§ 7425. Voidable transfers. (a) Any transfer of, or lien created upon,\nthe property of an insurer within twelve months prior to the granting of\nan order to show cause under this article with the intent of giving to\nany creditor or enabling him to obtain a greater percentage of his debt\nthan any other creditor of the same class and which is accepted by such\ncreditor having reasonable cause to believe that such a preference will\noccur, shall be voidable.\n (b) Every director, officer, employee, shareholder, member or other\nperson acting on behalf of such insurer who shall be concerned in any\nsuch prohibited act and every person receiving thereby any property of\nsuch insurer or the benefit thereof shall be personally liable therefor\nand shall be bound to account to the superintendent.\n (c) The superintendent, as liquidator, rehabilitator or conservator in\nany proceeding under this article, may avoid any transfer of, or lien\nupon, the property of an insurer which any creditor, shareholder or\nmember of such insurer might have avoided and may recover the property\ntransferred or its value from the transferee unless he was a bona fide\nholder for value prior to the date of the granting of an order to show\ncause under this article. Such property or its value may be recovered\nfrom anyone who has received it except a bona fide holder for value.\n (d) Notwithstanding the provisions of subsection (a) of this section,\na commutation of a reinsurance agreement, approved by the superintendent\npursuant to section one thousand three hundred twenty-one of this\nchapter, shall not be voidable as a preference.\n (e) (1) Notwithstanding subsection (a) of this section or any other\nprovision of this article to the contrary, (i) a receiver shall not void\na transfer of money or other property arising under or in connection\nwith a federal home loan bank security agreement that is made before the\ncommencement of a formal proceeding under this article in the ordinary\ncourse of business and in compliance with the security agreement unless\nsuch transfer was made with actual intent to hinder, delay or defraud\nthe insurer-member, a receiver appointed for the insurer-member or\nexisting or future creditors; and (ii) a receiver shall not void a\nredemption or repurchase of any stock or equity securities which was\nmade by the federal home loan bank within four months of a formal\ncommencement of the delinquency proceedings or which received prior\napproval of the receiver.\n (2) Following the appointment of a receiver for an insurer-member and\nupon request of the receiver, the federal home loan bank shall in good\nfaith, within five days of such request, provide a process and establish\ntiming for all of the following:\n (i) the release of collateral that exceeds the lending value, as\ndetermined in accordance with the federal home loan bank security\nagreement, required to support secured obligations remaining after any\nrepayment of advances;\n (ii) the release of any collateral remaining in the federal home loan\nbank's possession following repayment in full of all outstanding secured\nobligations;\n (iii) the payment of fees and the operation of deposits and other\naccounts with the federal home loan bank; and\n (iv) the redemption or repurchase of federal home loan bank stock or\nexcess stock of any class that an insurer-member is required to own\nconsistent with federal law and regulations, the federal home loan\nbank's capital plan, and the capital stock practices currently\napplicable to the federal home loan bank's entire membership.\n (3) Upon the request of the receiver for an insurer-member, the\nfederal home loan bank shall provide any available options that are\nacceptable to the federal home loan bank for such insurer-member to\nrenew or restructure an advance to defer associated prepayment fees, to\nthe extent that market conditions, the terms of the advance outstanding\nto the insurer-member, the applicable p
‹ Prev All New York sections Next ›
Lexace provides legal information, not legal advice, and no attorney–client relationship is created. Statute text is provided for general information and may not reflect the most recent amendments; verify against the official state code.