Section 9-221 - Voidable transfers. - Maryland Statutes

§ 9-221. Voidable transfers.
 

(a)  In general.- A transfer of or lien on the property of an insurer is voidable if the transfer or lien is: 

(1) made or created within 4 months before the issuance of a show cause order under this subtitle; 

(2) made or created with the intent to give a creditor a preference or to enable the creditor to obtain a greater percentage of the debt than another creditor of the same class; and 

(3) accepted by the creditor having reasonable cause to believe that the preference will occur. 

(b)  Personal liability.- Each director, officer, employee, stockholder, member, subscriber, and any other person acting on behalf of an insurer that is concerned in a voidable transfer under subsection (a) of this section and each person that, as a result of the voidable transfer, receives any property of the insurer or benefits from the voidable transfer: 

(1) is personally liable; and 

(2) shall account to the Commissioner. 

(c)  Other transfers.- The Commissioner as receiver in a delinquency proceeding may: 

(1) avoid a transfer of or lien on the property of an insurer that a creditor, stockholder, subscriber, or member of the insurer might have avoided; and 

(2) recover the transferred property or its value from the person that received it unless that person was a bona fide holder for value before the date of issuance of a show cause order under this subtitle. 
 

[An. Code 1957, art. 48A, § 157; 1996, ch. 11.]