Ch. 11

1996 LAWS OF MARYLAND

AND EACH PERSON THAT, AS A RESULT OF THE VOIDABLE TRANSFER, RECEIVES
ANY PROPERTY OF THE INSURER OR BENEFITS FROM THE VOIDABLE TRANSFER:

(1)      IS PERSONALLY LIABLE; AND

(2)      SHALL ACCOUNT TO THE COMMISSIONER.
(C) OTHER TRANSFERS.

THE COMMISSIONER AS RECEIVER IN A DELINQUENCY PROCEEDING MAY:

(1)      AVOID A TRANSFER OF OR LIEN ON THE PROPERTY OF AN INSURER
THAT A CREDITOR, STOCKHOLDER, SUBSCRIBER, OR MEMBER OF THE INSURER
MIGHT HAVE AVOIDED; AND

(2)      RECOVER THE TRANSFERRED PROPERTY OR ITS VALUE FROM THE
PERSON THAT RECEIVED IT UNLESS THAT PERSON WAS A BONA FIDE HOLDER FOR
VALUE BEFORE THE DATE OF ISSUANCE OF A SHOW CAUSE ORDER UNDER THIS
SUBTITLE.

REVISOR'S NOTE: This section is new language derived without substantive
change from former Art. 48A, § 157.

The Insurance Article Review Committee notes, for consideration by the
General Assembly, that in subsection (b) of this section the reference to a
person who is "concerned" in a voidable act is unclear with respect to the
degree of participation or involvement by the person in the voidable act.

In the introductory language of subsection (c) of this section, the defined term
"delinquency proceeding" is substituted for the former reference to "any
proceeding under this subtitle" for clarity.

In subsection (c)(2) of this section, the former phrase "except a bona fide
holder for value as herein specified" is deleted as duplicative.

Defined terms: "Commissioner" § 1-101
"Creditor" § 9-201
"Delinquency proceeding" § 9-201
"Insurer" § 1-101
"Person" § 1-101
"Receiver" § 9-201
"Reciprocal state" § 9-201
"Transfer" § 9-201

9-222. DEPOSITS.

(A) IN GENERAL.

(1) THE COMMISSIONER SHALL DEPOSIT MONEYS COLLECTED IN A
DELINQUENCY PROCEEDING IN A STATE OR NATIONAL BANK, SAVINGS BANK, OR
TRUST COMPANY.

- 272 -