Utah Code § 31A-27a-503
Unauthorized postpetition transfers
Utah · Utah Code Title 31A — Insurance Code · Status: effective
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- Citation
- Utah Code § 31A-27a-503, Unauthorized postpetition transfers, Utah, version 1 as recorded 2026-10-03, yourstate.us, https://yourstate.us/provision/2334156
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Full text
(1) Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is:
(a) made or incurred after the day on which a petition for receivership is filed; and
(b) not authorized by the receiver and approved by the receivership court.
(2) Except to the extent that a transfer or obligation voidable under this section is otherwise voidable under this chapter, a transferee or obligee of a transfer or obligation described in Subsection (1) has a lien on or may retain, at the option of the receivership court, an interest transferred or may enforce an obligation incurred, as the case may be:
(a) if the transferee or obligee takes it for value and in good faith; and
(b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.