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Texas Insurance Code - Not Codified - Section 21A.207. Liability Of Transferee

Legal Research Home > Texas Lawyer > Insurance Code - Not Codified > Texas Insurance Code - Not Codified - Section 21A.207. Liability Of Transferee

Sec. 21A.207. LIABILITY OF TRANSFEREE.  (a) Except as
otherwise provided in this section, to the extent that the receiver
obtains an order under Section 21A.201 or avoids a transfer under
Sections 21A.202, 21A.203, 21A.204, 21A.205, or 21A.206, the
receiver may recover the property transferred, or the value of the
property, from:
	(1)  the initial transferee of the transfer or the entity for
whose benefit the transfer was made;  or
	(2)  any immediate or mediate transferee of the initial
transferee.
	(b)  The receiver may not recover under Subsection (a)(2)
from:
	(1)  a transferee that takes for value, including
satisfaction or securing of a present or antecedent debt, in good
faith, and without knowledge of the voidability of the transfer
avoided;  or
	(2)  any immediate or mediate good faith transferee of the
transferee.
	(c)  Any transfer avoided in accordance with this chapter is
preserved for the benefit of the receivership estate, but only with
respect to property of the insurer.
	(d)  In addition to the remedies specifically provided under
Sections 21A.201-21A.206 and Subsection (a), if the receiver is
successful in establishing a claim to the property or any part of
the property, the receiver is entitled to recover judgment for:
	(1)  rental for the use of the tangible property from the
later of the entry of the receivership order or the date of the
transfer;
	(2)  in the case of funds or intangible property, the greater
of:
	(A)  the actual interest or income earned by the property;
or
	(B)  interest at the statutory rate for judgments from the
later of the date of the entry of the receivership order or the date
of the transfer;  and
	(3)  except as to recoveries from guaranty associations, all
costs, including investigative costs and other expenses necessary
to the recovery of the property or funds, and reasonable attorney's
fees.
	(e)  In any action under this section, the receivership court
may allow the receiver to seek recovery of the property involved or
the property's value.
	(f)  In any action under Sections 21A.201-21A.206, the
receiver has the burden of proving the avoidability of a transfer,
and the person against whom recovery or avoidance is sought has the
burden of proving the nature and extent of any affirmative defense.

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

Last modified: August 11, 2007