{"data":{"id":"us-ky/krs-304.33-300","jurisdiction":"us-ky","citation":"KRS 304.33-300","heading":"Fraudulent transfers after petition.","body":"Except as provided in KRS 304.33-055:\n(1) Effect of petition: real property. After a petition for rehabilitation or liquidation, a\ntransfer of any of the real property of the insurer made to a person acting in good\nfaith shall be valid against the receiver if made for a present fair equivalent val ue\nor, if not made for a present fair equivalent value, then to the extent of the present\nconsideration actually paid therefor, for which amount the transferee shall have a\nlien on the property so transferred. The recording of a copy of the petition for or\norder of rehabilitation or liquidation with the county clerk in the county where any\nreal property in question is located shall be constructive notice of the\ncommencement of a proceeding in rehabilitation or liquidation. The exercise by a\ncourt of the United States or any state of jurisdiction to authorize or effect a judicial\nsale of real property of the insurer within any county in any state shall not be\nimpaired by the pendency of such a proceeding unless the copy is recorded in the\ncounty prior to the consummation of the judicial sale;\n(2) Effect of petition: personal property. After a petition for rehabilitation or liquidation\nand before either the receiver takes possession of the property of the insurer or an\norder of rehabilitation or liquidation is granted:\n(a) A transfer of any of the property of the insurer, other than real property, made\nto a person acting in good faith shall be valid against the receiver if made for a\npresent fair equivalent value or, if not made for a present fair equivalent\nvalue, then to the extent of the present consideration actually paid therefor, for\nwhich amount the transferee shall have a lien on the property so transferred;\n(b) A person indebted to the insurer or holding property of the insurer may, if\nacting in good fai th, pay the indebtedness or deliver the property or any part\nthereof to the insurer or upon his or her order, with the same effect as if the\npetition were not pending;\n(c) A person having actual knowledge of the pending rehabilitation or liquidation\nshall be deemed not to act in good faith unless he or she has reasonable cause\nto believe that the petition is not well founded; and\n(d) A person asserting the validity of a transfer under this section shall have the\nburden of proof. Except as elsewhere provided  in this section, no transfer by\nor in behalf of the insurer after the date of the petition for liquidation by any\nperson other than the liquidator shall be valid against the liquidator;\n(3) Every person receiving any property from the insurer or any benef it thereof which\nis a fraudulent transfer under this section shall be personally liable therefor and\nshall be bound to account to the liquidator; and\n(4) Negotiability. Nothing in this subtitle shall impair the negotiability of currency or\nnegotiable instruments.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56207","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:54Z","sha256":"1276525a8cbde301e60a84db8fa0652395c596cddef256ebe0e7cdc3c50ebd2e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-304.33-290","next":"us-ky/krs-304.33-310"},"notice":"GroundRules: Original legal text. Not legal advice."}