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Texas Insurance Code - Not Codified - Section 21A.205. Fraudulent Transfers And Obligations

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.205. Fraudulent Transfers And Obligations

Sec. 21A.205. FRAUDULENT TRANSFERS AND OBLIGATIONS.  (a) The
receiver may avoid any transfer of an interest of the insurer in
property, any reinsurance transaction, or any obligation incurred
by an insurer that was made or incurred on or within two years
before the date of the initial filing of a petition commencing
delinquency proceedings under this chapter, if the insurer
voluntarily or involuntarily:
	(1)  made the transfer or incurred the obligation with actual
intent to hinder, delay, or defraud any person to which it was or
became indebted on or after the date that the transfer was made or
the obligation was incurred;  or
	(2)  received less than a reasonably equivalent value in
exchange for the transfer or obligation.
	(b)  Except to the extent that a transfer or obligation
voidable under this section is voidable under other provisions of
this chapter, a transferee or obligee that takes for value and in
good faith a voidable transfer or obligation has a lien on or may
retain any interest transferred or may enforce any obligation
incurred, as the case may be, to the extent that the transferee or
obligee gave value to the insurer in exchange for the transfer or
obligation.
	(c)  For purposes of this section, a transfer is made when
the transfer is so perfected that a subsequent bona fide purchaser
from the insurer cannot acquire an interest in the property
transferred that is superior to the interest in the property of the
transferee, but if the transfer is not so perfected before the
commencement of the delinquency proceeding, the transfer is deemed
to have been made immediately before the date of the initial filing
of the petition commencing delinquency proceedings.
	(d)  For purposes of this section, "value" means property or
satisfaction or securing of a present or antecedent debt of the
insurer.

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

Last modified: August 11, 2007