38.2-1513 - Voidable transfers. - Virginia Statutes

§ 38.2-1513. Voidable transfers.

A. Any transfer of or lien upon the property of an insurer that is made orcreated within four months before the institution of delinquency proceedingsunder this chapter shall be voidable if (i) done with the intent of giving orenabling any creditor to obtain a greater percentage of payment of the debtthan any other creditor of the same class and (ii) the creditor accepting thetransfer has reasonable cause to believe that a preference will occur.

B. Every director, officer, employee, stockholder, member, subscriber, andother person acting on behalf of an insurer who is involved in any actdescribed in subsection A of this section, and every person receivingproperty of an insurer as a result of this act, shall be personally liableand held accountable to the receiver.

C. A receiver in any proceeding under this chapter may avoid any transfer ofor lien upon the property of an insurer that any creditor, stockholder,subscriber or member of the insurer might have avoided. The receiver mayalso recover the transferred property unless the person was a valid holderfor value before the date of the institution of delinquency proceedings underthis chapter. The property or its value may be recovered from anyone who hasreceived it except as a valid holder for value as specified in thissubsection.

(1952, c. 317, § 38.1-137; 1986, c. 562.)