Section 503 - Unauthorized postpetition transfers.

UT Code § 31A-27a-503 (2019) (N/A)

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(1) Except as otherwise provided in this section, the receiver may avoid a transfer of an interest of the insurer in property, or an obligation incurred by the insurer, that is: (a) made or incurred after the day on which a petition for receivership is filed; and (b) not authorized by the receiver and approved by the receivership court.

(a) made or incurred after the day on which a petition for receivership is filed; and

(b) not authorized by the receiver and approved by the receivership court.

(2) Except to the extent that a transfer or obligation voidable under this section is otherwise voidable under this chapter, a transferee or obligee of a transfer or obligation described in Subsection (1) has a lien on or may retain, at the option of the receivership court, an interest transferred or may enforce an obligation incurred, as the case may be: (a) if the transferee or obligee takes it for value and in good faith; and (b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.

(a) if the transferee or obligee takes it for value and in good faith; and

(b) to the extent that the transferee or obligee gave value to the insurer in exchange for the transfer or obligation.

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