N.Y. Insurance Law § 8015: Limitations of actions; security

§ 8015. Limitations of actions; security. (a) Notwithstanding any

other provision of law to the contrary and except as otherwise provided

in subsection (c) or (d) of this section, actions concerning or arising

out of any plan of reorganization, proposed plan of reorganization, plan

amendment or proposed plan amendment under this article or any acts

taken or proposed to be taken under this article must be commenced

within eighteen months after the plan of reorganization or plan

amendment is filed pursuant to subsection (a) of section eight thousand

nine of this article or the charter is filed pursuant to subsection (c)

of section eight thousand seventeen of this article, as the case may be,

in the office of the superintendent or one year from the effective date

of the plan of reorganization, whichever is later, or if the plan of

reorganization or plan amendment is withdrawn, within one year from the

date the board of directors approves a resolution to withdraw the plan.

Where an action concerns or arises out of a plan amendment or proposed

plan amendment made under section eight thousand five of this article,

the applicable time period is measured from the filing, effective date

or approval of withdrawal of the plan amendment, as the case may be.

Where the action arises out of either a transfer of subsidiaries

pursuant to section eight thousand twenty of this article or a sale of

securities of the reorganized insurer or any stock holding company

pursuant to section eight thousand eighteen of this article, which

transfer or sale is not contemplated by the plan, then the applicable

time period shall be measured from the effective date of such transfer

or sale, as the case may be. Where the action arises out of the terms or

proposed terms for the establishment of the closed block or such

alternative provision pursuant to subsection (b) of section eight

thousand three of this article, then the applicable time period shall be

measured from the implementation date as defined in subsection (e) of

section eight thousand three of this article. Where the action concerns

or arises out of a plan of reorganization adopted pursuant to section

eight thousand nineteen of this article, then the applicable time period

shall be measured from the effective date of the plan of reorganization.

(b) In any action referred to in subsection (a) of this section, the

plaintiff or plaintiffs shall be required, upon a motion of the mutual

holding company, reorganizing insurer or reorganized insurer or any

stock holding company which establishes to the satisfaction of the

court, that a substantial likelihood exists that such action is brought

without merit and with an intention to delay or harass, to give adequate

security for the damages and reasonable expenses, including attorneys'

fees, which may be incurred as a result of, or in connection with, such

action by such company and by any other defendants in such action or for

which such company may become liable, to which security the mutual

holding company, reorganizing insurer or reorganized insurer or any

stock holding company shall have recourse in such amount as the court

determines upon the termination of such action. The amount of security

may from time to time be increased or decreased in the discretion of the

court upon a showing that the security provided has or may become

inadequate or excessive.

(c) Notwithstanding any other provision of law to the contrary, any

action seeking a stay, restraining order, injunction or similar remedy

to prevent or delay the closing of any transaction pursuant to this

article or of any transaction described in the plan of reorganization

must be commenced within one hundred twenty days after, as applicable:

(1) the approval of a plan of reorganization by the superintendent

pursuant to section eight thousand seven or eight thousand nineteen of

this article, as the case may be; or (2) the approval of the

superintendent pursuant to section eight thousand twenty of this

article.

(d) Any action or proceeding against the superintendent or any other

governmental body or officer in connection with any act taken or order,

regulation or rule issued pursuant to this article must be commenced

within one hundred twenty days from the date of such act or signing of

such order, regulation or rule.

(e) Any person aggrieved by any act taken or order, regulation or rule

issued pursuant to this article may petition for judicial review in the

manner provided by article seventy-eight of the civil practice law and

rules, pursuant to the limitations period prescribed in subsection (d)

of this section. The petition shall be brought in the judicial

department embracing the county wherein the act was taken or the order,

regulation or rule was issued. All such proceedings shall be heard and

determined as expeditiously as possible and with lawful precedence over

other matters. Acts taken or orders, regulations or rules issued

pursuant to this article shall not be stayed or enjoined except upon

application after notice to the superintendent and to the attorney

general and upon a showing that the petitioner has a substantial

likelihood of success and will suffer irreparable harm if the stay or

injunction is not granted.