The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
003
:
FORMAL PROCEEDINGS
(Cite as: 8 V.S.A. § 7066)
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§ 7066. Fraudulent transfer after petition
(a) After a petition for rehabilitation or liquidation has been filed, 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, for which amount the transferee shall have a lien on the property so
transferred. The commencement of a proceeding in rehabilitation or liquidation shall
be constructive notice upon the recording of a copy of the petition for or order of
rehabilitation or liquidation with the recorder of deeds in the county where any real
property in question is located. The exercise by a court of the United States or any
state or 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.
(b) After a petition for rehabilitation or liquidation has been filed and before either
the receiver takes possession of the property of the insurer or an order of rehabilitation
or liquidation is granted:
(1) 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, for which amount the transferee
shall have a lien on the property so transferred.
(2) 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 his or her order, with the same effect as if the petition were
not pending.
(3) A person having actual knowledge of the pending rehabilitation or liquidation shall
be deemed not to act in good faith.
(4) 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 on 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.
(c) Every person receiving any property from the insurer or any benefit thereof which
is a fraudulent transfer under subsection (a) of this section shall be personally
liable therefore and shall be bound to account to the liquidator.
(d) Nothing in this chapter shall impair the negotiability of currency or negotiable instruments. (Added 1991, No. 45, § 2, eff. May 29, 1991.)