(1) Every transfer made or suffered and every obligation incurred by an insurer within one year prior to the filing of a successful petition for rehabilitation or liquidation under this part 5 is fraudulent as to then existing and future creditors if made or incurred without fair consideration or if made with actual intent to hinder, delay, or defraud either existing or future creditors. A transfer made or an obligation incurred by an insurer ordered to be rehabilitated or liquidated under this part 5, which is fraudulent under this section, may be avoided by the receiver, except as to a person who in good faith is a purchaser, lienor, or obligee for a present fair equivalent value; except that any purchaser, lienor, or obligee, who in good faith has given a consideration less than fair for such transfer, lien, or obligation, may retain the property, lien, or obligation as security for repayment. The court may, on due notice, order any such transfer or obligation to be preserved for the benefit of the estate, and in that event, the receiver shall succeed to and may enforce the rights of the purchaser, lienor, or obligee.
(2) (a) A transfer of property other than real property shall be deemed to be made or suffered when it becomes so far perfected that no subsequent lien obtainable by legal or equitable proceedings on a simple contract could become superior to the rights of the transferee under section 10-3-527 (3).
A transfer of real property shall be deemed to be made or suffered when it becomesso far perfected that no subsequent bona fide purchaser from the insurer could obtain rights superior to the rights of the transferee.
A transfer which creates an equitable lien shall not be deemed to be perfected if thereare available means by which a legal lien could be created.
Any transfer not perfected prior to the filing of a petition for liquidation shall bedeemed to be made immediately before the filing of the successful petition.
The provisions of this subsection (2) shall apply whether or not there are or werecreditors who might have obtained any liens or persons who might have become bona fide purchasers.
(3) Any transaction of the insurer with a reinsurer shall be deemed fraudulent and may be avoided by the receiver under subsection (1) of this section if:
The transaction consists of the termination, adjustment, or settlement of a reinsurancecontract in which the reinsurer is released from any part of its duty to pay the originally specified share of losses that had occurred prior to the time of the transactions, unless the reinsurer gives a present fair equivalent value for the release; and
Any part of the transaction took place within one year prior to the date of filing of thepetition through which the receivership was commenced.
Every person receiving any property from the insurer or any benefit thereof which isa fraudulent transfer under subsection (1) of this section shall be personally liable therefore and shall be bound to account to the liquidator.
Notwithstanding subsection (1) of this section and any other provision of this title, areceiver shall not avoid any transfer of, or any obligation to transfer, money or any other property arising under or in connection with a federal home loan bank security agreement or any pledge agreement, security agreement, collateral agreement, guarantee agreement, or other similar arrangement or credit enhancement relating to a security agreement to which a federal home loan bank is a party; except that a transfer may be avoided under this section if it was made with actual intent to hinder, delay, or defraud either existing or future creditors.
Source: L. 92: Entire part R&RE, p. 1456, § 14, effective July 1. L. 2014: (5) added, (HB 14-1215), ch. 57, p. 258, § 5, effective March 21.