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Texas Insurance Code - Not Codified - Section 21A.013. Executory Contracts And Unexpired Leases

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.013. Executory Contracts And Unexpired Leases

Sec. 21A.013. EXECUTORY CONTRACTS AND UNEXPIRED LEASES.  (a)
The receiver may assume or reject any executory contract or
unexpired lease of the insurer.
	(b)  Neither the filing of a petition commencing delinquency
proceedings under this chapter nor the entry of an order for a
delinquency proceeding constitutes a breach or anticipatory breach
of any contract or lease of the insurer.
	(c)  If there has been a default in an executory contract or
unexpired lease of the insurer, the receiver may not assume the
contract or lease unless, at the time of the assumption of the
contract or lease, the receiver:
	(1)  cures or provides adequate assurance that the receiver
will promptly cure the default;  and
	(2)  provides adequate assurance of future performance under
the contract or lease.
	(d)  Subsection (c) does not apply to a default that is a
breach of a provision relating to:
	(1)  the insolvency or financial condition of the insurer at
any time before the closing of the delinquency proceeding;
	(2)  the appointment of or taking possession by a receiver in
a case under this chapter or a custodian before the commencement of
the delinquency proceeding;  or
	(3)  the satisfaction of any penalty rate or provision
relating to a default arising from any failure of the insurer to
perform nonmonetary obligations under the executory contract or
unexpired lease.
	(e)  A claim arising from the rejection, under this section
or a plan of rehabilitation, of an executory contract or unexpired
lease of the insurer that has not been assumed shall be determined,
treated, and classified as if the claim had arisen before the date
of the filing of a successful petition commencing the delinquency
proceeding.

Added by Acts 2005, 79th Leg., ch. 995, Sec. 1, eff. Sept. 1, 2005.

Last modified: August 11, 2007