(a) After 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 is 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 commencement of a proceeding in rehabilitation or liquidation is constructive notice upon the recording of a copy of the petition for or order of rehabilitation or liquidation with the register 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 is not impaired by the pendency of the 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 is 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.
(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 order, with the same effect as if the petition were not pending.
(3) A person having actual knowledge of the pending rehabilitation or liquidation is considered not to act in good faith.
(4) A person asserting the validity of a transfer under this section has 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 is valid against the liquidator.
(c) Nothing in this chapter impairs the negotiability of currency or negotiable instruments.
HISTORY: Former 1976 Code Section 38-5-2160 [1982 Act . 384, Section 27] recodified as Section 38-27-460 by 1987 Act No. 155, Section 1; 1997 Act No. 34, Section 1.
Structure South Carolina Code of Laws
Chapter 27 - Insurers' Rehabilitation And Liquidation Act
Section 38-27-10. Short title.
Section 38-27-20. Construction.
Section 38-27-40. Persons covered.
Section 38-27-50. Definitions.
Section 38-27-60. Jurisdiction and venue.
Section 38-27-70. Injunctions and orders.
Section 38-27-80. Cooperation of officers, owners, and employees.
Section 38-27-110. Disabilities of delinquent insurer pending repayment to guaranty association.
Section 38-27-220. Court's seizure order.
Section 38-27-230. Confidentiality of hearings.
Section 38-27-310. Grounds for rehabilitation.
Section 38-27-320. Rehabilitation orders.
Section 38-27-330. Powers and duties of rehabilitator.
Section 38-27-340. Actions by and against rehabilitator.
Section 38-27-350. Termination of rehabilitation.
Section 38-27-360. Grounds for liquidation.
Section 38-27-370. Liquidation orders.
Section 38-27-380. Continuance of coverage.
Section 38-27-390. Dissolution of insurer.
Section 38-27-400. Powers of liquidator.
Section 38-27-410. Notice to creditors and others.
Section 38-27-420. Duties of agents.
Section 38-27-430. Actions by and against liquidator.
Section 38-27-440. Collection and list of assets.
Section 38-27-450. Fraudulent transfers prior to petition.
Section 38-27-460. Transfers after petition.
Section 38-27-470. Voidable preferences and liens.
Section 38-27-480. Claims of holders of voidable rights.
Section 38-27-500. Assessments.
Section 38-27-510. Reinsurer's liability.
Section 38-27-520. Recovery of premiums owed.
Section 38-27-530. Domiciliary liquidator's proposal to distribute assets.
Section 38-27-540. Filing of claims.
Section 38-27-550. Proof of claim.
Section 38-27-560. Special claims.
Section 38-27-570. Special provisions for third party and insureds' claims.
Section 38-27-580. Disputed claims.
Section 38-27-590. Claims of surety.
Section 38-27-600. Secured creditor's claims.
Section 38-27-610. Priority of distribution.
Section 38-27-620. Liquidator's recommendations to court.
Section 38-27-630. Distribution of assets.
Section 38-27-640. Unclaimed and withheld funds.
Section 38-27-650. Termination of proceedings.
Section 38-27-660. Reopening liquidation.
Section 38-27-670. Disposition of records during and after termination of liquidation.
Section 38-27-680. External audit of receiver's books.
Section 38-27-910. Conservation of property of alien or foreign insurers.
Section 38-27-920. Liquidation of property of alien or foreign insurers.
Section 38-27-930. Domiciliary liquidators in other states.
Section 38-27-940. Ancillary formal proceedings.
Section 38-27-950. Ancillary summary proceedings.
Section 38-27-960. Claims of nonresidents against insurers domiciled in South Carolina.
Section 38-27-970. Claims of residents against insurers domiciled in reciprocal states.
Section 38-27-980. Attachment, garnishment, and levy of execution.
Section 38-27-990. Interstate priorities.
Section 38-27-1000. Subordination of claims for noncooperation.