§ 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.

HISTORY: An. Code 1957, art. 48A, § 157; 1996, ch. 11; 2011, ch. 65, § 5.