.\n (c) The liquidator of any domestic insurance corporation shall\nreinsure all its policy obligations in any solvent corporation\nauthorized to do business in this state if the unearned premium reserve\nof the insurer is sufficient to effect such reinsurance. If such reserve\nis insufficient for that purpose, the liquidator shall reinsure a\npercentage of each policy obligation of the insurer outstanding to the\nextent that the reserve may be sufficient for that purpose. No contract\nof reinsurance shall be entered into by the liquidator except pursuant\nto an order of the court in which the liquidator was appointed directing\nthe reinsurance and establishing the general form of the reinsurance\ncontract.\n (d) An order to liquidate the business of the United States branch of\nan alien insurer having trusteed assets in this state shall be in the\nsame terms as those hereinbefore prescribed, except that only the assets\nof the business of such United States branch shall be included therein.\n (e) Where the trustee of a mortgage series consisting in whole or in\npart of certificated mortgage investments guaranteed by a domestic\ninsurer has distributed all of the trust estate collateral, or has been\npermitted by court order to abandon all or part of such collateral not\ndistributed, the court, by order, may, upon the consent of the\nliquidator of the insurer, direct the superintendent, upon being\nfurnished with a list of certificate holders certified to by the\ntrustee, to record subsequent transfers of certificates and charge and\ncollect a reasonable fee therefor, and distribute dividends applicable\nthereto upon liquidation of company assets in his hands, to the record\nowners of such certificates, and make and deduct from such dividend\npayments a reasonable charge for such services. The duty of the\nsuperintendent under such order shall terminate upon the termination of\nthe liquidation proceedings.\n (f) (1) No later than one hundred eighty days after a final order of\nliquidation with an adjudication of insolvency of an insurer by a court\nof competent jurisdiction of this state, the liquidator may in his sole\ndiscretion make application to the court for approval of a proposal to\ndisburse assets out of marshalled assets, from time to time as such\nassets become available, to any fund established by article seventy-six\nof this chapter, article six-A of the workers' compensation law and any\nforeign entity performing a similar function, having obliga
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