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KANSAS STATUTES AND CODES
40-3630. Transfer of property after petition for rehabilitation or liquidation filed; validity; judicial sales of property; liability of person receiving property fraudulently transferred.
40-3630
40-3630. Transfer of property after petition for rehabilitation orliquidation filed; validity; judicial sales of property; liability of personreceiving property fraudulently transferred.(a) After a petition for rehabilitation or liquidation has beenfiled, a transfer of any of the real property of the insurer made to a personacting in good faith shall be valid against the receiver if made for a presentfair equivalent value, or, if not made for a present fair equivalent value,then to the extent of the present consideration actually paid therefor, forwhich amount the transferee shall have a lien on the property so transferred. The commencement of a proceeding in rehabilitation or liquidation shall beconstructive notice upon the recording of a copy of the petition for or orderof rehabilitation or liquidation with the register of deeds in the county whereany real property in question is located. The exercise by a court of theUnited States or any state or jurisdiction to authorize or effect a judicialsale of real property of the insurer within any county in any state shall notbe impaired by the pendency of such a proceeding unless the copy is recorded inthe county prior to the consummation of the judicial sale.
(b) After a petition for rehabilitation or liquidation has been filed andbefore either the receiver takes possession of the property of the insurer oran order of rehabilitation or liquidation is granted:
(1) A transfer of any of the property of the insurer, other than realproperty, made to a person acting in good faith shall be valid against thereceiver if made for a present fair equivalent value, or, if not made for apresent fair equivalent value, then to the extent of the present considerationactually paid therefor, for which amount the transferee shall have a lien onthe property so transferred.
(2) A person indebted to the insurer or holding property of the insurer,if acting in good faith, may pay the indebtedness or deliver the property, oranypart thereof, to the insurer or upon the insurer's order, with the same effectas if the petition were not pending.
(3) A person having actual knowledge of the pending rehabilitation orliquidation shall be deemed not to act in good faith.
(4) A person asserting the validity of a transfer under this section shallhave the burden of proof. Except as elsewhere provided in this section, notransfer by or on behalf of the insurer after the date of the petition forliquidation by any person other than the liquidator shall be valid against theliquidator.
(c) Every person receiving any property from the insurer or any benefitthereof which is a fraudulent transfer under subsection (a) shall be personallyliable therefor and shall be bound to account to the liquidator.
(d) Nothing in this act shall impair the negotiability of currency ornegotiable instruments.
History: L. 1991, ch. 125, § 26; July 1.