2006 Minnesota Statutes

60B.31 FRAUDULENT TRANSFERS AFTER PETITION.
    Subdivision 1. Effect of petition; real property. After a petition for rehabilitation or
liquidation, a transfer of any of the real property of the insurer made to a person acting in good
faith shall be valid against the receiver if made for a present fair equivalent value or, if not made
for a present fair equivalent value, then to the extent of the present consideration actually paid
therefor, for which amount the transferee shall have a lien on the property so transferred. The
recording of a copy of the petition for or order of rehabilitation or liquidation with the county
recorder in the county where any real property in question is located is constructive notice of the
commencement of a proceeding in rehabilitation or liquidation. The exercise by a court of the
United States or any state of jurisdiction to authorize or effect a judicial sale of real property of the
insurer within any county in any state shall not be impaired by the pendency of such a proceeding
unless the copy is recorded in the county prior to the consummation of the judicial sale.
    Subd. 2. Effect of petition; personal property. After a petition for rehabilitation or
liquidation and before either the receiver takes possession of the property of the insurer or an
order of rehabilitation or liquidation is granted:
(a) A transfer of any of the property of the insurer, other than real property, made to a person
acting in good faith shall be valid against the receiver if made for a present fair equivalent value
or, if not made for a present fair equivalent value, then to the extent of the present consideration
actually paid therefor, for which amount the transferee shall have a lien on the property so
transferred.
(b) A person indebted to the insurer or holding property of the insurer may, if acting in good
faith, pay the indebtedness or deliver the property or any part thereof to the insurer or upon the
insurer's order, with the same effect as if the petition were not pending.
(c) A person having actual knowledge of the pending rehabilitation or liquidation shall be
deemed not to act in good faith unless that person has reasonable cause to believe that the petition
is not well founded.
(d) A person asserting the validity of a transfer under this section shall have the burden of
proof. Except as elsewhere provided in this section, no transfer by or in behalf of the insurer after
the date of the petition for liquidation by any person other than the liquidator shall be valid
against the liquidator.
    Subd. 3. Negotiability. Nothing in sections 60B.01 to 60B.61 shall impair the negotiability
of currency or negotiable instruments.
History: 1969 c 708 s 31; 1976 c 181 s 2; 1986 c 444