PARRIS N. GLENDENING, Governor

Ch. 11

"Secured claim" § 9-201
"Special deposit claim" § 9-201
"Transfer" § 1-101

9-220. ATTACHMENT OR GARNISHMENT OF ASSETS.

(A)     IN GENERAL.

DURING PENDENCY OF A DELINQUENCY PROCEEDING IN THIS STATE OR A
RECIPROCAL STATE, AN ATTACHMENT, GARNISHMENT, EXECUTION, OR SIMILAR
ACTION OR PROCEEDING MAY NOT BE COMMENCED OR MAINTAINED IN A COURT
OF THIS STATE AGAINST THE IMPAIRED INSURER OR ITS ASSETS.

(B)     VOID AS AGAINST RIGHTS IN DELINQUENCY PROCEEDING.

A LIEN OBTAINED OR AN ACTION OR PROCEEDING PROHIBITED BY
SUBSECTION (A) OF THIS SECTION IS VOID AS AGAINST ANY RIGHTS ARISING IN THE
DELINQUENCY PROCEEDING, IF THE LIEN WAS OBTAINED OR THE ACTION OR
PROCEEDING COMMENCED WITHIN 4 MONTHS BEFORE OR AT ANY TIME AFTER
COMMENCEMENT OF A DELINQUENCY PROCEEDING.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 151.

In subsection (a) of this section, the defined term "impaired insurer" is
substituted for the former reference to a "delinquent insurer" for clarity and
to use the defined terms.

Defined terms: "Delinquency proceeding" § 9-201
"Impaired insurer" § 9-201
"Reciprocal state" § 9-201

9-221.VOIDABLE TRANSFERS.

(A)     IN GENERAL.

A TRANSFER OF OR LIEN ON THE PROPERTY OF AN INSURER IS VOIDABLE IF
THE TRANSFER OR LIEN IS:

(1)      MADE OR CREATED WITHIN 4 MONTHS BEFORE THE ISSUANCE OF A
SHOW CAUSE ORDER UNDER THIS SUBTITLE;

(2)      MADE OR CREATED WITH THE INTENT TO GIVE A CREDITOR A
PREFERENCE OR TO ENABLE THE CREDITOR TO OBTAIN A GREATER PERCENTAGE
OF THE DEBT THAN ANOTHER CREDITOR OF THE SAME CLASS; AND

(3)      ACCEPTED BY THE CREDITOR HAVING REASONABLE CAUSE TO
BELIEVE THAT THE PREFERENCE WILL OCCUR.

(B)     PERSONAL LIABILITY.

EACH DIRECTOR, OFFICER, EMPLOYEE, STOCKHOLDER, MEMBER,
SUBSCRIBER, AND ANY OTHER PERSON ACTING ON BEHALF OF AN INSURER THAT IS
CONCERNED IN A VOIDABLE TRANSFER UNDER SUBSECTION (A) OF THIS SECTION

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