                                 CODE OF VIRGINIA

VOIDABLE TRANSFERS (§ 38.2-1513)

A. Any transfer of or lien upon the property of an insurer that is made or
created within four months before the institution of delinquency proceedings
under this chapter shall be voidable if (i) done with the intent of giving or
enabling any creditor to obtain a greater percentage of payment of the debt than
any other creditor of the same class and (ii) the creditor accepting the
transfer has reasonable cause to believe that a preference will occur.

B. Every director, officer, employee, stockholder, member, subscriber, and other
person acting on behalf of an insurer who is involved in any act described in
subsection A of this section, and every person receiving property of an insurer
as a result of this act, shall be personally liable and held accountable to the
receiver.

C. A receiver in any proceeding under this chapter may avoid any transfer of or
lien upon the property of an insurer that any creditor, stockholder, subscriber
or member of the insurer might have avoided. The receiver may also recover the
transferred property unless the person was a valid holder for value before the
date of the institution of delinquency proceedings under this chapter. The
property or its value may be recovered from anyone who has received it except as
a valid holder for value as specified in this subsection.

HISTORY: 1952, c. 317, § 38.1-137; 1986, c. 562.