Unauthorized postpetition transfers.
Utah Code § 31A-27a-503
in effect31A-27a-503. Unauthorized postpetition transfers.
(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.
(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.
Enacted by Chapter 309, 2007 General Session
Source: Utah Office of Legislative Research and General Counsel (le.utah.gov)URL: https://le.utah.gov/xcode/Title31A/Chapter27A/31A-27a-S503.html?v=C31A-27a-S503_1800010118000101Fetched: 10/26/2026